Executive Summary

The global CV Depot Charging Market size was projected to be US$ 4.7 billion in 2023. By the end of 2024, the industry is likely to reach a valuation of US$ 5.6 billion. During the forecast period, the global market for CV Depot Charging Market is expected to garner a 28.2 % CAGR and reach a size US$ 33.86 billion by 2034.

In addition, the global number of chargers for new vehicles in depot setting is expected to reach 1.1 million units in 2030, whereas as the global number of chargers for Electric Commercial Vehicles (ECV) parc in depot setting is forecasted to reach 5.3 million units. Further, within the regional market Asia-Pacific region accounted for more than half of the market share in both new vehicles and ECV parc segment. While the AC chargers held the major share in ECV parc in depot setting segment, the DC chargers will hold the largest share in new vehicle in depot segment.

The CV depot charging business is expanding rapidly as the worldwide migration to electric commercial vehicles gains steam. The growing popularity of electric light commercial vehicles (eLCVs), medium commercial vehicles (eMCVs), heavy commercial vehicles (eHCVs), and electric buses (eBuses) is increasing the need for specialized charging infrastructure at commercial vehicle depots. This trend is driven by a mix of environmental rules, government incentives, and corporations' rising commitment to reducing their carbon impact. CV depot charging systems are becoming increasingly important for fleet operators, providing a quick, efficient, and cost-effective way to recharge cars during downtime, helping to the overall sustainability of commercial transportation operations.

While the sector offers several prospects, obstacles remain, such as the necessity for significant upfront expenditures in charging infrastructure and the intricacies of regulatory compliance and permits. Standardization concerns, as well as interoperability issues across charging stations and car types, are significant barriers. However, technical improvements, collaborations between charging infrastructure providers and fleet operators, and continuous attempts to overcome these difficulties are projected to fuel innovation and accelerate the CV Depot Charging market in the coming years.

The rise in carbon emissions and other hazardous pollutants from transportation has necessitated the adoption of electric vehicles. As a result, there is a growing demand for electric vehicle charging infrastructure in business and residential settings. Increased cooperation among automobile manufacturers for charging infrastructure, as well as a subscription model, are also projected to boost market expansion.When opposed to residential areas, commercial spaces have a far higher market penetration of electric vehicle charging equipment. With the increased usage of electric vehicles, the number of commercial charging stations is expected to rise. Efforts to improve charging infrastructure in commercial areas would be critical in increasing the use of electric vehicles, as overnight charging at residential complexes or individual residences would not be adequate for long-distance travel.

The major factors driving the market’s growth are government initiatives to encourage the adoption of electric vehicles and associated infrastructure, rising demand for electric vehicles fast charging infrastructure, and increased deployment of electric vehicles by shared mobility operators. The market players can benefit from increased research and development in vehicle-to-grid technology and rising acceptance of electric mobility in emerging nations.

Rising demand for electric vehicles is one of the prime factors for the aggressive growth of EV charging station market. The growth is further propelled by the government funding to the Original Equipment Manufacturers (OEM) for the deployment of charging stations. For instance, in December 2016, ChargePoint Inc. was awarded USD 4 million by California Energy Commission (CEC) for completing the West Coast Electric Highway that connects Baja California to British Columbia with electric vehicle charging stations.

Additionally, increasing popularity of Mobility as a Service (MaaS) also expected to flourish the market growth. Further, the growth of the EV charging station is fuelled by the significant emphasis on the subscription-based charging models. As per the model, many utilities such as Vattenfall AB, Duke Energy Corporation, and New York Power Authority have signed a partnership agreement with the OEMs to provide the subscription-based services to their customers. For instance, in April 2019, Duke Energy Corp. signed a partnership agreement with ChargePoint Inc. for offering subscription-based services to its EV drivers in the U.S. state of North Carolina.However, various costs associated to the EV charging infrastructure that includes maintenance cost, installation cost, and operational cost are impacting negatively on the market growth.

