Market Trends of US Electric Vehicle (EV) Charging Equipment Industry
Increasing Adoption of Electric Vehicles in the Country
- Electric vehicles (EVs) became increasingly popular due to their eco-friendly nature and cost-effective benefits. However, one of the main concerns for EV owners is the availability of charging stations. As the usage of electric vehicles increases, more charging equipment and infrastructures are required to fulfill the need.
- As the adoption of electric vehicles increases, the need for charging devices and relevant infrastructure is expanding. To meet the demand, the government and companies work on installing more charging stations in public areas such as parking lots, malls, and highways. Many electric vehicle owners also install charging stations in their homes for personal use.
- According to the International Energy Agency (IEA), in the United States, electric car sales increased by 55% in 2022 relative to 2021, led by battery electric vehicles (BEV). Sales of BEVs increased by 70%, reaching nearly 800,000 and confirming a second consecutive year of solid growth after the 2019-2020 dip. Sales of PHEVs also grew, albeit by only 15%.
- According to the United States Department of Energy Office of Science, a total of 141,055 plug-in vehicles (100,928 BEVs and 40,127 PHEVs) were sold during December 2023 in the United States, up 42.4% from the sales in December 2022. Also, In December 2023, 117,690 HEVs (31,825 cars and 85,865 LTs) were sold in the United States, up 70.3% from the sales in December 2022. The total stock of electric cars stood at 3 million in 2022, recording more than a 36% increase compared to 2021, accounting for 10% of the global total.
- In February 2023, Under Biden’s Bipartisan Infrastructure Law, the country announced its plan to invest USD 7.5 billion in electric vehicle charging, USD 10 billion in clean transportation, and over USD 7 billion in electric vehicle (EV) battery components, critical minerals, and materials.
- Furthermore, the automakers and battery makers plan to spend over USD 50 billion across 37 dedicated EV battery manufacturing facilities. At total capacity, the facilities could produce 654 GWh in capacity, which is enough to support about 10 million light-duty vehicles annually by 2030 to support their electric vehicle manufacturing and sales. All these investments are likely to boost the adoption of EVs across the United States. It, in turn, is driving the need for EV charging devices and infrastructures over the forecast period.
- Hence, the increasing adoption of electric vehicles (EVs) and investments in the country are expected to continue accelerating the demand for EV charging equipment and hold a promising market over the forecast period.
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Battery Electric Vehicles to Dominate the market.
- Battery electric vehicles (BEVs) are also commonly referred to as electric vehicles with an electric motor. The vehicle uses a large traction battery pack to power the electric motor. The EV must be plugged into a wall outlet or charging equipment called electric vehicle supply equipment (EVSE).
- BEVs are fully electric vehicles and typically do not include an internal combustion engine (ICE), fuel tank, or exhaust pipe. They rely only on electricity for propulsion. The vehicle's energy comes from the battery pack, which is recharged from the grid. BEVs are zero-emission vehicles, as they do not generate any harmful tailpipe emissions or air pollution hazards caused by traditional gasoline-powered vehicles.
- The United States is transforming the automotive industry as battery electric vehicles (BEVs) gain momentum and popularity. With technological advancements, government support, and increasing environmental concerns, BEVs emerged as a promising solution to address the challenges of climate change and reduce reliance on fossil fuels.
- In recent years, the adoption of battery-electric vehicles in the United States grew significantly. Improved battery technology, extended driving ranges, and a surge in charging infrastructure helped overcome the initial entry barriers. Automakers like Tesla, Chevrolet, Nissan, and Ford played instrumental roles in popularizing BEVs, offering affordable models that appeal to a broader range of consumers.
- In 2022, the United States registered 990,000 new electric cars, of which about 80% were BEVs, and witnessed a rise of 70% compared to 2021. According to the International Energy Agency (IEA), battery electric vehicle (BEV) sales increased by 40% in the United States relative to 2021.
- According to the United States Department of Energy, the number of publicly available electric vehicle charging points (Level 1, Level 2, and DC Fast) grew from 143,729 in 2022 to 175,547 in 2023. Of the 175,547 charging points in 2023, around 137,795 were slow charging points, and the rest 37,752 were fast charging points. The share of publicly available fast charging points witnessed significant growth in the country in recent years. It is expected to continue the same trend during the forecast period.
- As technology continues to evolve, the future of battery-electric vehicles in the United States looks promising. Automakers, along with the United States government, are investing heavily in research and development to improve battery efficiency, reduce costs, and enhance overall vehicle performance.
- For instance, in Q3 2022, the country invested nearly USD 210 billion in EV and battery manufacturing. The investment is expected to increase, with Tesla including USD 6-8 billion annually in the United States and Germany between 2022 and 2024. Further, automakers and battery makers also planned to spend USD 54 billion across 37 EV battery manufacturing facilities across the country. These facilities are expected to produce 654 gigawatt hours (GWh) of EV battery capacity annually by 2030. Such a scenario is expected with a positive impact on the BEV manufacturing industry.
- Moreover, the emergence of autonomous driving technology and vehicle-to-grid integration further adds to the potential of BEVs to revolutionize the transportation sector. It is thereby driving the demand for charging equipment for battery electric vehicles.
