Electric Vehicle Charging Infrastructure Market to Rake USD 115.47 Bn by 2027

The global electric vehicle charging infrastructure market size was valued at USD 14.90 billion in 2020 and is estimated to hit USD 115.47 billion by 2027, growing at a CAGR of 34.49% between 2021 and 2027.

Electric Vehicle Charging Infrastructure Market (By Charger Type: Slow Charger, Fast Charger; By Connector: CHAdeMO, Combined Charging System (CCS), Others; By Application: Commercial, Residential) – Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2021 – 2027

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Report Coverage

Report Scope Details
Market Size USD 115.47 billion by 2027
Growth Rate CAGR of 34.49% From 2021 to 2027
Base Year 2021
Forecast Period 2021 to 2027
Segments Covered Charger Type, Connector, Application 
Regional Scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Companies Mentioned AeroVironment, Inc., ABB, BP Chargemaster, ChargePoint, Inc., ClipperCreek, Inc., Eaton Corp., General Electric Company, Leviton Manufacturing Co., Inc., SemaConnect, Inc., Schneider Electric, Siemens AG, Tesla, Inc., Webasto SE 

Market Dynamics

Driver

Surge in number of electric vehicles charging stations

The rapidly evolving electric vehicle market is propelling innovation in electric vehicle technology and infrastructure. Electric vehicles provide numerous benefits, including lower fuel consumption and emissions from vehicle engines, which boosts their global demand. This, in turn, is expected to increase the demand for electric vehicle charging infrastructure, fueling the market growth. The charging stations are being rapidly developed as part of government initiative programs, and electric vehicle manufacturers are collaborating on the development of charging stations in parking lots. To increase electric vehicle sales, electric vehicle manufacturers are focusing on the installation of charging stations for electric vehicles similar to petrol pumps. Thus, the surge in number of electric vehicles charging stations is propelling the growth of electric vehicle charging infrastructure market. 

Restraint

High maintenance costs

Electric vehicles are typically more expensive than gasoline vehicles. This is due to the additional components installed in these vehicles. Because some parts of these vehicles wear out faster than petrol vehicles due to a lack of lubrication in most of these vehicles, these vehicles require much more regular maintenance over time and thus cost more in the long run. Furthermore, the parts must be replaced on a regular basis, as opposed to petrol vehicles, which typically have a longer life for such parts. As a result, only people who drive a lot every month prefer electric vehicles. Also, as maintenance costs for electric vehicles are high, the cost for maintaining charging infrastructure is also high. It requires good amount of funds and time to maintain charging stations. Therefore, lots of capital is required for operation and maintenance of electric vehicle charging infrastructure. Thus, the high maintenance costs is restricting the growth of the electric vehicle infrastructure market. 

Opportunities

Government initiatives for the growth of electric vehicle charging stations

The market for electric vehicle charging infrastructure is expected to expand over time as government bodies in various countries increase their support by various policies and subsidies. Many countries, including the U.S., the UK, and China, have recognized the need to switch to electric vehicles in order to reduce the increasing pollution caused by automobiles. These countries have taken initiatives to improve the charging network across their states to make it easier for people to switch to electric vehicles, and they have promoted this segment through incentives, tax breaks, and preferential policies. China, the U.S., and a few European countries have subsidized the installation of electric vehicle charging stations in residential complexes, semi-public areas, and private homes, among other places. Thus, the continuous government initiatives for the growth of electric vehicle charging stations are providing lucrative opportunities for the growth of electric vehicle charging infrastructure market. 

Challenges

Increase in demand for LPG and CNG vehicles

The factors such as rising demand for low-emission commuting and government subsidies and tax breaks for compressed natural gas (CNG) and liquified petroleum gas (LPG) vehicles have compelled manufacturers to provide CNG and LPG vehicles globally. Increased government investments in developing CNG and LPG infrastructure, as well as buyer incentives, will provide opportunities for original equipment manufacturers (OEMs) to diversify their revenue streams and geographical presence. Furthermore, as countries around the world have become more concerned about reducing emissions, the demand for low-emission fuel vehicles such as CNG and LPG vehicles is expected to rise. As a result, the increase in demand for LPG and CNG vehicles is expected to hinder the growth of electric vehicle infrastructure market. 

