As the number of electric cars on the road has continued to increase, private and publicly accessible charging infrastructure has also continued to grow. Electric vehicle supply equipment (EVSE) is the basic unit of EV charging infrastructure. The EVSE accesses power from the local electricity supply and utilizes a control system and wired connection to safely charge EVs. An EVSE control system enables various functions such as user authentication, authorization for charging, information recording and exchange for network management, and data privacy and security
Electric vehicle charging stations are defined as a site where one or more EVSEs are installed. These sites can be residential, non-residential, or commercial. Electrical energy is supplied through special connectors that conform to the variety of electric charging connector standards for the recharging of plug-in electric vehicles—including electric cars, electric buses, and special-purpose electric vehicles.
Electric vehicles (EV) can be charged in a variety of ways, depending on location and requirement. Accordingly, charging infrastructure for EVs is of different types and designed for different applications. Specifications and standards for EV chargers, also known as electric vehicle supply equipment (EVSE), vary from one country to another, based on available EV models in the market and the characteristics of the electricity grid.
EV charging requirements depend on the specifications of EV batteries, as power must be supplied to the battery at the right voltage and current levels to permit charging. Typical capacity and voltage of EV batteries vary among the different EV segments.
EV charging involves supply of direct current (DC) to the battery pack. As electricity distribution systems supply alternate current (AC) power, a converter is required to provide DC power to the battery. Conductive charging can be AC or DC. In the case of an AC EVSE, the AC power is delivered to the onboard charger of the EV, which converts it to DC. A DC EVSE converts the power externally and supplies DC power directly to the battery, bypassing the onboard charger.
An alternative battery recharging method that is receiving global attention is battery swapping, in which a depleted EV battery is removed from the vehicle and replaced with a fully charged one. The technology is being tried out for various EV segments, including e-2Ws, e-3Ws, e-cars and even e-buses.
The battery-swapping station is a standalone device, in which batteries are placed and removed manually from the individual slots, usually by hand. Manual swapping stations are modular and occupy a minimal amount of space. These are used for 2W and 3W battery applications, as the battery pack sizes are smaller and the weight can be handled by one or two persons.
In Autonomous or robotic swapping A robotic arm is used in these types of swapping stations with the battery swapping process being semi/fully automated. Robotic swapping is used for 4W and e-bus applications as battery packs are larger and heavier, and require mechanical assistance. These swapping stations are also more expensive and have a higher land requirement.
Charging stations refer to high-power EVSE, typically Mode 3 or Mode 4 charging, often with multiple charging guns. Charging points refer to normal power EVSE that can be accessed by a portable charging cable. By providing EV charging points at locations where vehicles tend to park, EV users can charge their vehicles while they are parked, thereby saving time, and eliminating the distance one must travel to access
A dense network of normal-power EV charging points reduces the need for high power and ultra-high power charging points, which are more expensive and can be detrimental to EV battery health if over-used. Normal power charging points are not only less expensive, but they also require less electricity and less space, which further reduces capital costs. They can be connected to low-voltage single- and threephase distribution networks, which are widely available in buildings and public spaces.
Electric vehicle charging infrastructure market
The electric vehicle charging stations market is expected to reach a value of $103.6 billion by 2028, at a CAGR of 26.4% during the forecast period of 2021-2028. By volume, the electric vehicle charging stations market is expected to reach 11,647.5 thousand units by 2028, at a CAGR of 31.1% from 2021.
Drivers and Restraints
The growth of the overall electric vehicle charging stations market is mainly attributed to factors such as government initiatives to drive the adoption of electric vehicles and associated infrastructure, rising demand for electric vehicle 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. 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.
The growing popularity of Mobility as a Service (MaaS) model is also anticipated to contribute to market growth. The growth of the electric vehicle charging infrastructure market is further fueled by the utilities’ emphasis on subscription-based charging models. Under this model, several utilities such as Duke Energy Corporation, Vattenfall AB, and New York Power Authority have partnered with OEMs to offer electric vehicle charging subscription services to their customers. For instance, in April 2019, Duke Energy Corporation partnered with ChargePoint, Inc. for providing electric vehicle charging subscription services to EV drivers in the U.S. state of North Carolina. Furthermore, various companies, such as Enel X and E.ONare emphasizing the development of Peer-to-Peer (P2P) EV charging stations that bodes well for the market growth. For instance, in June 2017, Enel X, in partnership with innogy SE, developed a P2P electric vehicle charging network in Germany consisting of more than 1,250 chargers.
