Many industry observers are predicting huge growth in the EVSE market. A new report from Navigant Research agrees, projecting global demand for charging equipment to grow from around 442,000 units and $567 million in 2013 to 4.3 million units and $5.8 billion in revenue in 2022, a compound annual growth rate of 28.8%.
The market research firm notes that residential charger sales are directly driven by the increase in plug-in vehicle sales, but commercial charging is still driven largely by government support, which will eventually be phased out.
“As public investments in charging infrastructure wane, the numerous companies that emerged in the market’s early stages and championed various technologies and business models are now beginning to consolidate and standardize,” says research analyst Scott Shepard. “While investment in EV charging equipment technology has been significant during the past few years, the private sector now needs to focus on financing infrastructure deployments in order for the market to continue to grow rapidly.”
Navigant projects the largest markets to be Japan, the United States, and China, and expects to see more turmoil in the industry: “Through 2014, this market will continue to see consolidation among the industry players, as there are many companies currently competing for the market. In addition, it is likely that key players will begin to focus on their core competencies. The many EVSE players are starting to differentiate themselves based on whether they are an equipment manufacturer, an installer and service provider, a network operator, or a turnkey solutions provider. This evolution could result in hardware manufactures focusing on providing cheaper, mass-produced EVSE, while companies with software and networking expertise focus on providing added value to PEV drivers and to EVSE owners.”