EV Charger Market Projected at CAGR 46.5% Between 2022 & 2030: CES-IESA Report

EV Charger Market Projected at CAGR of 46.5% Between 2022 & 2030: CES-IESA Report

The Customized Energy Solutions (CES) and India Energy Storage Alliance (IESA) have released their third annual “2022 India Electric Vehicle Charging Infrastructure & Battery Swapping Market Overview Report”. The report covers the present market trends and forecast of electric vehicle (EV) chargers by various charger types in terms of revenue (USD Million), capacity (GW) and volume (units). The report indicates that government initiatives and private investments from 2022 to 2030 have driven growth in electric charging infrastructure. 

Market Projection Scenarios

The research report charts three distinct market projection scenarios for the coming decade: the worst-case scenario, Business As Usual (BAU), and a National EV scenario (NEV). According to the report’s BAU scenario, the Indian EV charger market is poised to expand at an impressive CAGR of 46.5% between 2022 and 2030. It is predicted to achieve annual sales of 3.0 million units to meet the requirement of chargers to meet the NEV scenario by 2030, with a strong push towards type-2 and fast charger installations. EV charger market represents public, captive, and private (e-4W) charge points deployed in the country.

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The report shares that the Indian EV charger ecosystem is dominated by type-2 AC chargers which accounted for 82% of the market in 2021-22. In India, the EV charger market is poised to cross annual sales of around 0.9 million units by 2030 in a Business As Usual case, as per the report.

Dr. Rahul Walawalkar, Founder & President, India Energy Storage Alliance (IESA) and President & MD of Customized Energy Solutions India Pvt. Ltd says, “India’s electric revolution is gaining momentum at an astonishing pace. This report highlights our nation’s exceptional strides in electrifying the transport sector. Government policies and private investments are propelling us towards a future with clean, accessible electric mobility. With a commitment to innovation and sustainability, India is poised to lead the global charge towards emission-free transportation.”

The report analyses both central and state-level EV policies concerning EV charging and battery swapping extensively. Additionally, it also reflects on the industry’s evolution, including demand-side and supply-side analyses, business models for EV charging, key challenges, and emerging trends in EV charging. Avanthika Satheesh, Director, Customised Energy Solutions, says, “India’s electrification journey is a testament to our collective determination to combat climate change and drive sustainable transportation. Our report showcases the critical role of policies and industry collaborations in accelerating India’s electric vehicle infrastructure. Together, we are creating a brighter, cleaner future for India and the generations to come.”

The report covers chargers of 3.3kW and above ratings. During 2021, the total EV chargers supplied were more than 17,000 units. This includes chargers’ procurement by PSU, commercial fleet operators, bus operators & CPOs, supplied by EV OEMs along with electric four-wheelers.

Trends in EV Charger Demand

The EV charger demand in India witnessed an increase in 2022 owing to tenders announced by PSUs such as Convergence Energy Services Limited (CESL), NTPC Vidyut Vyapar Nigam Ltd., Indian Oil Corporation Limited (IOCL), and Kerala State Electricity Board (KSEB) which is expected to add around 6,000 charging stations by 2023.

Efforts taken by the Department of Heavy Industries through the FAME Scheme has resulted in the increase in the number of charging stations in India. State governments are also taking active steps to increase EV charging networks in the state by providing attractive incentives in the form of capital subsidy and 100% reimbursement of state goods & services tax. States like Haryana, Kerala, Madhya Pradesh & Andhra Pradesh provide attractive capital subsidy for deployment of a limited number of fast and slow EV chargers. Further, Delhi & Maharashtra emerge to be favourable locations for installing of private charging due to availability of additional state subsidy. Also, some of the state’s regulatory commissions have announced tariffs for EV charging under a separate category in tariff order.

According to the report, the main factors propelling the EV charger market’s expansion in the current decade will be annual sales of lithium-ion based EVs expected to be 17 million in 2030 under Business as usual scenario. This includes e-2W,e-3W,e-buses,and-trucks, e-4W.; Presence of supportive policies & regulations in some states such as capital subsidy for deployment of slow & fast EV chargers, allocation of specific percentage for EV charging ready parking spots in new commercial & residential buildings. Further, real estate developer companies such as Omaxe, Lodha Group, MyGate, and Rustomjee Group collaborated with EV charging station developer companies to deploy EV charging solutions in their new & existing properties.

The report points that collaboration among EV OEMs (Hero Electric, BYD India, Ather Energy) and charge point operators (Charge Zone, Magenta ChargeGrid) will lead to the setup of new EV charging stations in the forecast period. 

In another news, EVs accounted for 6.4 per cent of the total automobile sales in India this year, with two wheelers dominating with a 56% share, followed by three wheelers and automobiles.