1. The Global Electric Vehicle Market size is projected to grow from 4,093 thousand units in 2021 to 34,756 thousand units by 2030, at a CAGR of 26.8%.
2. Factors such as growing demand for low emission commuting and governments supporting long range, zero emission vehicles through subsidies & tax rebates have compelled the manufacturers to provide electric vehicles around the world.
3. This has led to a growing demand for electric vehicles in the market. Countries around the world have set up targets for emission reductions according to their own capacity.
4. This has led to a growing demand for electric vehicles in the market. Countries around the world have set up targets for emission reductions according to their own capacity.
5. The market in Asia Pacific is projected to experience steady growth owing to the high demand for lower cost-efficient and low-emission vehicles, while the North American and European market is fast-growing markets due to the government initiatives and growing high-performance Passenger vehicle segment.
6. However, the low presence of EV charging stations and hydrogen fuel stations, higher costs involved in initial investments, and performance constraints could hamper the growth of the global electric vehicle market.
MARKET DYNAMICS : DRIVER - REDUCING THE COST OF EV BATTERIES
1. Due to technological advancements and the production of EV batteries on a mass scale in large volumes, the cost of EV batteries has been decreasing over the past decade. This has led to a decrease in cost of the electric vehicles as EV batteries are one of the most expensive parts of an electric vehicle.
2. in 2010, the price of an EV battery was around USD 1,100 per kWh. However, by 2020 their price fell to around USD 137 per kWh while the price is as low as USD 100 per kWh in China. This is because of reducing manufacturing costs of these batteries, reduced cathode material prices and greater volumes of production, etc.
3. The prices of EV batteries are expected to fall to around USD 60 per kWh by 2030, which will greatly reduce the price of EV’s making them cheaper than conventional ICE vehicles.
MARKET DYNAMICS : DRIVER - LOW CHARGING COSTS
1. One of the most important factors driving the Electric Vehicle Charging Station market is the increasing prices of petroleum products. Consumers from emerging countries are already affected by the increased cost of petrol.
2. Electrical Vehicles operating on electricity will reduce the operating cost of usage for these vehicles. Manufacturers are expected to develop EV’s with better Battery life and longer usage duration.
3. Another major factor driving this segment is the reducing cost of EV with the reduction of battery cost which may lead to increase in demand for EV’s and EV charging stations.
MARKET DYNAMICS : RESTRAINT - HIGH INITIAL COST FOR FAST CHARGERS
1. The biggest hurdle in the growth of the Electric Vehicle Charging Station Market is the high initial cost for Level 3 fast chargers and ultra fast chargers. People are mostly used to using 5-7 mins in Fossil Fuel based vehicles while level 1 and level 2 chargers can take anywhere between 6-16 hours for a full charge.
2. Thus we can see a demand for fast chargers in the market which can charge EV’s in less than 30 mins. However, the initial cost of a Level 3 charger can be quite high. This acts as a restraint for people who may want to switch to EV as charging for long duration may affect the already busy life of most people.
MARKET DYNAMICS : RESTRAINT - LACK OF EV CHARGING INFRASTRUCTRURE
1. There is a low number of EV charging stations in many countries around the world. This makes the possibility of public EV charging less thereby reducing the demand for electric vehicles.
2. Although many countries are working on developing EV charging infrastructure, most countries haven’t been able to develop an appropriate number of EV charging stations except in some states.
3. The demand for EV’s will increase once there is a well-developed EV charging network across the world. Most countries are yet to develop such charging networks across their region. The Netherlands has the highest EV charger density per 100 km’s.
MARKET DYNAMICS : OPPORTUNITY - GOVERNMENT BODIES ENCOURAGING ELECTRIC CHARGING STATIONS GROWTH
1. The electric vehicle charging stations market is expected to grow with time and growing support from government bodies of different countries. Many countries have recognized the need to go electric to reduce the increasing pollution from automobiles, with the US and China already gearing up to electric vehicles.
2. These countries have taken initiatives to improve the charging network across their states for ease of switching to EV’s and promoted this segment using incentives, tax rebates, preferential policies etc.
3. China, US and some European countries have subsidized the setting up cost of EV charging stations at residential complexes, semi public areas, private homes etc.
MARKET DYNAMICS : OPPORTUNITY - GOVERNMENT INITIATIVES PERTAINING TO EVS
1. Countries around the world have set up targets of around 2050 to reduce vehicle emissions. They have started promoting the development and sales of EV’s and related charging infrastructure.
2. For instance, the US government invested USD 5 billion in 2017 to promote electric vehicle infrastructure such as charging stations. Several governments are providing various kinds of incentives such as low or zero registration fees and exemptions from import tax, purchase tax, and road tax. Furthermore, countries such as Norway and Germany are investing significantly in promoting sales of EVs. Thus, due to the large incentives and subsidies in Europe, a high growth rate in the sale of electric vehicles is observed. This has led to the growth in the demand for components and equipment associated with EV charging operations such as charging cables, connectors, adapters, and portable chargers.
3. Also, as part of a partnership between the US departments of energy and transportation, a 2020 vision for a national fast-charging network is expected to be developed, with potential longer-term innovations which include up to 350 kW of direct current fast charging.
4. Stringent CO2 emission norms have increased the demand for electric vehicles. Governments are investing significantly in providing incentives and subsidies to encourage sales of EVs. These steps taken by governments around the world will help in increasing demand for EV’s in the coming decade.
