New research by Siemens Financial Services has found that significant investment is needed to create charging infrastructure for electric cars.
The study estimates that $45.25 billion will be needed between 2021 and 2023 to fill a global ‘investment gap’ in electric vehicle charging networks.
Between 2024 and 2026, the research suggests that the size of the ‘investment gap’ rises to $104.11 billion globally, as electric vehicle ownership shifts into the mainstream.
The ‘investment gap’ represents the difference between electric vehicle charging infrastructure that is already financed and that which being funded for by capital expenditure. According to the Siemens Financial Services study, this investment gap is rising exponentially.
While the electric vehicle market is growing, the research found that the deployment of charging infrastructure will significantly influence the development of the market.
The biggest increase in the ‘investment gap’ is in the Asian-Pacific region. Between 2021 and 2023, there is an investment gap of $20.71 billion. Between 2024 and 2026, there is an investment gap of $48.81 billion. This increase reflects the accelerated shift to electric vehicles among the wider population.
In Europe, there is a $11.77 billion investment gap between 2021 and 2023. This investment gap rises to $27.23 billion between 2024 and 2026. The study found a similar pattern in North America, with a $6.81 billion investment gap between 2021-2023 rising to $15.17 billion in the 2024-2026 period.
Mark McLoughlin, from Siemens Financial Services, said “Supporting the expected incredible growth of the EV market requires widespread charging infrastructure.”
According to McLoughlin, outcome-based smart finance could provide an efficient and sustainable solution to meet the investment challenge.
The increased need for electric vehicle charging infrastructure is the result of road transport emission targets and shifts in public attitudes towards electric vehicles, according to the Siemens Financial Services study.