However, several costs associated with the infrastructure, including installation costs, maintenance costs, and operational costs are negatively impacting market growth. Furthermore, the looming underinvestment in developing electric vehicle recharging infrastructure projects in various countries is affecting the market growth. According to the European Environment Agency (EEA), only 10 out of 28 European countries have received incentives for the development of electric vehicle charging infrastructure as of May 2016. The European Automobile Manufacturers’ Association (ACEA) has also underlined the need to increase investments in the development of electric charging infrastructure if carbon dioxide (CO2) emissions stemming from the conventional ICE vehicles were to be reduced.
The overall electric vehicle charging stations market is segmented based on charging type, connection type, vehicle type, mounting type, component, end-user, and geography.
Based on charging type, the electric vehicle charging stations market is segmented into Level 1, Level 2, and DC fast charging. In 2021, the Level 2 segment is estimated to command the largest share of the overall electric vehicle 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 cost 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.
Based on the charger type, the market has been segmented into a slow charger and fast charger. The fast charger segment held the dominant market share in 2019, owing to the increasing demand for its deployment in commercial stations. The fast charger segment includes rapid AC chargers (up to 43 kW), DC chargers, and Tesla Superchargers. These chargers have the potential to charge an EV battery, up to 80%, within 30 minutes. The major factor driving the segment growth is the rising adoption of technologies, such as Radio Frequency Identification (RFID) and Near-field Communication (NFC), in charging stations installed on highways. Electric bus manufacturers are establishing partnerships with OEMs for the development of fast-charging stations. For instance, in April 2016, VDL Bus & Coach BV established a partnership with Heliox for providing 100 fast chargers for the electric bus fleet of Amsterdam (Netherlands).
The slow charger segment accounted for a significant market share in 2019, owing to the initiatives by various governments for accelerating the deployment of public charging infrastructure, which mostly employs the slow chargers. There has been a significant rise in demand for vehicles equipped with onboard charging stations that use AC voltage. Moreover, most manufacturers such as Volkswagen Group, BMW of America, and General Motors provide slow chargers along with the purchase of the EV, which is further driving the segment growth. For instance, General Motors provides a slow charger with the purchase of its electric car model-Chevrolet Bolt EV.
Based on connection type, the electric vehicle charging stations market is segmented into pantograph, connectors, and wireless charging. In 2021, the connector segment is estimated to account for the largest share of the overall electric vehicle charging stations market. The large share of this segment is mainly attributed to government initiatives to expand the DC fast-charging station infrastructure and increasing investment by stakeholders of electric mobility in emerging economies for developing EV charging infrastructure.
Based on vehicle type, the electric vehicle charging stations market is segmented into passenger cars, heavy commercial vehicles, light commercial vehicles, and two-wheelers & scooters. In 2021, the passenger vehicles segment is estimated to account for the largest share of the overall electric vehicle charging stations market. The segment’s growth is attributed to the favourable government policies and subsidies for promoting the adoption of electric vehicles, growing awareness regarding the role of electric vehicles in reducing emissions, increasing fuel prices, and proactive participation by automotive OEMs in producing electric passenger vehicles.
Based on mounting type, the electric vehicle charging stations market is segmented into wall mount, pedestal mount, and ceiling mount. In 2021, the wall mount segment is estimated to account for the largest share of the overall electric vehicle charging stations market. The large share of this segment is mainly attributed 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.
Based on component, the electric vehicle 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 electric vehicle charging stations market. The growth of this segment is attributed to infrastructural developments for supporting the transition to electric mobility, 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.
Based on end user, the electric vehicle charging stations market is segmented into commercial EV charging stations and residential EV charging stations. In 2021, the commercial EV charging stations segment is estimated to account for the largest share of the overall electric vehicle charging stations market. The growth of this segment is attributed to the growing number of installations of EV charging stations in public places like shopping malls, restaurants, commercial buildings, parking areas, railway stations, and airports; and government initiatives for the installation of publicly accessible charging stations.
Geographically, the electric vehicle charging stations market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2021, Asia-Pacific region is estimated to command the largest share of the global electric vehicle charging stations market, followed by Europe and North America. The large share of this region is mainly attributed to the growing demand for electric vehicles in countries such as China and Japan and rising government initiatives to reduce greenhouse gas emissions, which, in turn, is poised to increase the adoption of electric vehicles.
However, Europe is expected to grow at the highest CAGR during the forecast period. The high growth of electric vehicle charging stations market in this region is primarily attributed to government initiatives to develop charging infrastructure across the region. Countries like France, Germany, Netherlands, Norway, and the U.K. are five front-runner countries for electric vehicles and charging points across the region.
