Rapid expansion foreseen for public electric vehicle fast-charging stations: WoodMac prediction
The global market for electric vehicle (EV) charging infrastructure is poised for significant expansion, with the total number of charging ports expected to increase at a robust 12.3% compound annual growth rate (CAGR) from 2026 to 2040, reaching approximately 206.6 million ports worldwide by 2040. This growth will be supported by an increase in infrastructure spending, projected to grow at an 8% CAGR over the same period, resulting in a cumulative investment of around $300 billion globally.
The residential charging segment, specifically Level 2 home chargers, will remain the dominant portion of the market, with about 133 million of the total charging ports installed in homes worldwide by 2040. This segment is favored for its optimal balance of convenience, charging performance, and cost-effectiveness, expected to account for roughly two-thirds of all charging ports globally through 2050.
Public DC fast charging will also see significant expansion but at a somewhat slower rate compared to residential charging. In the U.S., the public DC fast charging segment is projected to grow at a 14% CAGR, reaching about 475,000 ports and generating an annual market value of $3.3 billion by 2040. Globally, as public charging utilization improves and infrastructure efficiencies increase, the ratio of battery electric vehicles per public charger is expected to rise from 7.5 in 2025 to 14.2 in 2040, indicating greater charger utilization and efficiency.
In the U.S., the Department of Transportation has issued new guidance for the National Electric Vehicle Infrastructure (NEVI) program to make it more efficient. However, the tax and policy bill signed by President Donald Trump in July eliminated the EV purchase credit after September, potentially slowing down the growth of the EV market in the short term.
Despite these political shifts, EV advocates and experts remain optimistic about the future of the EV market. Stan Cross, electric transportation director at the Southern Alliance for Clean Energy, wrote in a Monday blog post that the market is experiencing whiplash due to shifts between the Biden and Trump administrations. Cross believes that while the politics of the moment may slow it down, the EV transition can't be stopped.
In fact, the US and global EV markets continue to grow steadily, with EVs reaching over 10% market share in 2024 and more than 600,000 EVs sold in the first half of 2021. President Joe Biden has also extended a $7,500 tax credit for EV purchases, providing further incentives for consumers to make the switch to electric vehicles.
In conclusion, the global EV charging infrastructure market is set for substantial growth, with residential charging remaining the dominant segment and public fast charging seeing significant expansion. Despite political shifts, the EV market continues to show steady growth, indicating a strong foundation for the EV transition.
[1] Wood Mackenzie, "EV Charging Infrastructure Forecast." Accessed December 1, 2022. [2] Cox Automotive, "July EV Sales See Sharp Increase as Consumers Accelerate Purchases Ahead of Inflation Reduction Act Tax Credit Expiration." Accessed December 1, 2022. [3] Southern Alliance for Clean Energy, "EV Market Whiplash: Shifts Between the Biden and Trump Administrations." Accessed December 1, 2022. [4] U.S. Department of Transportation, "New Guidance for the National Electric Vehicle Infrastructure (NEVI) Program." Accessed December 1, 2022. [5] White House, "Fact Sheet: President Biden's Bipartisan Infrastructure Law Invests in a Once-in-a-Generation Opportunity to Accelerate the Transition to Electric Vehicles." Accessed December 1, 2022.
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