Automotive

EV Charging Infrastructure Market Growth 34.49% by 2027

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The EV Charging Infrastructure Market is expected to grow at a noteworthy compound annual growth rate (CAGR) of 34.49% between 2021 and 2027, according to Vision Research Reports.

The global electric vehicle charging infrastructure market size was valued at USD 14.90 billion in 2020 and is estimated to reach USD 115.47 billion by 2027.

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Growth Factors

The electric vehicle charging infrastructure market growth driven by an increase in the number of public and private sector efforts aimed at encouraging people to switch to electric vehicles. As a result, the need for electric vehicles charging infrastructure is likely to rise significantly. The demand for electric vehicles has risen in accordance with the growing awareness of environmental sustainability and strict emission restrictions imposed by numerous governments. While private firms focus on manufacturing novel electric vehicle chargers and building charging stations, governments are continuously striving with these companies to provide electric vehicle charging infrastructure. All these factors are boosting the demand for charging infrastructure in the market.

Increased demand for fuel-efficient and environmentally friendly vehicles, combined with government support, will drive the electric vehicle charging infrastructure market forward. Consumers in developing countries are already feeling the pinch of rising fuel prices. Electric vehicles will be powered by electricity, which is expected to lower their operating costs. To drive the growth of the electric vehicle charging infrastructure market, the government’s continued support, as well as the growing number of electric vehicle users and the lower initial cost of current electric vehicles charging technology, will be required, as will high R&D to further reduce charging time.

The COVID-19 pandemic has spread throughout the world, posing a threat to the electric charging infrastructure market. The global expansion of COVID-19 had an influence on almost every industry. The lockdowns were enacted by governments in numerous countries, requiring citizens to stay at home and reducing physical connection between people. Many companies have permitted their staff to work from home in order to maintain work continuity during the COVID-19 pandemic, which is expected to stymie the market. The growing usage of remote working routines is expected to stifle the automobile industry’s expansion, hindering the growth of electric vehicle charging infrastructure market.

In this study, the years considered to estimate the market size of Electric Vehicle Charging Infrastructure are as follows:

  • Historic Year: 2017-2020
  • Base Year: 2021
  • Forecast Year 2021 to 2030

Market Dynamics

Driver

Surge in number of electric vehicles charging stations

The rapidly evolving electric vehicle market is propelling innovation in electric vehicle technology and infrastructure. Electric vehicles provide numerous benefits, including lower fuel consumption and emissions from vehicle engines, which boosts their global demand. This, in turn, is expected to increase the demand for electric vehicle charging infrastructure, fueling the market growth. The charging stations are being rapidly developed as part of government initiative programs, and electric vehicle manufacturers are collaborating on the development of charging stations in parking lots. To increase electric vehicle sales, electric vehicle manufacturers are focusing on the installation of charging stations for electric vehicles similar to petrol pumps. Thus, the surge in number of electric vehicles charging stations is propelling the growth of electric vehicle charging infrastructure market.

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Restraint

High maintenance costs

Electric vehicles are typically more expensive than gasoline vehicles. This is due to the additional components installed in these vehicles. Because some parts of these vehicles wear out faster than petrol vehicles due to a lack of lubrication in most of these vehicles, these vehicles require much more regular maintenance over time and thus cost more in the long run. Furthermore, the parts must be replaced on a regular basis, as opposed to petrol vehicles, which typically have a longer life for such parts. As a result, only people who drive a lot every month prefer electric vehicles. Also, as maintenance costs for electric vehicles are high, the cost for maintaining charging infrastructure is also high. It requires good amount of funds and time to maintain charging stations. Therefore, lots of capital is required for operation and maintenance of electric vehicle charging infrastructure. Thus, the high maintenance costs is restricting the growth of the electric vehicle infrastructure market.

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Opportunities

Government initiatives for the growth of electric vehicle charging stations

The market for electric vehicle charging infrastructure is expected to expand over time as government bodies in various countries increase their support by various policies and subsidies. Many countries, including the U.S., the UK, and China, have recognized the need to switch to electric vehicles in order to reduce the increasing pollution caused by automobiles. These countries have taken initiatives to improve the charging network across their states to make it easier for people to switch to electric vehicles, and they have promoted this segment through incentives, tax breaks, and preferential policies. China, the U.S., and a few European countries have subsidized the installation of electric vehicle charging stations in residential complexes, semi-public areas, and private homes, among other places. Thus, the continuous government initiatives for the growth of electric vehicle charging stations are providing lucrative opportunities for the growth of electric vehicle charging infrastructure market. 

Challenges

Increase in demand for LPG and CNG vehicles

The factors such as rising demand for low-emission commuting and government subsidies and tax breaks for compressed natural gas (CNG) and liquified petroleum gas (LPG) vehicles have compelled manufacturers to provide CNG and LPG vehicles globally. Increased government investments in developing CNG and LPG infrastructure, as well as buyer incentives, will provide opportunities for original equipment manufacturers (OEMs) to diversify their revenue streams and geographical presence. Furthermore, as countries around the world have become more concerned about reducing emissions, the demand for low-emission fuel vehicles such as CNG and LPG vehicles is expected to rise. As a result, the increase in demand for LPG and CNG vehicles is expected to hinder the growth of electric vehicle infrastructure market.

