Market Research Report
Electric Vehicle Charging Station Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Electric Vehicle Charging Station Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: February 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 110 Pages
Delivery time: 2-3 business days
The global electric vehicle charging station market was valued at USD 5.03 billion in 2020 and is expected to register a value of USD 36.87 billion by 2026, with a CAGR of 44.44%. The electric vehicles (EV) market is witnessing significant growth, owing to the growing environmental concerns and rising demand for sustainable and energy-efficient transportation.
With the outbreak of pandemic COVID-19, the governments around the world have shifted their focus from other activities to health care facilities in their countries, and also with the imposed lockdown, all infrastructure work was affected as people were forced to stay at home to maintain social distancing and avoid the spread of the virus, which impacted the availability of the workforce and hence the projects were affected. Yet, with the gradual opening up of the economies infrastructure projects are also resuming and it is expected that the market will witness growth from the second half of 2021.
Some of the major factors driving the growth of the market studied are the enactment of stringent emission and fuel economy norms, government incentives, and the increasing sales of electric vehicles, which is generating a demand for charging stations.
The electric vehicle charging station market is captured by a number of global players such as ABB, Schneider Electric SE, and ChargePoint Inc. The market is also attracting various new startups.
Growing Sales of Electric Vehicles
Electric vehicles have become an integral part of the automotive industry. They represent a pathway toward achieving energy efficiency, and reduced emissions of pollutants and greenhouse gases. Increasing environmental concerns and favorable government initiatives are the major factors driving this growth. The annual sales volume of electric passenger cars is projected to cross the 5 million mark by the end of 2025. Electric cars are expected to account for 15% of the overall vehicle sales by the end of 2025.
The electric vehicle market has been witnessing healthy growth rates in recent years. In 2020, many European countries witnessed a double-digit growth rate in EV sales. The European market captured around 43% of the global EV sales in 2020, compared to 26% in 2019. The overall sales of plug-in vehicles reached about 3.24 million units, compared to 2.26 million in 2019. This spike in sales is the result of an increase in regulatory norms by various organizations and governments, to control emission levels and to propagate zero-emissions vehicles.
Governments across the world have introduced various schemes and initiatives to encourage buyers to choose electric vehicles over conventional vehicles. The California ZEV program, which aims to have1.5 million electric vehicles on road by 2025, is one such initiative. India, China, the United Kingdom, South Korea, France, Germany, Norway, and the Netherlands, are some of the countries which have various incentives for people willing to buy an electric vehicle.
Asia-Pacific is Leading the Electric Vehicle Charging Station Market
Geographically, Asia-Pacific is leading the electric vehicle charging station market, followed by Europe. In Asia-Pacific, China is the largest market for electric cars and buses, and it sold 872 thousand units of New Energy Vehicles (both passenger and commercial vehicles) for the first nine months in 2019, exhibiting a growth rate of 20.8%.
The Chinese electric vehicle charging station market is well supported by its battery electric vehicle market, which is backed by generous support from the government. China has extended the incentives relating to the purchase of new energy vehicles (NEVs) till 2022. In January 2020, Tesla Motors inaugurated a USD 2 billion facility at Shanghai, that was assembling nearly 3000 cars per week in March 2020 when all the other global facilities of the electric vehicle giant were shut down due to the COVID-19 pandemic.
The electric vehicle market in Japan has been experiencing growth, as the demand for emission-free vehicles has been increasing, and the government has been investing heavily in this electric vehicle market. The Japanese government aims to transform all the new cars, sold in the country, to electric or hybrid vehicles, by 2050. The government has also set a target to reduce the emissions of carbon dioxide and other greenhouse gasses, by about 80% per vehicle, by 2050.
The Electric vehicle charging station market is fairly consolidated. The market is led by few companies, such as The State Grid Corporation of China, ABB, Siemens, Qingdao Tgood Electric Co., Ltd, and Tesla Inc.
The electric vehicle charging station market is dominated by The State Grid Corporation of China followed by ABB. As of now, the company has integrated over 1 million charging stations covering 273 cities from 29 provinces. The company is expanding its presence by making partnerships with major automakers. For instance; in 2018 BMW and SGCC entered into a strategic partnership under which SGCC will enable BMW car drivers to access more than 270,000 charging pillars in China by the end of 2020.
Siemens AG continues to focus on developing the new technologies market for charging e-mobility. In September 2020, the company has received an order from Go Bus, one of New Zealand's largest bus operators, to power two of their bus depots with charging infrastructure for e-Buses.