Charging As A Service Market Size, Share, & Trends Analysis Report By Service (Subscription; Hosted; Financed), By Charging Station (AC Charging, DC Charging), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global charging as a service market was valued at USD 208.1 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 22.6% from 2022 to 2030. Electric vehicle (EV) charging-as-a-service provides an efficient infrastructure for a quick, accessible, and easy charging experience for electric vehicles. Charging-as-a-service or CaaS offers many advantages to EV charging service providers where they do not have to stress over the cost of installation, ownership, and maintenance.

The market's growth can be attributed to the growing sales of electric vehicles, increasing demand for public charging infrastructure, lower upfront costs, and the overall cost efficiency of CaaS. As sales of electric vehicles are increasing globally, the demand for charging infrastructure is expanding. According to the International Energy Agency, sales of EVs doubled in 2021 to 6.6 million from 2020. Moreover, nearly 10% of global car sales were electric in 2021.

However, this unprecedented growth in the sales of electric vehicles needs to be backed by a robust charging infrastructure that is enough for the total EV-using population. Moreover, a looming lack of public charging infrastructure and a dearth of enough space and capital to install EV charging infrastructure in personal spaces is driving the demand for charging as a service business model, thereby propelling the market growth.

Charging-as-a-service provides a low-risk and economical approach to electric vehicle charging, which expands EV charging infrastructure to many more places. It provides EV drivers with a reliable network of charging wherever they go, reducing their vehicle range anxiety. Due to these advantages, the demand for charging-as-a-service is increasing, driving the market’s growth.

Businesses are expanding their CaaS networks to cater to this increased demand. For instance, in February 2022, EV Connect announced the expansion of its low-risk, flexible charging option with small monthly payments, EV charging as a service (EVCaaS) program. Favorable government initiatives across the globe to promote electric vehicle usage and charging infrastructure are expected to drive the growth of the EV charging as a service market.

For instance, the Infrastructure Investment and Jobs Act of the U.S. aims to invest about USD 550 billion over the next ten years to improve the nation’s infrastructure. This act has about USD 7.5 billion allocated nationwide for a national network of electric vehicle chargers. Such initiatives aim to provide seamless and accessible EV charging infrastructure, which is expected to drive the adoption and growth of the market for charging-as-a-service.

An academic study in the U.S. found that only 72.5% of 657 public fast chargers worked in the San Francisco Bay area. Another study published by The Eco Experts, in the U.K., states that over 5.2% of the 26,000 public EV chargers at the surveyed places in the U.K were broken. Electric vehicle chargers require high maintenance, which is taken care of in the charging-as-a-service business model.

The insufficient charging infrastructure for electric vehicles poses a growth opportunity for the charging-as-a-service market. The reason behind many broken EV chargers can be that they lack appropriate maintenance since all of the electric vehicles require a different charging infrastructure, which is difficult to maintain. This creates a growth opportunity for the market, where CaaS providers can provide charging service with the help of a third-party looking into the maintenance of the infrastructure.

COVID-19 Impact Analysis

The COVID-19 pandemic adversely affected the automotive industry. It had a catastrophic impact on overall businesses across the world. It also significantly disrupted the movement of people, businesses, and industries, negatively impacting the use of electric vehicles. Additionally, many electric vehicle users faced challenges in charging at public charging infrastructures or at charging-as-a-service stations, where there was a risk of COVID-19 exposure.

However, as the world is recovering from the adversities of the pandemic, many governments globally are emphasizing the importance of sustainable business practices and are encouraging citizens to adopt environment-friendly practices. As a part of these initiatives, governments are encouraging the use of electric vehicles, thereby promoting the use of charging-as-a-service stations, driving the market’s growth.

Service Insights

The hosted segment dominated the market in 2021 and accounted for a revenue share of more than 43.0%. The hosted charging-as-a-service can be deployed at various locations, including tourist destinations, public lands, businesses, hotels, commercial complexes, transportation facilities, and restaurants, among others. The growth of the segment can be attributed to a variety of benefits provided to the hosts, including attracting and retaining EV-driving visitors or customers as well as employees and earning revenue from user fees or land rents for EV charging.

The subscription segment is anticipated to register the fastest growth during the forecast period. Subscription-based charging-as-a-service provides customers the efficiency and ease of charging on a monthly/yearly subscription basis. It reduces the upfront cost of buying a charging station, as customers need not purchase or install the charging stations at their premises, and they can opt for a subscription model.

The accessibility provided by subscription-based charging-as-a-service is driving the segment’s growth. In February 2022, Liberty Global Ventures launched Egg to offer a range of clean technology solutions, including electric vehicle charging on a subscription basis. The service will offer U.K. customers ongoing support and maintenance, all included in a monthly payment of GBP 30 (USD 40.25). Such initiatives are fostering the segment’s growth.

Charging Station Insights

The AC charging segment dominated the market in 2021 and accounted for a revenue share of more than 56.0%. Most electric vehicle charging infrastructures use AC charging with a usual power output of 22 kW, depending upon the type of vehicle and available charging infrastructure. The AC chargers require more time for charging; hence they are used as an efficient option at residential or commercial places such as office buildings or hotels.

