PORTLAND, Ore.—The global electric vehicle charging system market will reach $66.27 billion by 2026, up sharply from an estimated $3.18 billion in 2018, according to a new Allied Market Research report.
A rise in production of electric vehicles, an increase in adoption of electric vehicles owing to government initiatives and a surge in demand for low-emission and fuel-efficient vehicles have propelled the growth of the global EV charging system market. The high cost of electric vehicles and charging infrastructure have restrained growth to a certain extent. However, the development of wireless charging technology and the incorporation of vehicle-to-grid (V2g) EV charging stations are expected to pave the way for a number of opportunities in the industry, the report indicates.
Based on product type, the home charging systems segment contributed to more than four-fifths of the global EV charging system market share in 2018 and is expected to rule the roost throughout 2019–26. The fact that home charging systems can charge the vehicle from an ordinary 120-volt socket has augmented the growth. Commercial charging systems, on the other hand, will likely showcase the fastest CAGR (compound annual growth rate) of 49.7% by 2026. This is attributed to the fact that commercial charging systems can charge electric vehicles for a longer range in less time.
Based on geography, the Asia-Pacific region, followed by Europe and North America, accounted for nearly half of the global EV charging system market revenue in 2018 and is expected to maintain its top status in terms of revenue. Growing EV production and rising regulations calling for adoption of low-emission and fuel-efficient automobiles have augmented the growth. Simultaneously, Latin America, the Middle East and Africa are expected to have the fastest CAGR of 50.9% till 2026, due to increased demand for EV charging stations in those regions.
For more on the EV market, see “Jump Start” in the August issue of NACS Magazine and “EVs Ahead” in the August issue.