COVID-19 pandemic: EV charging industry wrestles with a new magnitude of underutilization
With EV sales expected to drop significantly in the near future because of the coronavirus disease 2019 (COVID-19) pandemic, the charging industry is preparing for a more subdued market environment in the next couple of years. While some charging service providers are already reporting falls of nearly 80% in the utilization of operational chargers, IHS Markit also expects the COVID-19 pandemic to impact demand for new charging infrastructure installations until at least 2023, with the industry remaining in the recovery mode until 2025.
As a number of countries across the world impose complete lockdowns because of the COVID-19 pandemic, global light vehicle sales are expected to witness a fall of more than 22% year on year (y/y) in demand to 70.3 million units in 2020, according to April IHS Markit forecasts. This represents a downgrade of around 18.8 million units compared with the pre-COVID-19 period, when the IHS Markit forecasts were made in January 2020. Further significant revisions could be required should the severity of the humanitarian and economic crisis worsen.