The US Electric Vehicle (EV) level 2 charging stations market will surge from $67 million in 2013 to approximately $947 million by 2020, catalyzed by President Obama’s target of one million EVs on US roads by 2015, according to research and consulting firm GlobalData.
The company’s latest report* states that the global market for EV level 2 charging stations will grow exponentially from an estimated $0.2 billion in 2014 to $3.5 billion by 2020.The US is currently the world’s leading market, having claimed more than a 30% share of the total annual installations in 2013.
The US government is providing a number of incentives to encourage EV charging station installations, with finance delivered under the American Recovery and Reinvestment Act (ARRA).
Sowmyavadhana Srinivasan, GlobalData’s Analyst covering Power, says: “Treasury grants in lieu of the investment tax credit have been one of the most attractive measures for companies in the US renewable energy industry. ARRA provides more than $30 billion of funds for energy initiatives, such as the smart power grid, advanced battery techniques, and energy efficiency measures.
“In 2009, the US committed a total of $3.4 billion to the Smart Grid Investment Grant and Smart Grid Demonstration programs, which aim to accelerate the implementation of smart grid technologies and systems.”
GlobalData expects sales from level 2 residential chargers to account for over 70% of the US annual sales volume in 2014, while non-residential chargers will account for the remaining 30%. However, the annual sales share of the latter chargers will increase to over 50% by 2020.
Srinivasan explains: “Non-residential level 2 charger installations are expected to increase, as governments and offices invest in enhancing public charging points with this equipment.
“A number of offices have already installed these chargers and are finding that existing volumes do not meet demand. With the anticipated rise in EV purchases, more investment in the public EV charging infrastructure will be required at both a commercial and city level,” the analyst concludes.
Photo credit: Chuck Kennedy, White House