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The EV charging station market is projected to reach a value of USD 19.02 billion at a CAGR of 20.62% between 2022 and 2027. The market is experiencing positive growth, driven by various factors. The rising number of M&A activities and strategic partnerships among key players reflects the industry's efforts to enhance infrastructure and expand market reach. Government subsidies and incentives further incentivize the adoption of electric vehicles, spurring demand for charging stations. Additionally, the declining prices of lithium-ion batteries make EV ownership more affordable, contributing to the increasing need for charging infrastructure. These factors collectively propel the growth of the market, signaling a promising trajectory for sustainable transportation solutions.
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The market is witnessing rapid growth fueled by the increasing adoption of electric vehicles (EVs) worldwide. DC charging stations and ultra-fast chargers are revolutionizing the infrastructure, providing faster and more efficient charging solutions. Grid balancing and V2G EV charging technologies play a crucial role in optimizing energy usage and storage, contributing to environmental sustainability. The emergence of new technologies like wireless charging and autonomous charging robots is further driving market innovation. Tax exemptions and environmental awareness initiatives are encouraging governments and consumers to invest in EV technology, promoting the development of advanced battery technology and HPCS. Together, these factors are shaping the future of the market and facilitating the transition towards a greener transportation ecosystem.
The market is witnessing exponential growth driven by increasing EV sales and environmental awareness. EV prices are becoming more competitive, further stimulating adoption. However, challenges such as lack of standardization and regulations persist. AC and DC charging stations, along with innovative technologies like V2G charging and wireless charging, are enhancing the infrastructure. Ultra-fast chargers and Three-Phase Charger segments cater to diverse needs, while autonomous charging robots offer convenience. Tax exemptions and incentives for EVs encourage market growth. With a focus on grid balancing and energy storage, the market embraces advancements in lithium-ion battery technology to reduce carbon emissions. This market growth analysis report includes a detailed explanation of drivers, trends, and challenges that will help companies refine their marketing strategies to gain a competitive advantage.
Government subsidies and incentives are notably driving the market. Governments of various countries provide funding, incentives, and subsidies for the development of EV charging equipment and infrastructure. This is crucial for driving the sales of new energy vehicles such as BEVs and PHEVs. Governments are promoting the use of EVs, with growing concerns regarding environmental pollution and the depletion of conventional sources of energy.
Stringent regulations on vehicular emissions to reduce carbon dioxide, nitrous oxide, and other hydrocarbon emissions also play a key role in driving the sales of BEVs and PHEVs. For instance, in November 2021, the Government of Germany increased funding for residential charging station subsidies by USD 962 million to promote climate-friendly e-cars. China is the largest market for EVs and offers high subsidies for installing EV charging stations. Similarly, the Government of India revised consolidated guidelines and standards for the infrastructure issued by the Ministry of Power in February 2022. Therefore, support from governments is expected to drive the growth of the global market during the forecast period.
The vehicle-to-grid infrastructure for decentralized power generation is a key trend shaping the market. Vehicle-to-grid (V2G) is an advanced system that enables BEVs and PHEVs to communicate with the power grid. It enables the distribution of energy storage to the power grid. As a result, electricity stored in the batteries of BEVs and PHEVs can be sent back to the network. Such advanced infrastructure is expected to support the growth of the market during the forecast period.
Power systems have undergone significant changes over the years owing to the deregulation of the power industry, the introduction of the smart grid, and the expansion of power generation resources that are connected to the grid. Energy policies in developed markets focus on clean, affordable, and reliable energy supply. Therefore, power generation should be done using zero-carbon or low-carbon fuels or low-carbon fuels. Energy companies and other utilities engaged in the energy generation process are trying to accommodate fuels by altering the functionalities of grids. This will provide a higher level of transparency and control over the transmission and distribution of electricity. These factors will influence market growth during the forecast period.
The lack of operational infrastructure in emerging markets may impede market growth. Infrastructure plays a crucial role in the sales of EVs. However, the lack of efficient infrastructure for EVs, especially in emerging economies such as India, is impacting market growth. The lack of proper road infrastructure in these countries limits the wide-scale expansion of the infrastructure. As a result, the operations of EVs are limited to major cities. Governments are developing these stations to promote the use of electric commercial vehicles (CVs). However, most of them are slow-charging stations, and electric CVs have higher battery capacities than electric passenger cars.
Governments play a key role in developing the infrastructure. Various countries provide tax benefits and subsidies for the purchase of EVs. However, their focus on developing and providing better-charging infrastructure is low. For instance, in Europe, countries such as Germany and the UK do not have proper subsidies to push infrastructure development in proportion to their total annual EV sales and geography. These factors will pose a threat to market growth during the forecast period.
