According to a report by Market.Us1, the global electric vehicle (EV) charging infrastructure market is set to experience double-digit growth over the next decade. From 2023 to 2032, the compound annual growth rate (CAGR) is expected to reach 27.5%, expanding the market size to $224.8 billion by 2032.
Asia-Pacific and Europe Leading the Charge
The Asia-Pacific region and Europe are set to be the major hubs of this growth. Market research indicates that the Asia-Pacific region is dominating the market, accounting for over 40% of the global revenue. This leadership is attributed to rapid urbanization and a burgeoning population, which have prompted governments to adopt electric transportation as a sustainable solution. Countries in this region are investing heavily in EV infrastructure to reduce carbon emissions and dependence on fossil fuels, thereby enhancing energy security and environmental sustainability.
Fast and DC Chargers Accelerating Market Growth
One of the key drivers of this market growth is the proliferation of fast chargers. Level 3 DC fast chargers and Level 2 AC charging stations can recharge an EV in as little as 30 minutes to 4 hours, providing a significant boost to the market. According to market research23, fast charging facilities contribute to over 70% of market revenue. This surge is driven by government initiatives to accelerate the deployment of public fast-charging infrastructure, coupled with the rapid expansion of charging facilities for electric trucks. Countries are setting ambitious targets for installing fast chargers along highways and urban areas to enhance the convenience of EV ownership.
In a recent forecast by ABI Research4, it’s projected that the number of public charging points for EVs will skyrocket between 2024 and 2034, reaching over 23 million installations. This marks a remarkable increase from 5.8 million in 2024 to a staggering 28.9 million by 2034, underscoring the significant strides being made in charging infrastructure development worldwide. When examining the breakdown of charging technology, approximately two-thirds of the EV charging points installed belong to the AC category, with the remainder falling under DC.
Despite the dominance of AC charging points in sheer numbers, it’s noteworthy that DC chargers still command a larger share of energy demand. According to ABI Research’s findings, the energy requirements for AC chargers are projected to surpass 11 TWh in 2024, whereas DC chargers will demand over 38 TWh during the same period. Looking ahead to 2034, the total energy demand for EV charging infrastructure is estimated to reach approximately 448 TWh, with DC chargers alone constituting a substantial 333 TWh of this demand.
Home Charging Leading the Light EV Market
In the light electric vehicle segment, home charging remains the preferred option for most EV owners in Europe and the US. The number of private chargers is almost ten times that of public chargers, reflecting a strong inclination towards home-based solutions. In the UK, the adoption rate of home charging is a remarkable 93%, with more than half of these being smart chargers. This is partly due to the United Kingdom being the first country to release smart charge point regulations, but, importantly, it could also be attributed to the high share of early EV adopters that also own a home in which a charger can be installed.
According to the research institute DIGITIMES5, Europe had 744,000 public charging stations in 2023, making it the second-largest market globally after China, with a market share exceeding 18.5%. The European Union aims to add 200,000 charging stations annually over the next two years, with a target of reaching 1 million stations by 2025.
Pioneering Heavy-Duty Vehicle Charging Facilities
The charging infrastructure for electric heavy-duty vehicles (HDVs) is in its nascent stages but is rapidly evolving. HDVs, due to their larger vehicle and battery sizes, require specialized charging equipment and facilities. Efforts are underway globally to establish megawatt charging standards that ensure maximum interoperability. In 2023, both the European Union and the United States proposed a series of recommendations for HDV charging infrastructure, recognizing the adoption of megawatt charging systems (MCS) by international standardization organizations like SAE International and ISO. These systems enable charging capacities of up to 3.75 MW, which are crucial for the efficient operation of HDVs.
Innovating Grid Solutions and Alternative Approaches
To address grid congestion issues, fixed batteries can be installed near high-power chargers. Although this requires significant capital expenditure (CAPEX), it can generate revenue through electricity price arbitrage or by providing grid services. Additionally, placing renewable energy sources near charging hubs can alleviate local grid pressure.
Innovative alternatives such as battery swapping and electric road systems (ERS) are also driving HDV market development. Battery swapping, which takes just five minutes, helps extend battery life, distributes power demand, and reduces grid pressure. China is leading in this area, with about half of the electric heavy-duty trucks sold in 2023 equipped with battery-swapping technology.
ERS allows vehicles to charge while driving, using technologies like induction, conductive connections, or overhead lines. As ERS technology becomes more widespread, the battery capacity required for vehicles will decrease, reducing overall power demand and balancing distribution. In 2023, Sweden became the first country to commit to permanently electrifying its highways, with plans to open the first electrified road in 2025 and expand to 3,000 kilometers by 2045, potentially reducing CO2 emissions from road freight trucks by 86%. Germany has been conducting trials with overhead contact line systems on over 10 kilometers of highways since 2019.
Overall, the global EV charging infrastructure market is experiencing rapid growth, with governments and companies actively promoting the development of related technologies and facilities, indicating that electric transportation will become mainstream in the future.
References:
1. https://market.us/report/electric-vehicle-charging-infrastructure-market
3. https://www.iea.org/reports/global-ev-outlook-2024/trends-in-electric-vehicle-charging
5. https://www.digitimes.com.tw/tech/rpt/rpt_show.asp?v=20240506-122
