Mexico Electric Vehicle Charging Stations Market - Forecasts from 2022 to 2027

The Mexico electric vehicle charging stations market is estimated to grow at a CAGR of 14.46% during the forecast period.

A charging station for electric vehicles (EVs) is a device that links an EV to a power source, allowing electric cars, neighbourhood EVS, and plug-in hybrids to be charged. While some charging stations include advanced capabilities such as smart metering, cellular connectivity, and network connectivity, others are more basic. The electric vehicle business is quickly expanding around the world, particularly in Mexico.

The market for electric car charging is a fast-paced business with a wide range of applications. The growth of automobile charging stations is aided by government programs in several nations throughout the world. Mexico is working to build a robust network of charging stations that will help the country become more environmentally friendly. Mexico is stepping up its efforts to cut pollution and make electric vehicle mobility more feasible. Hundreds of charging stations are accessible throughout the country, provided by a variety of companies. In Mexico, a growing gasoline deficit is increasing demand for electric vehicles, which is favourably benefiting the country's electric vehicle charging station industry. The market for electric car charging stations in Mexico is expected to develop due to a growing focus on marketing efforts to encourage the use of electric vehicles.

In Mexico, the government plays an important role by establishing obligatory regulations and funding for the development of electric vehicle charging stations. Mexican legislation, both federal and state-level, offers a variety of incentives and subsidies to encourage the use of electric vehicles. . Several key provisions are included in federal tax legislation. For instance, cars propelled by electric rechargeable batteries, as well as hybrid vehicles, are free from costs associated with their sale or import under the Federal Law on New Automobile Taxation. Further, people who invest in electric and hybrid vehicles, or obtain their temporary usage, are eligible for benefits under the Income Tax Law, which includes larger amounts for allowable deductions. These reasons have resulted in a surge in electric vehicle sales and manufacturing worldwide.

To ensure that the rising fleet of electric automobiles runs properly, charging stations and established power infrastructure are required. As a result, these factors are linked to the market's expansion over the forecasted period. Furthermore, tight government car emission rules have encouraged consumers to switch to electric vehicles, which will help the electric charging station industry grow in the coming years. Moreover, the market expansion would be aided by advances in communications technology such as real-time information on all-electric automobile charging stations for smart connectivity.

However, commercial charging stations are still few in some parts of Mexico, requiring users to rely on charging choices accessible at their workplaces and homes. In addition, the increasing number of electric cars may have an impact on charging station performance, such as the amount of power generated, the transformer load level, and the load curve. Furthermore, the high cost of installation of wireless chargers may hinder the market growth.

Because of the rising use of electric vehicles, the AC Level 1 and Level 2 sectors are likely to dominate the electric vehicle charging station market. Charging with alternating current (AC) is often referred to as level 1 or level 2 charging. An in-car inverter converts alternating current (AC) to direct current (DC), which subsequently charges the battery at either level. The majority of electric car drivers in Mexico charge their vehicles at home or work using AC power. As more EVs enter the market, this is projected to stimulate demand for AC charging, which will be aided by government restrictions.

The HEV category dominates the market by type, accounting for a sizable revenue share. The HEV gives a dual fuel-based and electric driving option, which is especially useful in areas with limited charging infrastructure. The demand for electric battery vehicles is increasing as private companies and governments seek to build a global network of charging infrastructure to encourage the use of renewable energy. Furthermore, the PHEV market is growing steadily. The demand for these vehicles is expected to increase in future years as their prices fall.

This market is divided into commercial and residential segments depending on the application. The residential usage segment now leads the electric car charging station market and is anticipated to do so for the foreseeable future. This is due to the growing popularity of EVS and the expanding number of charging stations. Furthermore, the commercial market is anticipated to see significant expansion, aided by increased government financing for the development of public charging stations, in coming years.

Over the forecasted period, Mexico is expected to develop significantly in this market. The market in the North American region is predicted to grow because of increased government regulations for car emissions, a rapid acceptance rate of new technologies, and a significant investment in product innovation.

COVID-19 Impact

The market for electric vehicle charging stations in Mexico has benefited from COVID-19. The EV charging business has not been as hard hit as other parts of the energy sector, according to the National Renewable Energy Laboratory's First Quarter Report 2020. This is due to its smaller scale and significant expenditures from state and local governments, as well as utilities. EV charging stations continued to expand rapidly in early 2020. In recent years, as the popularity of electric automobiles (EVs) has grown, so has the infrastructure for charging them on interstate highways, in companies, and in public parking lots across the country. New utility electrification projects, such as infrastructure development plans and customer incentive schemes, are still being approved by state regulators.

Recent Development

Elon Musk announced in July 2021 that Tesla's supercharging network would be open to other electric vehicles. In Mexico, Tesla has over 500 charging stations and 20 superchargers, with more on the way. This move would significantly improve Mexico's electric vehicle charging infrastructure.

Market Segmentation:

• By Vehicle type

Battery Electric Vehicle (BEV)

Plug-in Hybrid Electric Vehicle (PHEV)

Hybrid Electric Vehicle (HEV)

• By Application

Commercial

Residential

• By Charging type

AC Charging (Level 1 and Level 2)

DC Charging