|Market Size in 2022
|Market Forecast in 2030
|CAGR (in %)
|USD 34.72 Billion
|USD 220.36 Billion
Electric Vehicle Supply Equipment Market
The global electric vehicle supply equipment market size was worth around USD 34.72 billion in 2022 and is predicted to grow to around USD 220.36 billion by 2030 with a compound annual growth rate (CAGR) of roughly 26.13% between 2023 and 2030.
An electric vehicle supply equipment or EVSE is commonly known as an electric vehicle (EV) charging station. EVSE consists of two main components. In technical terms, EVSE is an electric charger and its primary function is to provide electric energy or charge to an electric vehicle. The charger consists of at least a single socket per electrical circuit and one or more electric circuits depending on the model. An EV can be charged using only one socket. On the other hand, EVSE also refers to the accessories or equipment necessary for charging an EV and includes the electrical circuit. In its true sense, an EVSE is the controlling unit responsible for supplying power to a vehicle when it is plugged into a charger or is undergoing charging. EVSEs are different from physical electric charging stations or spots where vehicle owners can charge an EV. Electric vehicle supply equipment is concerned more with the component parts that allow an electric vehicle to charge. It includes tools such as communication protocols, electrical conductors, software, and related equipment that ensure safe energy transfer from charging spots to the vehicle.
Growing demand for electric vehicles to drive market growth
The global electric vehicle supply equipment market is projected to grow owing to the increasing demand for electric vehicles. There are several factors causing the higher popularity of electric vehicles especially for personal use in terms of electric cars and bikes. The recent ongoing geopolitical tension between Western countries and other nations has indirectly impacted fuel prices. Vehicles powered by combustion engines run on petrol, diesel, and gas. However, the supply of these essential fuels is currently limited. In addition to this, excessive consumption of petrol and diesel has a long-lasting impact on the environment. It is also regarded as the leading cause of global warming. Consumers are becoming more aware of the detrimental impact of burning fuel on the ecosystem. They are demanding more environmentally friendly solutions and EVs are the most appropriate solution in modern times. As per reports, Tesla, a leading EV manufacturer, sold more than 1.3 million EVs in 2022.
With the sale of EVs, providing EVSE becomes an undeniable obligation. Currently, the prices of EVs are considered on the high-end side and consumers expect better services and less hassle in charging EVs resulting in market players investing in the development of highly efficient electric vehicle supply equipment.
Slow charging concerns and driver anxiety to restrict market growth
The global electric vehicle supply equipment market growth is likely to be restricted owing to the slow charging facilitated by EVSE. Even the most advanced EVs take significant time to charge completely. In addition to this, most EV drivers are known to have driver anxiety which is a term used to describe the consistent worry over vehicles running out of charge mid-journey. A survey conducted by the American Automobile Association (AAA) reported that nearly 58% of EV drivers persistently worried about the vehicle stopping before reaching their destination. Around 87% of the surveyed drivers stated that they suffered from anxiety over not finding a charging station while on the road. EVSE makers must invest in developing charging equipment that ensures fast charging which will allow them to gain higher confidence among the end-consumers.
Increasing government undertakings to promote the EV industry may create a higher demand
The electric vehicle supply equipment industry is expected to gain higher growth momentum owing to the rising government initiatives and undertakings to promote the EV sector in regional economies. This includes providing subsidies and tax redemptions in a bid to reduce carbon footprint. For instance, the Maharashtra government of India announced the EV Policy in 2021. As per the stated laws, the first 100,000 units of 2-wheeler EVs will qualify for subsidies. In Europe, France and Germany have similar government incentives. For instance, the German government provides a purchase bonus of €3,000 for buying used battery electric vehicles. Manufacturers on the other hand are liable to pay an additional incentive of €1,500. These favorable policies will create greater demand for EVs thus impacting the market share of EVSE.
Growing technological innovation in EVSE may generate more revenue
Manufacturers and suppliers of EVSE are focusing on technological growth. They are working toward developing more effective EVSEs with faster response time and bidirectional charging for maximum optimization of charging resources. Moreover, rising investments in renewable sources of energy to power electric vehicles and the construction of solar-powered charging stations are projected to work in the favor of EVSE industry players.
