Electric Vehicle Charging Station Market Analysis

Electric Vehicle Charging Station Market Analysis

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Recharging an electric vehicle requires connections to EV charging equipment and Electric Vehicle Supply Equipment (EVSE) which is further connected to an electric source that provides AC or DC supply to the EV. Some of the key components of an EVSE unit comprises of EV connector, battery charger and EV Inlet. The AC charging units are categorized by level 1 & level 2 which are mostly deployed in residential establishments workplaces and public parking areas. Moreover, DC fast chargers can often be found at dedicated electric vehicle charging plazas, including Tesla’s Superchargers, and often supply 50kW - >400kW.
 

The EV charger manufacturers are planning to introduce home DC charging that is anticipated to fuel the electric vehicle charging station market demand. Utilities that incentivize AC residential charging are witnessing a surging demand for more efficient DC residential charging that can store energy, connect to the grid and send & receive utility pricing signals. The market for DC fast electric vehicle charging station will reach USD 110.2 billion by 2032.
 

Upsurge in EV production along with its increasing demand on account of rising awareness toward greener environment has positively impacted the electric vehicle charging station market demand. The EV owners are constantly looking to deploy correct charging stations in their garages & parking spaces. Level 1 chargers place low load on the electricity panel compared to other chargers and therefore are a viable option for deployment in residential establishments. EV charging at home puts a large and constant draw on the power grid for several hours. Therefore, the utilities offer a steep discount on power during the off-peak hours i.e., from 11pm to 9am, with an aim to encourage EV owners to charge in the lowest-demand times.
 

Level 2 chargers need to be an exact match for an EV which makes them less versatile when compared to level 1 chargers. Therefore, level 2 stations are mostly deployed in public stations & in the workplace. An upsurge in construction of public charging stations, adoption of EV-Ready building codes and provision of incentives for businesses & multi-family properties to build their own charging point will strengthen the EV charging station market size. The EV chargers are extensively installed in parking lots with methods including over the counter, expedited and online design review facilities for EV charger permits.
 

Asia Pacific electric vehicle charging station market is projected to grow at a high rate through 2032, owing to rising awareness toward environment sustainability and growing focus toward infrastructural development accompanied by increased Foreign Direct Investment (FDI). For Asia Pacific, Japan and China accounts for over 96% of the market share in 2021. In addition, as per Indian Brand Equity Foundation, in April 2022, India is set to witness extensive EV chargers along with expansion of EV infrastructure with the investment of USD 1.84 billion in coming 3 to 4 years under the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme, which in turn will have a positive impact on the deployment of EV charging station.
 

Proactive government support toward the adoption of electric vehicles and development of EV charging stations has further translated into an overall industry growth. The industry expansion is largely attributed to escalating energy prices, and growing preference for energy-efficient solutions. The market for EV charging station in Europe is projected to cross USD 101 billion by 2032.