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Anticipating the Evolution of Public Electric Vehicle (EV) Charging Networks
Published Date : February 28, 2024 Category: Blog
Published Date : February 28, 2024 Category: Blog
The surge in demand for Electric Vehicles (EVs) is reshaping the automotive landscape, with projections indicating they will constitute over 50% of vehicle sales by the end of this decade. Governments globally are implementing bans on Internal Combustion Engine (ICE)/diesel vehicles, fostering a spike in EV production. However, a critical challenge looms—insufficient charging infrastructure. A recent AAA survey found that 56% of U.S. consumers cite a lack of charging stations as a major deterrent to EV adoption. To meet consumer demand and comply with government mandates, significant investments in public EV charging points are imperative. Techview Research, a leading authority, explores this landscape in its new market data report, shedding light on forecasts and key trends for EV charging infrastructure.
As EV sales surge, the necessity for an expanded charging infrastructure becomes evident. Techview Research forecasts Plug-in Electric Vehicle (PEV) sales to escalate from 16.7 million in 2024 to a staggering 61.57 million by 2034, constituting 63.1% of total passenger vehicle sales. The Asia-Pacific market is projected to contribute over half of these sales, particularly crucial due to limited home charging options in countries like China.
The ratio of EVs per charger is expected to increase over time, reaching 48 EVs per AC charger and 20.3 per Direct Current (DC) charger by 2034. While the current infrastructure may seem underutilized, geographic coverage is critical for user satisfaction, paving the way for accommodating more EV drivers.
Techview Research anticipates a significant boost in public EV charging points, surging from 5.8 million in 2024 to 28.9 million by 2034. Approximately two-thirds of these will be Alternating Current (AC) chargers, with the remaining being Direct Current (DC) chargers. Despite the higher number of AC charging points, DC chargers will exert a more substantial energy demand, requiring 333 TWh out of the projected 448 TWh by 2034.
Public EV charging revenue is set to experience remarkable growth, projected to leap from US$14.3 billion in 2024 to a staggering US$143.8 billion by 2034. DC charge points will be the primary revenue drivers, accounting for 72% of the total. The evolving revenue landscape encompasses various models, including kWh pricing, free electricity with advertising on EV supply equipment, and added sales incentives for businesses hosting charge points.
Charge Point Operators (CPOs) derive revenue based on energy consumption and Average Selling Price (ASP). While some offer free electricity and monetize through advertising, others leverage free electricity to boost business sales. The prevailing business model involves pricing per kWh or per minute, with variations based on off-peak hours and increased demand periods. The market forecasts concentrate on the value of the charge to the CPO, emphasizing the business-to-business aspect rather than consumer payments.
Beyond the sheer number of charging points, other factors are pivotal for the successful transition to EVs, including power grid readiness, smart charging technologies, and battery advancements. Techview Research’s Electric Vehicles Research Service delves into these technological advancements and trends, providing insights into the obstacles on the path to widespread EV adoption.
The future of public Electric Vehicle (EV) charging infrastructure is poised for unprecedented growth, driven by the escalating demand for EVs globally. As governments and industries unite to overcome the challenges of insufficient charging infrastructure, Techview Research stands at the forefront, providing invaluable forecasts and insights. The projections underscore the need for concerted efforts to expand charging networks, ensuring a seamless transition to an electrified automotive landscape.
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