Report Highlights

The fast charger type segment led the market and accounted for more than 93.0% share of the global revenue in 2020. The growth was attributed to the high demand for the deployment of fast chargers in commercial stations. Most of the organizations have deployed Level 1 DC fast chargers or Level 2 AC charging stations that can fully charge an EV within 4 to 6 hours. Besides, automotive manufacturers are focusing on the installation of EV charging stations for their employees as part of the efforts to raise awareness about their electric cars. For instance, the installation of 100 Level 2 EV charging stations at the parking lots of General Motors Company’s Detroit facility has led to an increase in demand for the company’s Chevrolet Volt electric cars from the employees.

The slow charger segment is estimated to register the fastest CAGR from 2021 to 2027 owing to the initiatives by various governments for accelerating the deployment of public charging infrastructure, which mostly employs the slow chargers. Furthermore, slow chargers are mostly adopted by residential applications, which are used for overnight charging. Moreover, most of the EV manufacturers, such as Volkswagen Group, BMW of America, and General Motors, provide slow chargers along with the purchase of EVs, which is further driving the segment growth.

The CHAdeMO connector segment accounted for a significant market share of more than 17% in 2020. This is primarily due to its compatibility with a majority of EVs (including BMW, GM, and VW, among other models) and convenience of handling it. Furthermore, it offers flexibility in designing EVs, as it requires only a single port for recharging; whereas, CHAdeMO connectors require two charging ports due to their incapability to support AC charging. Additionally, the present CHAdeMO connectors are capable of delivering 62.5 kW of DC and are specified by the Japan Electric Vehicle Standard (JEVS).

The commercial segment accounted for the largest revenue share of over 84% in 2020 owing to the initiatives and allocation of funding by the governments and automobile manufactures for expanding the public EVCI infrastructure. Furthermore, the development of supporting infrastructure at public places is necessary as overnight charging or charging at homes would not be sufficient for long-distance travel. Furthermore, several public transport agencies are partnering with automotive manufacturers for the installation of charging stations for electric buses. For instance, TRAFIKSELSKABET MOVIA signed an agreement with Siemens for the installation of electric bus charging stations with a top-down pantograph for electric buses operated by 45 municipalities, including the City of Copenhagen and Region Zealand.

Various manufacturers of EV chargers, such as Efacec; EVE Australia Pty Ltd.; and Tesla, Inc., are partnering with contractors that are developing residential complexes. For instance, in October 2020, the Pend Oreille Public Utility District announced the launch of a new EV charging pilot system with SemaConnect Inc. This charging station will enable visitors of PUD’s Newport Administration Building to charge their electric cars for free. Vehicle charger manufacturers are now focusing on the development of residential and commercial EV chargers to ensure higher availability and increased vehicle range. OEMs are collaborating with EV manufacturers, charging network operators, corporates, and utility service providers to deploy fast-charging stations to expand their geographical presence and to enable cost-effective deployment of the EV charging network.

Regional Snapshots

The fastest growing market for electric vehicle charging infrastructure is Asia-Pacific. The presence of massive production bases in countries such as China, Japan, and India, as well as improved government subsidies, are mainly responsible for the rapid expansion. 

Asia Pacific led the global market in 2020 and accounted for a revenue share of more than 58%. Countries, such as China, Japan, and South Korea, are the hub of EVs and are heavily investing in the development of charging infrastructure. Moreover, Japan’s electric charging station surpassed the number of petrol stations with more than 40,000 charging outlets in 2020.

Key Players

  • AeroVironment, Inc.

  • ABB

  • BP Chargemaster

  • ChargePoint, Inc.

  • ClipperCreek, Inc.

  • Eaton Corp.

  • General Electric Company

  • Leviton Manufacturing Co., Inc.

  • SemaConnect, Inc.

  • Schneider Electric

  • Siemens AG

  • Tesla, Inc.

  • Webasto SE 

Market Segmentation

  • Charger Type Outlook 

    • Slow Charger

    • Fast Charger

  • Connector Outlook

    • CHAdeMO

    • Combined Charging System (CCS)

    • Others

  • Application Outlook

    • Commercial

    • Residential

  • Regional Outlook 

    • North America

      • U.S.

      • Canada

    • Europe

      • The Netherlands

      • U.K.

      • France

      • Norway

      • Germany

    • Asia Pacific

      • China

      • Japan

      • South Korea

Reasons to Purchase this Report:

– Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
– Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
– Market value USD Million and volume Units Million data for each segment and sub-segment
– Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
– Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

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