PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1105172
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1105172
The South American electric vehicle charging stations market was evaluated at US$87.371 million for the year 2020, growing at a CAGR of 10.31% to reach a market size of US$173.630 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, 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 South America.
The market for electric car charging is a fast-paced business with a wide range of applications in South America. Over the next few years, the South American electric car market is predicted to rise significantly. Colombia's air pollution is increasing at an exponential rate. In terms of health and air quality, cities like Medellin and Bogota are at risk. According to multiple studies conducted by various national universities, diesel automobiles are the leading cause of pollution in Bogota. To counteract the aforementioned environmental challenges, the government is providing incentives and subsidies to reach an ambitious goal of 600,000 electric vehicles on the road by 2030. Tax benefits are currently the most significant inducement. Vehicle taxes in the country range from 1.5 percent to 3.5 percent, depending on the overall value of the vehicle. For electric vehicles, however, this has been reduced to just 1%. In addition to tax breaks, the government is decreasing power rates, making charging electric vehicles even more inexpensive.
The growth of automobile charging stations there is aided by government programs in several nations throughout the world. Government regulations and initiatives in countries like Chile and Colombia that encourage the use of electric vehicles are driving growing demand for electric vehicle charging stations in the region. South America's EV charging infrastructure market is also benefiting from an increase in investment to construct EV charging infrastructure. 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, because of subsidies for locally accessible fuel, automakers in countries like Brazil and Argentina continue to prioritize internal combustion engines, limiting the growth of the EV charging station market in the region. Moreover, in certain countries/regions, commercial charging stations are still few, forcing consumers to rely on charging options available at their offices and residences. Furthermore, the growing number of electric cars may have an impact on charging station functionality, such as the quantity of power generated, the transformer load level, and the load curve.
Because of the rising use of electric vehicles, the AC Level 1 and Level 2 sectors are likely to dominate the electric vehicle charging stations market. Charging with alternating current (AC) is often known 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 projection period, Brazil is likely to grow significantly. To promote the transition to hybrid and electric cars (EV) in Brazil, the public and commercial sectors are collaborating on several recharging infrastructure projects that will transform the market by 2020. For example, Volvo Car started the year with about 250 electric vehicle charging stations and plans to reach 500 by December. According to figures from the local electric vehicle organisation ABVE in the third quarter of 2019, Brazil was on track to register roughly 6,500 electric vehicles in 2019. Furthermore, several important players are helping to expand the country's EV infrastructure. Startups like Zletric are also enhancing parking facility infrastructure, in addition to construction businesses installing chargers in parking spots placed in new building structures.
InterEnergy, a Latin American power production, transmission, and distribution asset owner and operator, has enlisted Blink to bring electric vehicle charging infrastructure to the Dominican Republic & Panama. InterEnergy announced the initial purchase of 200 Blink Charging Stations, for a total initial purchase of $1.2 million in Blink hardware as part of its total investment in the deployment of 500 charging stations for electric vehicles.
Enel opened the first "EV Service Station" in Latin America in Chile in February 2022 to service any type of vehicle that uses electricity as its primary energy source. The forecourt is near the international airport of Santiago de Chile and has 23 charging stations.
Enel X made 220 JuiceBox charging spots available in 2020, covering a distance of over 13,000 kilometres between Ushuaia, the southernmost city in South America, and Ensenada, Mexico.
The first three fast electric vehicles (EV) charging stations were installed on the main highway south of Chile's capital Santiago in September 2020.
WEG SA, a Brazilian automaker, established cooperation with Neoenergia SA, a power business, in January 2022 to supply charging stations for electric vehicles.
The market for electric vehicle charging stations in South America has gained from COVID-19. The EV charging business has not been as hard hit as other parts of the energy sector, such as the oil industry, 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.
Battery Electric Vehicle (BEV)
Plug-in Hybrid Electric Vehicle (PHEV)
Hybrid Electric Vehicle (HEV)
AC Charging (Level 1 and Level 2)