Electric Vehicle Charging Station: Industry Background

INDUSTRY BACKGROUND 1
Electric Vehicle Charging Station: Industry Background
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INDUSTRY BACKGROUND 2
7.0 Industry Background
7.1 Industry Description
Electric vehicles came first to light in the mid-19th century. Due to their high cost coupled with
the low speed of the cars, their popularity was overtaken by the internal combustion engine vehicles
that proved cheaper, faster and convenient at any time. However, the beginning of the 21st century
marked a new beginning for the industry as concerns of hydrocarbon fuel in regards to environmental
pollution took center stage. The focus on electric vehicles became increasingly apparent for
environmentalists and other stakeholders thus affecting the industry’s growth positively (Shahan, 2015).
It is further this effect that made the combined sales of electric vehicles reach over 1 million units
between 2010 and 2015 according to Shahan (2015).
From the inception of electric vehicles, all the services that are associated with the cars were
offered at various retail points across the world. Purchased of the EVs as well as charging them was
done by retails who were strategically located to provide the services to the users of the vehicles. From
2010 when the technology became increasingly demanded, China has been the leader in the use of the
vehicles. However, with time the demand has spread to various countries in Europe, the United States
and Asian countries (Shahan, 2015). Although the penetration of EVs in some countries is still low, there
is a growing demand that has created hope for expansion of the industry in the near future. Countries
such as Saudi Arabia, Denmark, and Israel among others are setting up electric charging stations that are
essential for triggering purchases of Electric Vehicles. With this trend, the industry is poised to become
increasingly competitive and economically viable (Singh, 2018).
7.2 Industry Development and Growth
7.2.1 Trend and Growth Patterns in the Industry
The growth of electric vehicle sales in the globally is triggering a proportional growth in the
electric vehicle charging station business across the world. However, it has been established that the
retail for the product has a slightly higher growth rate than the charging services in the industry. Based
on the industry, two significant trends have continuously gained popularity and attention in the global
market. First, an increased campaign on environmental protection and the green energy movement is a
trend that has significantly shaped the electric vehicle charging industry. Awareness of the level of
hydrocarbon emissions from internal combustion engines has created a demand for electric vehicles in
the market as an alternative solution (He et al., 2013, p. 96). Therefore, the number of electric vehicle

INDUSTRY BACKGROUND 3
sales have significantly increased as shown in the figure below. A second trend in the industry is the
growing charging infrastructure. This has existed since 2010 when the EVs got an overwhelming support
from environmental enthusiasts. As a result, the number of electric vehicles units purchased has
significantly increased thus increasing the number of public charging stations proportionally (Stubbe,
2018).
Figure 1: Global sales of Electric Vehicles (Shahan, 2016).
The growth of charging stations for electric vehicles has been on the increase across the globe.
With China dominating the industry, other countries have also picked up this trend and major cities are
experiencing an influx of electric vehicle (He et al., 2013, p. 94). According to the growth statistics
present, it is apparent that in the long run, the number of electric vehicles will be almost the same as
those using fuel. The figure 2 below shows the growth patterns of charging stations for several countries
around the world from 2012 to 2017 (Stubbe, 2018).