Electric Car Charging Market To Generate $8 Billion In Revenue By 2022

JUL 7 2016 BY ERIC LOVEDAY 16

Telefonix's L1 Powerpost EVSE

Telefonix’s L1 Powerpost EVSE

DISEVSE1As per a report by Allied Market Research, the “world electric vehicle charging system market would generate revenue of $8.02 billion by 2022″ and grow at a compound annual rate of 30.7% from 2016 through 2022.

That’s quite an impressive figure given the relatively small size of the charging infrastructure today.

The reports adds:

“In 2015, Europe was the highest revenue-generating region owing to the increasing penetration of home and commercial charging systems in countries such as the Netherland, Denmark, UK and France. In addition, growing adoption of electric vehicles in countries such as China and Japan due to changing lifestyle and rising disposable income is projected to boost the penetration level of electric vehicles in Asia-Pacific region.”

One finding in the report really stood out though:

“In 2015, home charging systems segment dominated the market with around 71.0% market share owing to high penetration of home charging facility in the U.S. and major European countries.”

You can read a summary of the report below (or purchase the full report here).

Electric Vehicle Charging System Market is Estimated to Generate $8.02 Billion by 2022

A new report by Allied Market Research titled, “World Electric Vehicle Charging System Market”, forecasts that the world electric vehicle charging system market would generate revenue of $8.02 billion by 2022, registering a CAGR of 30.7% during the forecast period, 2016-2022. In 2015, Europe was the highest revenue-generating region owing to the increasing penetration of home and commercial charging systems in countries such as the Netherland, Denmark, UK and France. In addition, growing adoption of electric vehicles in countries such as China and Japan due to changing lifestyle and rising disposable income is projected to boost the penetration level of electric vehicles in Asia-Pacific region. Further, supportive government initiatives to popularize electric vehicle as a substitute over traditional vehicles is anticipated to drive the market growth, worldwide.

The world electric vehicle charging system market is segmented based on product type, mode of charging, level of charger and geography. Based on product type, the market is segmented into home charging systems and commercial charging stations. In 2015, home charging systems segment dominated the market with around 71.0% market share owing to high penetration of home charging facility in the U.S. and major European countries.

Based on mode of charging, the market has been segmented into plug-in charging systems and wireless charging systems. Plug-in charging systems dominated the market in 2015, accounting for over 90% of the market revenue. The segment is projected to continue its dominance throughout the forecast period due to increasing government investments in the commercial charging solutions, where plug-in charging solutions are generally preferred.

On the basis of charging voltage level, the market has been segmented into Level 1 (0V-120V), Level 2 (121V-240V) and Level 3 (241V and above). Level 2 chargers are used in both, home and commercial applications, as a result of which, this segment is projected to lead the market over the forecast period.

Further, the world electric vehicle charging system market has been segmented based on geography into North America, Europe, Asia-Pacific and LAMEA. In 2015, Europe was the highest revenue generating region, which accounted for around 37% market revenue, followed by North America and Asia-Pacific.

Key Findings of the Study

• Increasing adoption of electric vehicles supplemented by fluctuating fuel prices and government initiatives to reduce overall carbon emission is anticipated to drive the world electric vehicle market, in turn, accelerating the growth of electric vehicle charging system market.
• Home chargers would continue to dominate the market throughout the forecast period.
• Europe dominated the world electric vehicle charging system market in 2015 and is anticipated to maintain its dominance over the forecast period.

The report also highlights the competitive scenario of world electric vehicle charging system market. It provides a comprehensive analysis of key growth strategies adopted by prominent players operating in the market. Major players operating in the market follow product launch, strategic alliances and collaboration as their key growth strategies to expand their presence and gain a competitive edge. For instance, in March 2015, General Electric Company entered into a joint marketing and product agreement with EV Connect, a leading supplier of electric vehicle charging solutions. The agreement was aimed at expanding the global capabilities of both companies in the fast growing electric vehicle market. Major companies profiled in the report include General Electric Company, Evatran Group, Inc., Robert Bosch GmbH, Delta Electronics, Inc., Schneider Electric SE, Eaton Corporation Plc. Tesla Motors, Inc., Delphi Automotive LLP, Siemens AG and ClipperCreek, Inc.

Allied Market Research

Categories: Charging

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16 Comments on "Electric Car Charging Market To Generate $8 Billion In Revenue By 2022"

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sven
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sven

The unanswered question is how much net profit will be earned on the $8 Billion in revenue from public electric car charging. The answer to this question will give insight as to whether public electric car charging is a viable business model without the need for subsidies.

Orygun EV driver
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Orygun EV driver

This is about the sale of charging systems (equipment), not revenue from public charging.

Brandon
Guest

Hmm.. yes, actually you are correct on that. It’s hardware that’s being talked about here.

SparkEV
Guest

Some “bodies” have to be able to make money to buy the equipment. Even at $1K per EVSE for home, 1M EV is only $1B. Then the remaining will fall on public chargers. If they can’t make money, no way it’ll be more. If there aren’t many public chargers, fewer BEV sold and the cycle gets worse.

What I fear is the providers will lose money and go out of business or they’ll jack up the rate so high that there will be too few to be useful, except maybe Tesla.

sven
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sven

Oops. Thanks for the correction Orygun EV driver. 🙂

Robert Utess
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Robert Utess

But how do you measure profit? The profit from the charges or the profit on the customers charging & shopping?

