The state of the EV charging market in Europe
Indeed, Europe’s EV revolution has gained momentum at a faster pace than most analysts had initially forecast. Consequently, the need for fit-for-purpose charging infrastructure is a pressing issue.
The European Automobile Manufacturers Association (ACEA) reports that at the end of 2023, there were 632,423 public charging points available across the EU, with approximately 3 million battery-electric vehicles (BEVs) on the road. In 2023 alone, a total of 153,000 new public charging points were installed in the EU.
However, the most recent research suggests that more needs to be done to accelerate the development of Europe’s EV infrastructure. In August of this year, ACEA reported that the electric car market is now on a continual downward trajectory, and that Europe needs to rethink its timeline for banning petrol-powered cars.
Despite this downward turn, long-term growth is still expected as government mandates will inevitable see the rate of EV charging point installations improve. Let’s take a closer look at the growth, challenges, and initiatives behind the EV charging market in Europe.
Collaborations and partnerships
The last 12 months have seen an increasing number of partnerships between automakers, energy companies, and retailers looking to develop charging networks. Indeed, collaboration across the e-mobility ecosystem is key to advancing Europe’s charging infrastructure and meeting carbon emission targets.
This is why ACEA and ChargeUp Europe recently signed a joint declaration to support e-mobility ecosystem development. Amongst other priorities, the collaboration aims to encourage a structured dialogue about unifying the EU’s approach to charging infrastructure. It also aims to engage stakeholders in capacity-building.
Likewise, British automobile manufacturer, Lotus, and Mobilize (A new-generation automotive brand from Renault), recently partnered with engineering company Bosch to provide customers with access to over 600,000 European charging stations. The partnership will see the installation of public charging stations across 30 European countries, including France, Germany, and the UK.
In a similar vein, energy company E.ON, and automotive company MAN have partnered to build a public charging network for electric trucks in Europe. The network will comprise around 400 charging points across 170 locations in Europe. Around 80 sites are expected to be built by the end of 2025.
The need to keep up with charging point demand
Despite promising installations and industry partnerships, Europe’s EV charging market faces several challenges. ACEA reports that for the last seven years, sales of EVs have outpaced the growth of charging point networks more than threefold. As such, a coordinated effort involving governments, the private sector, and local authorities is required to bridge the gap.
The speed of charging points also needs to be addressed. Whereas some chargers can charge a car to 80% capacity in around 10-15 minutes, others can take up to 12 hours. According to the European Alternative Fuels Observatory, only 13.5% of all charging points in Europe offer fast charging capabilities.
For example, the Netherlands has the highest total number of EV chargers, but only around 1% are rapid or ultra-rapid. By contrast, the UK has half the number of public chargers, but approximately 7% are ultra-rapid.
There’s also a need for grid upgrades to guarantee enough capacity for expanding EV charging stations. However, according to McKinsey, this comes at a cost of €240 billion by 2030.
What’s more, returns on investment are currently low. Euractiv reports that 80% of EU member states don’t offer any incentives for infrastructure development or installation. For the number of EV charging stations to grow, European governments need to incentivise investors.
The distribution of EV charging points across Europe
Some countries in Europe are ahead with their charging infrastructure. Collectively, Germany, France, and the Netherlands account for 61% of all EU charging points, while only making up 20% of Europe’s surface area.
The other 24 EU member states that occupy the remaining 80%, only have 39% of the total charging points across Europe.
However, these countries are making progress. Spain, Italy, and Greece have all increased their installation efforts over the last 2 years, despite delivering lower charging levels on average. The Nordics is also seeing stable growth, while Central and Eastern Europe is providing high charging levels despite a smaller network.
According to ACEA, the countries with the most public charging points in the EU are the Netherlands (144,453), Germany (120,625), France (119,255), Belgium (44,363), and Italy (41,114). Whereas the countries with the fewest charging points are Croatia (1,074), Estonia (683), Latvia (535), Cyprus (329), and Malta (101).
How government policies are supporting EV charging infrastructure
An increasing number of European governments are supporting the Alternative Fuels Infrastructure Regulation (AFIR), which aims to stabilise the EV charging environment. The regulation outlines standards and guidelines to all the Member States, including the ‘60 km rule’.
The rule states that countries should install a fast-charging station of at least 150 kW, every 60 kilometres along the trans-European transport network (TEN-T). It also mandates a charging capacity of at least 1.3 kW per registered EV.
Likewise, to ensure transparent pricing, the AFIR states that pricing for charging points above 50 kW should be based on the energy used to power them.
The French government recently announced €200 million in funding for electric vehicle charging points from 2024 to 2027, in addition to the €320 million already allocated for 2016-2023. The ministry also announced €68 million for the development of fast and ultra-fast charging stations. France aims to have over 400,000 electric vehicle charging points on its road network by 2030, including 50,000 fast charging points.
The German government aims to have one million public charging points by 2030. The country’s Fast Charging Act (“SchnellLG”) commits the Federal Ministry of Transport and Digital Infrastructure (BMDV) to developing a charging network of around 1,100 stations. All charging points must have a capacity of at least 300 kWh.
As the Netherlands’ charging infrastructure continues to evolve, its government aims to reach 1.8 million public and private EV chargers by 2030. The National Charging Infrastructure Knowledge Platform Foundation (NKL) aims to accelerate the installation of public charging points by encouraging innovative projects, sharing knowledge, and providing guidelines.
The future of Europe’s EV charging market
The European Commission (EC) mandates that 3.5 million charging points should be installed by 2030 to reach the proposed 55% CO2 reduction for cars. To reach this target, an additional 2.9 million public charging points need to be installed in the next seven years, at a rate of nearly 8,000 per week - three times the current annual installation rate.
However, according to ACEA, 8.8 million charging points will be needed by 2030 to keep up with demand. To achieve this, 1.2 million chargers need to be installed per year, at a rate of over 22,000 per week - eight times the latest annual installation rate.
Nevertheless, the future of Europe's EV charging market looks promising. Collaboration between automotive companies and energy providers is expected to accelerate expansion and improve accessibility.
As regulatory frameworks evolve and consumer confidence grows, the market is poised to become more competitive, encouraging innovation and cost reduction, thus paving the way for cleaner transportation in Europe.
