According to the report of ResearchAndMarkets.com the global electric vehicle charger market was valued at $3.8 billion in 2019, and is projected to reach $25.5 billion by 2027, registering a CAGR of 26.8% from 2020 to 2027.
At present, the U.S. dominates the market, followed by Canada and Mexico in North America. However, Mexico is expected to grow at a higher CAGR during the forecast period. In addition, in 2019, China led the market in the Asia-Pacific region followed by Japan, South Korea, India, and rest of Asia-Pacific countries.
Factors such as government regulations to limit environment pollution, increase in market penetration of electric vehicles, and surge in government initiatives for development of electric vehicle charging infrastructure drive the growth of the electric vehicle charger market. However, limited number of EV charging stations and lack of standardization of EV charging are anticipated to hamper the market growth. Further, surge in demand for luxury and feature enabled vehicles and wireless charging for electric vehicles are expected to create numerous opportunities for EV chargers market expansion.
Electric vehicle charging infrastructure is vital for the mass adoption of electric vehicles. Several government initiatives have been undertaken to provide EV charging stations across the world. For instance, Automotive Research Association of India (ARAI) has planned to deploy more than 200 EV charging stations across the country. In addition, Tata Power (India) is supporting the Indian Government’s ‘National electric mobility mission’ wherein Tata power has established the first set of Electric Vehicle charging stations in Mumbai (India) for India’s growing EV ecosystem, and provide customers access to energy-efficient options with ease. This in turn is expected to drive the growth of the electric vehicle charger market.
However, lack of standardization within EV chargers hinders their demand among the end users. People get confused whether such EV chargers are suitable for their vehicles or not. The charging network also needs to be made less confusing and vehicles need more flexible charging solutions so they can take advantage of the fastest charging rates when available. The lack of standardized plugs complicates charging further. Tesla is expanding its network of chargers, but these are designed only for Tesla vehicles. The automotive industry has standardized 120- and 240-volt plugs, which are primarily used in the home but have not yet set a standard on the plugs or ports that can charge vehicles in 30 minutes or less.
Moreover, although luxury vehicles are more expensive than conventional vehicles, luxury vehicles are an obligatory status symbol for well-to-do individuals. Around 28,500 luxury vehicles were sold in 2016. Around 15.9% of rise was recorded in the sales of luxury vehicles in 2016 as compared to 2015. Furthermore, the demand for luxury vehicles was particularly fueled by China, owing to an improved standard of living and rise in disposable income of the population. Thus, all these factors are expected to create lucrative opportunities for the growth of the electric vehicle charger market.
Further, rapid escalation in penetration of luxury and feature enabled EVs across the globe is expected to boost the electric vehicle charger market growth. As per NADA.org, the luxury vehicle segment witnessed a growth of 10.9% in 2016 as compared to 2015. Tesla Motors is one of leading companies that manufactures luxury electric vehicles for the end users.