European Charging Station Market Outlook

October 31, 2023

With the increasing prominence of environmental issues and the reshaping of the global automotive industry, countries around the world have introduced measures to strengthen policy support for new energy vehicles. Europe, as the second largest market for new energy vehicles after China, is experiencing rapid growth. In particular, the charging station market is growing rapidly with a huge demand gap. On the one hand, market demand is ahead of the North American market, and on the other hand, market saturation is lower than China, presenting more opportunities.

svav (1)

1.Increase in Electric Vehicle Penetration and Policy Support Stimulate Rapid Expansion of the European Charging Station Market

In 2022, the new energy vehicle penetration rates in China, Europe, and the United States will reach 30%, 23%, and 8% respectively. The maturity of the new energy vehicle market in Europe is second only to China and significantly ahead of the US market. In April 2023, the European Union passed the “2035 European Agreement on Zero Emission Sales of Fuel Cars and Vans,” becoming the first region to achieve complete electrification of automobiles. This development plan is more aggressive than that of China and the US.

European governments have also introduced various stimulating policies for charging station construction. On the one hand, governments directly allocate funds for charging station construction and provide certain financial subsidies to companies installing charging stations. On the other hand, they also require social involvement in charging station construction, such as mandating that a certain amount of funds in parking lots must be used for charging station construction.

European governments have a strong determination to promote new energy. There is a strong and urgent demand for charging station construction in Europe. Coupled with the high stability of the European electricity distribution network, it can support a large-scale construction of charging stations in a short period of time. With multiple factors overlapping, the European charging station market is expected to expand rapidly at a growth rate of up to 65% in the coming years.

svav (2)

2.Significant Differences in Market Size and Policies of Charging Stations in Different Countries.

There are significant differences in the new energy vehicle markets among countries, and these differences also affect the charging station market, resulting in different stages of development in charging infrastructure construction in different countries. Currently, the Netherlands has more than 100,000 charging points, ranking first in Europe, followed closely by Germany and France, with over 80,000 charging points each. On the other hand, the ratio of charging points to vehicles is 5:1 in the Netherlands, indicating relative saturation of the market demand, while Germany and the UK have a ratio of over 20:1, indicating that the charging demand has not been well met. Therefore, there is a strong rigid demand for the construction of new charging stations in the future.

Post time: Nov-01-2023