Electric Vehicle Charging Stations Market: A Private Equity Investment Thesis

Introduction

This exponential growth underscores the urgency of building an equally ambitious charging infrastructure capable of supporting widespread adoption.

For private equity investors seeking the next frontier of sustainable growth, EV charging stations stand at the intersection of technological disruption, climate imperatives, and consumer demand.

The charging ecosystem is complex, involving automakers, utilities, charge point operators (CPOs), software providers, and governments. Yet, the demand thesis is straightforward: the more EVs sold, the greater the need for public and private charging stations.

This report evaluates the EV charging stations market, focusing on its current size, drivers, regional dynamics, U.S. deep dive, and investment opportunities for private equity.

The analysis leverages multiple data sources: proprietary financial models, PwC and Lectron research, International Energy Agency (IEA) datasets, as well as insights from the 2025 State of EV Charging Network Operators survey

Together, they reveal a fast-scaling sector that remains constrained by infrastructure, grid limitations, and uneven policy support—conditions that create opportunities for capital-intensive investors who can provide the scale and operational efficiency needed to close the gap.

Market Size

The global EV charging station market has transformed from a niche to a mainstream infrastructure segment. In 2024, it was already valued in the tens of billions of dollars, with forecasts projecting compound annual growth rates (CAGR) exceeding 30% in certain regions. This expansion is driven by simultaneous forces: surging EV penetration, government subsidies, and private-sector deployment of both fast-charging corridors and localized infrastructure.

The charging station market is expected to experience exponential expansion over the next decade. The market’s trajectory reflects two complementary developments: (1) the acceleration of EV stock, now measured in hundreds of millions globally, and (2) the evolution of charging from convenience to a necessity embedded in urban planning, highways, and residential development.

The U.S. Department of Transportation has committed more than $7.5 billion to EV infrastructure through the Bipartisan Infrastructure Law, including $623 million in grants announced in 2024 for corridor and community charging projects (Consumer Affairs). Meanwhile, private operators like Tesla, ChargePoint, and Electrify America are rapidly scaling, often supported by partnerships with utilities and real estate operators.

Yet the PwC report stresses that profitability remains a challenge. Charging networks traditionally operated under heavy capital expenditure models with low utilization rates, making breakeven elusive. The tipping point is now approaching as EV penetration surges and utilization rates improve, pushing the industry closer to sustainable unit economics

Driver: Electric Vehicles Sales

The foundation of the charging station market is the rapid growth in EV sales. Globally, EV sales have increased at double-digit CAGRs since 2015, supported by declining battery costs, policy mandates, and consumer preferences for sustainable mobility.

Between 2015 and 2024, EV sales rose from a fraction of 1 million units to over 17 million annually

Looking ahead, our analysis based on SwissRE data projects strong growth across all regions, though at varying speeds. China leads by volume, Europe follows with strong policy backing, while the U.S. is accelerating under federal and state-level incentives.

The PwC analysis highlights that EV adoption has consistently outpaced charging infrastructure growth. In the U.S., from 2016 to 2022, EV sales nearly quintupled while charging stations lagged behind (Lectron). This mismatch creates not only consumer frustration but also a pressing investment opportunity for infrastructure builders.

Forecast models suggest that by 2030, EVs will represent between 40–50% of new car sales in advanced economies. The IEA notes that achieving net-zero goals requires tripling the pace of charger installations by 2030. Thus, the correlation between EV sales and charging station demand forms the central thesis for private equity capital deployment.

Regional Analysis and Target Markets

Electric vehicle adoption is not uniform across geographies, and understanding these differences is crucial for identifying where charging infrastructure investment can generate the highest returns. Regional dynamics are shaped by policy, consumer demand, grid readiness, and economic capacity. The following charts illustrate these variations, each of which provides a lens on where opportunities for private equity are strongest.

This chart shows the evolution of EV market share by region from 2023 through the forecast horizon of 2040. Europe and China dominate today, but their relative shares are expected to evolve as North America accelerates adoption.

By 2040, the U.S. and emerging markets are projected to capture a larger slice of the EV market, shifting investment priorities for infrastructure. For investors, this trajectory signals that while China and Europe remain vital, the U.S. will increasingly become a competitive growth hub.

The penetration of EVs as a share of new car sales varies dramatically. Norway and other Nordic nations lead globally, where EVs are already the majority of new car sales, thanks to aggressive policy support. In contrast, the U.S. lags but is catching up quickly. This disparity highlights both maturity in European markets and upside potential in the U.S., where growth runway remains steep.

