Report Overview
The global electric vehicle charging infrastructure market size was valued at USD 15.06 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 33.4% from 2022 to 2028. The rising levels of carbon emissions and other harmful gases stemming from transportation have triggered the necessity of adopting EVs. As a result, the demand for an EV charging infrastructure among commercial and residential applications is rising. The technological progress of both EV charging software and hardware is expected to change the way EV owners use and benefit from EV charging applications. Technologies, such as Smartcar API and charging networks, precisely determine an EV’s charge time even before the car driver plugs the car into a station.
In addition, green energy is expected to play a significant role in both the public and residential EV charging space. Electric vehicle owners are majorly concerned about carbon emissions. To address these concerns, companies are making rapid advancements in the charging technologies of their EV charging networks. The market penetration of EV charging equipment is significantly high in commercial spaces as compared to residential places. The number of commercial charging stations is predicted to increase in line with the growing adoption of EVs.
Efforts toward strengthening the charging infrastructure in commercial spaces would be decisive toward encouraging the adoption of electric vehicles, as overnight charging at residential complexes or individual homes would not be sufficient for long-distance journeys. Moreover, public charging infrastructure would also facilitate the ultra-fast charging capabilities necessary for long-distance journeys. However, EV chargers for residential spaces can also offer significant growth potential as they provide a cheaper and convenient mode of EV charging as compared to commercial charging stations.
Major manufacturers are collaborating with car rental service providers to integrate chargers into the existing infrastructure. For instance, in January 2020, Eaton Corp. announced its partnership with Green Motion car rental service provider to provide integrated chargers into the building with energy storage. Various automotive manufacturers, such as Volkswagen Group, BMW Group, and General Motors, are investing in the development of Car2X technology for charging infrastructure that is further driving the market. Countries, such as France, India, the Netherlands, and Canada, have introduced several campaigns to boost the adoption of EVs.
However, due to the COVID-19 outbreak, the global automobile industry is expected to face a slowdown as several countries across the globe have restricted the production of EVs. This is expected to hinder the market growth. As governments across the globe are focusing on emerging from this global pandemic with a stronger and more resilient economy, EVs are expected to continue to gain significant attention. For instance, in the U.S., California is emerging with strong EV production targets, which is expected to have a positive impact on EV charging infrastructure market growth.
Charger Type Insights
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 2028 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.
Connector Insights
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 CCS segment is expected to grow at the fastest CAGR over the forecast period owing to increased preference for CCS connectors by major automobile manufactures. For instance, in July 2019, Tesla announced the introduction of a CCS connector to support Model 3, with expected near future compatibility with Model S and Model X in Europe. Furthermore, CCS connectors are available in two types, usually denoted as CCS Type1, and CCS Type 2. CCS Type 1 connectors are extensively utilized in the U.S. while CCS Type 2 are utilized in Europe. Moreover, the support from major auto manufacturers and OEMs, including Daimler AG, Ford Motor Company, General Motor Company, and Volkswagen Group, is expected to drive the CCS segment over the forecast period.
Application Insights
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.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.