Governments in various countries such as China, Japan, and South Korea are heavily investing in the development of charging infrastructure that bodes well for the market growth in Asia Pacific. For instance, in October 2015, the Chinese Government announced its intention to invest in the deployment of EV infrastructure to accomplish their target for supporting 5 million EVs, on-road, by 2020. Besides, in 2017, the Singapore government launched an EV car-sharing program. Under this initiative, BlueSG (Singapore), a subsidiary of Bollore Group, will install 2,000 EV chargers in 500 charging stations across Singapore. Moreover, various automakers are collaborating to develop a charging infrastructure that bodes well for growth. For instance, in May 2014, Toyota Motor Corporation, Honda Motor Co., Ltd., Nissan Motor Co., Ltd., and Mitsubishi Motors Corporation formed a new company called Nippon Charge Service, LLC to encourage the installation of EV chargers in Japan. As a result, Japan successfully surpassed the number of petrol stations with EV charging outlets in 2016.
Various European countries have set ambitious targets for curbing carbon emission and electric car stock commitments by 2020. For instance, in July 2018, the U.K. government passed the Automated and Electric Vehicles (AEV) Act. It provides the government with new powers to ensure the rapid development of EVCI on motorways and fuel stations. Furthermore, in October 2014, Germany established the German National Platform for Electric Mobility, an advisory body of the German Government, to analyze the development of electric mobility and development of publicly accessible electric vehicle charging infrastructure. Other European countries, such as France, U.K., Germany, and Belgium, are also focusing on developing the EV charging and support infrastructure to enable interoperability of the EVs throughout the region.
The major automotive manufacturers are also heavily investing resources in developing and introducing new charging stations. The manufacturers are working on developing new technologies, such as lithium-ion batteries, autonomous park-and-charge, ultra-fast DC charging networks, and wireless charging to increase the adoption of EVs. Lower operating costs, reduced maintenance, and rising consumer awareness regarding the environmental benefits are further attracting consumers towards EVs. This, in turn, is driving the demand for electric vehicle charging stations.
Envision Solar has invented a portable solar-powered parking space called the EV ARC (Electric Vehicle Autonomous Renewable Charger). This 9/16-foot structure consists of a parking pad and a canopy of solar panels that can charge a 21.6-kWh battery. Emerging trends such as wireless charging are expected to aid the electric vehicle charger market growth in the coming years. Wireless technology has become the main focus area for the electric vehicle and PHEV manufacturers because of its convenience. It also helps manufacturers differentiate their products. Wireless charging also facilitates charging on the go, which is expected to increase the sale of electric vehicles. For instance, in Gumi, South Korea, electric buses are charged through in-road wireless chargers.
Various automotive manufacturers, such as Volkswagen Group, BMW Group, and General Motors, among others, are investing in the development of Car2X technology for charging infrastructure that is further driving the market growth. Volkswagen Group is working on the development of V-Charge, an EU research project focusing on automating the parking and charging of electric vehicles. V-Charge completely automates the process of identifying a parking spot and charging slot through the usage of a network that consists of multiple sensory devices, including 3D cameras, wide-angle cameras, digital maps, ultrasound sensors, and the Car2X technology for the vehicle’s to communicate with the charging infrastructure.
The key market players include AeroVironment Inc.; ABB; BP Chargemaster; ChargePoint, Inc.; ClipperCreek; Eaton; General Electric; Leviton Manufacturing Co., Inc.; SemaConnect, Inc., Schneider Electric; Siemens; Tesla, Inc.; and Webasto. These players are continuously working toward new product development and upgrades of their existing product portfolio. For strategic growth, these players prefer collaborations with other players or EV manufacturers. For instance, in 2016, ChargePoint, Inc. collaborated with BMW of North America, LLC and Volkswagen of America, Inc. for setting up approximately 100 DC fast-chargers across east and west coasts of U.S.
Moreover, these players are consolidating their market shares by undertaking M&A activities. In 2017, Chargemaster Plc announced the acquisition of Elektromotive Limited, an infrastructure supplier, along with its subsidiary (Charge Your Car). Through this acquisition, the former company is planning to expand its existing portfolio and customer services. Furthermore, in 2018, BP plc acquired Chargemaster Plc, U.K.’s leading supplier of EV chargers and the largest EV charging network. Post-acquisition, Chargemaster Plc has rebranded BP Chargemaster. The acquisition enabled BP plc to deploy fast and ultra-fast charging network on BP’s U.K. forecourts.
Some of the key players operating in the global electric vehicle charging stations market are Webasto Group, EVBox Group, Electrify America LLC., BP plc., Royal Dutch Shell PLC, Evgo Services LLC., Connected Kerb Limited, Wanbang Xingxing Charging Technology Co., Ltd., Électricité de France, Tesla, Inc., Hangzhou AoNeng Power Supply Equipment Co., Ltd., EV Charging Installers of America LLC, Addénergie Technologies, Inc., EV Connect, Inc., and ChargePoint Holdings, Inc. among others.
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