The entry of global and regional companies into the electric car arena is causing a significant shift in mobility in India. It is a disruptive technology and society has yet to realise its full potential. With the expansion of the EV ecosystem, the number of stakeholders will increase significantly, particularly in the EV charging segment.
Despite a few issues with the universal adoption of electric vehicles, we are swiftly heading toward an all-electric mobility model. EVs are the next big thing, as seen by the growing number of vehicle owners.
A rapidly growing EV market
Electric vehicles have gained in popularity rapidly since their introduction to the retail market less than a decade ago. According to Statista, there were around 6.8 million battery electric vehicles in operation worldwide in 2020. Upwards of over 3 million new electric vehicles were introduced to the global fleet that year. In the fiscal year 2021, the penetration level of electric two-wheelers in India was almost 1 per cent. It was a huge rise over 2016 when it was only 0.12 per cent. It was anticipated that in 2030, the penetration rate will reach 47 per cent in a realistic scenario and 100 per cent in an optimistic scenario. According to Statista, approximately 144,000 electric two-wheelers would be sold in India by 2021.
As electric vehicles take a larger proportion of the market, the need for more charging stations grows. According to Deloitte, by 2022, the costs of ownership for electric vehicles will be comparable to those of Internal Combustion-engine vehicles. This most certainly indicates that the completely electric market — and its charging network — will continue to expand.
An increase in the number of EV charging companies
With EV charging firms and stations being so widespread, it’s easy to overlook how far this industry has progressed in the last decade. The Asia-Pacific area has the world’s largest market for electric vehicle charging stations. The market in this region is expected to exceed $30.8 billion dollars by 2028, rising at a CAGR of around 42 per cent from $2.6 billion in 2021. According to Statista, the Asia-Pacific market for charging systems is expected to account for around 38% of the global market in 2028.
On a global scale, the first complete conversion of a petrol station into an electric vehicle charging outlet occurred last year.
The EV charging firms fueling this massive development are doing much more than just adding charge stations. Building managers can easily manage prices and their whole EV charging infrastructure thanks to software and help from third-party EV charging service providers.
The onslaught of fast charging technology
Our continuous reliance on gasoline has been exacerbated by technological limits, but this is rapidly changing. EVs were just not practicable for many people until recently, because outdated charging methods take up to 20 hours to fully charge a battery.
Improved direct-current, fast-charging technologies can now recharge 60- to 80 miles (96-128km) of driving in 20 minutes. In 2020, there were nearly 386,000 fast electric vehicle chargers (EVSE) available to the public globally, with China accounting for more than 80 per cent of the total. Between 2016 and 2017, the number of publicly available high-speed EVSE chargers skyrocketed. The potential to add quick-charging stations to nearly any work environment makes integrating EV charging into society’s fabric that much easier. This significantly increases the bar for the EV charging sector.
Institutional support is changing
Reports of rising sea levels, rising temperatures, and increasing natural catastrophes sound an urgent call to reduce our dependency on fossil fuels. Government organisations, non-profits, and large and small enterprises are all strengthening their commitment to establishing a sustainable economy and mitigating the consequences of climate change. Whether it’s through state and federal tax rebates for constructing electric charging stations or third-party OEMs agreeing to build worldwide EV charging networks, it’s evident that the currents of change are moving toward electric mobility.
For EV charging firms and the industry as a whole, this is an exciting time of expansion. EV OEMs are contemplating the integration of software and hardware to provide their consumers with seamless electric mobility experiences. Rapidly advancing technologies have set the road for smooth EV adoption in the future.
By Amitabh Shivpuri, Director – Marketing & Strategy, EV Cosmos.