MARKET DYNAMICS : CHALLENGES - INSUFFICIENT STANDARIZATION OF EV CHARGING INSTRUCTURE
1. Factors such as the growth of the electric vehicle market and variation in charging loads have emphasized the need for the standardization of electric vehicle charging stations. Certain EV charging stations may only be compatible with a certain type of voltage. For instance, AC charging stations provide a voltage of 120V AC through level 1 charging stations and 208/240V AC through level 2 charging stations.
2. On the other hand, DC charging stations provide fast charging through 480V AC. Governments need to standardize charging infrastructure for the development of a favorable ecosystem and an increase in the sales of EVs. Different countries use different standards for fast charging. Japan uses CHAdeMO; Europe, US, and Korea use CCS; and China uses GB/T.
3. The Indian government had mandated the installation of both, CHAdeMO and CCS methods since India has not reached standardization in fast charging methods. Though, this mandate increased the installation cost of charging stations and hence in July 2019, the government changed the guidelines and allowed charging station developers to choose the method they prefer. US-based electric car maker Tesla uses high-performance superchargers that are unique to Tesla and cannot be used for other EVs.
4. The lack of standardization across countries may impact the installation of charging stations and hamper the growth of the Electric Vehicle Charging Station market.
MARKET DYNAMICS : CHALLENGES - CHARGING TIME AND PLUG TYPE
1. One of the major challenges to Electric Vehicle Charging Stations market is reduction in charging time for Electric Vehicles daily usage. Currently there is R&D going on for faster EV charger types so that they can be charged in same time as a fossil fuel vehicle.
2. Fast chargers are available in the market which can charge EV in less than 30 mins and since the last few years, ultra fast chargers have come out which can charge EV’s in less than 15 mins.
3. Plug type is also a major challenge for EV charging as different EV’s have different plug types. This needs to be universalized so that every charging station can be used to charge any kind of EV.
EV CHARGING STATION TRENDS & FORECAST
1. The Super charging segment is the fastest growing market. Earlier, Public charging stations were mostly set up as Level 2 Charging stations, but since the last few years, there has been a gradual shift to Super Chargers.
2. Superchargers have lower charging time compared to normal charging stations and can charge EV’s in around 30 mins depending on battery specifications. these charging stations may be the most used charging type in the long run.
3. The Level 2 Charging stations is currently having the largest market share among the 3 charging levels. By 2027, it is estimated that Level 2 Charging Stations will occupy a major share for EV charging usage.
4. This may be due to the growing emphasis of public and semi public charging stations by governments across the world for overnight charging and that people are shifting to use of Level 2 chargers as private charging stations at their homes as the growth of Level 1 charging may be the slowest.
5. Asia Pacific is expected to be the largest market. Large scale growth of EV charging network in China, growing demand for affordable electric vehicles for daily use, and governments promoting electric vehicles are expected to drive the Asia Pacific market during the forecast period.
6. China’s rapidly growing economy is driving the expansion of advanced technologies to improve electrification in the country. China has spent approximately USD 2.4 billion till 2020 to improve the charging facility infrastructure in the country.
7. The Japanese, Korean Governments have also come up with measures to drastically improve the number of electric vehicle charging points across their countries in the coming years.
8. The Indian government has also announced plans to equip 69,000 EV charging stations across india as part of its first phase of EV infrastructure growth, which may have a demand of 4 lakh charging stations by 2026.
ELECTRIC VEHICLE TRENDS & FORECAST
1. The electric vehicle market for passenger cars is largest in Asia Pacific followed by Europe and North America. In Asia, China, Japan and South Korea are the countries leading the passenger EV market in the region. This is due to the strong government support for passenger EV’s in these countries. Germany, France, Netherlands, Norway, Sweden, UK, etc. are the top countries in the European region with a growing demand for EV passenger vehicles.
2. These countries have come out with string of emission regulations and a variety of subsidies, grants and incentives for shifting to EV’s. in 2020, due to these measures, Europe’s EV sales went beyond China’s EV sales. North America is also increasing EV passenger car demand with various states in US and Canada leading the electrifying trend. MEA countries have started to increase their EV’s market and are expected to be the fastest-growing market in the coming years.
3. The demand for RWD EVs has been on the increase across all regions, particularly across Asia Pacific and Europe. This is due to its easier vehicle control and growing demand for these vehicles. North America also has seen a faster growth in these vehicles with Tesla Model 3 Standard version, BMW i3, Volkswagen ID4, Porsche Tycan, etc. leading the market.
4. In the coming decade, the growth of RWD EV’s will be highest in MEA due to its newer market and mostly across Asia Pacific. The Wuling Hongguang Mini EV which made a big splash in the EV market in 2020 is also an RWD popular across Asia and Europe.
5. The Asia Pacific EV market is led by countries like China, Japan and South Korea. China being the world’s largest EV producer and user has a dominance in the EV industry in the region. Their government has taken steps including subsidies for EV buyers, compulsory laws by which all vehicle manufacturers need to manufacture EV’s per number of vehicles manufactured, large support to installation of EV charging points across major cities and regulations against excessive polluting vehicles.
6. Japan and South Korea have also been growing their EV market. Their governments have supported the EV demand growth by installing EV charging stations, making emission norms, setting up deadlines for shifting to full or hybrid EVs from ICE vehicles, etc.
7. India is also working on increasing its EV demand in the market. The new vehicle scrappage policy in which old vehicles can be scrapped off for changing to low emission ones and other upcoming policies will help the country become the region's fastest-growing market for EV’s in the coming years.
Source:
https://www.marketsandmarkets.com/Market-Reports/electric-vehicle-market-209371461.html
https://www.marketsandmarkets.com/Market-Reports/electric-vehicle-supply-equipment-market-89574213.html
