Electric Vehicle Supply Equipment Market Size, Share & COVID-19 Impact Analysis, By Charging Type (Level 1, Level 2, Level 3), By Charging Station Type (Normal Charging, Supercharging, Inductive Charging), By Installation Type (Portable Charger, Fixed Charger), By Application (Commercial, Residential), and Regional Forecasts, 2021-2028

The global electric vehicle supply equipment market size was USD 24.52 billion in 2020 and is projected to grow from USD 31.23 billion in 2021 to USD 208.34 billion in 2028 at a CAGR of 31.1% over the forecast period. The global impact of COVID-19 has been unprecedented and staggering, with electric vehicle supply equipment witnessing a negative impact on demand across all regions amid the pandemic Based on our analysis, the global market exhibited a steady growth of 20.4% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the crisis is over.

Electric vehicle supply equipment (EVSE) assembles components to charge EVs in several commercial and residential locations including bus depots, hotels, parks, highways, corporate offices, and homes. Electric vehicle (EV) supply equipment is an assembly installed to securely deliver electrical energy to the EV for recharging batteries. The market development is supported by growing number of private and public initiatives to stimulate EV adoption. Some governments provide incentives, such as tax benefits and subsidies, to encourage EV adoption

Further, EVSE systems include communication protocols, software, electrical conductors, and related equipment that deliver energy safely and efficiently to the vehicle. One of the key factors driving the growth of the global market is the rising adoption of electric vehicles. For instance, according to the International Energy Agency (IEA), global electric vehicles sales increased by 41% to about 3 million electric cars in 2020. Despite the COVID-19 pandemic-related worldwide downturn in car sales, global passenger car sales dropped 16% in 2020. Furthermore, the increasing emphasis of different automobile manufacturers and governments toward improving the performance of charging infrastructure is further projected to boost the market growth over the forecast period.

Major Shutdown of all Operations in EVSE Manufacturing to Slow Down Market Growth Amidst COVID-19 Pandemic

The COVID-19 crisis has impacted nearly every industry, and automobile manufacturers and EVSE companies are no exception. Companies and original equipment manufacturers (OEMs) in some countries were shut down to control and overcome the COVID-19 situation. This shut down largely impacted the economic situation, precisely of developing nations. Restriction enforced by governments on import-export activities, travel, and other lockdown measures substantially disrupted the supply chain, thereby resulting in halt in production as most of the raw materials for automotive production was supplied from Asian countries. Therefore, EVSE manufacturers cannot achieve the deadline for the electrification of automotive vehicles due to disruption in investments and liquidity for the EVSE segment. These factors will hamper the demand for electric vehicle charging equipment that will restrain the market growth.

LATEST TRENDS

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Increasing Electric Vehicles Penetration to Drive Market Growth

The high cost of crude oil and limited availability of non-renewable sources enhance market penetration for EVs. Over the past decade, the growing carbon emission by internal combustion engine (ICE) vehicles has been a key concern for government authorities. The sustainability move toward smart cities is one of the major factors responsible for adopting eco-friendly transportation. Electric vehicles operate on battery-generated current and non-fuel, which allows the consumer to shift from traditional fuel-based vehicles mainly due to the economical maintenance of EVs. Thus, an increase in market penetration of electric vehicles is expected to boost the EVSE market growth in the coming years

DRIVING FACTORS

Favorable Government Policies and Subsidies that Propel Market Growth

Governments in major countries across several regions have imposed stringent rules and regulations for carbon dioxide (CO2) emission standards that augmented the demand for electric vehicles worldwide. The governments are taking several initiatives such as an exemption in import tax, road tax, purchase tax, and low or zero registration fees. Apart from offering subsidies, several governments are also making favorable guidelines and regulations for developing the electric vehicle charging infrastructure.

For instance, the Scottish government invested USD 30 million from 2011 to 2019 to develop electric vehicle charging infrastructure and has installed around 1,000 publicly available electric vehicle charging points across Scotland. The same trend can be observed in other European countries, such as Germany and Norway. The companies in these countries are investing comprehensively to promote electric vehicles sales. Thus, massive subsidies and incentives on the adoption of EVs are expected to drive the EVSE market growth in the coming years.

RESTRAINING FACTORS

High Installation Cost May Restrain Growth

The cost of installing electric vehicle charging infrastructure is quite high. High cost and charging infrastructure limitation are major restrains that hamper the electric vehicle charging infrastructure market growth. Charging electric vehicles require fixed space and an individual to maintain the charging infrastructure and charging point. This cost becomes the key issue, making the charging station finance unfeasible. Also, several governments have imposed certain restrictions on the per-unit price charged to the EV driver, hampering the EV charging point owner’s business. This factor may hamper the electric vehicle supply equipment market growth from 2021 to 2028.

SEGMENTATION

By Charging Type Analysis

Level 2 and Level 1 Segment to Dominate Owing to Increasing Adoption of Chargers

Based on charging type, the electric vehicle supply equipment market share is split into level 1, level 2, and level 3.

In 2020, the level 2 segment held the major share in the global market and will record robust gains through 2028.