The report also includes the analysis of number of chargers for new vehicles in depot setting, number of chargers for ECV parc in depot setting, cost of chargers (including installation cost) for new vehicles in depot setting, energy demands and cost of energy. Dedicated to achieving zero emission targets, the OEMs have planned to invest over USD 500 Billion by 2030 for EV production facilities. In addition, several countries such as Norway, Germany, UK, US, India and China have set goals to convert their public transportation buses fleets to electric from ICE. Owing to this, the demand for depot charging has significantly raised. Several new players have entered the market to grab the first mover opportunity in the depot charging segment. Moreover, OEMs and depot charging solution providers have attempted to regulate the EV battery charging supply chain to further cut down the raw material, manufacturing and maintenance of the batteries.

Definition

The CV Depot Charging Market is a specialized sector of the electric vehicle (EV) infrastructure that focuses on the development, installation, and maintenance of charging stations specifically designed for commercial vehicles (CVs). With the global transportation industry moving towards electrification, there is a growing need for efficient and widespread charging infrastructure for commercial vehicles. This market covers a wide range of charging solutions designed specifically for commercial fleets, including trucks, buses, vans, and other large-scale vehicles.

The CV Depot Charging Market is crucial in supporting the electrification of commercial fleets by tackling issues related to range anxiety and enabling the smooth integration of electric CVs into transportation networks. This industry encompasses a wide range of charging technologies, including fast-charging stations, depot-based chargers, and smart charging solutions. Charging at depots involves setting up charging infrastructure at centralized spots like transportation hubs, distribution centers, or fleet depots. This allows commercial vehicles to conveniently recharge during breaks, layovers, or overnight stays.

Trend

Shaping the CV Depot Charging Market

The CV Depot Charging Market is currently undergoing a transition towards high-power charging solutions to meet the unique energy needs of commercial fleets. As the demand for energy in larger vehicles grows, the market is showing a greater acceptance of fast-charging technologies that offer significant power levels. This transition is not only improving the efficiency of commercial vehicles but also meeting the increasing demand for faster and more convenient charging options in the commercial electric vehicle sector.

Smart and connected technologies are becoming increasingly important in the CV Depot Charging Market. Smart charging solutions enable streamlined energy management, load balancing, and remote monitoring of charging stations. These technologies not only enhance the charging process but also play a role in maintaining grid stability and improving energy efficiency. Many fleet operators have started to embrace intelligent systems, using them to optimize operations and reduce the environmental footprint of their commercial vehicles. This represents a notable progress at the intersection of technology and sustainable transportation.

Collaborations and partnerships are playing a crucial role in the market's development. Charging infrastructure providers are forming partnerships with energy companies, vehicle manufacturers, and government bodies to develop holistic solutions that cover the complete value chain of electric commercial vehicles. Through addressing issues like standardization, interoperability, and scalability of charging networks, these partnerships strive to promote a stronger and more widespread use of electric CVs. This highlights the significance of a unified and cooperative approach to the development of charging infrastructure.

Drivers

Rapid adoption of commercial electric vehicles for public transportation

In 2023, the EV segment experienced a significant boost of 30-40% as more people showed a preference for clean transportation. This growth was further fueled by government incentives and support. Furthermore, governments in Norway, Germany, UK, US, India, China, and other nations have established objectives to transition their public transportation bus fleets from ICE to electric. In addition, there is a growing trend among fleet operators of commercial vehicles to adopt the ECV. The global market for ECV depot charging has experienced significant growth as a result of this. Nevertheless, the adoption of electric power in commercial vehicles faces obstacles like limited range, insufficient charging infrastructure, and vehicle downtime.

The expansion of the EV charging infrastructure is rapidly meeting the demands of consumers. In 2023, the global installation of new EV charging points exceeded one million. Both slow chargers and fast chargers were included in these charging points. In 2023, a significant number of charging points were installed in the UK, bringing the total number of charging points to over 53,000. Among them, a substantial portion of over 4,500 were fast charging points. Furthermore, various countries across the globe, including Japan, China, Germany, the US, and several European nations, have implemented successful pilot projects for wireless charging points. In 2023, governments and EV charging solution providers announced a combined total of over $50 billion. Funds will be allocated over time to establish charging points globally.

