Factors such as the burgeoning demand for electric vehicles (EVs) and increasing installation of chargers and charging stations are expected to drive the Indian electric vehicle supply equipment (EVSE) market at a healthy CAGR of 54.2% during the forecast period (2019â€“2025). According to P&S Intelligence, the market was valued at $1,027.9 thousand in 2019, and it is projected to exceed $13,833.0 thousand revenue by 2025. Additionally, the rising environmental concerns and surging government support toward EV adoption and EVSE installation will also contribute to the market growth.
The booming demand for EVs, on account of the escalating concerns regarding high air pollution levels and increasing government initiatives in the form of subsidies and incentives on the production and adoption of such new energy vehicles, is one of the key growth drivers for the market. According to the Society of Manufacturers of Electric Vehicles (SMEV), EV sales in India rose from 129,600 units in the financial year 2018â€“2019 to 155,400 in the financial year 2019â€“2020.
Another growth driver for the Indian EVSE market is the rising installation of EV charging stations across the country. Government organizations and EV manufacturers in India are currently focusing on the establishment of a strong EV charging environment to boost the adoption of electricity-driven automobiles. To meet the soaring requirement for electricity from vehicles on the road, government agencies and EV producers are planning to set up energy-efficient charging stations that use solar energy as their power source.
Currently, the Indian EVSE market is consolidated in nature, due to the presence of few players. Whereas, the market is expected to become fragmented in the forecast years, owing to the entry of prominent global players and numerous startups in the country. Some of the leading market players are ABB Ltd., Exicom Tele-Systems Ltd., EV Motors India Pvt. Ltd., Schneider Electric SE, Ather Energy Pvt. Ltd., Delta Electronics Inc., Bharat Heavy Electricals Ltd., Magenta Power Pvt. Ltd., ANI Technologies Pvt. Ltd. (Ola), and Tata Power Co. Ltd.
The type segment of the Indian EVSE market is bifurcated into AC and DC. Of these, the AC category generated the highest revenue during the forecast period (2014â€“2019), due to the low cost of production, operation, and installation of AC chargers. Whereas, the DC category is projected to witness the faster growth during the forecast period, due to the faster charging capability of DC chargers as compared to AC chargers. DC chargers are usually installed along highways, rather than at homes or business complexes.
Geographically, the Western region accounted for the highest share in the Indian EVSE market in 2019, due to the increasing government support for the production and adoption of EVs in the region, especially in Maharashtra and Gujarat. Moreover, the mounting per capita income in this region will also drive the demand for EVSE, owing to the booming EV demand. Additionally, the presence of leading EV and EV component manufacturers in western India will also supplement the market growth in the forecast years.
Thus, the burgeoning EV demand and increasing installation of EV charging stations will facilitate the market growth.