In the last few years the world has witnessed the advent of electric vehicles (EV) followed by their proliferation worldwide. As companies target capitalizing on the nascent electric vehicle market’s potential, they are delving into every option to maximize profit. As the demand for electric vehicle charging station is rising in tandem with advanced models of electrical vehicles, players are seeking innovation in former to gain competitive advantage. Currently, numerous players are engaged in the global electric vehicle charging station market, rendering it highly fragmented and competitive, finds Transparency Market Research (TMR) in a new study.
“Besides investing in product development, the leading players are engaging in strategic collaborations and eyeing for acquisition of smaller companies to gain competitive strength,” said a lead TMR analyst. As the market demonstrates high growth rate, it is more likely for the competition among leading players to intensify further in the coming years. Companies such as AeroVironment, Inc., ClipperCreek, Inc., ChargePoint, Inc., Leviton Manufacturing Co., Inc., and Siemens AG currently hold strong position in the market.
The global electric vehicle charging station market is expected to reach a valuation of US$37.48 bn by the end of 2025. TMR projects the market to rise at a whopping 30.8% CAGR between 2017 and 2025. By end use, the residential segment is forecast to emerge as the leading consumer. In terms of volume, customers in the residential sector is expected to account for over 41.6% of the global electric vehicle charging station market in 2017. Regionally, Asia Pacific held the highest share in the global market, however, the Middle East and Africa market is forecast to showcase the highest CAGR of 61.6% between 2017 and 2025.
Demand for Electric Vehicle Charging Stations to Rise in Response to Increasing Sales of Electric Vehicles
“The demand for electric vehicle charging stations will rise in response to the increasing sales of electric vehicles,” said the TMR report’s author. Their long-term cost-effectiveness, eco-friendliness, and other benefits of cost-benefits they provide are encouraging customers across the world to invest in electric vehicles. While a considerable number of electric vehicles are already observed on roads of developed countries such as the US and Japan, very soon emerging nations are expected to pace up with the change. However, this increased sales of electric vehicles would not have been possible if there was not a considerable rise in the number of vehicle charging station market.
Besides this, government incentives and exemptions on electric vehicle supply equipment have resulted into a considerable spike in sales of electric vehicles. This will subsequently aid in the expansion of the electric vehicle changing station market. Subsidies offered by various governments to electric vehicle owners in form of road tax exemptions also encourage adoption of electric vehicles. Spurred by these factors, the electric vehicle charging station market will exhibit strong growth in the coming years. Also the growing environmental awareness across the world will tip scales in favor of the market.
High Cost of EV Charging Station could Hamper Growth
On the downside, high cost of electric vehicles and the high investment required in the initial deployment of charging stations are creating major roadblocks to growth. As the market continues to reel under these restraints, it is losing out on high untapped opportunities especially across emerging nations. Nevertheless, as auto manufacturers increasingly focus on electric vehicle manufacturing soon they will be out with technologies to bring down their production cost. While this will help reduce the overall cost of electric vehicle, it will create considerable growth opportunities for the electric vehicle charging station market as well.
This review is based on a TMR report, titled “Electric Vehicle Charging Station Market (Technology - Level 1, Level 2, and Level 3; End-use Application - Government, Public Space and Municipalities (Parks and Street), Commercial Office Space, Healthcare, Retail, Hospitality, Residential, Logistics and Transportation (Fleet Services), and Education) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 - 2025.”
The report segments the global electric vehicle charging station market as:
Electric Vehicle Charging Station Market
- Level 1
- Level 2
- Level 3
By End-use Application
- Public Space and Municipalities (Parks and Street)
- Commercial Office Space
- Logistics and Transportation (Fleet Services)
- North America
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- South Africa
- Rest of MEA
- South America
- Rest of South America