The global electric vehicle charging infrastructure market size is expected to reach $121.09 billion by 2030, expanding at a CAGR of 25.5% from 2023 to 2030, according to a new study conducted by Grand View Research. The group says the growth of the EVCI market can be attributed to the growing number of consumers adopting electric vehicles, which is driven by the need to make environmentally conscious decisions, increasing fuel costs, favorable government subsidies, and lower cost of ownership over the vehicle’s lifecycle.
Key findings from the report include:
- The fast charger segment is anticipated to emerge as the fastest-growing segment over the forecast period owing to the ability to rapidly charge electric vehicles in lesser time compared to conventional AC chargers as the primary factor driving the demand for fast DC chargers.
- The combined Charging System (CCS) connectors segment is anticipated to emerge as the fastest-growing connecter segment over the forecast period owing to the adoption by a higher number of automobile manufacturers.
- The “Level 3” charging segment is anticipated to register the fastest growth over the forecast period. Lever 3 charging infrastructure is a type of DC charging infrastructure that charges electric vehicles faster than Level 1 and Level 2 chargers. As the number of EV users is growing exponentially, the need for fast chargers is increasing day by day to keep up with the demand, thereby fueling growth and innovation in the segment.
- Non-connected charging stations dominated the electric vehicle charging infrastructure market in 2022. Non-connected charging stations are easy to deploy and they reduce the overall cost of deployment. As the existing charging infrastructure is not adequate, key market players are looking for quick deployment infrastructures to bridge the gap and keep up with the demand, contributing to the segment’s dominant share.
- The commercial segment is anticipated to gain traction owing to the rise in the deployment of fast-charging stations across highways, hotels, shopping malls, and public parking facilities.
- Stringent vehicle emission standards and a high focus on research and development of electric vehicles are some of the major factors driving the electric vehicle charging infrastructure market in the North America region.
- Various companies are observed investing heavily in promoting EV charging infrastructure. For instance, in November 2017, BMW, Daimler, Ford, and Volkswagen Group, together announced an investment plan for the development of 400 charging sites across Europe.
- Asia Pacific is expected to expand at the highest CAGR from 2023 to 2030 due to significant growth in electric vehicle sales in the region and extensive deployment of EV chargers in countries such as China and Japan.
Electric vehicle charging infrastructure market growth
The growing demand for electric vehicles is further driving the demand for sufficient charging infrastructure, thereby driving the market’s growth. Various electric vehicle manufacturers such as Volvo, Kia Motors, Mercedes-Benz, and Ford, among others, are collaborating with the charging infrastructure providers for easy availability of charging stations, Grand View Research says. For instance, In November 2020, ChargePoint announced its partnership with Volvo Car USA LLC “to provide a seamless charging experience to Volvo car drivers.”
Furthermore, various companies are working toward upgrading electric vehicle supply equipment (EVSE) to make them more convenient for long-distance travel. Some of the electric vehicle manufacturers, such as Tesla, Inc., and Nissan, are focusing on providing compatibility for their electric vehicles for public charging networks, Grand View Research says. For instance, Nissan in November 2019, announced that buyers of the new Nissan Leaf and Nissan Leaf would be able to charge their vehicles across EVgo’s charging network which comprises 750 public charging stations.
The significant market growth is primarily due to the growing initiatives undertaken by both public as well as private sectors to encourage the population to switch to electric vehicles, Grand View Research says. These initiatives have promoted the sale of electric vehicles and have also spread awareness among consumers about the benefits of using these vehicles. As a result, the demand for electric vehicle charging infrastructure is expected to grow significantly, Grand View Research adds. For instance, in the U.S., the Washington State Department of Transportation has partnered with the Oregon Department of Transportation to construct the West Coast Electric Highway (WCEH) which consists of 57 electric vehicle charging stations across Oregon and Washington. Similarly, several governments are jointly developing intra-continental networks of highway charging stations.