(Aviation-NewsWire.Com, July 27, 2022 ) According to a new market research report titled “Electric Vehicle Charging Stations Market by Charging Type (Level 1, Level 2, DCFC), Connection Type (Pantograph, Connector, Wireless), Component (Hardware, Software, Services), Mounting Type (Wall, Pedestal, and Ceiling) Vehicle Type, End-user, and Geography— Global Forecast to 2028”, published by Meticulous Research®, the electric vehicle charging stations market is expected to grow at a CAGR of 26.4% from 2021 to 2028 to reach $103.6 billion by 2028. By volume, this market is expected to grow at a CAGR of 31.1% from 2021 to 2028 to reach 11.6 million units by 2028.
The report defines electric vehicle charging stations as a site where one or more EVSEs (Electric Vehicle Supply Equipment) are installed. These sites can be residential or commercial. These stations provide electric power to the vehicle. Electric vehicle charging stations commonly called charging dock, charging pile, or EVSE, include the electrical conductors, related equipment, software, and communications protocols that deliver energy efficiently and safely to the vehicle.
The growth of this market is backed by the government initiatives to drive the adoption of electric vehicles and associated infrastructure, rising demand for electric vehicle fast-charging infrastructure, increasing prevalence of range anxiety, and increasing deployment of EVs by shared mobility operators. Moreover, increasing R&D in V2G technology, increasing adoption of electric mobility in emerging economies, and growing deployment of charging stations by retail MNCs provide significant opportunities in this market. However, the high initial cost of installation obstructs the growth of this market to some extent. High electricity tariffs in developing economies is a major challenge for the growth of the electric vehicle charging stations market.
The Impact of COVID-19 on the Electric Vehicle Charging Stations Market
The COVID-19 pandemic outbreak has caused a widespread economic downturn. Several countries imposed strict lockdowns to contain the infection, thereby leading to the shutdown of manufacturing industries and disruptions in supply chains and production schedules. There has been a significant impact on technology supply chains globally. The economic slowdown has significantly disrupted the automotive industry, causing rapid declines in light vehicle sales. The light vehicles market experienced a decline in revenue close to 20% in 2020. Furthermore, shifts in consumer purchasing behavior due to uncertainty surrounding the pandemic are expected to have significant consequences for the industry's near-future growth. Meanwhile, shortfall and cash crunch have already affected fleet operators' sales, which is expected to widen further in the coming months.
There has been around a 12% decline in the revenue generated by EV charging station solution providers in 2020 as the demand for electric vehicle charging infrastructure has been impacted significantly. Major investments for deploying EV charging infrastructure have halted since most EVSE manufacturers worldwide have been affected due to government restrictions and nationwide lockdowns. For instance, in the U.K., ubitricity and Pod Point halted the construction of new charging stations for the second phase of the Go Ultra Low City Scheme. Similarly, Rolec Services announced temporary suspension of the manufacturing of EV charging stations in the U.K. due to COVID-19 restrictions. These developments have negatively impacted the electric vehicle charging stations market globally since EV charging stations have high installation costs, and market stakeholders have halted the investments in this space.
However, most governments from affected regions have turned to infrastructure rehabilitation for stimulating economic recovery. Several governments are investing in charging infrastructure either through direct investments for public charging stations or by providing subsidies for installing private charging stations at homes and workplaces. Overall, the pandemic has significantly affected the electric vehicles industry and related industries such as EVSE. The COVID-19 crisis has mildly impacted the electric vehicle charging stations market. However, it is expected to witness a decline, as it will take time to recover from the losses incurred during the COVID-19 pandemic.
Supportive government initiatives for charging infrastructure to drive the demand for EV charging stations market
With technological advancements in electric drivetrain technology, governments worldwide are pushing for transitioning to electric vehicles as a sustainable public and private transportation model. Considering the environmental benefits offered by EVs, governments are increasingly offering incentives and subsidies to purchase EVs and associated charging infrastructure.
Charging stations are an important part of the electric vehicle ecosystem. Several governments provide funding for charging infrastructure development to address the increasing charging infrastructure for electric vehicles. For instance, Norway has established an extensive charging infrastructure to support the adoption of EVs. The government aims to set up fast-charging stations at every 50km. In 2018, Norway became the first country to deploy wireless charging systems for electric taxis operating in Oslo, reducing the need to find chargers and plug-in to charge. Such government initiatives aimed at enhancing the EV charging infrastructure in respective countries play a pivotal role in driving the growth of the electric vehicle charging stations market.
