EV Charging: A Look at the International Landscape
With the Joe Biden administration’s commencement, the U.S. is full steam ahead on renewable energy across the board. In addition to directing the Environmental Protection Agency and the Department of Transportation to tighten fuel efficiency standards, President Biden has made supporting electric vehicles a top priority, expanding consumer tax credits for EV purchases and mandating that the entire federal fleet of vehicles be converted to electric.
Biden is serious about this initiative, and EV sales are likely to rise. In the U.S., however, EVs currently account for only 2% of total vehicle sales. That’s a significant increase from even just a few years ago. But what about other countries? Where does the global EV market stand?
Massive Uptick in EV Sales
Global EV sales showed substantial growth in 2020, rising by 39%. This is especially notable for a year in which overall sales for passenger vehicles dropped by 14%. A report from Canalys states that EV sales reached 3.1 million in 2020 and projects that number will be close to 30 million by 2028. Further, the report predicts that by 2030, EVs will represent nearly half of all global vehicle sales. The demand for EVs certainly exists, but that is only one part of the equation.
Keeping the EVs Moving
Selling electric vehicles is one thing. Making sure there are enough charging stations to keep them on the road is entirely another. The EV revolution will only go as far as the global network of charging stations allows — meaning that the key indicator is not EV sales but how quickly countries and their governments are moving to prepare their grids for the energy demands of those vehicles. The number of public EV charging stations worldwide passed one million in 2020, making it a landmark year.
Making Charging Stations Easy to Find
Just as important as having the charging stations is making sure that drivers can find them. South Africa, the European Union and the U.S. have implemented live map applications to make drivers feel more secure about driving long distances in EVs. This is a wise measure given that people are accustomed to looking for gas stations, and the world is not yet 100% electric.
Europe Is Getting Organized
In February 2021, the European Union was advised by the European Automobile Manufacturers’ Association that binding targets should be set to have one million electric vehicle charging stations set up by 2024 and three million in place by 2029. In a letter jointly penned by the consumer lobby BEUC and the Transport & Environment caucus, the ACEA said that while tougher emissions standards and tax subsidies for EVs were a step in the right direction, the transition to full adoption of EVs is being held back by the current lack of public charging stations. According to industry statistics, the European Union had 224,538 fully functional public charging stations, as of the end of 2020.
The Limits of a Non-Unified System
While Europe’s recent and projected progress in EV infrastructure is encouraging, there is a long way to go. EV charging technology is still evolving which means it is not yet standardized. The variation in brands and types of stations is not figured into the total numbers, but that variation matters a great deal when you’re trying to get millions of people to drive electric vehicles and those drivers can’t be sure when they will encounter a compatible charging station. Quite simply, the sooner the stations are standardized, the sooner EVs become the norm.
Starting in 2017, the Germany-based company IONITY set out to address this problem. Backed by BMW, Ford, Hyundai and Volkswagen, the mission of IONITY is to achieve the broadest possible compatibility across EVs so that residents of the EU can drive confidently anywhere on the continent.
Open Network vs. Closed Network Charging Stations
The focus for a company like Tesla is on creating new models of EVs and proprietary charging infrastructure that functions on a closed software network rather than expanding overall access to charging for EV owners. Open networks mean that property owners can select from more vendors, more drivers can use the charging stations and system maintenance and updates are easier to implement over time. For a large-scale transition into EV usage, open software networks are the way to go.
Asia Seeing Significant Increases
By 2027, the global EV charging station market is projected to reach 30,758 units — up from just 2,115 units in 2020. The demand promises to be highest in the Asia Pacific region during that time. The region is home to China and India — the two largest countries globally by population — both of which also happen to be two of the fastest-growing economies. They have large working classes that need affordable transportation which may well result in Asia having the largest EV market share.
Australia Keeping Pace
The global surge in EV purchases is reflected in the Australian market as well. According to the Brisbane Times, EV sales tripled in 2019 from 2,216 to 6,718, and another 3,226 EVs were sold in the first half of 2020 — again despite an overall drop in vehicle sales. Additionally, extensive efforts have been made to make the charging station network driver-friendly, with an emphasis on highway infrastructure. A project began in 2016 to build stations all up and down the Queensland coastline. There are currently 31 stations up and running, with another 42 planned by Evie, one of the major private players in Australia’s EV charging market.
Canada Adding Incentives
The first quarter of 2020 brought a clear rise in Canada’s EV sales, rising from 3% to 3.8% of total vehicle sales. Those numbers sagged in the second quarter, an effect largely attributed to COVID-19, which had the entire country in lockdown and slowed the economy to a crawl. However, even before the pandemic, it was reported that Canada expected to fall short of its first EV sales target set for 2025. The government is looking to expand a cash rebate program for customers who purchase EVs, and an electric car mandate is even being considered.
According to Canadian government statistics there are currently only a few thousand EV charging stations nationwide. It may be worth noting that Canada has roughly one tenth the population of the U.S. and 90% of that population lives within 100 miles of the southern border — meaning that there may never be a need for EV infrastructure on the scale that other countries will eventually have.
U.S. Experiencing a Surge in Demand
There has been a substantial uptick in U.S. EV sales in recent years. This was owed largely to the existing EV charging infrastructure that preceded demand for vehicles. As of February 2021, the total number of public charging stations in the U.S. was 40,582, with the majority of those (nearly 32,000) being in California. That puts the U.S. well behind China and Europe for the time being.
There has been a substantial uptick in U.S. EV sales in recent years. This was owed largely to the existing EV charging infrastructure that preceded demand for vehicles. As of February 2021, the total number of public charging stations in the U.S. was 40,582, with the majority of those (nearly 32,000) being in California. And now more and more EVs will be hitting the market, especially with one of America’s largest automakers betting on an EV future. General Motors recently announced they would build 30 new electric vehicles by 2025, and phase out cars that require fossil fuel altogether by 2035. Within five years, 40% of GM’s models are projected to be battery powered.
Looking Ahead
If you are considering building an EV charging station, there are many factors to take into account. Every state has its own incentive programs, and every property is unique. Regardless of what kind of property you own or the scale of your project, EV Connect has the resources to help realize your goals. With stations in the US, Europe and Australia, we can help you scale internationally. Get in touch today.
Sources:
Automotive News - EV charging stations pass 1 million mark globally
U.S. Department of Energy - Alternative Fuels Data Center
Reuters - EU told 1 million public EV charging stations needed by 2024
Power Technology - All in this together: the challenge of building Europewide EV infrastructure
Cision Newswire - The Worldwide Electric Vehicle Charging Station Industry is Expected to Grow at a CAGR of 46.6% Between 2020 & 2027
Statista - Number of public electric vehicle charging stations and charging outlets in the U.S.
IEA - Global EV Outlook 2020
Government of Canada - Electric Charging and Alternative Fuelling Stations Locator
VOX -Canada is a huge country. Most of it is unfit for human habitation