PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1105158
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1105158
The Middle East and Africa (MEA) electric vehicle charging stations market was evaluated at US$72.429 million for the year 2020, growing at a CAGR of 12.11%, reaching a market size of US$161.222 million by the year 2027.
A charging station for electric vehicles (EVs) is a device that links an EV to a power source, allowing electric cars, neighborhood 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 charging business is quickly expanding around the world, particularly in the Middle East and Africa (MEA).
The market for electric car charging is a fast-paced business with a wide range of applications in the Middle East and Africa (MEA). Over the next few years, the Middle East electric car market is predicted to rise significantly. The growth of automobile charging stations there is aided by government programs in several nations throughout the world. Even though oil is a key source of national income and a domestic fuel in several Middle Eastern countries, their governments are focused on renewable energy and clean transportation technologies, as well as economic and energy diversification programs. With its all-electric range of automobiles, Tesla's entry into the EV (electric vehicle) market did shake the automobile industry. It prompted rival automakers to devote more resources to developing completely electric cars in the United Arab Emirates, and Dubai has been striving toward its long-term goal of electrification. It has implemented several initiatives in recent years to encourage residents to make sustainable choices. For example, to promote the United Arab Emirates' plans for green mobility solutions, the city completed the installation of 200 charging points in the emirate by 2018, and it is currently exempting registered EVs from charging fees until the end of 2021 and parking fees until 2022 as part of its plan to convert 25% of the city's trips to driverless journeys by 2030.
Even though the African electric vehicle market is still in its development, several significant firms are attempting to construct new product development facilities to expand their market position. For example, in October 2019, Volkswagen and Siemens struck a new deal to begin an electric transportation feasibility project. These reasons have resulted in a surge in electric vehicle sales and manufacturing around the world. 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, market growth is likely to be hampered by a lack of standardization of charging infrastructure and a primitive power grid infrastructure. In addition, the electric vehicle charging stations market is expected to face challenges in the forecast period due to the high initial cost of EVs compared to ICE vehicles and strict laws for EV charging station installation.
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 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 provides a dual-fuel and electric driving option, which is particularly beneficial in locations where charging infrastructure is limited. 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 dominates the electric car charging stations market and is expected to continue to do so over the forecast period. 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, the United Arab Emirates is one of the most established markets for electric vehicles in terms of sales and charging infrastructure. Furthermore, favourable government policies and incentives provide attractive prospects for key firms in the region to promote the use of electric vehicles in the coming years. Furthermore, the Gulf countries have launched a number of initiatives that are expected to boost EV demand in the country. For example, in January 2018, Saudi Electricity Company struck an agreement with Nissan Motor, Takaoka Tokyo, and Tokyo Electric Power Company for Saudi Arabia's first electric vehicle pilot project. According to reports, the deal calls for the establishment of new electric vehicle fast-charging stations.
Daimler AG, Mercedes-Benz, and CATL teamed up in August 2020 to develop cutting-edge battery technology to enable the Mercedes-Benz model portfolio's high-volume electrification. The deal will incorporate the CATL cell-to-pack (CTP) design, which eliminates traditional modules and integrates cells directly into the battery.
At Expo 2020 Dubai in December 2021, ABB unveiled the world's fastest electric car charger. It is the only charger on the market that can charge up to four vehicles at the same time. ABB's innovative solution is suited for refueling stations, urban charging stations, retail parking, and fleet applications throughout the UAE.
Volkswagen and Siemens established a pilot project in October 2019 to assess the viability of electric transportation in an African country. Volkswagen's operations in Rwanda include the pilot project. Volkswagen and Siemens have agreed to work together to develop the charging infrastructure.
Nissan launched a four-year business strategy for the Middle East, Africa, and India in June 2020, to expand its presence in these regions. As part of this strategy, Nissan wants to offer eight new vehicles, focus on core segments to channel investment to profitable products, and give regional emphasis to SUVs and cheap sedan models (B-sedan segment).
Due to global lockdowns, the COVID-19 pandemic had a moderate influence on the electric car charging station sector in the Middle East and Africa region. In 2021, demand for electric vehicles and related markets rose as a result of government incentives. Top charging station manufacturers and network providers are increasing the number of private and public EV chargers. For the development of industrial methods, the government and major industry players introduced new safety measures. Because it targeted the correct demographic, technological innovations increased the charge sales rate. In the post-pandemic situation, increased sales of electric vehicles across the globe are anticipated to fuel market growth.
Battery Electric Vehicle (BEV)
Plug-in Hybrid Electric Vehicle (PHEV)
Hybrid Electric Vehicle (HEV)
AC Charging (Level 1 and Level 2)