The electric vehicle charging stations market is expected to grow at a CAGR of 39.8% from 2020 to reach $29.7 billion by 2027. In terms of volume, this market is expected to grow at a CAGR of 31.8% from 2020 to reach 15,025.5 thousand units by 2027 says the report of Meticulous Research.
Electric vehicles (EVs) are a rapidly growing concept within the automotive industry owing to the improved technology, customer inclination towards minimizing carbon footprints, and government policy incentives. Currently, the electric vehicle industry is undergoing a technological transformation with two-fold objectives to improve vehicle range with charging infrastructure. Electric vehicle automakers are investing heavily in charging station infrastructure in order to support their long-range battery electric vehicles. Government incentives, subsidies, and funding for the installation of charging stations and automakers’ initiatives for charging infrastructure development are the key factors driving the growth of the global electric vehicle charging stations market. However, the high cost of fast-charging stations; stringent rules for installation; and complex charging infrastructure will obstruct the growth of this market to some extent.
Impact of COVID-19 on the electric vehicle charging stations market
Among the most exposed verticals to the ongoing COVID-19 outbreak, the automotive & transportation industry is currently facing unprecedented uncertainty. The COVID-19 is projected to dramatically affect the supply chain and the market for goods in the automotive sector. The concern of the industry has shifted from focusing on China’s supply chain disruption to the overall slump in demand for automotive products. Commercial vehicle demand is expected to plummet with all non-essential services being shut down. Furthermore, shifts in consumer purchasing behavior due to uncertainty surrounding the pandemic may have significant consequences for the industry’s near-future growth. Meanwhile, shortfall and cash crunch have already affected fleet operators’ sales, which is expected to widen further in the coming months.
However, the electric vehicle production seems to be somewhat less affected by the pandemic as predicted production levels for EVs in 2020 are expected to be more or less similar to that in 2019. As a result, the demand for EV infrastructure is not expected to be significantly disrupted due to the current pandemic, since electric vehicles and its associated charging infrastructure and sales originates from China, which has recovered from the pandemic to sustain its global dominance in terms of EV production. The Chinese government has also announced stimulus packages toward boosting the development of a network of electric vehicle charging stations.