Between 2020 and 2027, the electric vehicle charging infrastructure market is estimated to grow at a CAGR of 18.5% to reach a market size of $ 27,690 million by 2027 from $ 10,000 million in 2020.
A report published by Valuates Reports stated that the major factors driving this growth include rising levels of carbon emissions and other hazardous pollutants from ICE vehicles, low maintenance and government subsidies for EV that have necessitated the use of electric vehicles.
The rise in the number of EVs is expected to drive the growth of the EV charging infrastructure market, said the report.
Other factors driving this market include favourable government policies for installing fast-charging stations, rebates on the purchase of EV charging stations, increasing investments from automakers towards the development of charging station infrastructure to support their long-range battery-electric vehicle.
Trends influencing growth
Rising awareness about environmental sustainability and stringent limits several governments are putting on vehicular emissions have been the key demand drivers for EVs globally. Private companies are focusing on developing innovative EV chargers and charging stations, and governments are collaborating with these companies for rolling out EV charging infrastructure, the report noted.
“Furthermore, technologies such as RFID and NFC have permitted the installation of interactive, kiosk-based, and self-operated charging stations within highway charging stations. Such technological advancements are expected to boost the growth of the EV charging infrastructure market,” said Valuestes Reports.
The standardisation of charging stations connectors is expected to further boost the EV charging infrastructure market growth. Advancements like fast-charging stations will benefit drivers by increasing the availability of compatible power sources to replenish their batteries.
The report also states that several public transportation authorities are collaborating with automobile manufacturers to create charging stations for electric buses. North America is expected to be the most lucrative market, primarily due to the stringent vehicle emission standards and focus on the R&D of EV charging stations.