Like any other device or technology that can be charged, electric vehicles (EVs) need a charger to keep their batteries charged. EV charging infrastructure is a system of stations that connects EVs or plug-in hybrids to a source of energy, allowing them to be recharged. Different types of chargers offer varied current and voltage levels to suit vehicle-specific battery requirements.
The global charging infrastructure market is expected to grow well in the coming year. In 2022 alone, the market for EV charging stations was valued at USD 7.9 billion, based on market research conducted by Apollo Research Reports. This number is forecast to grow to USD 32.2 billion by 2032 with a steady 15.1% CAGR.
The growth of EV charging stations can be attributed to the rapidly accelerated production and sales of EVs in recent years. The global policy support for zero-emission vehicles also helps accelerate EV sales in the market.
Major corporations are investing significantly in R&D to create faster EV charger types for public charging stations. This will ultimately help push for the migration of more drivers toward EVs.
The bulk of EV charging infrastructure installations have been predominantly concentrated in three major markets: China, Europe, and the United States. With China being the biggest market in the world, Asia Pacific (APAC) is the leading region in the industry with USD 4.5 billion in market size or 57% share in the global market. The region is expected to keep its leadership position until the end of the forecast period with a market value of USD 17.4 billion, registering a 14.6% CAGR.
China has long been a leader in the field of electric vehicles. The country does not actually have big EV automakers, but it takes its transition to electrification very seriously. With strong governmental assistance for EV ownership and infrastructure, China currently has the most EV charging stations in the world, with an estimated 2.2 million charging stations across the country.
By the end of 2022, there were 2.7 million public charging points for electric vehicles worldwide, with China contributing over 60% of this total. China significantly contributed USD 3.3 billion to the global market value in 2022. According to Apollo Research Reports' forecast, the Chinese market is expected to grow at a CAGR of 12.3% and reach USD 10.3 billion by the year 2032.
Indian market, on the other hand, is predicted to be the next massive market by many. The country shows rapid growth at 18.3% CAGR according to a study by The Insight Partners. By 2030, the Indian government wants to electrify 70 percent of its commercial vehicles, 30 percent of private automobiles, 40 percent of buses, and 80 percent of two-wheeler and three-wheeler sales. This simultaneously will accelerate the growth of the charging infrastructure market in the country.
Back to the regional market, Europe is the second biggest market with over half a million charging points at the end of 2022, accounting for 20% of the total global stock. The annual "Making the Transition to Zero-Emission Mobility" survey published by ACEA in 2021 found that EV charging stations in Europe are not equally dispersed. 70% of Europe's charging points are located in three nations: The Netherlands, Germany, and France. On the contrary, these three countries account for only 23% of the overall surface area of the region, providing the need for a substantial installation of more charging stations. While the situation improved slightly in 2022, these three countries still account for more than half of Europe's total charging points.
CCS (Combined Charging System) segment dominated the market in 2022 with a substantial market share of approximately 57%. Its value amounted to USD 4.5 billion, making it the most significant player in the EV charging industry. The CAGR for CCS between 2023 and 2032 is projected to be 15%, suggesting a steady and substantial expansion of the CCS charging network over the forecast period.
The CHAdeMO segment held a significant share of the market, accounting for around 28% of the total market value. Its market value was approximately USD 2.2 billion. With a CAGR of 18.1%, CHAdeMO is anticipated to experience robust growth, making it a noteworthy contender in the fast-charging segment.
The remaining charging standards collectively constituted approximately 15% of the market share.
Based on IEA's latest data, the slow charging segment currently controls 67% of the total 2.7 million charging points available globally, leaving the rest 33% share to fast chargers.
There has been a noticeable increase in the installation of fast chargers, which are instrumental in shaping the future of electric mobility. Fast charging stations play a crucial role in providing rapid charging solutions, enhancing driving convenience, alleviating range anxiety, and promoting broader adoption of electric vehicles (EVs). Notably, China has been at the forefront of fast charger expansion, contributing nearly 90% of the global growth in this segment. In Europe, the deployment of fast chargers surged by approximately 55% compared to the previous year, effectively addressing the challenge of limited access to home chargers in densely populated urban areas.
In the coming years, the International Energy Agency (IEA) foresees substantial expansion in the EV charging infrastructure. By 2025, the global charging landscape is projected to comprise 4.3 million slow chargers and 2.4 million fast chargers, marking significant growth in both categories. The total number of charging points is set to triple compared to the availability in 2022, reflecting the remarkable advancement in the charging network to meet the escalating demand for electric vehicles.
In the EV charging industry, different markets are dominated by different players. Top EV charging networks in Europe include Allego, Enel X, Ionity, Virta, EVBox, and Tesla. In the United States, ChargePoint leads with the most charging stations, followed by Tesla, Electrify America, EVgo, SemaConnect, and Blink.
Tesla has established a significant presence with its widely popular Supercharger network, offering the fastest and smoothest charging experience both in the US and Europe. While initially exclusive to Tesla drivers, Tesla has started to open some Supercharger stations for use by other electric vehicle drivers.
In China, notable names in the charging network sector include Teld, China Southern Power Grid (CSG), and State Grid Corporation of China (SGCC).
Sources: Statzon, IEA, TheHindu.com