The market growth and forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ENGIE SA - The company develops innovative solutions and technologies for EV chargers
The market forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
In the type segment of the market, several factors shape the landscape of the market. EV sales growth drives the demand, with subsidies often incentivizing consumers to adopt electric vehicles. While driving range and EV prices influence consumer decisions, government initiatives like the NEVI Formula Program further encourage EV adoption by offering financial support. However, challenges persist, including the lack of standardization in these technologies. They represent one facet of this evolving market, providing slower but more accessible charging options for electric vehicle owners. As automakers continue to innovate and governments implement supportive policies, the diversity of charging station types will adapt to meet the evolving needs of the growing electric vehicle market.
The market share growth by the AC segment will be significant during the forecast period. AC stations for charging have fewer infrastructure requirements than DC stations for charging. These stations typically require low set-up, installation, and maintenance costs. Technavio expects that emerging markets will act as enablers for the segment during the forecast period, as the demand for PHEVs is gradually growing in emerging markets.
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The AC segment was valued at USD 3.13 billion in 2017 and continued to grow until 2021. In a station powered by AC, the current first flows from the AC charger to the onboard charger, which converts AC into DC, which is sent to the EV's battery pack. An onboard charger with a high power rating is required for AC fast charging. Such factors will drive the AC segment of the global market during the forecast period.
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The Asia-Pacific region is expected to dominate the market, accounting for approximately 55% of the total market share. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the market in APAC is attributed to factors such as high sales of BEVs and PHEVs in China, Singapore, Japan, and South Korea. The growing focus on alternative fuel vehicles in emerging Asian markets also enables the growth of the regional market. Moreover, stringent emission norms in emerging markets are pushing OEMs to expand their portfolio of BEVs and PHEVs. The deployment of electric buses and other EVs for private or public purposes by governments in APAC, as well as high requirements for reducing air pollution, is anticipated to drive the demand for EVs during the forecast period.
The market is witnessing remarkable growth driven by factors such as the increasing demand for EVs, driven by environmental awareness and tax exemptions. However, challenges like the lack of standardization persist, highlighting the need for solutions like the NEVI Formula Program. Automakers are investing heavily in EV technology and infrastructure, including AC and DC charging stations, V2G EV charging, and ultra-fast chargers to address concerns regarding driving range and charging times. Emerging technologies like wireless charging and autonomous charging robots are also gaining traction, promising to revolutionize the EV charging landscape and contribute to grid balancing efforts while reducing carbon emissions. Additionally, advancements in battery technology, particularly the lithium-ion battery, are further propelling market growth.
The market is experiencing significant growth attributed to the increasing adoption of electric vehicles (EVs) and the need for electric vehicle charging infrastructure solutions to address challenges like the lack of dedicated charging space. AC charging stations and Level 2 charging stations are crucial components of this infrastructure, catering to both residential and public charging needs. Automotive-related companies and new entrants like Ather Energy and Be.EV are investing in manufacturing activities to meet the rising demand. The market is also influenced by factors such as government regulations, emission and fuel economy norms, and sustainability initiatives, driving innovation in technologies like the lithium-ion battery and HPCS. However, challenges like high initial costs persist, necessitating collaborative efforts from industry players and policymakers to overcome them and promote the adoption of electric vehicles.
The market is witnessing rapid growth driven by factors such as increasing EV prices, the transition from fossil fuel electricity generation to sustainable energy sources like the Octopus Energy Generation, and advancements in Three-Phase Charger segment technology. Public charging stations and new technologies and initiatives like the Ather Grid are expanding the infrastructure solutions to support autonomous and shared mobility trends. However, challenges such as high initial costs and fluctuating power tariffs hinder market growth. Collaborative efforts between industry players and technological advances in fast charger segment and slow chargers are addressing these challenges, fostering the market's evolution from its nascent stage to a mature market characterized by end-use concentration and widespread adoption of fuel cell technology.
The market analysis and report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.62% |
Market growth 2023-2027 |
USD 19.02 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.95 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Alfen NV, Allego BV, Besen International Group Co. Ltd, BlinkCharging Co., ChargePoint Holdings Inc., Delta Electronics Inc., Eaton Corp. Plc, ENGIE SA, Enphase Energy Inc., EVBox BV, EVgo Services LLC, Helen Ltd., Leviton Manufacturing Co. Inc., Schneider Electric SE, Shell plc, Siemens AG, Tesla Inc., Volkswagen AG, and Webasto SE |
Market dynamics |
Parent market trends and analysis, Market growth and trends and inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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