The EV Charging Industry Has Been Rapidly Growing Into A Billion-Dollar Business
With the world's embrace of fuel-efficient vehicles, the electric vehicle (EV) charging sector is one of the fastest-growing industries. According to Allied Market Research, this sector has valued at $3.18 billion in 2018 and is expected to rise at a CAGR of 45.6 per cent to $66.27 billion by 2026. Notably, the expansion has been motivated by a growing sense of urgency to achieve carbon neutrality within the next several decades.
Multinational organisations, such as the United Nations, have been vocal in their support for reducing carbon emissions to promote a more sustainable ecology. Carbon-efficient activities are one of the pillars of the United Nations' current climate policy.
So far, the automobile industry appears to be following the rules, with carmakers progressively moving toward creating fuel-efficient vehicles. Tesla, which focuses on the development of electric automobiles, is at the forefront of this movement.
However, it is gradually becoming clear that EVs can only prosper if all potential buyers have access to charging stations. Almost all EV drivers come from affluent suburbs, with the rest of the populace lagging due to charge restrictions.
The Electric Vehicle Charging Industry
EVs, unlike gasoline-fueled vehicles, are powered by batteries or electric motors with varying capabilities. The value proposition of EV chargers is that these electric systems must recharge whenever the battery is low. In an ideal world, the EV charging industry would act like a petrol station for electric vehicles.
Various characteristics, including product kind, charging mode, and charging voltage level, are used to categorise this speciality. EV charging systems can bifurcate as either household or commercial charging systems, depending on the product type. Plug-in and wireless charging systems are the two types of charging systems.
EV chargers are dividing into three types based on charging voltage: level 1, level 2, and level 3.
While existing EV charging options continue to meet rising demand, a large number of them still rely on grid connections for power generation. Setting up and maintaining this type of infrastructure is relatively costly. Furthermore, some grid connections are powered by non-renewable energy sources, cancelling out part of the carbon-neutral gains.
However, stakeholders in the EV charging sector are developing new, environmentally friendly ways to power all-electric vehicles. Off-grid charging outlets that use more carbon-efficient sources of energy are one of the latest projects.
A Rapidly Changing Industry
Though still, a pint-sized market, the EV charging sector is rapidly expanding, with new technologies introduced to encourage the use of fuel-efficient vehicles. Off-grid charging options are one of the most recent innovations in this field. L-Charge, a firm that builds stationary and mobile off-grid charging systems, is the newer off-grid EV charging provider.
By allowing service providers to set up off-grid stationary charging points with up to 600kW charge power, the business hopes to eliminate the challenges of setting up grid connections. As a result, L-Charge allows more people to purchase EVs while also allowing business owners to offer Charging as a Service.
L-Charge also has a mobile charging point in the form of a minivan in addition to its off-grid EV chargers. This charging vehicle is intending to patrol big cities and charge electric vehicles on demand. The L-Charge mobile charging point uses Liquefied Natural Gas (LNG) and hydrogen to generate sustainable charging energy, resulting in considerable reductions in carbon emissions.
L-Charge is ready to pioneer its first mobile charging point, which will soon be wandering the streets of Moscow, even though the company is still in its early stages. It demonstrates how quickly the EV charging sector is evolving, given that other peer service providers have also jumped onto the off-grid charging bandwagon,
What Does the Future Have in Store?
The future of the electric vehicle industry appears to be bright, based on present trends. It may see in the performance of publicly traded equities like Tesla, which has increased by almost 700% in 2020. Since then, the corporation has stepped up its efforts in EV production, extending into new markets such as Europe.
Even better, well-known automakers have begun to produce electric automobiles. The trend, which earlier appeared to be another spectacular invention, is gradually becoming the industry norm for visionaries and environmentalists who recognise the importance of achieving carbon neutrality.
Like most people around the globe switch to electric vehicles, this industry will inevitably expand into a trillion-dollar industry. However, this will only be achievable if the sector has supported by enough EV charging infrastructure. Off-grid chargers are one option, and when paired with the aspect of mobility, they offer a more significant value.
Because of its value proposition in carbon efficiency, the electric vehicle business is one of the most promising areas of the twenty-first century. It's no surprise that the governments, including the United States, are exploring EV incentives worth up to $100 billion, while the European Union aims to be carbon-neutral by 2050. While the carbon-neutral effort has supporters, it still has a long way to go and can only achieve its goals with the help of an efficient EV charging business.
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