Both the production and sales of new electric vehicles had come to a halt in Q1 and Q2 of 2020 across the globe as the whole ecosystem had been disrupted
The global electric vehicle charging station market size is projected to reach 30,758 thousand units by 2027, from an estimated 2,115 thousand units in 2020, at a CAGR of 46.6 per cent. Increased demand for efficient and eco-friendly vehicles, as per a report by Research and Markets, along with government support will boost the electric vehicle charging station market.
“Consumers from developing countries are already feeling the heat of the increasing cost of petrol. Electrical vehicles will run on electricity, which is expected to reduce the operating cost of these vehicles. To make the electric vehicle charging station market grow, continued support from the government will be needed along with the growing numbers of EV users and reduced initial cost of present EV charging technology along with high R&D to reduce the charging time further,” read the report.
Post the pandemic, the demand for EVs might increase
The COVID-19 pandemic is expected to have a slight impact on the electric vehicle charging station market. Both the production and sales of new electric vehicles had come to a halt in Q1 and Q2 of 2020 across the globe as the whole ecosystem had been disrupted. However, in the next two quarters, the sale of EV charging stations has been on the rise especially for private and semi-public charging.
OEMs had to wait until lockdowns were lifted to resume production, which affected their business. Post the pandemic, the demand for EVs might increase, as people will avoid public transport, preferring private vehicles to avoid crowds. In addition, component manufacturing is also suspended, and small Tier II and Tier III manufacturers could face liquidity issues.
Normal Charging segment
Normal charging comprises AC charging devices and is used for charging EVs at affordable costs but at slower speeds than superchargers. As the cost is significantly low, this charging equipment has a higher demand from the working class, especially in the emerging countries with large population bases and demand for low-cost charging.
The market in the Asia Pacific is projected to be the largest in terms of charging stations. The region comprises some of the fastest-developing economies of the world such as China and India. Government policies in these countries are supportive of higher EV sales and related services such as EV charging.
Portable Charging segment
Companies such as Tesla, Blink Charging, SparkCharge, and ClipperCreek introduced portable chargers for EVs. Portable chargers help EV drivers carry the charger and charge the vehicle whenever required. In addition, a portable charger eliminates the need to develop a charging infrastructure for installing a stationary charging station.
Initially, portable chargers were introduced as small and light chargers that could generate sufficient power for short journeys. However, new advanced portable chargers are expected to generate the same power as stationary charging stations. Some new types of portable chargers can be used for emergency charging when off the grid.
Ultra-Fast Charging segment
There has been a demand for faster-charging solutions for a long time as there is a demand to reduce EV charging time to that required to fill a petrol tank. Ultra fast charging was therefore developed. This kind of charging requires that the EV has a battery capable of handling ultra fast charging and the battery is required to be in good condition and charging must be undertaken at a moderate temperature.
This charging method can fully charge an EV in approximately 15 minutes. Some companies installing ultra fast charging include ChargePoint, Shell, Tesla, Delta, EVBox, etc. This EV charger is currently less used in the market and demand is expected to rise at a higher rate in the future when most EVs are expected to be compatible with it.
