Lack of access to efficient charging tools may become a bottleneck to selling electric vehicles (EVs). Therefore, the need of an hour is to set up EV charging stations every few miles, especially with low costs and subsidies provided by governments for electric vehicle purchase. Moreover, the smart city concept will further escalate the demand for having substantial automotive infrastructure facilities even in remote areas. All these factors are expected to drive the growth of the EV charging station market to witness the highest gains of about 44.1% between 2021 and 2028.
As per the report by Zion Market Research - Global Electric Vehicle Charging Station Market - by application, charging, and by standards -Industry Perspective, Comprehensive Analysis, and Forecast, 2021 – 2028, the industry saw a revenue of about $ 5.02 billion in 2020 and is slated to accrue earnings worth approximately $ 40.10 billion by 2028.
According to the report, millions of EVs are projected to hit roads in the coming decade, culminating in a humungous necessity for fast charging, thereby driving EV charging station market trends. In addition to this, with the industry becoming highly competitive, providers must differentiate their services and adopt effective service recovery strategies.
The sale of battery EVs is set to increase by over 26% yearly by 2030. Moreover, reduction in battery costs and overall ownership costs, along with the rise in electrification of fleet and standard norms & protocols for regulating fuel emissions by the EU and countries such as the US, has enhanced the popularity of EVs across the globe, thereby driving industry growth. In addition, green energy trends worldwide will further enhance the expansion of the EV charging station industry over forecasting years.
The research firm said that growing concerns about fuel emissions and renewable energy trends are projected to steer the growth of the electric vehicle charging station market over the forecast timespan.
Due to the COVID-19 outbreak, governments across the globe are focusing on healthcare activities and bringing improvement in automotive infrastructure and reducing fuel emissions. This, in turn, will further steer the expansion of the EV charging station market over the years ahead. Apart from this, government incentives promoting the use of electric automotive and increasing production of EVs to reduce greenhouse effects will define the growth of the EV charging station industry over the years ahead.
Furthermore, there is a significant surge in the percentage of public charging activities at service stations, retailer parking lots, and public parking spaces in developed economies. This is likely to translate into the expansion of the EV charging station industry over forecasting timespan. It is more likely that public charging points in Europe are predicted to increase manifold in coming years, which will steer overall market growth in upcoming years.
Some of the key players in the market include Engie, ABB, AeroVironment, ChargePoint, Schneider Electric, Siemens, Tesla, EVgo, Alfen, and Blink Charging.
Europe To Be The Major Contributor
The growth of the EV charging station market in Europe can be credited to large-scale demand for electric charging from public and private charging stations. The 27 member states of the EU generate nearly 3,000 TWh of electricity each year, with demand for EVs accounting for only slightly over 0.1%. Reportedly, at 86 TWh, the demand for charging EVs will contribute below 3% of overall electricity production by 2030, increasing demand for electricity. Nonetheless, it is projected that nearly 40 % to 50% of the power supply for EV charging will be supplied by public chargers (including those based at semi-public stations like supermarket parking locations) at reasonable charges. All these aspects will steer the growth of the EV charging station market in Europe, the report added.
Courtesy: Zion Market Research. NB: Photo is representational; courtesy: Audi.