Global EV Charging Station Market to Reach $93 Billion by 2027: Report

The global Electric Vehicle Charging Station (EVCS) market has been fuelled by a growing awareness of environmental conservation and carbon emission reduction. Hence, it has been estimated that the global EVCS market will grow at a compound annual growth rate (CAGR) of 20% from 2021 to 2027 and reach $93 billion by 2027, according to a recent report by Noida-based market research firm Astute Analytica.

The report shows that in 2019, the global EVCS market generated a considerable revenue amount of approximately $23 billion,while 819 thousand units of EVCS were sold in 2019 and the numbers are increasing at 17.5% CAGR.

The report sought some key reasons for the market growth as the government has enacted strict regulations to encourage the usage of electric vehicles. Both the supply and demand sides of the economy gain from government subsidies and other perks. For example, the Indian Govt. has invested Rs. 1000 crore for the development of charging infrastructure in the country till now.

One of the biggest challenges the EVCS market faces is the rapid deployment of charging technology, as adopting new technologies such as wireless charging, vehicle to grid (V2G), and vehicle to everything (V2X) charging technology will affect the cost infrastructure as well. According to the analysis, the cost of charging infrastructure components for level 2 commercial chargers ranges from $2,500 to $7,210, while 50kW fast DC charging infrastructure costs between $20,000 and $35,800.

Fast chargers with more than 22 kW of power are growing at the highest CAGR of 27.8% in the forecast period owing to the capability of these chargers to reduce charging time. CCS is the most popular connector protocol since it offers reverse power transfer, inductive charging, and wireless charging capabilities. This connector protocol was valued at $12,640.2 million in 2019, which is about 55% of the market share.

DC (direct current) charging method is growing at a CAGR of 20.3 percent because, it can supply electricity straight to the vehicle’s battery, bypassing the internal charger. Moreover, DC fast chargers convert AC power to DC within the charging station and supply DC power directly to the battery, resulting in faster charging.

Furthermore, governments in countries such as Germany, Canada, and France are continually investing to boost the use of EVs for public transportation. North America, Europe, Asia Pacific, Middle East & Africa, and South America have been included in the global market’s regional study. The Asia Pacific is the leading area with about 80% market share in 2019, most of the credit goes to China.

In addition, China’s advanced electrification technology, and government initiatives in Japan and Korea, have boosted the market in the APAC region. Furthermore, China will invest $1.2 billion to expand the country’s charging infrastructure. In India, as part of its initial phase of electric vehicle infrastructure development, the Indian government plans to install over 69,000 EV charging stations across the country.