As EV sales skyrocketed by 160% last June — compared to the same period last year — and with more and more government policies favoring electric vehicles over internal combustion engine models, the EV charging market is growing at a rapid pace.
In the next few years, experts agree that electric models will gain even more ground, pushing ICE vehicles into the background and accelerating the electric transition even further.
Moreover, data suggests that by 2040 around 300 million charging ports will be required globally, which is truly enormous compared to today’s “meager” six-million figure.
In essence, the sheer volume needed to meet the soaring demand means this will indeed be a growth market well into 2035 when investments in the entire charging infrastructure will peak, as per industry leaders. It can also be deduced that this could cause a rise in car loan applications.
And according to Bloomberg, if something changes and the charger port numbers need to get bumped up to 500 million, that would necessitate a mind-blowing $1.6 trillion of cumulative investment in the whole infrastructure.
Previously, it has been somewhat difficult for investors to access the charging market. However, as a large number of EV charging firms have gone public recently, investing opportunities have increased noticeably.
Still, even with the promising numbers, some investors will probably be reserved in riding the “gravy train” without looking at the numbers first.
For one, with so many charging companies trying to get in on the action, some fear that the huge competition will prevent decent returns on investment. On the other hand, investors are afraid that, in the long run, most of these companies will fail to create true customer retention with their products.
Lastly, some investors speculate that the charging port business will end up like the solar power industry, where the market also grew rapidly but failed to bring great returns to shareholders.
