India and China Lead the EV Charging Station Market in the Asia-Pacific Region
According to Future Market Insights, the Asia Pacific region has a thriving market for EV charging stations due to the presence of major corporations in China and India.
During the forecast period, the global EV charging station market is expected to grow at a rapid pace of 26.6%. In 2023, the EV charging station market is currently valued at USD 10,768.2 million. The market for EV charging stations is expected to reach a high of USD113,889.1 million by 2033.
China is the most profitable market in this sector, with a profit growth rate of 20.8%. In August 2020, the China Electric Charging Infrastructure Promotion presented figures, and Alliance members reported that by the end of July 2020, approximately 566,000 public charging stations had been built and were in use across the country.
India now has the largest market share for EV charging stations, with a projected revenue growth rate of 26.6%. End-user fleets in India benefit from innovative, safe, and inventive charging options from key providers.
India has recently been at the forefront of electric mobility in many ways. Despite not having the world’s largest EV carmaker by market capitalization, the country is making the transition to electrification.
Restrictive pollution and fuel economy regulations, government incentives, and an increase in electric car sales are all driving demand for EV charging stations. Electric vehicle charging technology and software advancements are expected to change how EV owners use and benefit from these services.
Smart car API and charging networks, for example, accurately determine the charge time of an electric vehicle before the driver plugs it into a station. Green energy is also expected to play a significant role in public and private electric vehicle charging stations. Carbon emissions are a major concern for EV owners.
Businesses are rapidly improving the charging technology of their electric vehicle charging stations to address these issues. Commercial spaces have a much higher market penetration of EV charging equipment than residential areas. With the growing popularity of electric vehicles, the number of corporate charging stations is expected to grow.
Efforts to improve commercial charging infrastructure would be critical in increasing EV adoption, as overnight charging at residential complexes or individual residences would not be sufficient for long-distance travel.
In addition, public charging infrastructure would allow for the ultra-fast charging capabilities required for long-distance travel. EV chargers for home use, on the other hand, have significant development potential because they provide a less expensive and more convenient way of charging electric vehicles than commercial charging stations.
Manufacturers of electric vehicles are collaborating with car rental companies to integrate chargers into existing infrastructure. For example, one market participant recently announced a collaboration with Green Motion, a vehicle rental service provider, to provide integrated chargers with energy storage inside buildings.
Several automakers are investing in the development of Car2X technology for charging infrastructure, which is further fueling growth. Several initiatives to increase the adoption of EV charging stations have been launched in France, India, the Netherlands, and Canada.
EVs are expected to garner significant attention as governments around the world work to emerge from the epidemic with a stronger and more resilient economy. In the United States, for example, California is establishing aggressive electric car goals that are expected to have a positive post-pandemic impact and boost global EV charging station market growth.
However, the high initial cost of Level 3 fast chargers and ultra-fast chargers is the main impediment to the growth of the EV charging station market. People prefer to drive fossil-fuel vehicles for 5-7 minutes, but level 1 and level 2 chargers can take anywhere between 6 and 16 hours to fully charge. As a result, there is a market demand for faster chargers capable of charging EVs in under 30 minutes.
During the forecast period, the United Kingdom is expected to account for a sizable portion of the global EV charging station market. This is because the government passed the Automated and Electric Vehicles (AEV) Act. It gives the government enormous authority to expedite the installation of EVCI in gas stations and on roads.
During the forecast period, the Asia Pacific EV charging station market is expected to hold the largest share, led by China and India. This is because key companies provide comprehensive end-to-end services ranging from captive charger installation to maintenance.
Collaboration among various OEMs, automotive manufacturers, and charging infrastructure providers is also accelerating market growth.
The “public charging” application type accounts for a significant share and is the most innovative area for key players because it is more cost-effective to providers.
To boost the brand and money, industry representatives participate in a flood of targeted product launches and global expansion. They are also expanding their reach across several continents and entering new markets, particularly in emerging economies, in order to expand their consumer base and strengthen their position.
Because of increased carbon emissions and the advancement of electric and hybrid vehicle technology, industry participants are introducing new innovative products to the market. These factors are expected to drive the growth of the global EV charging station market.