The growth of level 2 and level 1 segments is influenced by the increasing Public-Private Partnerships (PPP) efforts aimed towards developing level 2 and level 1 DC electric vehicle charging infrastructure across commercial spaces. In, DC charging stations enable faster EV charging compared to their AC counterparts. As a result, there is growing adoption of level-1 DC chargers across low emission zones in North America and Europe.

By Charging Station Type Analysis

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Normal Charging Segment to Dominate Owing to Rising Investments for Development of Public Charging Infrastructure

Based on charging station type, the market is segmented into normal charging, supercharging, and inductive charging.

The inductive charging segment is anticipated to be the fastest-growing market in the coming years due to ongoing research and development (R&D) activities in the field of wireless charging technologies. Furthermore, the adoption of electric vehicles, ridesharing, and driverless cars projected to use wireless charging technology in the forthcoming years is likely to drive the segmental growth.

In 2020, the normal charging segment holds a major share in the global market. The normal charging segment's growth is due to supportive initiatives and investments by governments towards developing new public charging infrastructure across Beijing, Melbourne, Amsterdam, and other major cities. Moreover, there has been a substantial rise in the demand for EVs with in-built onboard charging stations.

By Installation Type Analysis

Fixed charger Segment to Grow Rapidly Owing to Increasing Demand for Fixed Charger

Based on installation type, the market is segmented into fixed charger and portable charger.

The fixed charger segment is projected to be the fastest-growing market from 2021 to 2028. Several governments are focusing on long-term contracts for the development, installation, maintenance, and operation of fixed charging stations. Moreover, there has been a noteworthy rise in demand for fixed chargers for electric cars and trucks covering longer distances. Fixed charging stations offer benefits such as reduced downtime of vehicles and advanced charging process.

By Application Analysis

Commercial Segment Anticipated to Dominate Owing to Increasing Investment for Development of EV Charging Station in Public Spaces

Based on application, the market is segmented into residential and commercial.

The commercial segment is projected to be the fastest-growing market from 2021 to 2028. This growth is attributable to the increasing number of electric vehicle charging stations in public spaces such as airports, railway stations, parking areas, commercial buildings, restaurants, and shopping malls. Government initiatives such as the West Coast Electric Highway (WCEH), Norway to Italy Electric Highway, and Trans-Canada highway project for the installation of publicly accessible charging stations are driving the segment growth over the forecast period.

REGIONAL INSIGHTS

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Asia Pacific dominated the market with China accounting for most of the market share and valued at USD 9.43 billion in 2020. The region dominates the global market owing to increased government funding and technological advances and increased investment in electric vehicle charging infrastructure. Further, there is increasing emphasis of governments of China, India, South Korea, and Japan toward the adoption of EVs and supporting EV charging infrastructure to motivate several major players along with startup companies to develop new electric vehicle charging infrastructure in partnership with the regulatory bodies.

Europe is expected to be the fastest-growing market over the forecast period. Several European countries such as the Netherlands, Norway, the U.K., Germany, and France have set goals to increase electric car deployment and reduce carbon emissions, thereby driving the deployment of electric vehicle charging stations in the region. Further, growing PPP projects for the development of electric vehicle supply equipment at highways are anticipated to drive the market in Europe.

KEY INDUSTRY PLAYERS

The market is highly competitive, with key market players such as Siemens, Leviton Manufacturing Co., Inc., Eaton Corporation, Chargemaster PLC, ClipperCreek, Inc., ChargePoint, Inc., and ABB Ltd. These market players invest heavily in R&D for the development of innovative products and adopt acquisition strategies to gain traction in the market. Moreover, several key manufacturers are concentrating on acquiring long-term contracts with governments to increase their share in the EVSE market.

LIST OF KEY COMPANIES PROFILED:

• ABB Ltd. (Zurich, Switzerland)


• ChargePoint, Inc. (California, U.S.)


• ClipperCreek, Inc. (California, U.S.)


• bp pulse (Milton Keynes, U.K.)


• Eaton Corporation (Dublin, Ireland)


• Leviton Manufacturing Co., Inc. (New York, U.S.)


• SemaConnect, Inc. (Maryland, U.S.)


• Schneider Electric SE (Rueil-Malmaison, France)


• Siemens AG (Munich, Germany)


• EVgo Services LLC (California, U.S.)

KEY INDUSTRY DEVELOPMENTS

• August 2021 – Ez4EV Private Limited Launched EzUrja Mobile Charging Stations Ez4EV Private Limited is an India-based battery storage and charger development company that launched an on-demand mobile charging solution EzUrja for electric vehicles. This solution is managed as an Internet of Things (IoT) device and follows an innovative electric vehicle 'Charging-on-Demand' approach, permitting remote condition monitoring and organization of operations.


• March 2021 – Shell Plans To Launch 500,000 Electric Charging Stations by 2025 Shell announced its plan to increase its present 60,000 EV charging stations network to about 500,000 charging stations by 2025.

REPORT COVERAGE

An Infographic Representation of Electric Vehicle Supply Equipment Market

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The market research report provides a detailed electric vehicle supply equipment market analysis and focuses on key aspects such as leading EVSE companies, charging types, and leading applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market's growth over recent years.

Report Scope & Segmentation