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EV Charging Industry Set for Explosive Growth over the Next Decade

October 19, 2023

With a projected compound annual growth rate of 21.3% from 2019 to 2026, the world’s EV charging industry looks to explode over the next decade. If these projections stay on track, the industry’s global market should reach $30.8 billion by the same year.

Image via Freepik

The EV charging industry’s growth spurt makes it an attractive option for investors looking to broaden their holdings. Charging station owners, too, should consider expanding their operations to include more chargers of various types, as Tesla plans to do in its new diner-drive-in charging complex.

Here are some factors driving the EV charging industry’s growth – and, more importantly, how to take advantage of this opportunity as an investor or EV charging station owner.

US EV Usage Projected to Hit $11.4 Million by 2025

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Greentech Media’s Olivia Chen indicates that 11.4 million EVs will likely drive on American roads by 2025. To have enough EV charging stations along the nation’s highways to meet the demand for charging those cars, EV charging infrastructure companies must rev up their production now.

With these optimistic predictions, finding investors to fund this expansion shouldn’t be difficult. However, EV charging infrastructure companies and gas stations that want to expand into EV charging must educate potential investors about the industry’s growth potential.

Since the EV industry is still in its youth, many investors see investments in EV charging as risky. Myths die hard – and the horror stories about EVs leaving their drivers stranded due to their limited range still spook prospective investors and drivers alike.

However, with EVs’ ranges getting longer with each model year, these fears should dissipate soon. Promising new EV battery technologies, too – many with ranges that exceed those of internal combustion cars – should go far to encourage EV adoption.

Government and Electric Companies’ Incentive Programs Drive EV Growth

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In addition to the US federal government’s generosity towards the EV industry, state governments have also set aside funding for charging infrastructure and EV purchases. Even more promising, electric companies have gotten onto the EV bandwagon, creating their own incentives for EV purchasers and charging companies.

Even if government funding runs out, electric companies are vested in pouring cash into the EV industry. After all, they will be the ones that profit from the increased usage of electricity. Once they see what a cash cow the EV industry can be for their business, their incentives will likely continue, if not increase. These incentives should hasten the EV charging industry’s growth over the next decade.

As Americans Become More Environmentally Conscious, EV Use Will Rise

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Statistics show that 75 percent of American consumers are looking for products and services with a positive environmental impact, a recent Sustainable Brands piece points out. That massive percentage of the American public could well be the EV industry’s target market.

Clearer EV Marketing Messages Build on Americans’ Growing Eco-Consciousness

So, why the disconnect? Why aren’t those eco-conscious consumers already EV owners?

It’s the messaging.

As the Sustainable Brands article shows, those Americans “don’t know how to identify environmentally friendly companies.” EV automakers must up the ante on their messaging to inform the eco-conscious US public.

The article points out that unclear, flowery language marks all too many EV manufacturers’ advertising materials. An additional absence of proof for advertisers’ claims could turn potential customers off.

Although most EV charging companies’ ads tout the ease and convenience of charging, automakers’ ads are more glitzy than informative. While we appreciate the luxury appeal most of them take, the glamor itself won’t sell that 75 percent. Nor has it sold them. Otherwise, the majority of Americans would own an EV by now.

As the inspiration for the character Don Draper in the hit drama Mad Men, ad agency legend David Ogilvy sums up effective messaging with one sentence, “If it doesn’t sell, it’s not creative.” In other words, automakers’ ads need to tell these prospective customers how EVs will help the environment, save them money in the long run, and have a long enough range to get them where they need to go.

Use Statistics and Proven Facts to Drive the Message Home

A mere mention of these cars EVs range might encourage a buyer to investigate further. And for those with range anxiety, an assurance that a support team would rush to their rescue should their car run out of energy could drive up the number of buyers willing to lay out a considerable chunk of change for one of their EVs.

And for that matter, where is the mention of how their cars can help their owners reduce their carbon footprint? It seems that 75 percent of eco-conscious Americans might want to know that information.

Clear language citing third-party tests that support EV automakers’ and charging companies’ claims could go a long way toward narrowing the “trust gap” between corporations and consumers on environmental sustainability issues. Only 38 percent of American consumers trust companies’ commitments to environmental stewardship.

Capitalizing on Americans’ growing interest in building a more sustainable Earth with clear messaging could help grow EV adoption to even higher levels than experts predict.

Encourage EV Charging Investment with Messaging That Hits Home

Having up-to-date information on EV charging trends, rates of EV adoption, and the latest research in EV charging technology can give lenders and investors the details they need to back your EV charging company with solid funding. At the next EV Charging Summit and Expo, you’ll find all that information, plus effective marketing tips from successful EV charging infrastructure companies.

Here, you can arm yourself with all the facts your investors need to convince themselves that funding your next EV charging project will benefit their bottom line and make the Earth a more hospitable place to live. With experts from every aspect of the EV charging space to guide you, you’ll come home with all the tools you need to take advantage of the industry’s rapid growth during the next decade.

Don’t lose your opportunity to reap your share of the profits from this fast-expanding industry. Register for the next EV Charging Summit & Expo event today!

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