A new study from Juniper Research, which provides research and analytical services to the global hi-tech communications sector, has found that revenue from electric vehicle (EV) charging will exceed $300 billion globally by 2027. This is up from $66 billion in 2023. The report, EV Charging: Key Opportunities, Regional Analysis & Market Forecasts 2023-2027, found that fragmentation in charging networks is restricting EV adoption.
Chargers are overwhelmingly located in urban areas leading to widespread range anxiety among potential drivers. This is coupled with the difficulty of accessing charging points via different apps and cards, as well as the lack of standards for charging vehicles at the same rate.
As such, EV charging networks must simplify access and work with local authorities to roll out chargers to a wider range of locations or the electric vehicle market will struggle to accelerate. For more insights, Juniper Research’s white paper Why EV Charging Infrastructure Is Surging can be seen here.
Siemens Tops Juniper Research Competitor Leaderboard
The research assessed leading electric vehicle charging vendors and evaluated them on a number of criteria. These include the depth and breadth of offerings, innovation and future prospects; providing an extensive analysis of the competitive landscape in this dynamic market. The research found Siemens top the vendor leader board with ChargePoint second and ABB third.
Jordan Rookes, Juniper Research author, said: “Siemens demonstrates an intricate knowledge of the market; targeting currently underserved segments, particularly public transport and fleets. Competing vendors must diversify their portfolio away from just home and public chargers, and start targeting alternative high-growth market segments to maximise their market share.”
Charging Vendors Must Leverage Loyalty to Differentiate
The research also predicts that by 2027, the total number of plug-in vehicles will surpass 137 million globally. This is up from 49 million in 2023. As this adoption grows, charging vendors must differentiate their services in a highly fragmented market.
As such, it is important for electric vehicle charging vendors to target consumers as early as possible to build brand loyalty. Accordingly, vendors must develop strategic partnerships with automotive manufacturers, offering benefits such as discounted rates to encourage owners of certain EV brands to use their charging stations to help EV charging vendors remain competitive.
According to the latest figures from the Society of Motor Manufacturers and Traders (SMMT), in the UK in January electric vehicle registrations rose 19.8% over the previous year to reach 17,294 units, accounting for 13.1% of all new registrations. SMMT also noted that during the fourth quarter of 2022, the ratio of new chargepoint installations to new plug-in car registrations dropped to one for every 62.
This is a significant fall compared with the same quarter last year when the ratio was 1:42. As a result, in 2022, one standard public charger was installed for every 53 new plug-in cars registered. This is the weakest ratio since 2020. These figures for the UK highlight what Juniper Research is outlining here in the need for charging to keep pace with EV sales but diversity in charger locations is essential.