Key Findings in the Electric Vehicle Charging Stations Market Study:
To provide efficient analysis, Meticulous Research® has segmented this market based on charging type (level 1, level 2, DCFC), connection type (pantograph, connector, wireless), component (hardware, software, services), mounting type (wall, pedestal, and ceiling), vehicle type (passenger cars, heavy commercial vehicles, light commercial vehicles, two-wheelers & scooters), end user (commercial EV charging stations, residential EV charging stations), and geography (Asia-Pacific, Europe, North America, Latin America, and the Middle East and Africa).
Based on charging type, the electric vehicle charging stations market is mainly segmented into Level 2, Level 1, and DC fast charging. The DC fast-charging segment is projected to grow at the highest CAGR during the forecast period. The high growth of this segment is mainly attributed to growing government initiatives for installing fast-charging stations, rebate on the purchase of DC fast-charging stations, increasing investments from automakers towards the development of DC fast-charging station infrastructure to support their long-range battery-electric vehicles, and ability of DC fast chargers to provide faster charging as compared to Level 1 & Level 2 charging stations.
Based on connection type, the connectors segment accounted for the largest share of the electric vehicle charging stations market in 2020. The large share of this segment is mainly attributed to government and automakers initiatives to expand the DC fast-charging station infrastructure, increasing investment by stakeholders of electric mobility in emerging economies for developing EV charging infrastructure, and increasing collaboration between electric vehicle charging station providers and utility companies and fuel station operators to deploy charging stations for electric vehicles. However, the wireless EV charging segment is expected to grow at the highest CAGR during the forecast period.
Based on component, the hardware segment accounted for the largest share of the electric vehicle charging stations market in 2020. The large share of this segment is mainly attributed to infrastructural developments supporting the transition to electric mobility, increasing demand for EV charging stations in developing and developed economies, and attractive fiscal and non-fiscal incentive plans for setting up manufacturing units of EV charging stations and related components. However, the software segment is expected to grow at the highest CAGR during the forecast period.
Based on mounting type, the wall mount segment accounted for the largest share of the electric vehicle charging stations market in 2020. The large share of this segment is mainly attributed to the cost-effectiveness of the wall mount chargers, easy installation process, and various fiscal and non-fiscal incentives to private property owners and management companies for the development of EV charging infrastructure. However, the pedestal mount segment is expected to grow at the highest CAGR during the forecast period.
Based on vehicle type, the electric vehicle charging stations market is segmented into passenger cars, light commercial vehicles, heavy commercial vehicles, and two-wheelers & scooters. The light commercial vehicles segment is expected to grow at the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to growing awareness regarding the role of electric vehicles in reducing emissions, increase in demand for electric vehicles to reduce fleet emissions, and stringent government rules and regulations towards vehicle emissions.
Based on end user, the electric vehicle charging stations market is segmented into commercial EV charging stations and residential EV charging stations. The commercial EV charging stations segment accounted for the largest share of the electric vehicle charging stations market in 2020. The large share of this segment is mainly attributed to the growing number of EV charging stations in public places like shopping malls, restaurants, commercial buildings, parking areas, railway stations, and airports; and government initiatives for the installation of publicly accessible charging stations. Moreover, this segment is expected to grow at the highest CAGR during the forecast period.
Geographically, the market is segmented into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific region is estimated to account for the largest share of the electric vehicle charging stations market in 2020. The large share of this region is primarily attributed to the growing demand for electric vehicles in countries such as China and Japan, rising government initiatives to reduce greenhouse gas emissions, which, in turn, is poised to increase the adoption of electric vehicle and associated charging infrastructure, and ongoing investments by various countries for robust charging infrastructure used in shopping malls, public buildings, and parking facilities.
The key players operating in the electric vehicle charging stations market are Webasto Group (Germany), EVBox Group (Netherlands), Electrify America LLC. (U.S.), BP p.l.c. (U.K.), Royal Dutch Shell PLC (Netherlands), Evgo Services LLC. (U.S.), Connected Kerb Limited (U.K.), Wanbang Xingxing Charging Technology Co., Ltd. (China), Électricité de France (France), Tesla, Inc. (U.S.), Hangzhou AoNeng Power Supply Equipment Co., Ltd. (China), EV Charging Installers of America LLC (U.S.), Addénergie Technologies, Inc. (Canada), EV Connect, Inc. (U.S.), and ChargePoint Holdings, Inc. (U.S.).
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