High cost of EVs and EVSE to create growth barriers
The electric vehicle supply equipment industry faces challenges posed due to the high cost of electric vehicles and EV supply equipment. The starting price for a basic EV 4-wheeler is USD 1 million going upward. The vehicles remain unaffordable for a large part of the population. Moreover, the expense goes even higher when buying a new EVSE leading to greater obstacles. EVSE makers must invest in more affordable solutions to tap into a broader group of consumers.
The global electric vehicle supply equipment market is segmented based on power, station type, application, product, and region.
Based on power, the global market segments are DC power and AC power. In 2022, the highest growth was observed in the DC power segment driven by growing strategic partnerships between private companies and regional governments for the construction of an extensive DC charging power station infrastructure. EVs powered by direct current (DC) charge faster than the ones running on alternating current (AC). The market segment AC power may also witness higher growth since they are known to provide higher performance efficiency for longer distances. As EV makers invest in superior energy-efficient vehicles, the demand for the AC power segment is likely to grow further. Current EVs have varying charging times ranging between 30 minutes to 12 hours.
Based on station type, the electric vehicle supply equipment industry divisions are super charging, normal charging, and inductive charging.
Based on application, the global market divisions are commercial charging systems and residential. The former segment was the most dominant during 2022 due to higher investments in commercial charging systems. Large-scale government initiatives including the West Coast Electric Highway (WCEH), Norway to Italy Electric Highway, and Trans-Canada highway projects have played a crucial role in allowing the commercial segment to create higher revenue. EV makers are collaborating with public space owners such as hotels, malls, and entertainment centers to create EV charging infrastructure. The cost of building a Tesla supercharger station is between USD 60,000 and $350,000.
Based on product, the electric vehicle supply equipment industry divisions are onboard charging station, portable charger, EV charging kiosk, and others.
|Electric Vehicle Supply Equipment Market
|Market Size in 2022
|USD 34.72 Billion
|Market Forecast in 2030
|USD 220.36 Billion
|CAGR of 26.13%
|Number of Pages
|Key Companies Covered
|EVBox Group, Tesla Inc., Siemens AG, ChargePoint Inc., ClipperCreek Inc., ABB, Schneider Electric, Blink Charging Co., Delta Electronics, Eaton Corporation, Tritium, Enel X, JuiceBar, EVgo Services LLC, Webasto Charging Systems Inc., and others.
|By Power, By Station Type, By Application, By Product, and By Region
|North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)
|2017 to 2021
|2023 - 2030
|Avail customized purchase options to meet your exact research needs. Request For Customization
Asia-Pacific to dominate the market during the forecast period
The global electric vehicle supply equipment market will be dominated by Asia-Pacific during the forecast period. The rising regional sales are owing to the high demand for electric vehicles in emerging economies of China, India, and other nations. China is currently the largest consumer of electric vehicles. In 2022, China sold nearly 7 million units of EVs in its domestic market. Additionally, it is home to over 100 EV producers with vehicles available across the price range. As per the latest, the massive economy with a population of over 1.3 billion has envisioned carbon neutrality by 2060 and the regional government is participating actively in achieving this vision. Japan, on the other hand, is one of the most dominant players in the global automotive sector. Last year, the country exported over 4.4 million cars to other countries. India has a growing middle-income group and with an increasing population, the demand for EVs is on the rise. North America has an extensive EV-supporting infrastructure. The growing investments in the deployment of new EVSE and EV charging stations could deliver a higher regional growth trend during the forecast period.
The global electric vehicle supply equipment market is led by players like:
By Station Type
An electric vehicle supply equipment or EVSE is commonly known as an electric vehicle (EV) charging station.
The global electric vehicle supply equipment market is projected to grow owing to the increasing demand for electric vehicles.
According to study, the global electric vehicle supply equipment market size was worth around USD 34.72 billion in 2022 and is predicted to grow to around USD 220.36 billion by 2030.
The CAGR value of the electric vehicle supply equipment market is expected to be around 26.13% during 2023-2030.
The global electric vehicle supply equipment market will be dominated by Asia-Pacific during the forecast period.
The global electric vehicle supply equipment market is led by players like EVBox Group, Tesla, Inc., Siemens AG, ChargePoint, Inc., ClipperCreek, Inc., ABB, Schneider Electric, Blink Charging Co., Delta Electronics, Eaton Corporation, Tritium, Enel X, JuiceBar, EVgo Services LLC, and Webasto Charging Systems, Inc.
The report explores crucial aspects of the electric vehicle supply equipment market including a detailed discussion of existing growth factors and restraints while also browsing future growth opportunities and challenges that impact the market.