Global EV Charging Equipment Market to Hit US$4.3 B. by 2017: Pike Research

Taipei, Feb. 20, 2012 (CENS)--In conjunction with the sales growth of electric vehicles (EVs) over coming years, more than 1.5 million locations to charge vehicles are expected to be available in the United States by 2017, with a total of 7.7 million locations worldwide, according to a recent report from Pike Research.

That, the clean-technology market intelligence firm forecast, would translate into revenues of more than US$4.3 billion for makers of EV charging equipment by 2017, up from US$400 million in 2011, representing a compound annual growth rate (CAGR) of 49%.

“Prices for EV charging equipment will fall by 37% through 2017 as costs are driven down by competition from large electronics companies as well as volume production,” says research director John Gartner. “With each new electric vehicle model that gets launched, makers of charging equipment, city planners, and retailers gain an increased sense that EVs are here to stay. This will encourage both the production and purchase of charging systems.”

According to Pike Research, sales of EVs are expected to accelerate strongly over the next few years, and along with them will come rapid growth in deployment of charging equipment for the vehicles. Two years from now, more than 80 different models of plug-in electric vehicles (PEVs) would be found on roadways across the globe, and by 2017, more than 5.1 million PEVs would be sold globally, the company said.

In many markets, the majority of customers who purchase a PEV will purchase charging equipment for their home. At the same time, many cities and states are promoting the use of PEVs and installing EV charging systems as a means of reducing urban emissions.

The deployment of EV charging equipment will also have implications for electric utilities' business models. The impact of power delivered through EV charging units could shorten the lifespan of some neighborhood distribution equipment, such as transformers or power lines.