Exploding Demand Expected for EVSE in Near Future
The rising implementation of favorable government policies regarding the adoption of electric vehicles and electric vehicle charging infrastructure in many countries is pushing up the demand for electric vehicle supply equipment across the world. For example, by 2022, the South Korean government intends to install as many as 10,000 fast electric vehicle chargers in the country. Similarly, in India, the government is aiming to deploy 2,700 charging stations in the cities having more than 4 million residents by 2023.
Furthermore, the governments of several countries are making huge investments in the deployment of electric vehicle charging infrastructure. In addition to this, the range anxiety of various electric vehicle owners is further boosting the requirement for public fast chargers including robust charging systems. For example, in the U.S., California passed an Executive Order that includes the proposal to make an investment worth $900 million in the deployment of 250,000 electric vehicle charging points by 2025.
This is fueling the growth of the global electric vehicle supply equipment (EVSE) market. The valuation of the market is predicted to grow from $1.5 billion in 2019 to $2.7 billion by 2025. Furthermore, the market is predicted to exhibit a CAGR of 10.7% between 2020 and 2025. Depending on type, the market is divided into alternating current (AC) and direct current (DC). Between these, the DC category will register faster growth in the market in the future years.
This is credited to the ballooning sales of plug-in electric vehicles (PEVs) in the regional countries. According to reports, around 236,700 PEVs were sold all over the U.S. during the first three months of 2019, registering an increment of over 4,730 units from the first three months of 2018. The size of the U.S. electric vehicle industry doubled to nearly 360,000 units in 2018. Because of these reasons, the EVSE market will grow explosively in this region in the future.
Therefore, it can be inferred that the demand for electric vehicle supply equipment will shoot-up across the world in the forthcoming years, primarily because of the rising deployment of electric vehicles and the increasing enactment of favorable government policies regarding electric vehicle usage in various countries.
