EV charging industry poised for explosive growth as market set to reach $100B by 2040.
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EV charging industry poised for explosive growth as market set to reach $100B by 2040.

According to a PwC analysis, the number of EV charge points in the US will grow from around 4 million today to an estimated 35 million in 2030.

The electric vehicle industry is growing rapidly around the world, especially in China and North America, and with it, the need for a robust EV charging network. According to a recent analysis by PwC, the EV charging market will need to grow nearly tenfold to satisfy the charging needs of an estimated 27 million EVs on the road by 2030.

The report suggests that building a national charging network will be a necessary step to determine the viability of the future of all-electric vehicular transport in the US. This would require numerous stakeholders and significant investment, but it is essential to support the growing number of EVs on the road.

The PwC analysis predicts that the number of charge points in the US will grow from around 4 million today to an estimated 35 million in 2030, with the electric vehicle supply equipment (EVSE) market potentially growing from $7 billion today to $100 billion by 2040 at a 15% compound annual growth rate. The number of EVs in the US is estimated to hit 27 million by 2030 and 92 million by 2040.

The report highlights that the at-work and on-the-go EV charging segments are potentially the fastest growing through 2030, and charge point operators are expected to lead the market in the coming years.

According to the analysis, the electric vehicle supply equipment market can be broken down into four main value pools: hardware, software, installers, and charge point operators (CPOs). The CPOs, responsible for building, operating, and maintaining EV charging stations, are projected to generate the bulk of the market’s value, estimated to increase from roughly half currently to 65% in 2040, bringing in approximately $65 billion in revenues. The projected growth of the EV infrastructure market is expected to reach approximately $100 billion by 2040, with CPOs generating most of the revenue through integrated turn-key solutions.

Additionally, the development of bi-directional charging and advanced home energy systems will drive approximately $20 billion in hardware revenue. The fastest-growing charging segment is expected to be the at-work segment, projected to grow from almost zero percent of the market to around 17% (approximately 6 million charge points) by 2030. Another fast-growing segment is apartment buildings (multi-unit residential), anticipated to rise from almost nil currently to approximately 15% of the market by 2025 and 17% by 2030.

As a result, companies and engineering and construction firms are likely to face increasing pressure to integrate charging points into the design of new buildings (such as parking lots or garages) or retrofit existing buildings to meet the growing demand for EV charging infrastructure. The implications of this growth will likely be significant, given the expected increase in EV adoption and the need for a robust charging network to support it.

Also Read: Tesla Model 3 hacked at the 2023 Pwn2Own hacking competition.

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