Electric Vehicle Charging Station Market Trends

Growth Drivers

• Rising Population in the World – The burgeoning population is generating the need for fuel-efficient vehicles. Thus, the increasing demand for electric vehicle charging stations is expected to raise the production rate of electric vehicles in the forecast period. The World Bank calculated the global population to be 7.84 billion in 2021, an increase from 7.09 billion in 2021. This number is anticipated to rise to 9.8 billion in 2050 and 11.2 billion in 2100, as per the United Nations, Department of Economic and Social Affairs.
• Expansion of the Automotive Industry - As the manufacturing and sale of electric vehicles and electric vehicle batteries expand, so does the need for charging infrastructure. As more automakers engage in the development of electric vehicles and the manufacturing of electric vehicles increases, the need for EV charging stations will rise, particularly in places where EV adoption is strong. Recent statistics reveal that the global automotive industry is expected to reach approximately USD 9 trillion by 2030.  
• Rising Concerns of Carbon Dioxide Emission – A report published recently stated that a passenger vehicle emits about 5 metric tons of carbon dioxide per year. Also, as per the International Organization of Motor Vehicle Manufacturers, globally road transport is responsible for about 16% of man-made carbon dioxide emissions.
• Increasing Prevalence of Electric Cars with Government Support - Government rules and incentives are key factors in the growing popularity of electric vehicles. To stimulate the use of electric cars, several nations have established objectives for EV adoption and are giving financial incentives to EV customers and charging station owners. Furthermore, several towns and municipalities have established measures to encourage EV adoption, such as increasing charging station capacity and providing parking as well as other incentives to EV owners.  The latest report by International Energy Agency stated the number of electric cars on the road was 16.5 million in 2021.

Challenges

• High Costs of Infrastructure - Technology and installation costs can be prohibitively expensive, especially for fast charging stations, which require sophisticated equipment and better infrastructure. The cost of running charging stations may be costly as well because it involves the costs of power, maintenance, and labor. This can make it challenging for charging station owners to generate a profit, especially in locations with low EV adoption or a scarcity of charging stations.
• Non-presence of Standardization Among Nations
• Increased Need for Investments and Assets