Increasing sales of the electric vehicles is anticipated to boost the Electric Vehicle Charging Services Market during the forecast period 2020-2025. The market for Electric Vehicle Charging Services is forecast to reach $5.8 billion by 2025, growing at a CAGR of 5.36% from 2020 to 2025.
Electric Vehicle charging services consist electric vehicle charging station to recharge the electric vehicles. The rising demand for the electric vehicles is significantly boosting the demand for the Electric Vehicle charging services. The significant implementation of the stringent emission norms globally is set to boost the demand for the electric vehicles, thereby contributing to the Electric Vehicle charging services market.
Public type are analyzed to hold highest share in 2019 and is set to grow at highest rate during the forecast period 2020-2025 majorly attributed to the growing public Electric Vehicle charging stations. The government of India announced to increase the Electric Vehicle usage to 30% by 2030, hence the exponentially growing charging infrastructure across the country is set to contribute to the market. Indian government announced the initiatives such as developing a national Electric Vehicle policy, the FAME II scheme, which includes a subsidy for setting up of 2,636 public electric vehicle charging stations across the country.
APAC is the dominant region in 2019 with a market owing to the high production base in the region, followed by Europe and North America. The large market share is majorly attributed to the presence of large production bases in China and India. In 2019, the Government of India announced its plan to provide subsidies to set up 5,000 electric charging stations in cities and highways of India. The main aim of the subsidy program is promoting India’s plan to shift 40% fleet to battery operated vehicles. In January 2020, EESL and BHEL announced partnership to build the EV charging station all over India. The development of plug-in vehicles in France is seen as a symbolic step towards achieving national goals in the direction of more environmentally friendly transport. An investment plan to support public infrastructure was also announced by the Government.
Electric Vehicle Services Market Growth Drivers:
- Increasing sales of the Electric Vehicles:
The development of electric vehicle charging stations for electric vehicles has gained significant momentum over the past decade. Adoption of charging station services for electric vehicles help in reducing the pollution in large population centers, increase customer loyalty, and attract new customers, thereby driving the market growth. According to International Energy Agency (IEA), the number of battery electric vehicles have been increased from 1.19 million units to 3.29 million units during 2016-2018 period at global level. Growing adoption of EV charging stations with increasing usage of electric vehicles set to fuel the market growth.
- Rise in number of convenience charging stations in both developed and developing economies
The rapidly evolving electric vehicle (EV) market is driving innovation in Electric Vehicle technology and associated infrastructure. Electric vehicles offer multiple advantages such as reduced fuel consumption and decreased emissions from tailpipes, which significantly boost their demand across the globe. This in turn is expected to escalate the need for charging stations for electric vehicles, thereby driving the market growth. Charging stations are being rapidly developed as a part of government initiative programs and Electric Vehicle manufacturers are being involved in the development of charging spots in the parking locations. Electric Vehicle manufacturers are focusing on the establishment of charging stations for electric cars to enhance the sales of electric vehicles.
In May 2019, Panasonic announced the launch of smart EV charging service in India providing charging stations, swap stations, board charges and so on.
In May 2018, Ather Energy launched its charging infrastructure service in Bangalore.
The Major Players in this Market Include
EV Charging Services driver market is expected to be dominated by major companies such as AeroVironment, Blink Charging Co., Chargepoint Inc., Charge master PLC. Delphi Automotive plc., Mojo Mobility Inc., among others.
In August 2020, Charge Point raised $127M of funding for the development of EV charging infrastructure.