During the years 2022 and 2023, there were significant advancements in car charging technology. The introduction of ultra-fast chargers in the market has greatly improved the speed at which electric vehicles can be charged (source: https://www.marketsandmarkets.com/Market-Reports/electric-vehicle-market-209371461.html). Charging infrastructure solution providers have formed partnerships with OEMs like Ford and Tesla to meet the demand for ultra-fast charging. In addition, various hardware and software manufacturers have developed diverse business models to generate revenue from the market for charging commercial electric vehicles at depots.

Restraints

Slow speed of AC chargers

The chargers installed at the depot charging vary in type, ranging from AC to DC at different levels. The AC chargers are affordable, but they do take a significant amount of time to fully charge the battery of an electric vehicle. Contrary to that, the DC chargers have the ability to charge quickly, but they are more expensive. The charging setup at the depot includes a combination of AC and DC chargers.

In addition, it is crucial for light commercial vehicles, like cars, to have a fast charging setup in order to minimize charging downtime. For heavy commercial vehicles like buses and trucks, having large batteries and the ability to charge quickly is crucial, even if they are primarily charged overnight. As a result, the slow chargers in the depot charging station contribute to increased vehicle downtime, which hinders the growth of the ECV depot charging market.

Opportunities

Growing adoption of fast chargers

The dominant player in the depot charging segment is considering the installation of DC fast chargers in their new setups, while also replacing the older AC slow chargers. As an analyst, it's worth noting that in January 2023, EVgo launched a program called ReNew. This initiative focuses on identifying and addressing issues with old and broken charging points. By upgrading or repairing these points, EVgo aims to minimize the downtime for vehicles using their charging depot.

In addition, prominent companies in the US, like ChargePoint and Electrify America, offer top-notch DC fast chargers that can be conveniently installed and monetized through software and payment applications.

Challenges

Availability of electric supply

The automotive industry has seen a multitude of groundbreaking innovations and technological advancements in the electric vehicle sector. Nevertheless, the overall energy demand is expected to significantly increase once commercial electric vehicles begin to enter the market on a larger scale.

By 2030, the projected energy needed for depot charging of new vehicles is estimated to be 109.6 TWh. Additionally, the total energy demand for ECV parc under depot charging setting is expected to reach 387.6 TWh. The future demand for energy is expected to be significantly high, potentially leading to a major issue of energy shortage in the depot charging market.

Impact of COVID-19

The COVID-19 pandemic has significantly affected the CV Depot Charging Market, bringing about a range of challenges and opportunities. At first, the worldwide economic downturn and supply chain disruptions in the early stages of the pandemic caused a temporary decrease in the implementation of charging infrastructure. The current global situation, with lockdowns, travel restrictions, and economic uncertainties, has led to a decrease in attention towards new investments. As a result, the development and installation of charging stations for commercial vehicles have been impacted, slowing down their progress.

However, as the world adjusted to the new normal, the pandemic highlighted the significance of durable and eco-friendly transportation solutions, sparking a renewed fascination with electric vehicles (EVs) and the necessary charging infrastructure. Governments and businesses have acknowledged the importance of rebuilding in a more sustainable way, placing a greater focus on environmentally-friendly initiatives and reducing carbon emissions. The recent shift in focus has sparked increased efforts to broaden the reach of the CV Depot Charging Market, recognizing the vital role that electric commercial vehicles play in meeting environmental sustainability goals.

In addition, the pandemic brought attention to the weaknesses of conventional supply chains, leading to a reassessment of strategies related to logistics and transportation. Upon further investigation, it is evident that electric commercial vehicles have emerged as a robust and flexible choice for the future. They have the ability to decrease reliance on conventional fossil fuels and play a significant role in establishing a dependable and environmentally friendly supply chain.

