In 2021, the hardware segment is estimated to account for the largest share of the overall electric vehicle charging stations market
The electric vehicle charging stations market is expected to reach a value of $103.6 billion by 2028, at a CAGR of 26.4 per cent during the forecast period of 2021-2028. By volume, the electric vehicle charging stations market is expected to reach 11,647.5 thousand units by 2028, at a CAGR of 31.1 per cent from 2021.
A report by Meticulous Market Research notes that the growth of the overall electric vehicle charging stations market is mainly attributed to factors such as government initiatives to drive the adoption of electric vehicles and associated infrastructure, rising demand for electric vehicle fast-charging infrastructure, increasing prevalence of range anxiety, and increasing deployment of EVs by shared mobility operators.
It read, “However, the high initial cost of installation is likely to hinder the market’s growth. Increasing R&D in V2G technology, increasing adoption of electric mobility in emerging economies, and growing deployment of charging stations by retail MNCs are projected to provide significant growth opportunities for vendors operating in this market.”
Where are the opportunities
Based on charging type, the electric vehicle charging stations market is segmented into Level 1, Level 2, and DC fast charging. In 2021, the Level 2 segment is estimated to command the largest share of the overall electric vehicle charging stations market.
The large share of this segment is mainly attributed to government funding and incentives for the installation of Level 2 charging stations, lower installation cost compared to DC fast-charging stations, and greater efficiency in terms of less charging time than Level 1 charging stations. However, the DC fast-charging stations segment is expected to grow at the highest CAGR during the forecast period.
Based on connection type, the electric vehicle charging stations market is segmented into pantograph, connectors, and wireless charging. In 2021, the connector segment is estimated to account for the largest share of the overall electric vehicle charging stations market.
The large share of this segment is mainly attributed to government initiatives to expand the DC fast-charging station infrastructure and increasing investment by stakeholders of electric mobility in emerging economies for developing EV charging infrastructure.
Based on vehicle type, the electric vehicle charging stations market is segmented into passenger cars, heavy commercial vehicles, light commercial vehicles, and two-wheelers & scooters. In 2021, the passenger vehicles segment is estimated to account for the largest share of the overall electric vehicle charging stations market.
The segment’s growth is attributed to the favourable government policies and subsidies for promoting the adoption of electric vehicles, growing awareness regarding the role of electric vehicles in reducing emissions, increasing fuel prices, and proactive participation by automotive OEMs in producing electric passenger vehicles.
Based on component, the electric vehicle charging stations market is segmented into hardware, software, and services. In 2021, the hardware segment is estimated to account for the largest share of the overall electric vehicle charging stations market.
The growth of this segment is attributed to infrastructural developments for supporting the transition to electric mobility, increasing demand for EV charging stations in developing and developed economies, and attractive fiscal and non-fiscal incentive plans for setting up manufacturing units of EV charging stations and related components.