Adoption is not only a function of consumer demand but also infrastructure and affordability. This chart introduces a comparative look at how ready countries are to absorb rapid EV penetration, considering variables such as electricity access, grid density, and socio-economic conditions. Developed nations rank highest, but certain emerging economies with improving electricity access show latent potential.

Our Ease of Adoption of Electric Vehicles Index quantifies adoption potential by weighting normalized electricity density (60%) and GDP per capita (40%).

Unsurprisingly, wealthy nations like Germany, the U.S., and Japan score highly. Yet, the index also uncovers outliers such as Chile or South Africa, where improving electricity access could accelerate EV adoption. For investors, this highlights second-tier growth markets that may offer attractive early-entry advantages.

Here, the growth trajectory of EV sales since 2015 is indexed (base 100) to highlight acceleration. Europe and China display the steepest slopes, driven by subsidies and manufacturing ecosystems. The hidden gem here is Brazil, that even if it still remains far behind advanced economies in share of electric cars sold and in total electric cars stock, it underlines the fastest growth of the decade, showing a strong future potential for this market.

When we isolate 2024, the raw number of cars sold provides a snapshot of immediate demand. China alone sold millions of EVs, while the U.S. surpassed 1 million units. These absolute numbers matter for infrastructure because each new EV sold directly increases demand for public and residential charging access.

On the other hand, stock differs from annual sales (see chart below), capturing the cumulative EVs on the road. By 2024, China’s EV stock dominates, but the U.S. and Europe also show significant bases. For charging operators, stock is the most important metric, as installed infrastructure must serve the existing fleet—not just new buyers.

By combining adoption rates, stock, and readiness indices, this chart creates a holistic view of where charging stations represent the greatest potential. High scores for the U.S. and Europe reflect both scale and wealth, while China scores high on scale alone. Investors should note the divergence: in China, market entry is capital-intensive and highly competitive, while in the U.S., the market is fragmented, offering consolidation opportunities.

Our Index is built in the following way:

• Share of new cars that are electric (weighted 25%)

• Our Ease of adoption of electric vehicles Index (weighted 50%)

• Total Electric cars stock (weighted 25%)

Then the result is normalized with the usual normalization [0-1] formula:

Finally, the country-level breakdown for 2024 makes clear that the U.S., China, and leading European nations dominate in terms of vehicles already in use. However, smaller but fast-growing countries such as South Korea and Canada illustrate where the “next wave” of demand for charging infrastructure could come from.

Synthesis of Regional Analysis

The combination of these metrics illustrates that maturity and growth potential differ starkly by region. Europe offers a stable, policy-driven environment where infrastructure is advanced but still expanding. China offers unmatched scale but also fierce competition and thinner margins. The U.S. presents the most attractive balance: a large and growing EV base, lagging infrastructure, and substantial federal support—conditions that align well with private equity strategies focused on platform roll-ups and corridor development.

U.S. Deep Dive

The United States is a critical market for EV charging investments due to its size, policy backing, and infrastructure deficit.

The U.S. electric vehicle charging stations market is projected to undergo extraordinary expansion, growing from just $7.5 billion in 2022 to over $114.3 billion by 2040, representing a remarkable 1,424.5% increase at a compound annual growth rate (CAGR) of 16.3%.

The chart shows how value creation will be distributed across the ecosystem, with charge point operators (CPOs) and operations & maintenance capturing the largest share, while hardware, installation services, and software-only solutions also scale significantly as the market matures.

By 2040, the diversification of revenue streams illustrates that the industry will evolve from being hardware-centric to a fully integrated services market, emphasizing not only physical infrastructure but also digital platforms and operational excellence. For investors, this underscores the importance of targeting companies that can operate across multiple layers of the value chain, rather than focusing solely on equipment sales.

By the end of 2024, the U.S. counted 64,187 charging stations, up nearly 44% CAGR from 2018 (Lectron). However, distribution is highly skewed: California alone hosts 25.5% of the total, with Texas, Florida, New York, and Washington accounting for another 21%. States like Mississippi and Louisiana have extreme shortages, with one station per nearly 18,000 residents.

The Consumer Affairs report highlights that EV sales are outpacing charging growth, creating infrastructure bottlenecks. For example, New Jersey faces the worst EV-to-charger ratio at 41.3 vehicles per port, while Wyoming, with fewer EVs, enjoys the best ratio at 4.2 vehicles per port.

Policy support is growing. The Biden administration’s 2024 allocation of $623 million in new grants targets both “community” projects (charging near schools, parks, multi-family housing) and “corridor” projects (highway fast-charging) to ensure nationwide coverage.

