With electric vehicles (EV) witnessing more takers in major markets, the ecosystem has been expanding for some time now. One of the crucial elements of this ecosystem is charging stations. The recent report by Meticulous Research states that the EV charging stations market is expected to reach a value of $103.6 billion by 2028.
According to a new market research report, 'Electric Vehicle Charging Stations market by charging type connection, component mounting vehicle, end-user, and geography - Global Forecast to 2028,' the EV charging stations market is expected to grow at a CAGR of 26.4% during the forecast period of 2021-2028. Furthermore, by volume, it is expected to reach 11,647.5 thousand units by 2028, at a CAGR of 31.1% from 2021.
The growth of the overall EV charging stations market is mainly attributed to factors such as government initiatives to drive the adoption of EVs and associated infrastructure, rising demand for fast-charging infrastructure, increasing prevalence of range anxiety and increasing deployment of EVs by shared mobility operators.
However, the high initial cost of installation is likely to hinder the market's growth. Nevertheless, increasing R&D in V2G technology, increasing adoption of electric mobility in emerging economies, and growing deployment of charging stations by retail MNCs are projected to provide significant growth opportunities for vendors operating in this market.
Some of the key players operating in the global electric vehicle charging stations market are Webasto, EVBox, Electrify America, BP, Royal Dutch Shell, Evgo, Connected Kerb, Électricité de France, Tesla, EV Charging Installers of America, Addénergie Technologies, EV Connect, and ChargePoint Holdings, Inc. among others.
Segments
The overall EV charging stations market is segmented based on charging type, connection type, vehicle type, mounting type, component, end-user, and geography.
The electric vehicle charging stations market is segmented into Level 1, Level 2, and DC fast charging based on charging type.
In 2021, the Level 2 segment is estimated to command the largest share of the overall EV charging stations market. The large share of this segment is mainly attributed to government funding and incentives for the installation of Level 2 charging stations, lower installation costs compared to DC fast-charging stations, and greater efficiency in terms of less charging time than Level 1 charging stations. However, the DC fast-charging stations segment is expected to grow at the highest CAGR during the forecast period.
The charging stations market is segmented into pantograph, connectors, and wireless charging in terms of connection. In 2021, the connector segment is estimated to account for the largest share of the overall charging stations market. The large share of this segment is mainly attributed to government support to expand the DC fast-charging station infrastructure and increasing investment by stakeholders of electric mobility in emerging economies for developing EV charging infrastructure.
Vehicle types
The EV charging stations market is segmented into passenger cars, heavy commercial vehicles, light commercial vehicles, and two-wheelers & scooters based on vehicle type. In 2021, the passenger vehicles segment is estimated to account for the largest share of the overall electric vehicle charging stations market. According to the report, the segment's growth is attributed to the favourable government policies and subsidies for promoting the adoption of EVs, growing awareness regarding the role of these vehicles in reducing emissions, increasing fuel prices, and proactive participation by automotive OEMs in producing electric passenger vehicles.
Different types of mounting
The charging stations market is segmented into wall mount, pedestal mount, and ceiling mount. The wall mount segment is estimated to account for the largest share of the overall EV charging stations market in 2021. It is due to the cost-effectiveness of the wall mount chargers, easy installation process, and various fiscal and non-fiscal incentives to private property owners and management companies for the development of EV charging infrastructure.
Components
In terms of components, the charging stations market is segmented into hardware, software, and services. In 2021, the hardware segment is estimated to account for the largest share of the overall charging stations market because of infrastructural developments, increasing demand for EV charging stations in developing and developed economies, and attractive fiscal and non-fiscal incentive plans for setting up manufacturing units of EV charging stations and related components.
End-users
The charging stations market is divided into commercial EV charging stations and residential EV charging stations based on end-users. The commercial EV charging stations segment is estimated to account for the largest share due to the growing number of installations in public places like shopping malls, restaurants, commercial buildings, parking areas, railway stations, and airports and also due to government initiatives for the installation of publicly accessible charging stations.
Geographical spread
The EV charging stations market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The Asia-Pacific region is estimated to command the largest share, followed by Europe and North America in 2021, on account of the growing demand for EVs in countries such as China and Japan and rising government initiatives to reduce greenhouse gas emissions.
However, Europe is expected to grow at the highest CAGR during the forecast period due to government initiatives to develop charging infrastructure across the region. Countries like France, Germany, Netherlands, Norway, and the UK are five front-runner countries for EVs and charging points across the region, the report said.
Courtesy: Meticulous Research. NB: Photo is representational.