In the situation of COVID-19 pandemic, EV markets are expecting a drop in sales. For the EV charging industry, this will inevitably lead to a slower market in the coming years, with IHS Market anticipates will last up to 5 years. Moreover, a reduction in EV production and adoption will be a significant contributor to the slowdown in EV charging infrastructure development. This will likely have a compounding effect, as key infrastructure is critical in purchase decisions for people seeking to switch from combustion engines to EVs, and this hesitation by the market may further delay the establishment of new EV charging infrastructure. However, investment in EV charging startups is showing some growth, with the long-term view that growth will pick up markedly in the next 3 to 7 years. One key investment area has been fast-changing technologies, which, in combination with the cost of EVs being expected to drop below that of vehicles that run on other greener fuels such as gas, should lead to an increase in EV adoption. It is also likely that this chain of events will see auto industries become increasingly more intertwined with the electric grid sector.
GREEN RECOVERY PLAN AND INVESTMENT AROUND THE WORLD
Governments around the world are also implementing policies to encourage the sale of EVs and further development of EV charging infrastructure. The European Green Deal, which focuses on developing green industries, has set out to see installation of 1 million charging points across the continent. Draft documents from the European Union show that countries will be further incentivizing EV manufacturers to produce cleaner cars and investors to put money into EV charging infrastructure. In addition to investing over US$1.4 billion to expand EV charging infrastructure by 50% in 2020 and exempting purchase tax on new EVs, China’s government is also making efforts to stimulate the EV market and establish itself as a world leader in greener vehicles by extending subsidies on new EV purchases until 2022.
KEY DEVELOPMENTS IN COMMERCIAL AND HOME EV CHARGING INFRASTRUCTURE
Regardless of the fact whether the predictions surrounding an increase or decrease of EV adoption are true or not, the key point remains that EV charging infrastructure must be significantly developed to support future EV adoption. The expected slowdown in EV purchases over the next few years just might well be the perfect opportunity for charging infrastructure to undergo further development so that it can provide better support to any future increase in EV adoption. Providing EV owners with a faster charge experience, lowering power demand from the grid, and establishing upgradable charging equipment are central to futureproofing EV charging infrastructure