Powering the Future with EV Charging Station
The global electric vehicle charging station market is projected to grow at a compound annual growth rate of 36.11%. Over the forecast period, this market is estimated to increase at a rapid pace and is anticipated to reach US$94,234.065 million in 2028 from US$10,887.717 million in 2021.
An EV charging station, which is sometimes referred to as a charge point or an electric vehicle supply equipment, is a piece of machinery that provides electricity for charging electric vehicle such as electric, buses, electric cars, electric trucks, plug in hybrids, electric bikes etc. Connectors that adhere to a number of international standards are offered by EV charging stations. The traditional locations for public charging stations include shopping malls, government buildings, and parking lots. Residences, businesses, and hotels are frequently where one may find private charging outlets. The global electric vehicle charging station market is categorised into various segments which include – the type of EV, the type of charging station and the geographical region.
The booming demand for electric vehicles by consumers is supporting the growth of the EV charging stations market during the analysis period.
Major advancements in technology are altering how various organisations and companies view their position in the transportation economy, together with rising awareness of the importance of clean and sustainable energy. This is causing enormous demand for electric vehicles and thereby creating new opportunities for EV charging stations businesses to have a bigger influence on the market.
The adoption of electric vehicles is speeding up thanks to rising customer demand, significant OEM investment, and increased government assistance. According to a report published by International Energy Agency, only approximately 17,000 electric vehicles were on the road worldwide in 2010. There were 7.2 million electric cars in operation in 2019 which is a 42,000 per cent growth. The same report also says that the sales of electric vehicles nearly doubled to 6.6 million, representing a sales share of approximately 9 per cent, compared to 2020, To reach 16.5 million electric vehicles or EVs on the road. In 2021, the sales proportion of electric vehicles rose by 4 percentage points. According to the Net Zero Emissions by 2050 Scenario, there will be more than 300 million electric vehicles on the road by 2030, and they will make up 60% of all new car sales.
The need for more charging stations only increases as the market share of electric vehicles rises. The growing presence of EV charging station companies is also driving the growth of the global market. For instance, in 2021, there were about 1.8 million publicly accessible charging stations. In 2021, more than 500 000 chargers were added, surpassing the total number of public chargers accessible in 2017. Companies that provide EV charging services are responsible for this quick proliferation, and they do much more than just set up charging stations. For example, EV Connect an American EV charging company provides any company that wants to instal a charging station with a comprehensive charge management solution.
According to the research and analysis, out of all the type of charging stations, DC charging station is expected to substantial market proportion, during the anticipated period.
Based on the type of charging station the market for EV charging stations is categorized into AC-type charging stations and DC-type charging stations. This onboard charger or AC charging station receives AC electricity from the grid, which it uses to generate DC power to charge the battery. By integrating the converter into the charging station rather than the car to get around the size and weight limits, DC chargers enable greater power charging.
Out of all these mentioned above DC charging stations are anticipated to account for a major share of the global market during the analysis period due to their ability to charge rapidly. Rapid charging is possible along busy roads at stations equipped with direct-current fast charging technology. Depending on the kind of charge port on the car, there are three different types of direct current fast charging systems which include SAE Combined Charging System, Tesla and CHAdeMO.
Due to the adoption of medium- and heavy-duty electric vehicle by fleets such as public and commercial buses, trucks and other modes of transportation, as well as the construction of fast charging hubs for transportation network firms, and other uses, DC fast charging is expected to rise. For instance, the data from the US Department of Energy shows that over 15 percent of public EV charging ports in the United States had DC fast chargers as of 2021.
During the analysis period, high initial investment, lack of appropriate infrastructure and stringent rules and regulations by govt for setting up charging stations are anticipated to obstruct the growth of the global EV charging station market.
The cost of installing the EV charging station is rather significant. In order to build up the EV charging infrastructure, some conditions must be met, including the suitable site, land, vendor, grid power stability, power remittance, variety of charger types, cables, and other auxiliary equipment. Electric car charging stations are expensive to establish. The cost of a level two charger in a public station can be as low as US$2,500 and as high as US$35,800. These pricing ranges exclude installation fees and “soft costs” such as navigating the application process, laws, and utility hookups. Therefore high initial investment associated with the construction of an EV charging station is one of the primary factors obstructing the growth of the market during the forecast period.
Other factors such as lack of appropriate infrastructure, stringent rules and regulations, finding technical safety and other software-related issues, especially in emerging economies such as India are also restricting growth.
During the analysis period, out of all the geographical regions the market is segmented into the North America region is likely to account for a rapid growth rate in the global EV charging stations market.
The global low noise amplifiers market has been divided into five regions: North America, South America, Europe, the Middle East and Africa, and Asia Pacific. During the projected period, the North American EV charging station market is expected to grow significantly during the aforementioned period. The explosive adoption of electric vehicles in countries the United States and Canada are fuelling driving growth of the market in this region. For instance, according to official data, by 2030, there will be 27 million electric vehicles in the US, and by 2040, there will be 92 million. Comparatively, 3 million EVs are expected to be sold in 2022. Government initiatives are also providing support for market growth. The 2021 Infrastructure Investment and Jobs Act, which allocates $7.5 billion for EV charging infrastructure, gave the industry for charging electric vehicles a much-needed boost. Recent developments include California’s announcement that it will restrict the sale of new internal combustion engine-powered vehicles by 2035 and the Inflation Reduction Act’s provision of tax credits for both new and used electric passenger and commercial vehicles. Prime markets in the North American region include the United States, Canada and Mexico.