Segmentations

By Vehicle Types

Based on the CV depot charging industry report, it is evident that electric light commercial vehicles (eLCVs) have a strong presence in the market. These vehicles are widely utilized in urban areas for last-mile deliveries and local transportation. The compact nature and portability of eLCVs make them ideal for fleet operations based at depots, where the charging infrastructure can conveniently accommodate their daily routes and schedules. This dominance aligns with the global shift towards sustainable urban mobility solutions and the increasing focus on reducing emissions in densely populated areas.

Electric buses are gaining momentum and are poised to become a major player in the market. eBuses have become increasingly significant in public transportation, with their popularity on the rise. This can be attributed to the implementation of environmental legislation, government incentives, and a growing demand for more sustainable transit options. The demand for charging infrastructure to support electric bus fleets at depots is on the rise, positioning eBuses as a significant player in the growing CV depot charging market.

• eLCV
• eMCV
• eHCV
• eBuses

By Charging Infrastructure Types

AC Charging infrastructure is commonly used in CV depot charging settings, providing a more economical and convenient option for overnight charging or extended vehicle downtime. It is well-suited for smaller fleets that have less urgent charging needs.

Washington, D.C. Charging infrastructure is of utmost importance for fleets that operate larger commercial vehicles or need fast turnaround times. DC charging is commonly utilized in heavy-duty applications and environments where minimizing charging time is of utmost importance.

• AC Charging
• DC Charging

By Operational Models

In certain situations, the availability of CV depot charging stations for a wide range of commercial vehicles may be more common in public charging infrastructure. This could be the case when depots serve multiple operators or when commercial vehicles from different fleets need to share a charging space. This concept is often found in urban areas or regions where centralized charging stations are established to serve multiple operators.

In certain cases, larger commercial operations or logistics organizations may prioritize investing in their own charging infrastructure at depots, giving preference to private charging infrastructure dedicated to specific fleets or firms. This strategy ensures that the fleet's cars have priority access to the charging infrastructure, giving them exclusive control over the charging stations.

• Public Charging Infrastructure
• Private Charging Infrastructure

By Depot Size

Local businesses or smaller fleets may have a greater presence in scenarios where smaller depots are prevalent. These depots could potentially cater to localized delivery services or businesses that have a small fleet of commercial vehicles.

Medium-sized depots are commonly found in regions or industries with a moderate scale of commercial vehicle operations. These depots could potentially serve regional logistics or service providers with a larger fleet.

Areas with significant industrial and commercial activity often have large depots that serve as central hubs for extensive commercial vehicle operations. Large depots are often found in densely populated urban areas or regions with strong logistics and transportation networks.

• Small Depot
• Medium-Sized Depot
• Large Depot

Geography Chapter

Asia Pacific is expected to be the largest market in 2024

The Asia Pacific region dominates the new ECV sales market, accounting for more than 50% of the total share. One of the main reasons for this is the high level of vehicle manufacturing and export in China. The Chinese market holds the top spot globally for both vehicle sales and production. In addition, the Chinese market has experienced substantial growth following the COVID-19 pause.

The economic recovery in China has resulted in a significant boost to the manufacturing sector. Expanding into the European market for EV sales expansion is a key trend/strategy observed among Chinese EV makers. In addition, the growth of the ECV sector in the Asian region is greatly influenced by countries like India, Singapore, and South Korea. Furthermore, the Indian market is witnessing rapid development in depot charging trends, as various business models are being adopted.

Europe is a significant participant in the electric car industry.

The region has seen a notable rise in the adoption of electric commercial vehicles, which has led to the need for the establishment of suitable charging infrastructure. The spread of CV depot charging systems is driven by various factors such as government support, advancements in technology, and the presence of major commercial vehicle production centers.

Europe has emerged as a significant hub for the adoption of electric vehicles and the establishment of charging infrastructure. CV depot charging options are in high demand due to the stringent emission-reduction standards in various European nations. Government incentives, stringent pollution standards, and a strong commitment to sustainable transportation are all contributing factors to the growth of CV depot charging infrastructure in the region.

