South America Electric Vehicle Charging Stations Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Vehicle Type (Battery Electric Vehicles (BEV), Plug-In Hybrid Electric Vehicles (PHEV)), By Application (Commercial, Residential), By Charging Type (AC Charging (Level 1 And Level 2), DC Charging), And By Country - Forecasts From 2023 To 2028

The South American electric vehicle charging stations market is expected to grow at a compound annual growth rate of 24.74%, to be valued at US$619.198 million in 2028, from US$131.755 million in 2021.

A charging station for electric vehicles (EVs) is a device that links an EV to a power source, allowing electric cars, neighbourhood EVS, and plug-in hybrids to be charged. While some charging stations include advanced capabilities such as smart metering, cellular connectivity, and network connectivity, others are more basic. The electric vehicle business is quickly expanding worldwide, particularly in South America.

The market for electric car charging is a fast-paced business with a wide range of applications in South America. Over the next few years, the South American electric car market is predicted to rise significantly. Colombia's air pollution is increasing at an exponential rate. In terms of health and air quality, cities like Medellin and Bogota are at risk.

Drivers:

Increasing urbanization and infrastructure development

Increasing urbanization and infrastructure development in South America are key drivers behind the growth of the region's Electric Vehicle (EV) Charging Stations market. Urban areas in South America are experiencing a rapid increase in population density. As more people live in cities and metropolitan regions, the demand for transportation solutions, including electric vehicles, rises. This increased demand necessitates developing charging infrastructure to support the growing number of electric vehicles in urban environments.

Further, many South American cities are embracing the concept of smart cities, aiming to integrate technology and sustainability into urban systems. EV charging infrastructure plays a crucial role in smart city plans, enabling the integration of renewable energy, intelligent grid management, and data-driven charging network optimization. As smart city initiatives gain momentum, the demand for charging stations increases, driving the market growth.

Government Incentives.

According to multiple studies conducted by various national universities, diesel automobiles are Bogota's leading cause of pollution. To counteract the environmental challenges, the government provides incentives and subsidies to reach an ambitious goal of 600,000 electric vehicles on the road by 2030. Many countries in South America have implemented supportive policies and incentives to promote the adoption of electric vehicles and the development of charging infrastructure. Governments offer subsidies, tax benefits, and grants to encourage the establishment of charging stations, which has accelerated market growth.

Growing demand for AC charging stations.

As the number of electric vehicles on the roads of South America continues to rise, there is a growing need for accessible and convenient charging infrastructure, driving the demand for AC charging stations. AC charging (Level 1) is commonly used for residential charging, allowing EV owners to conveniently charge their vehicles overnight at home using a standard electrical outlet without needing specialized infrastructure. AC charging (Level 2) provides faster charging than Level 1 and is commonly installed in commercial buildings, workplaces, and public parking areas. The expansion of charging infrastructure in these locations is driven by the increasing adoption of electric vehicles and the need to support employees, customers, and visitors who require convenient charging options.

Geographic Insights:

Brazil will dominate the landscape

The rising shift towards sustainable fuel adoption and greater availability of models, coupled with the efforts undertaken to reduce carbon emissions, are majorly boosting Brazil's demand for electric vehicles. According to the Brazilian Association of Electric Vehicles, in March 2023, light electric vehicle registration in Brazil stood at 5,989 units which signified a growth of 55.5% in comparison to March 2022's registration figure of 3,851. Moreover, the registration of electric vehicles witnessed a 25% increase in February for the same year. Such an increase in electric vehicle sales will accelerate the demand for the development of charging stations in Brazil, thereby propelling the overall market growth.

Chile is likely to grow significantly.

The notable surge in the number of fast charging stations in Chile, witnessing a remarkable growth from 42 stations in 2019 to 220 stations in 2022, is a compelling indicator of the burgeoning potential for AC charging infrastructure expansion. This substantial increase in fast charging stations, a subset of AC charging stations, signifies a positive trajectory in the availability and accessibility of AC charging options throughout the South American region. The expansion of fast charging stations in Chile reflects a concerted focus on bolstering AC charging infrastructure development, aligning with the broader growth factors observed in the South American electric vehicle charging stations market.

Market Developments:

• Enel opened the first" "EV Service Stati"n" in Latin America in Chile in February 2022 to service any vehicle that uses electricity as its primary energy source. The forecourt is near the International Airport of Santiago de Chile and has 23 charging stations.
• WEG SA, a Brazilian automaker, established cooperation with Neoenergia SA, a power business, in January 2022 to supply charging stations for electric vehicles.

South America Electric Vehicle Charging Stations Market Scope:

Market Segmentation:

• By Vehicle type
  • Battery Electric Vehicle (BEV)
  • Plug-in Hybrid Electric Vehicle (PHEV)
• By Application
  • Commercial
  • Residential
• By Charging type
  • AC Charging (Level 1 and Level 2)
  • DC Charging
• By Country
  • Brazil
  • Argentina
  • Chile
  • Others