Electric vehicles store power as DC; therefore, the power from the electric charging infrastructure needs to be converted from AC to DC, which takes more time. However, AC charging is readily available and a safer option, driving the growth of the AC charging station segment in the charging-as-a-service industry. The DC charging station segment is anticipated to register the fastest growth during the forecast period.

Unlike AC charging stations, DC chargers have a converter inside the charger itself. DC charging is making its way into the charging-as-a-service space due to its fast charging and bidirectional charging capabilities. CaaS providers are expected to prefer DC chargers in the coming years, as they will save a lot of time in charging for EV users at commercial places, increasing the efficiency of the infrastructure so that CaaS providers can cater to more customers during the specified time. This is expected to drive the segment’s growth during the projection period.

Application Insights

The commercial segment dominated the market in 2021 and accounted for a revenue share of over 91.0%. Charging-as-a-service removes the burden of ownership and maintenance from charging by providing a more accessible charging solution. The commercial segment includes hospitality industry points, parking garages, office buildings, multi-facility units, and others. These public places can have charging-as-a-service on either a subscription basis, hosted on the premise, or financed through a third party.

Charging-as-a-service at such public places can provide immense accessibility to EV users, reducing their anxiety, and it can even promote EV usage for better environmental and societal health. Commercial places can benefit from CaaS by increasing customer retention and providing the most satisfactory and comfortable experience to their customers/residents, which is expected to drive the segment’s growth even further during the forecast period.

The residential segment is anticipated to register significant growth during the forecast period. With the increasing sales and demand for electric vehicles, customers are constantly evolving regarding their expectations. Even though electric vehicle sales have flourished over the past few years, the charging infrastructure lacks the same growth.

Charging-as-a-service can provide electric vehicle users with easy and hassle-free charging solutions at their residences. Consumers can charge their vehicles without the stress of installing or maintaining them, which considerably reduces the upfront cost of buying an EV. The cost efficiency and accessibility of CaaS are expected to drive the segment’s growth during the assessment period.

Regional Insights

Asia Pacific dominated the charging as a service market in 2021 with over 34.0% revenue share. The growth can be attributed to the presence of many prominent players. The growing adoption of electric vehicles in countries with large populations, such as China, India, and South Korea, is creating a significant demand for charging infrastructure and charging-as-a-service. Moreover, favorable government initiatives, such as the IEA Net Zero by 2050 roadmap promoting the use of electric vehicles and a better network of EV charging infrastructure, are expected to contribute to the region's growth.

Europe is expected to emerge as the fastest-growing regional market during the forecast period. The European governments are looking at charging-as-a-service as the key to accelerating the use of electric vehicles. To accelerate the adoption, governments across Europe are offering various incentives. For instance, in the Netherlands, up to 36% of cost deductions on purchasing and installing charging stations are available to public entities and companies. Such initiatives are expected to drive the market’s growth in the coming years.

North America is anticipated to register significant growth during the forecast period. North America is home to some of the prominent market players. Moreover, organizations in North American countries are investing aggressively in electric vehicles and related companies, propelling the region’s growth. Charging-as-a-service will be instrumental in achieving the U.S. and Canada’s zero carbon emission goals.

The U.S. federal government has set a target that half of the new passenger cars and light trucks sold in 2030 should be ZEV (including both battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs)). Such regional initiatives are expected to create further growth opportunities for the market in North America.

Key Companies & Market Share Insights

The charging-as-a-service industry can be described as a consolidated market. The vendors operating in the market for charging-as-a-service are mainly adopting expansions and partnerships as a strategy to cater to the increased demand. The demand is attributed to the ability of the CaaS business model to provide efficient and hassle-free charging. The players in the market are investing heavily to expand their charging networks to offer their customers multiple charging spots.

Vendors are focusing on deploying innovative charging-as-a-service solutions. For instance, in April 2022, InCharge Energy announced the launch of an EV charging subscription, “InCharge as a Service,” that offers commercial fleets the charging infrastructure they need on a monthly or variable basis without owning and operating infrastructure themselves. Such initiatives and new launches are fueling the growth of the market. Some of the prominent players in the global charging as a service market include:

• ChargePoint Holdings, Inc.

• Shell Recharge Solutions

• EV Connect

• EV Safe Charge Inc

• Blink Charging Co.

• Lightning eMotors

• SemaConnect

• CATEC

• WattLogic, LLC

• Bp pulse

Charging As A Service Market Report Scope

Global Charging As A Service Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global charging as a service market report based on service, charging station, application, and region:

•  Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Subscription

  • Hosted

  • Financed

• Charging Station Outlook (Revenue, USD Million, 2017 - 2030)

  • AC Charging

  • DC Charging

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Commercial

    • Hospitality

    • Parking Garage

    • Office Buildings

    • Multi-family Units

    • Others

  • Residential

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Netherlands

    • U.K.

    • France

    • Norway

    • Germany

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia