John Grifonetti Explores the Demand for EV Charging Stations in the United States

The automotive industry is embarking on a significant paradigm shift that has been years in the making. Automakers are beginning to commit to selling all-electric vehicles within the next few decades. Shifting to an environment dominated by electric cars means that greenhouse gas emissions will be sharply cut, protecting the planet and that our country will significantly reduce its dependence on fossil fuels.

Along with introducing thousands of electric vehicles to America’s roads, public charging stations will become common features of the local landscape. Today, only a small fraction of the number of electric vehicle charging stations required is already in existence.

John Grifonetti reports on the shift to electric vehicles and the need for more electric vehicle charging stations across the United States.

Automakers’ Plans to Release Plug-In Electric Vehicles

Most automakers are planning to ramp up their adoption of electric vehicles over the next few decades. Like Jaguar and GM, a few automakers are planning to completely switch their fleets to electric cars by the year 2030.

By 2030, it is projected that the percentage of electric vehicles on the road in the United States will climb from 4 percent in 2020 to 14 percent in 2030. Adoption rates are expected to be even higher in the European Union and China, increasing to 31 percent and 34 percent, respectively.

The Range of Electric Vehicles

Many people assume that electric vehicles will be charged using power supplied at home. This is true, but the reduced range of electric vehicle batteries will mean that people need to charge their cars away from home regularly.

Electric cars produced today have a range of about 181 miles before they need to be fully charged again. Some cars perform better and worse than this average figure. For example, Tesla’s 2021 Model 3 has a range of approximately 261 to 353 miles. The 2021 MINI SE hardtop has a range of only 110 miles.

It is expected that electric vehicle batteries will continue to improve over the next few decades. They should be able to provide better range and driving performance. Anyone planning to take a more extended road trip will need to know the locations of plug-in EV charging stations along their route.

Existing Numbers of EV Charging Stations

According to the Department of Energy, today, there are only 41,400 EV charging stations in the United States. Only 5,000 of these stations include fast chargers. This compares with the much higher number of 136,400 gas stations in the U.S.

According to McKinsey’s consulting firm, consumers cite the lack of EV charging stations as one of their main barriers to purchasing an electric vehicle. Not having enough EV charging stations in the community could make it extremely difficult for the average family to maintain their normal routines. It is hoped that more stations will be built as the number of electric vehicles rises.

Most EV charging stations are being installed at grocery stores and other areas where people regularly shop. Businesses are happy to host these stations because they are a draw for electric vehicle owners. Tesla has been installing fast vehicle charging stations across the United States for the past decade.

Future Demand for EV Charging Stations

Increasing numbers of electric vehicles on the road will require the installation of many more charging stations. The Biden administration has proposed spending $174 billion to increase the adoption of electric cars and install 500,000 charging stations across the country. This build-out will require state, city, and private-sector assistance to take place.

EV Charging Stations Represent a Major Opportunity for Growth

While several established players in the EV charging station market, including ChargePoint and EVGo, there remains a significant opportunity for startup companies to take advantage of the growing market demand for charging stations. EV charging stations will be in high demand across the country and around the world as the numbers of electric vehicles continue to grow.

There is not only a market for companies that will install EV charging stations, but there is also a market for companies that will manufacture these stations. Companies like Eaton Corp. and ABB (based in Sweden) are poised to take advantage of the increased demand for their services.

Charging Stations Are On the Rise

The adoption of electric vehicles means that the numbers of EV charging stations will need to grow significantly over the next 10 to 20 years. Automakers are taking their commitment to a healthier planet that is less dependent on fossil fuels very seriously. John Grifonetti believes that there is a significant market for companies that want to produce and install EV charging stations, and he encourages interested entrepreneurs to research the opportunity thoroughly.

When there are enough EV charging stations for everyone who wants to drive an electric car, it will be possible to drive one without the hassle of looking for a charging station in the community. Increased convenience will mean that more Americans will be open to purchasing an electric vehicle.

John Grifonetti has built a career investing into small businesses and personally helping them grow with his considerable acumen for understanding markets