The EV charging infrastructure market is estimated to witness profitable growth by 2027 driven by the increasing demand for EV charging, coupled with technological innovations that promote seamless charging.
Electric vehicles (EVs) are advancing exponential and taking over the industry share of conventional internal combustion engine (ICE) vehicles. The increasing popularity of EVs has resulted in a higher presence of EV charging stations, which poses severe risks for power grids.
As a result, industry participants are formulating efficient charging strategies as well as grid integration techniques. These charging methods have been designed to diminish the adverse effects of EV charging and improve the advantages of EV grid integration.
The COVID-19 outbreak massively hampered the global automotive industry, however, the EV market reported nearly 40% growth in 2020. Recently, the International Energy Agency (IEA) published the Global EV Outlook 2021, which suggests that the EV industry is expected to see robust growth over the coming decade.
Moreover, the IEA report also found that 2020 saw a record 3 million new EV sales in spite of the economic recession triggered by the pandemic. This number was 41% higher than the 2019 figures.
Additionally, increasing EV sales are allowing industry players to scale EV charging, which has resulted in a decline in costs associated with EV charging infrastructure setup and operations. Thus, decreased costs for EV charging infrastructure are also expected to drive market demand in the following years.
For comprehensive analysis, the EV charging infrastructure market has been segmented on the basis of current (AC and DC), charging site (public and private), and region.
The AC current sub-segment has further been divided into level 1 and level 2. Level 2 EV charging infrastructure market share is estimated to grow at a CAGR of over 26% through the forecast period owing to their better charging speed.
Level 2 EV chargers can charge EVs 3-10 times faster than a level 1 charger. Therefore, most battery electric vehicle (BEV) owners with car batteries up to 100 kWh prefer level 2 EV chargers to recharge their EVs faster and increase vehicle availability.
In the region landscape, the Middle East EV charging infrastructure market is projected to observe lucrative growth by 2027 due to booming EV sales in the region driven by growing concentration of leading EV manufacturers in the region.
In 2020, DC charging infrastructure accounted for over 35% of the Middle East market share and is speculated to grow steadily between 2021 and 2027 due to the rising prevalence of EVs in the region.
The Africa EV charging infrastructure market is estimated to garner considerable revenue by the end of the forecast period. Increasing adoption of EVs for their benefits of reduced GHG emissions and growing investments by private & public players are projected to drive industry statistics in the region.