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As per the report, the global electric vehicle charging station industry accounted for $16.6 billion in 2021 and is expected to reach $226.3 billion by 2031, growing at a CAGR of 30.5% from 2022 to 2031. The report provides an in-depth analysis of changing market trends, key investment pockets, top segments, regional landscape, value chain, and competitive scenario.
An increase in the adoption of electric vehicles and favourable government initiatives have boosted the growth of the global electric vehicle charging station market. However, the lack of standardization of current EV charging infrastructure and the high cost of developing charging infrastructure hinder market growth. On the contrary, the incorporation of vehicle-to-grid EV charging stations would open new opportunities in the future.
The Covid-19 pandemic created challenges for the import-export of non-essential items. Only a small portion of the workforce was allowed to function in factors. This caused a huge gap in supply and demand. Moreover, the prolonged lockdown disrupted the supply chain.
The sales of the automotive industry declined during the pandemic. However, the demand for electric vehicles has increased due to favourable government regulations.
By mode of charging, the plug-in charging segment held the largest share in 2021, accounting for more than four-fifths of the global electric vehicle charging station market, and is estimated to dominate the global wireless video surveillance market throughout the forecast period. The majority of electric vehicle stations are equipped with AC level 1 or 2 charging systems. These systems are preferred for charging electric vehicles at home as well as in commercial areas. Charging stations at workplaces or different public locations may further strengthen the market for plug-in electric vehicle charging solutions for residential and commercial charging stations. However, the wireless charging segment is expected to register the highest CAGR of 33.5% during the forecast period, as wireless charging offers flexible operation for a broad range of vehicles.
By charging level, the level 3 segment is expected to register the highest CAGR of 34.9% during the forecast period, as level 3 charging systems require expensive hardware, making their installations primarily suitable for the public station only. However, the level 2 segment held the largest share in 2021, contributing to more than four-fifth of the global EV charging station market, as this type of charging equipment is compatible with all plug-in electric vehicles and electric vehicles.
By end user, the residential segment dominated the market in 2021, accounting for more than three-fourths of the global EV charging station market, and is expected to continue its dominance from 2022 to 2031. Many drivers or owners of electric vehicles and plug-in hybrid electric vehicles charge their vehicles overnight at home using AC level 1 or AC level 2 chargers. However, the commercial segment is estimated to showcase the highest CAGR of 35.9% during the forecast period. commercial charging stations are usually installed at workplaces, hotels, shopping malls, airports, business parks, and retail outlets. In addition, DC quick chargers are preferable at short-stop locales such as drugstores or convenience stores, as consumers make short stops at these places.
By region, the market across Asia-Pacific dominated the market in 2021, holding more than two-fifths of the global electric vehicle charging station market, and is expected to dominate in terms of revenue during the forecast period. This is due to higher adoption rates of smart mobility services, government regulations, an increase in fuel prices, and a rise in the trend toward adopting non-fossil fuel-based vehicles. However, the market across Europe is projected to manifest the highest CAGR of 33.1% during the forecast period, due to government initiatives to reduce the emission of harmful gases from internal combustion engine vehicles and the advent of a new range of the electric vehicle.