Report Highlights

The fast charger type segment led the market and accounted for more than 93.0% share of the global revenue in 2020. The growth was attributed to the high demand for the deployment of fast chargers in commercial stations. Most of the organizations have deployed Level 1 DC fast chargers or Level 2 AC charging stations that can fully charge an EV within 4 to 6 hours. Besides, automotive manufacturers are focusing on the installation of EV charging stations for their employees as part of the efforts to raise awareness about their electric cars. For instance, the installation of 100 Level 2 EV charging stations at the parking lots of General Motors Company’s Detroit facility has led to an increase in demand for the company’s Chevrolet Volt electric cars from the employees.

The slow charger segment is estimated to register the fastest CAGR from 2021 to 2030 owing to the initiatives by various governments for accelerating the deployment of public charging infrastructure, which mostly employs the slow chargers. Furthermore, slow chargers are mostly adopted by residential applications, which are used for overnight charging. Moreover, most of the EV manufacturers, such as Volkswagen Group, BMW of America, and General Motors, provide slow chargers along with the purchase of EVs, which is further driving the segment growth.

The CHAdeMO connector segment accounted for a significant market share of more than 17% in 2020. This is primarily due to its compatibility with a majority of EVs (including BMW, GM, and VW, among other models) and convenience of handling it. Furthermore, it offers flexibility in designing EVs, as it requires only a single port for recharging; whereas, CHAdeMO connectors require two charging ports due to their incapability to support AC charging. Additionally, the present CHAdeMO connectors are capable of delivering 62.5 kW of DC and are specified by the Japan Electric Vehicle Standard (JEVS).

The commercial segment accounted for the largest revenue share of over 84% in 2020 owing to the initiatives and allocation of funding by the governments and automobile manufactures for expanding the public EVCI infrastructure. Furthermore, the development of supporting infrastructure at public places is necessary as overnight charging or charging at homes would not be sufficient for long-distance travel. Furthermore, several public transport agencies are partnering with automotive manufacturers for the installation of charging stations for electric buses. For instance, TRAFIKSELSKABET MOVIA signed an agreement with Siemens for the installation of electric bus charging stations with a top-down pantograph for electric buses operated by 45 municipalities, including the City of Copenhagen and Region Zealand.

Various manufacturers of EV chargers, such as Efacec; EVE Australia Pty Ltd.; and Tesla, Inc., are partnering with contractors that are developing residential complexes. For instance, in October 2020, the Pend Oreille Public Utility District announced the launch of a new EV charging pilot system with SemaConnect Inc. This charging station will enable visitors of PUD’s Newport Administration Building to charge their electric cars for free. Vehicle charger manufacturers are now focusing on the development of residential and commercial EV chargers to ensure higher availability and increased vehicle range. OEMs are collaborating with EV manufacturers, charging network operators, corporates, and utility service providers to deploy fast-charging stations to expand their geographical presence and to enable cost-effective deployment of the EV charging network.

Regional Snapshots

The fastest growing market for electric vehicle charging infrastructure is Asia-Pacific. The presence of massive production bases in countries such as China, Japan, and India, as well as improved government subsidies, are mainly responsible for the rapid expansion. In developing regions, the development of plug-in automobiles is considered as a symbolic step toward fulfilling national aspirations for more ecologically friendly transportation. The government of Asia-Pacific countries has proposed an investment plan to assist public infrastructure.

Asia Pacific led the global market in 2020 and accounted for a revenue share of more than 58%. Countries, such as China, Japan, and South Korea, are the hub of EVs and are heavily investing in the development of charging infrastructure. For instance, in October 2015, the Chinese Government announced its intention to invest in the deployment of EV infrastructure to accomplish the target for supporting 5 million EVs, on-road, by 2020. South Korea announced an investment of around USD 180.3 million for expanding the EV charging infrastructure across the nation as its endeavor to promote eco-friendly vehicles in the transportation sector. Moreover, Japan’s electric charging station surpassed the number of petrol stations with more than 40,000 charging outlets in 2020.

Key Players

  • AeroVironment, Inc.
  • ABB
  • BP Chargemaster
  • ChargePoint, Inc.
  • ClipperCreek, Inc.
  • Eaton Corp.
  • General Electric Company
  • Leviton Manufacturing Co., Inc.
  • SemaConnect, Inc.
  • Schneider Electric
  • Siemens AG
  • Tesla, Inc.
  • Webasto SE

Market Segmentation

  • Charger Type Outlook 
    • Slow Charger
    • Fast Charger
  • Connector Outlook
    • CHAdeMO
    • Combined Charging System (CCS)
    • Others
  • Application Outlook
    • Commercial
    • Residential
  • Regional Outlook 
    • North America
      • U.S.
      • Canada
    • Europe
      • The Netherlands
      • U.K.
      • France
      • Norway
      • Germany
    • Asia Pacific
      • China
      • Japan
      • South Korea

Reasons to Purchase this Report:

– Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
– Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
– Market value USD Million and volume Units Million data for each segment and sub-segment
– Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
– Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2030);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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Steve Robber

My name is Steve Robber, I’m the Owner of Market Stats News. Steve has served in many positions at various organizations for the past seven years. Currently he is an Author at Finance.Yahoo. Contact us for a free news publication, we look forward to speaking with you!

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