In a report conducted by research firm Technavio, it is forecasted that the Chinese electric vehicle (EV) charging station market will grow at a Compound Annual Growth Rate (CAGR) of 86% from 2010 to 2014.
According to Technavio, the EV Charging Station market reached $321 million in 2010 and is expected to grow to $1.2 billion in 2011 due to the huge investment being made to develop the infrastructure required by electric vehicles.
The report, which focuses exclusively on China, indicates that the market is currently driven by the various green initiatives undertaken by the government to promote the use of electric vehicles.
“China, the largest automobile market in the world, has been witnessing increased pollution. As a result, the government has been promoting electric vehicles by providing grants and subsidies. This in turn has been driving the growth of electric vehicle charging stations,” said a Technavio analyst.
In spite of the need, the lack of standards and infrastructure may hinder the growth of this market according to Technavio. However, the scarcity of oil reserves is another factor that will drive growth in this market.
China and the United States will be the top two countries driving demand for EV Charging Stations in the earlier stages, according to Technavio.