Company Landscape  

The CV Depot Charging Market is home to a wide range of companies that are actively shaping and advancing the charging infrastructure for commercial vehicles. Notable players in this field have become significant players, providing creative solutions to meet the specific requirements of business fleets. ChargePoint, EVBox, and ABB are well-known companies in the industry, utilizing their knowledge to create and implement high-power charging stations at depots and strategic locations. These industry experts have a significant impact on the market's direction by driving technological innovations, expanding network reach, and forging strategic alliances.

Recent Market Developments

• In 2022, ChargePoint raised $640 million in an initial public offering (IPO). Targeting to expand its service offerings, enhance operating models, acquire new customers and depot charging business in North America and Europe.
• In 2022, Tritium raised $150 million in a Series D funding round. The company plans to use the funds to expand its global footprint and increase its investment on R&D to develop new products for the depot charging market. In 2022, Siemens partnered with Electrify America to provide depot charging solutions for electric buses in North America.
• In 2022, ABB partnered with New Flyer to develop and deliver zero-emission bus charging solutions for cities across North America
• In 2021, BP Pulse acquired Amply power an EV fleet charging & Energy management solution company, to expand its global footprint.

Company Profile

ABB is at the forefront of technological advancements in electrification and automation, working towards a future that is more sustainable and resource-efficient. The company's solutions leverage engineering expertise and software to enhance the efficiency of manufacturing, logistics, energy consumption, and operations. With a rich history spanning over a century, ABB's dedicated workforce of around 105,000 individuals is focused on propelling advancements that expedite industrial revolution. 

Conclusion:

The CV Depot Charging Market has successfully adapted to the challenges posed by the COVID-19 pandemic, experiencing a shift in dynamics and priorities. The initial disruptions caused by economic uncertainties and supply chain interruptions temporarily hindered the progress of deploying charging infrastructure for commercial vehicles. However, with the global community adjusting to the realities of the pandemic, there has been a growing recognition of the importance of sustainable and resilient transportation solutions.

The pandemic highlighted the critical need to decrease carbon emissions and attain environmental sustainability objectives, leading governments and businesses to reassess their approaches. Electric commercial vehicles, along with the growth of CV Depot Charging infrastructure, have become increasingly important in driving the green recovery. The focus on decreasing reliance on conventional fossil fuels is in line with the wider trend towards sustainable practices, demonstrating a lasting dedication to reducing the environmental effects of transportation.

In addition, shifts in consumer behavior and the rapid expansion of online shopping due to the pandemic have resulted in a higher need for electric delivery vehicles. The growing importance of charging infrastructure at depots and distribution centers highlights the significance of the CV Depot Charging Market in supporting the changing logistics industry.

Several commercial adaptations in the CV Depot Charging Market:

• In 2023, Ford partnered with Xcel Energy to provide 30,000 for home, public & depot charging points by 2030 in the US.
• In 2023, Total Energies launched an in-depot electric truck charging service at the SOLUTRANS road and urban transportation trade show. The new solution will help in installation and supervising charging infrastructure adapted to fulfil transporters' needs.
• In 2023, Siemens acquired Heliox, a specialist in e-Bus and e-Truck fast charging solutions and for depot and fleet solutions.
• In 2022, EV Connects, a subsidiary of Schneider Electric, launched an API platform the includes features like an API Sandbox, a virtual station simulator and payment gateway to speed up the development and integration of charging infrastructure.

With the global recovery and rebuilding underway, the CV Depot Charging Market is positioned to have a significant impact on the future of commercial transportation. The lessons gleaned from the pandemic have underscored the significance of being resilient, sustainable, and adaptable in the face of global challenges. Given the current emphasis on eco-friendly practices and a strong dedication to minimizing our impact on the environment, the industry is poised to make a substantial contribution towards a greener and more sustainable future for global commercial fleets.