Most of the time, evolution moves slowly. But sometimes it’s lightning-fast. After 150 years without much happening around electric vehicles, Tesla set off a spark in 2006 that triggered a chain reaction of rapid growth and change. Since then, the market for electric vehicles has exploded, and with it the EV charging industry.
Major improvements in technology, along with a growing sense of urgency in the push toward clean, sustainable energy, are changing the ways that institutions and businesses think about their role in the transportation economy. This is leading to four dramatic shifts in the EV charging industry and opening the door for EV charging companies to have an even greater impact.
A Rapidly Expanding EV Market
Since their first introduction to the consumer market barely a decade ago, electric vehicles have rapidly grown in popularity. In 2010, there were only about 17,000 electric cars on roads around the world. By 2019, there were 7.2 million — that’s a 42,000% increase in electric vehicles in use.
Although it’s true this growth has slowed in recent years, it’s stayed well ahead of the broader light-vehicle market, which dropped by 5% in 2019, compared to a 9% growth for electric vehicles.
With electric vehicles making up an increasing share of this market, the demand for more charging stations only grows. Deloitte forecasts that by 2022, the costs of ownership for EVs will be comparable to their combustion-engine counterparts. This likely means continued growth of the fully electric market — and its charging network along with it.
An Explosion of EV Charging Companies
With EV charging companies and stations now becoming so commonplace, it’s easy to forget how far this industry has come over the past decade. In going from 3,394 charging stations in 2011 to over 63,000 in early 2019, the options for “refueling” electric vehicles have proliferated at lightning speed.
Last year saw the first full conversion of a gas station into an electric charging station in the U.S.
The EV charging companies that are driving this rapid expansion are doing much more than simply installing charging stations. For instance, EV Connect offers a complete charging management solution to any business that wants to implement a charging station. The software and support makes it easy for building managers to manage costs and their overall EV charging infrastructure.
The Surge of Fast Charging
Our continued dependence on gasoline has been prolonged by the limitations of technology, but this is quickly changing. Until recently, EVs simply weren’t practical for many people, given that older (Level 1 and 2) charging technology required up to 20 hours to fully charge a battery.
Newer, direct-current, fast-charging technology now makes it possible to recharge 60- to 80-miles worth of driving in 20 minutes. Globally, there were more than 130,000 of these fast-charging stations installed in 2019, and this number is expected to grow to nearly 227,000 by 2025.
The ability to add quick-charging stations to virtually any business environment makes it that much easier to integrate EV charging into the fabric of society. This raises the ceiling for the EV charging industry dramatically.
Evolving Institutional Support
Year after year, reports of warming temperatures, rising sea waters and increasingly catastrophic natural disasters sound an urgent alarm for decreasing our reliance on fossil fuels. Government agencies, nonprofits and businesses large and small are all increasing their commitment to developing a sustainable economy and curbing the effects of climate change.
Whether this comes in the form of state and federal tax credits for installing electric charging stations or through a corporation like General Motors committing to build a nationwide EV charging network, it’s clear the currents of change are flowing toward electric transportation.
This is an exciting time of growth for EV charging companies and the industry as a whole. If your business has considered adding its own charging station for employees and customers — whether you run a hotel, a health-care facility or a retail business — there has never been a better time.
Ready to learn more about how EV Connect can help you with your EV charging needs? Check out what makes us different.
References:
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https://www.iea.org/reports/global-ev-outlook-2020
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https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/mckinsey-electric-vehicle-index-europe-cushions-a-global-plunge-in-ev-sales
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https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/
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https://www.cnbc.com/2019/09/26/first-gas-station-to-ditch-oil-for-electric-vehicle-charging-now-open.html
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https://www.energy.gov/eere/electricvehicles/vehicle-charging
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https://www.businesswire.com/news/home/20201016005531/en/Global-Electric-Vehicle-Fast-Charging-System-Market-to-2025—Constantly-Evolving-Business-Models-for-Promoting-EV-Adoption-Rate-Presents-Opportunities—ResearchAndMarkets.com
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https://public.wmo.int/en/media/press-release/multi-agency-report-highlights-increasing-signs-and-impacts-of-climate-change
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https://www.ttnews.com/articles/gm-build-nationwide-ev-charging-network
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https://buildbackbetter.com/priorities/climate-change/
