Global EV Charging Infrastructure Market Set To Reach $43.07 Billion By 2026, Says Report

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In 2021, the global EV charging infrastructure market was valued at US$10.94 billion. The market value is projected to grow to US$43.07 billion in 2026, at a CAGR of 32.65%.

The EV charging infrastructure market should exhibit fast growth in the coming years, driven by the rapid adoption of consumer and commercial electric vehicles, in part spurred by favorable policy support. With the rapid adoption of electric vehicles supported by global policy support for zero-emission vehicles, the EV charging market is poised to grow well in the coming years.

Most charging, especially in the US, is done at home. However, work, commercial and public charging infrastructure deployment is also poised to grow in order to support an increasing EV fleet.

Market Segmentation Analysis:

  • By Platform Type: The report identifies two segments on the basis of the EV charging Platform: Hardware and Services. In 2021, the hardware segment lead the market, accounting for more than 65% share of the market, because hardware components are inextricable in an EV charging station installation.
  • By Charger Type: The report includes a bifurcation of the market into two segments on the basis of charger type: AC charger and DC charger. The AC charger segment dominated the market with approximately 75% share of the market in 2021. The electric vehicle AC charger market is expected to increase at a CAGR of 32.1% due to its low manufacturing and installation cost.
  • By Application: The report identifies two segments on the basis of application: Private charger and public charger. The private charger segment dominated the market with a 64.6% share of the market in 2021. However, the EV charging public charger market is expected to increase at the highest CAGR of 34.5%.
  • By IEC Mode: The report includes the bifurcation of the market into three segments on the basis of IEC Mode: Mode 2, Mode 3 and Mode 4. The Mode 3 segment dominated the market with a 55.9% share of the market in 2021. Mode 3 segment combines the EV charger with a dedicated Electric Vehicle Supply Equipment (EVSE) and can deliver up to 250 A and various protection functions used to ensure public safety.
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The market has been growing over the past few years, due to factors such as rising adoption of electric vehicles, rising urban population, increasing purchasing power, rising CO2 emissions, rising demand for fast charging infrastructure, government initiatives, growing demand for public charging stations, etc. Rising carbon emissions and greenhouse gases have become a serious issue in the world. Countries around the world trying to reduce pollution within a certain period of time set by organizations like the United Nations.

To achieve that goal, the adoption of electric vehicles became more important since transportation causes maximum pollution. Several governments throughout the world have enacted policies to encourage EV charging infrastructure, including direct funding to establish publicly accessible chargers and incentives for EV owners to install charging stations at their residences. For instance, in the US, the Biden Administration has proposed a new rule for fuel economy standards, which proposes annual increases of 8% for model years 2024-2026.

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However, the market has been confronted with some challenges specifically, complex installation of charging stations, high cost of electric vehicles, etc. Complex installation of charging stations is one of the major challenges to the EV charging infrastructure market.

The market is projected to grow at a fast pace during the forecast period, due to various latest trends such as the adoption of smart EC charging stations, portable chargers, wireless charging facilities, V2G charging stations and renewable energy-based charging stations. Smart EV charging refers to a system where an electric vehicle and a charging device share a data connection, and the charging device shares a data connection with a charging operator.

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