In the dynamic automotive sector, consistent growth of the electric vehicle (EV) charging industry has become increasingly evident. Consumers and businesses alike are recognizing the imperative shift toward sustainable and eco-friendly transportation alternatives. As such, it is necessary to explore the intersection of technological developments, environmental consciousness, and the evolving demands of a world embracing the future of electric mobility. Key drivers behind the electric charge transforming the way we power our vehicles and revolutionizing the future of transport include strong regulatory support, accelerated EV adoption in the U.S. and Europe, surging consumer awareness across APAC, among others.
Opportunity: Over the past decade, the deployment of electric vehicle charging stations has witnessed incredible growth rate. According to Global Market Insights Inc., the EV charging station market value could register over 24% CAGR in terms of revenue between 2023 and 2032. It demonstrates a huge potential for component manufacturers and automakers.
Major opportunities for the industry arise out of the need for expanding charging infrastructure in urban areas and across highways, providing better accessibility to consumers. Energy providers are also making efforts to integrate renewable power with charging facilities, for offering true green infrastructure.
Let us understand the influence of certain regional and technological factors on the global deployment of electric vehicle charging stations.
The e-commerce trend has exerted a positive impact on various industries, including the U.S. electric vehicle (EV) market. With an increasing penchant for online shopping, there has been a surge in demand for last-mile delivery services, prompting companies to invest in sustainable transportation solutions.
The U.S. battery electric vehicle industry is experiencing a notable boost as e-commerce players and logistics companies adopt electric delivery vehicles to meet environmental regulations and reduce their carbon footprint.
According to the U.S. Department of Commerce, the total retail e-commerce sales in the country was over US$1 trillion during the year 2022, which was approx. 7.7% increase compared to the previous year. With consistent interest of consumers in convenient online shopping and the rise in options available to them globally, the e-commerce sector will be a large contributor to North America EV industry.
Stringent environmental regulations and a collective commitment to reducing carbon emissions are compelling governments and businesses in Europe to invest in sustainable transportation solutions. The European Commission has adopted proposals to reduce GHG emissions by at least 50% by the year 2030, aiming to go carbon-neutral by 2050. Electric mobility is one of the key areas of focus for the regional authorities and transportation agencies.
Countries such as the U.K., Italy, Germany, Netherlands, and many others are devising strategies to push EV sales and the promotion of locally manufactured battery electric vehicles. It has stirred investments in charging station installations and development of required EV platforms.
Other countries in Europe have embraced similar policies or mandates to attract more buyers toward BEVs, invariably boosting the accessibility to green mobility. An already dominating renewable energy landscape across the continent will further its emission reduction plans.
In 2022, solar and wind energy contributed over 22% of EU’s electricity generation, surpassing fossil gas for the first time. The integration of renewables such as wind energy with EV charging facilities can help improve the station reliability, create job opportunities, and offer a cost-effective way to lower carbon emissions.
In addition to factors such as governments driving EV purchase and green energy generation capacity, Europe electric vehicle charging station market outlook looks robust with a deeper focus on enhancing charging speed, availability and ease of payment. Listed below are a few highlights from an announcement by the European Parliament made in 2023;
The initiative represents a bold move by the EU to enrich the regional EV charging capacity and demonstrate its aspiration to achieve green energy targets to the world.
Asia Pacific region boasted of the highest number of electric vehicles sales in the world during 2022, according to the IEA, with China alone accounting for 60% of global sales. In fact, China and Japan dominate the regional EV industry share, but other nations are also witnessing accelerated growth in the sector. GMI reports that APAC electric vehicle charging station industry size is anticipated to surpass US$170 billion by 2032, driven by a number of factors.
The primary factor enabling this dominance is the unrivaled automotive and component manufacturing sectors in countries such as China, India, Japan, Vietnam, South Korea and Taiwan, among others. Add to that a wider range of EV categories – including three-wheelers and two-wheelers - available to private and commercial users, the potential for installing charging stations has skyrocketed over the last few years.
However, through the last decade, the EV sector in APAC has recorded unprecedented development due to significant local and foreign investment in automotive startups aiming to join the road to a carbon-neutral future.
Besides private funding growth, public financing is also playing a vital role in fueling the need for EV-related services and platforms. For example, last year Australia’s federal government had said it would spend around US$46 million on charging infrastructure development.
We are witnessing the growing acceptance of electric vehicles among consumers, collaborative efforts of international organizations and the innovative solutions emerging from local initiatives. The trajectory is clear – a future where EVs will dictate how we travel and could influence global investment strategies. It will not be merely about plugging in vehicles, but about fostering sustainable living, reducing carbon footprints, and embracing a future where every charging station is a step towards a cleaner, smarter planet.