Brandon
Guest

What will be interesting to me is what the 150 kW next gen fast chargers will be like.
So far only a couple companies have revealed or made a 150 kW DCFC, but if they are any indication of things to come, then its looking like they might charge two EVs simultaneously.
Not unlike what Tesla’s Superchargers do already with 120 kW shared between two stalls.

Tech01x
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Tech01x

I think this study’s findings on home charging systems is a bit skewed. I believe they are only counting actual EVSE’s, while many people install home charging in the U.S. using a NEMA 14-50 for Tesla’s or just a 110v plug for PHEVs. Therefore, the 71% figure is probably not quite representative of the actual totals.

TP
Guest
TP

Tech01x, most plug-in vehicles in North America require an EVSE be it hard wired or plugged into a outlet. This includes Tesla vehicles.

Most plug-in vehicles come with a Level 1 EVSE that will plug into a 110V outlet.

If Clipper Creek, Bosch, etc has a deal with a automaker to sell them a L1 EVSE to be included with every plug-in sold, this could be millions of dollars in sales per year.

islandboy
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islandboy

Meh! The headline should have read “Electric car charger market ….”.

It would seem that a ground shaking disruption is in the offing. Revenues for the oil industry for the US alone were 220 billion U.S. dollars in 2014, before falling to 129.8 billion U.S. dollars in 2015. Looking up the global figure, the latest I could find in a hurry was $1.2569 trillion. Adding up the revenues for the top 22 from a Wikipedia page “List of largest oil and gas companies by revenue” gives a figure of $4.376 trillion.

$8 billion is a rounding error when dealing with sums of money that the oil and gas industry is accustomed to dealing with. I guess Tony Seba is on to something in his books Clean Disruption and Solar Trillions.

With EVs, we are looking at at disruption to a massive revenue stream! Imagine being able to move around at a fuel cost of one tenth of the status quo and a portion of that one tenth going to the electric utility sector rather than the petroleum sector. Imagine a portion of that cost being avoided by consumers who generate their own electricity from renewable sources.

Robert Weekley
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I see approximately 5 different markets for EVSE’s: 1) Home Charging Stations, outputs from 1.4 kW to 19 kW; 2) Workplace Charging, outputs from 1.4 kW to 6.6 kW; 3) Public City Charging, outputs from 3.3 kW to 25-50 kW; 4) Destination Charging, 6.6 kw – 19 kW; 5) Cross Country / Long Distance Charging, 50 kW to 150 kW. Cross Country or Long Distance Charging basically seems to be required to get an EV a 60% – 80% charge in 15-30 minutes; but Workplace Charging basically should have a typical 8 hours to replenish the energy used to make the drive to work, effectively doubling the range of shorter range EV’s, where owners have access to EV Charging at home, OR to provide the energy for the range needed to drive home and back to work for condo/apartment rental EV owners/drivers! City Public Charging is best targeted where drivers are usualy spending 30 minutes to 1 hour minimum, and support PHEV’s at 3.3 kW to BEV’s at 25-50 kW that can take 30-60 minutes for a 80-90% top up; and Destination Charging being at locations where you stay about 2 hours to 8 or so hours like fine restaurants… Read more »
TP
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TP

There are too many electric companies/co-operatives out there to be able to negotiate a nation wide discount on electricity. You might be able to do so in large areas served by a single entity.

In my opinion, a co-op made up of various electric companies would be ideal for building out and maintaining regional EV charging networks. They could also buy out portions of existing networks. For instance, imagine Blink or EVgo stations in Georgia being taken over by Georgia Power.

pjwood1
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pjwood1

Georgia Power is “in” with the state’s PUC, and I would worry they might take charging where they want it, instead of where consumers might want it. Infrastructure investing is chicken and egg. GP is a for-profit utility. The commission can tell them what to do, but at the end of the day these expensive stations (which is the 8bb we’re talking about) still have bad paybacks. So, GP would have incentive to stall. No chicken.

Anyone with a decent sized battery, with free destination charging, sees the inefficiency of the market. I never would have thought the “PHEV phase” could have been leap-frogged 5 years ago, but we’re almost there. That means the level 2 (240v) charging scene will ultimately lean more the direction of a pay-model, serving those without home chargers (as >200mile EV sales blow away everything else).

I wouldn’t pay $.30-.50/kwh.

CDAVIS
Guest
CDAVIS

A consortium of electric utilities cos ( in cooperation with the DOT) will eventually deploy & maintain a massive national EV charging infrastructure project underwritten by Uncle Sam (you) to essentially rescue the traditional car makers from Tesla’s rapidly growing Supercharger Network…you can take that to the bank.

TP
Guest
TP

Right, this will likely be needed until plug-ins make up a significant market share. The question is, what percentage is the tipping point?

Bill Howland
Guest
Bill Howland

Yeah, $8 Billion in sales won’t happen unless there is plenty of government subsidy.

Tesla still won’t release the cost either to build or maintain (including huge electric bills) of their Supercharger network, calling it “not material”. But I suspect they just don’t want to have the actual cost scrutinized too closely by investors.

A very high percentage of public chargers in my area (way over 90%) wouldn’t have happened without public subsidy.

And since most of these have been installed with a 3 year ‘free’ commitment from the owners, I wonder what percentage of them will revert to [pay as you go] from the free-of-charge they are now. When pay, they will get much lower use. One pay unit chargepoint has seen a grand total of 17 kwh usage for the 5 years, and 10 kwh of that was me charging my Roadster there early on.