At the operational level, the State of EV Charging Network Operators survey found that grid constraints are the top barrier: 46% of operators cite limited capacity as their greatest challenge Nearly 100% expect grid issues to hinder expansion in the next 12 months. To mitigate this, operators are increasingly deploying local battery storage, with 73% planning adoption within a year.

Private equity investors should focus on mid-tier states where EV adoption is accelerating but infrastructure lags. These include Florida, Illinois, and Georgia, where supportive policies and rising consumer demand create favorable investment environments. Partnering with utilities and leveraging federal grants can accelerate ROI while diversifying geographic risk.

Conclusion: Private Equity and Investors Focused

The EV charging market is at a pivotal inflection point. Demand, fueled by unprecedented EV sales growth, is undeniable. Supply, however, remains constrained by uneven infrastructure deployment, grid limitations, and the capital intensity required to scale. This imbalance represents a compelling opportunity for private equity.

Several factors strengthen the investment thesis:

1. Explosive Market Growth: The global EV charging market is expanding at double-digit CAGR, underpinned by vehicle sales and regulatory mandates.

2. Utilization Economics: As EV penetration reaches critical mass, station utilization rates improve, pushing charging businesses closer to profitability

3. Policy Support: Federal, state, and international programs are injecting billions into infrastructure deployment, de-risking private capital.

4. Operational Opportunities: Grid constraints and scalability challenges open avenues for technology-driven solutions such as smart energy management and local battery storage.

5. Regional Arbitrage: High-growth but underserved U.S. states and emerging markets offer strong upside for early entrants.

For private equity, the next play involves platform building: consolidating fragmented operators, scaling fast-charging corridors, and investing in interoperable software platforms that ensure flexibility and revenue diversification. As PwC notes, the winning networks will be those that combine scale, operational excellence, and customer-centric experiences

In conclusion, EV charging stations are not just infrastructure—they are the backbone of the decarbonized mobility ecosystem. For investors, this represents a once-in-a-generation chance to capitalize on the electrification megatrend while advancing the transition to sustainable transportation.

Sources & References

Consumer Affairs, Journal of Consumer Research. (2024). How many EV charging stations are in the U.S.? 2025. https://www.consumeraffairs.com/automotive/how-many-ev-charging-stations-are-in-the-us.html#general-statistics 

Driivz. (2025). 2025 State of Network Charging Operators. https://hs-5013832.f.hubspotemail.net/hubfs/5013832/Survey%20-%20State%20of%20EV%20Charging%20Network%20Op%2025/SoEVChargingNWOperators2025-FINAL.pdf

Grand View Research. (2025). Electric Vehicle Charging Infrastructure Market Size. https://www.grandviewresearch.com/industry-analysis/electric-vehicle-charger-and-charging-station-market#:~:text=The%20global%20electric%20vehicle%20charging,25.5%25%20from%202025%20to%202030

International Energy Agency. (2025). SDG7 Database. Historical time series on access to electricity and clean cooking (SDG 7.1) and progress towards SDG targets on renewables (SDG 7.2) and energy efficiency (SDG 7.3). https://www.iea.org/data-and-statistics/data-product/sdg7-database#energy-intensity 

International Energy Agency. (2025).  Global EV Data Explorer. https://www.iea.org/data-and-statistics/data-tools/global-ev-data-explorer 

Lectron. (2024). Number of EV Charging Stations by State: 2024 Overview. https://ev-lectron.com/blogs/blog/number-of-ev-charging-stations-by-state-2024-overview?srsltid=AfmBOopw0c7MmCVOXY72sDnZN1skAEyLsYdOTk8cRYpFXj4LyNEYFNON 

Market Research Future. (2025). Electric Vehicle Charging Station Market. https://www.marketresearchfuture.com/reports/electric-vehicle-charging-station-market-5401 

NREL. (2024). Electric Vehicle Charging Infrastructure Trends from the Alternative Fueling Station Locator: Second Quarter 2024. https://afdc.energy.gov/files/u/publication/electric_vehicle_charging_infrastructure_trends_second_quarter_2024.pdf 

PwC. (2025). The US electric vehicle charging market could grow nearly tenfold by 2030: How will we get there? https://www.pwc.com/us/en/industries/industrial-products/library/electric-vehicle-charging-market-growth.html 

SwissRE. (2023). Gearing up for the electric vehicles ecosystem. https://www.swissre.com/dam/jcr:af04aa03-0d21-4b8d-afd2-8a2f2f9f614e/2023-01-sri-electric-vehicles-ecosystem-risks-value-chain-part-1.pdf