Rapid Expansion Anticipated for Public Electric Vehicle Charging Stations: WoodMac Predicts Strong Growth
The electric vehicle (EV) market in the United States is experiencing a significant surge, with a promising future ahead. According to recent projections, the U.S. public DC fast charger segment is expected to reach 475,000 ports by 2040, generating an annual market value of $3.3 billion.
This optimistic outlook is supported by the findings of Stan Cross, electric transportation director at the Southern Alliance for Clean Energy. In a Monday blog post, Cross noted that more than 600,000 EVs have been sold in the first half of this year, and the market is experiencing steady growth despite the political uncertainties.
The U.S. Department of Transportation has played a crucial role in this growth, issuing new guidance for the National Electric Vehicle Infrastructure (NEVI) program to make it more efficient. The Biden administration, in particular, has been supportive of electric vehicles, with the development of the $5 billion National Electric Vehicle Infrastructure formula program and the extension of a $7,500 tax credit for EV purchases.
However, the Trump administration had also made strides in the EV sector. Despite moves to weaken or eliminate vehicle emissions standards and put the NEVI program on hold for six months, the program has recently been revived. The tax and policy bill signed by President Donald Trump in July did eliminate the EV purchase credit after September, but consumers have been accelerating purchases ahead of the Inflation Reduction Act's tax credit expiration.
The growth of the EV market is not limited to the U.S. Globally, WoodMac anticipates EV charging ports will increase at 12.3% annually from 2026 to 2040, reaching 206.6 million ports. Wood Mackenzie predicts the U.S. public DC fast charger segment will grow at a 14% compound annual rate through 2040.
As utilization in public charging increases and infrastructure efficiency improves, the ratio of EVs to public chargers is expected to increase from 7.5 battery electric vehicles per charger in 2025 to 14.2 in 2040. This growth is a testament to the improving efficiency of the EV charging infrastructure.
The forecast for the development of the electric vehicle market and charging station infrastructure has been published by companies like Fortune Business Insights. Their report on the Indian electric vehicle market, available as of 2023, covers the period from 2024 to 2032.
Cross believes that while politics may slow down the EV transition, it cannot be stopped. He states that the US and global EV markets continue to grow steadily, suggesting there is likely enough market momentum to withstand political changes. The decline in EV sales reversed in July, according to Cox Automotive, further supporting this assertion.
In conclusion, the electric vehicle market in the U.S. is experiencing steady growth, with promising projections for the future. Despite political uncertainties, the market continues to thrive, driven by advances in technology, supportive government policies, and increasing consumer demand.
