UK Electric Vehicle Charging Infrastructure market to double by 2020

The UK electric vehicle (EV) charging infrastructure equipment market is estimated to have grown by over 28% in 2015, to over £20m. However, while still at relatively low values in terms of equipment, the overall sector is much larger when all associated installation and civil engineering works are included.

The market has seen significant growth in response to the introduction of the Plugged In Places grant in 2011 and, more recently, in 2014/15 as a result of further Government incentives. Other key factors supporting market growth include tighter environmental legislation, rising sales of electric vehicles and product development resulting in shorter charge times.

Conversely, there are some negative factors affecting the market, including uncertainty about future funding beyond 2020, a lack of harmonisation of products and relatively low current sales of electric vehicles, as well as more recently, lower fuel costs. Commercial users are a key focus within the electric vehicle market. EVs offer significant long term savings and commercial users are more likely to accept higher upfront investment costs to take advantage of lower running costs than domestic users. As a result, the development of fleet charging infrastructure is a key area.

Most electric vehicles are expected to be charged at home or at work. However, a wide infrastructure of publicly accessible points is being developed. Around 35-40% of these are currently located in public car parks and on-street parking to maximise visibility, with commercial premises and garages, particularly car sales forecourts, also offering a significant resource as manufacturers attempt to bolster vehicle sales. In the future, service stations, transport hubs and commercial premises will supply a greater proportion of publicly accessible points as greater emphasis is put on enabling longer journeys and faster charging.

Fast chargers represent the largest market sector by volume, with standard speed chargers also a significant part. Rapid chargers, which are relatively new, more expensive and can require upgrades to the electrical supply, remain smaller in terms of volume, but this sector is growing rapidly and answers the need for fast recharging. Product development is primarily concerned with higher levels of systems integration and monitoring, development of smart grid capabilities and faster, more convenient charging times.

Industry participants reflect a range of backgrounds from electrical accessory/component companies to utilities, software specialists, vehicle manufacturers, battery suppliers etc., as well as new companies set up specifically to enter the market – all attracted by high growth potential in the longer term. Undoubtedly, the supply and distribution structure will evolve as the sector grows, with indications already of some industry rationalisation.

Going forward, there are a number of encouraging signs, with new electric car registrations increasing substantially in recent years and registrations in 2015 expected to reach 30,000, together with the Committee for Climate Change’s recommendation that the Government aim for 1.7m EV’s to be on the road by 2020. Environmental legislation is also likely to continue to tighten, with savings in transport a major factor in reducing carbon emissions, prompting continued movement towards more environmentally friendly methods of travel. Expansion of networks to enable longer journey distances, for example incorporation of more charging points at service stations, is likely to drive growth in the longer term.

“Forecasting market growth of a sector in the early stages of development is extremely difficult. However, given a sustained rise in ownership levels of electric cars, our estimates indicate that the market for EV infrastructure is likely to have doubled by 2020” said Andrew Hartley, Director of AMA Research. “Industry investment in expanding the network is likely to continue to grow in the short to medium term, although government funding remains uncertain, with emphasis shifting towards provision by other sectors in the longer term.”

The ‘Electric Vehicle Charging Infrastructure Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.