According to a recent report published by Research and Markets, the availability of public EV charging plays an important role to purchase electric vehicles across the globe. Public charging and access to fast charging are viewed as key criteria when buying an electric vehicle. This is anticipated to bolster revenue growth for the public charging segment. The Asia Pacific region continues to install public chargers at a significant rate due to the rising number of EV users, especially in China, India, and South Korea. These countries have implemented policies to increase the usage of EVs by providing subsidies and reduced taxes.
They also encourage the growth of EV manufacturers and related industries by providing grants or implementing preferential policies for EV-related companies to enable them to expand faster. A steady surge in economic growth, urbanization, travel demand, etc., coupled with increasing investments toward electric mobility to contribute to energy storage and environmental sustainability is anticipated to bolster the growth of the public charging station segment.
The largest and fastest-growing market
The Asia Pacific region; comprising countries such as China, India, Japan and South Korea; is the home to some of the fastest-developing economies of the world, such as China and India. The governments of these emerging economies have recognized the growth potential of the global electric vehicle charging station market, and thus, have adopted various initiatives to attract major OEMs for the manufacture of electric vehicle charging infrastructure in domestic markets. For instance, charging network providers for EV charging stations have partnered with various OEMs to sponsor free EV charging to EV drivers. This has led to an increase in electric vehicle production in recent years, which caters to domestic as well as overseas demand. Japan and China export electric vehicles and charging solutions across the globe.
Governments in the Asia Pacific region are also focusing on the introduction of electric commercial vehicles. For instance, in September 2020, the Indian Government announced plans to offer incentives worth USD 4.6 billion to companies establishing advanced battery manufacturing facilities as part of its plans to reduce oil imports while switching to EVs. Similarly, in 2019, China undertook measures such as sales tax exemptions. It also provided preferential financing and traffic management policies for electric vehicles besides optimizing its carbon credit program, which will be reduced appropriately in the coming years.
The second-largest growth region
The major EV markets in Europe are Austria, Denmark, France, Germany, the Netherlands, Norway, Spain, Sweden, Italy, and the UK. Europe accounted for 24.78% of the global electric vehicle charging station market in 2021 by volume. Normal chargers have a higher share than fast chargers. The top five countries account for more than 83% of all chargers, and the rest is utilized in the rest of the countries. By August 2020, Europe had implemented stringent emission regulation standards to reduce the rising emission levels. Several countries in the region are promoting electric vehicles through significant incentives.
The demand for electric vehicle charging stations has increased significantly due to the focus on zero- or low-emission vehicles in the region. The region is home to electric vehicle charging station providers such as Schneider Electric, ABB, Siemens, Efacec, Engie, and various others. The UK announced plans to phase out petrol/diesel-based vehicles by 2030 and encourage the growth of EVs. Other European countries had implemented plans for the transition to EVs during the past decade.