The electric vehicle charging stations market is projected to witness a CAGR of 22.46% during the forecast period to reach a total market size of US$24,126.927 million by 2026, increasing from US$5,841.070 million in 2019.
Electric Vehicle Charging Station is equipment that connects an electric vehicle to a source of electricity to recharge electric cars, neighborhood electric vehicles, and plug-in hybrids. The prime factor which has led to the growth of the charging station market is the growing demand for energy-efficient computation. Moreover, increasing fuel prices, depletion of fossil fuels, governments supporting electric vehicles, and their charging infrastructure through preferential policies, subsidies, and tax rebates have led to a growing demand for this segment. Investments by governments across the globe to develop charging infrastructure and incentives offered to buyers will create opportunities to expand the revenue stream and geographical presence.
Total charging-energy demand for the vehicles population across China, Europe, and the United States is expected to grow dramatically during the forecast period, because of the increasing adoption of electric vehicles, total miles driven and average energy consumed per hour. Unlike traditional combustion engines, an electric vehicle can be charged both at home and public places providing flexibility to the riders. As the electric charging station market looks viable in the coming years, it will have a trickledown effect on other related market’s growth as well.
electric vehicle charging station Market, US$ million, 2019 to 2026
Source: Knowledge Sourcing Intelligence Analysis
By type, Battery Electric Vehicle (BEV) has accounted for the majority of sales while plug-in Hybrids (PHEVs) are gaining popularity gradually. Geographically, Europe, the United States, and China occupy the lion's share of electric vehicles and hence a flourishing charging stations markets. The rest of the world is still lagging due to several reasons but some new markets are emerging.
electric vehicle charging station Marketshare, by geography
Source: Knowledge Sourcing Intelligence Analysis
As the barriers to adopt electric vehicles (EV) are being rapidly removed, there is an increasing demand for the adoption of these vehicles. From the last few years, there has been a noticeable change in consumer attitudes towards EVs. The EV's and the charging stations are almost perfectly complementary goods. Thus, as the number of EVs increases, the charging stations in both public and private locations are sure to surge.
Government interventions seem to play an important role in driving the electric vehicles and charging stations market. Not only are there economic benefits for states that support a transition to electricity, but the positive environmental impact has made the widespread adoption of EVs a necessary step toward achieving climate-change goals, such as those of the Paris Agreement 2015. Fuel economy, emission targets, city access restrictions, financial incentives have led to a rise of EV sales and increasing set-up of charging stations across regions.
Over the years popular EV manufacturers like Tesla, Mitsubishi, Toyota, Honda, Hyundai, Ford, and General Motors, etc have come up with affordable vehicles in several model variants. These manufacturers have come under several joint decisions and agreements of an equivalent charging station. This has led to several strategic changes in the charging station market. The homogeneity of the cars’ charging facility has led to new product development. With innovative solutions, the charging station market will grow and expand.
High utility fees are one of the major hurdles of the charging stations. A major build-out of fast-charging stations is likely to help drive greater adoption of electric vehicles. However, because of the fluctuating rates, known as demand charges, it's incredibly difficult for public charging stations to make a profit. Utility demand fees can be a major pain for new charging stations yet to witness a lot of regular customers. This kind of hindrances may shrink the otherwise expanding market.
The growth factors of the market have seen a change in its direction with the advent of the global pandemic. There have been a downturn in consumer demand, strategic investments, and innovations. However, the policymakers are adopting new measures as a part of their recovery plans. New investment plans, infrastructural changes, and new legislation have been announced by several countries. In the short run, there has been a shortfall of missing targets and diverting investments. But with the reformations, in the long run, the market is expected to achieve its set targets and growth, eventually nullifying the impact of the pandemic.
The market leaders for the Electric Vehicle Charging Station Market are ABB Ltd, Hong Kong EV Power Limited, General Electric, Chargepoint, Inc., Xcharge, Inc, Xiongan Lianxing Network Technology Co, Instavolt, Royal Dutch Shell Plc, and Evgo Services LLC. The key players in the market implement growth strategies such as product launches, mergers, and acquisitions, etc. to gain a competitive advantage over their competitors. For Instance,
|Market size value in 2019||US$5,841.070 million|
|Market size value in 2026||US$24,126.927 million|
|Growth Rate||CAGR of 22.46% from 2019 to 2026|
|Forecast Unit (Value)||USD Million|
|Segments covered||Type of Electric Vehicle, Type of Charging Station, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||ABB Ltd, Hong Kong EV Power Limited, General Electric, Chargepoint, Inc., Xcharge, Inc, Xiongan Lianxing Network Technology Co, Instavolt, Royal Dutch Shell Plc, Evgo Services LLC|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the electric vehicle charging stations market size by 2026?
A1. The electric vehicle charging stations market is projected to reach a market size of US$24,126.927 million by 2026.
Q2. What is the size of the global electric vehicle charging stations market?
A2. Electric Vehicle Charging Stations Market was valued at US$5,841.070 million in 2019.
Q3. What are the growth prospects for the electric vehicle charging stations market?
A3. The global electric vehicle charging stations market is projected to witness a CAGR of 22.46% over the forecast period.
Q4. How is the global electric vehicle charging stations market segmented?
A4. The electric vehicle charging stations market has been segmented by type of electric vehicle, type of charging station, and geography.
Q5. What factors are anticipated to drive the electric vehicle charging stations market growth?
A5. The prime factor which has led to the growth of the electric vehicle charging stations market is the growing demand for energy-efficient computation.