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The EV charging station market is projected to reach a value of USD 31.28 billion in 2027 with a CAGR of 20.62% between 2022 and 2027. The growth of the market depends on several factors, including the increasing number of M&A and strategic partnerships, government subsidies and incentives, and declining prices of lithium-ion batteries.
|Market Size (2017) Historic Year
|USD 5.33 billion
|Market Size (2027) - Forecasted Year
|USD 31.28 billion
|Historic Opportunity (2017-2021)
|USD 4.97 billion
|Forecasted Opportunity (2023-2027)
|USD 19.02 billion
|Market Opportunity Transformation Growth
|Market Opportunity Capitalization
|USD 23.99 billion
Global Market Trends and Forecast
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It is predicted that electric vehicle ownership will increase significantly, driving the demand for EV charging stations to new heights. 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 charging 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.
Government Initiatives and Policies
Governments around the world are actively promoting the development of charging infrastructure to support the growing demand for electric vehicles. Governments globally are spearheading electric vehicle (EV) market growth through strategic initiatives and policies. In Asia Pacific, some nations emulate Norway's success in fostering electric mobility. Market trends and analysis underscore the sector's evolution, with Italy and other regions adapting to new modes of transportation. This shift caters to environmentally-conscious customers, prompting automakers worldwide to align their strategies with government directives. The concerted efforts across the globe are propelling electric mobility and reshaping the automotive sector.
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 EV charging 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.
Future Growth Opportunities
The future of the market looks promising, with advancements in wireless charging technology and the integration of renewable energy sources. As marketplaces witness dynamic shifts, strategic forecasting becomes crucial for anticipating EV charger market growth and trends. Expanding markets open avenues for innovation and investment, emphasizing the need for businesses to stay attuned to emerging opportunities within this transformative sector.
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 charging 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 EV charging infrastructure. As a result, the operations of EVs are limited to major cities. Governments are developing charging 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 charging 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
The escalating demand for electric vehicles can be attributed to the growing concerns surrounding pollution generated by conventional internal combustion (IC) engines. This environmental consciousness is steering consumers towards cleaner and more sustainable mobility options, propelling the EV market's growth in the coming years.
The market is experiencing rapid growth due to the increasing adoption of electric vehicles. Rapid chargers, which provide high-speed charging, are gaining popularity in the market. Many companies are investing in research and development to improve charging efficiency and develop advanced technologies for EV charging stations.
The market, driven by notable developments and investments, showcases a remarkable growth rate. A recent study highlights the Netherlands as a key player. Businesses and consumers, influenced by the pandemic, actively contribute to the rising demand for electric vehicles. Strategic investment in infrastructure and charging availability underscores the sector's evolution. The collective efforts in advancements and accessibility position electric vehicles as a growing market, reflecting the intersection of investments, developments, and consumer-driven shifts.
Vendors 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 vendors, 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.
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 charging 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. For AC fast charging, an onboard charger with a high power rating is required. 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.
Emerging technologies are reshaping the market, fueling electric vehicle adoption and sustainable transportation. Innovations in battery technology drive clean energy use, with charging station manufacturers leading charging infrastructure development. As the market grows, the charging market witnesses unprecedented growth and trends. Market forecasts highlight the pivotal role of advanced electric vehicle chargers, emphasizing the evolving landscape of the EV charging market.
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.
Growth momentum & CAGR
Accelerate at a CAGR of 20.62%
Market growth 2023-2027
USD 19.02 billion
YoY growth 2022-2023(%)
APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution
APAC at 55%
US, China, Germany, UK, and France
|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, Blink Charging 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
Parent market analysis, Market growth 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
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