Electric Vehicle (EV) Charging Service Market Demand Would Increase Rapidly

Posted by Sakshi Mishra on March 14th, 2020

Electric vehicle (EV) charging service comprises an EV charging station where an electric vehicle can be re-charged. Similar to fuel stations, charging stations are used for refilling the charge into electric vehicle batteries. As the number of electric vehicles is increasing, the demand for rapid charging is increasing. Generally, when the battery of an electric vehicle is about to dry, the rate of charging is high. As the battery gets charged, the rate of charging gradually decreases, which is called tapering. Tapering is noticeable at above 50% of charging. Therefore, vehicle manufacturers advise to charge vehicles up to 80% only.

Implementation of stringent emission norms is primarily driving the global EV charging service market. Several governments such as China, Germany, India, Brazil, and France have announced ban on use of diesel-powered vehicles, in order to minimize emissions. Governments of several other countries are likely to impose stringent emission norms in the near future in order to meet the Paris Climate Accord. It is an agreement signed by 195 nations in order to keep the global temperature rise well below 2°C. Strict emission norms are propelling the demand for electric and hybrid electric vehicles. This, in turn, is fueling the demand for EV charging service. In addition, development of higher-efficiency EV batteries and vehicles is propelling the global EV charging service market.

Availability of household EV chargers is a major restraint of the global EV charging service market. Several companies have introduced vehicles that can be charged at home, which is restraining the market.

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EV Charging Service Market – Segmentation

The global EV charging service market can be segmented based on charging station type, power output, and region. In terms of charging station type, the EV charging service market can be segmented into three categories: AC chargers, DC chargers, and one more. The AC chargers segment has been sub-divided into level-1 chargers and level-2 chargers. AC chargers are slower than DC chargers. Hence, the demand for DC chargers, which are also known as fast chargers, level-3 chargers, or level-4 chargers, is increasing.

In terms of power output, the global EV charging service market can be classified into three segments. Considering the current scenario, only a few models of Tesla vehicles are capable of charging at more than 100 Kw. Also, only a few vehicles are capable of charging at more than 50 Kw. Several electric vehicle models are capable of charging between 11 Kw and 50 Kw. 

In terms of region, the global EV charging service market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Several countries in Europe are witnessing high adoption of electric vehicles. Countries such as Norway, Luxembourg, Germany, and the U.K. have a large number of electric vehicles, owing to which these countries witness significant demand for EV charging service points. The number of electric vehicles across China is increasing remarkably. Implementation of stringent emission norms and raised awareness about benefits of electric vehicles is propelling the demand for electric vehicles across China and India. Governments of several countries across Asia Pacific and Europe have announced to have about 40% of electric vehicles in the fleet of government vehicles. Increased government support and subsidies are likely to propel the global EV charging service market during the forecast period.