Europe’s EV Charging infrastructure encounters hurdles amid global transformations

Mixed outcomes for Europe

Europe presents a mixed scenario. While the region continues to lead in EV adoption, the expansion of charging infrastructure is lagging, leaving numerous markets struggling to satisfy the demands of EV owners. On a positive note, the increase in fast DC charging offers optimism that the discrepancy between EV numbers and available charging stations might eventually be bridged.

Declining sales and expanding infrastructure gaps in Europe

After years of swift growth, several prominent European markets are encountering obstacles. Germany, ranked second in the index, experienced a significant drop in EV sales in 2023. This slowdown is attributed to reduced government subsidies, high energy costs, and inflation. Despite having one of Europe’s most extensive public charging networks, Germany cannot keep up with the rising number of EVs on the roads.

Similarly, the Netherlands, once a frontrunner in EV adoption, is now facing its own set of challenges. Although EV sales remain high, the country’s charging infrastructure, especially its fast-charging network, is lagging. The scarcity of fast DC chargers has become a critical issue, causing the Netherlands to decline in the rankings.

While these established markets struggle to sustain their momentum, overall infrastructure development in Europe is not matching the rate of vehicle sales. This imbalance is creating a bottleneck for further growth, as EV owners grow increasingly frustrated with the insufficient number of charging points.

Diverging paths: Western vs. eastern Europe

A prominent trend in the 2024 Index is the widening gap between Western and Eastern Europe concerning EV adoption and charging infrastructure. Western Europe has been leading the EV revolution, but several countries in the region are now experiencing a slowdown in both sales and infrastructure development. For instance, France has managed to maintain steady EV sales and enhance its charging network, climbing to fourth place in the index. However, even in France, the pace of infrastructure growth must accelerate to meet future demand.

Conversely, Eastern European countries are beginning to make significant strides. Hungary and Romania stand out for their advancements in both EV sales and the expansion of public charging networks. Hungary, in particular, has set ambitious targets for its charging infrastructure, though it still has considerable progress to make to meet the growing demand. Romania has shown one of the most substantial improvements in the index, with a notable increase in customer satisfaction regarding public charging.

Despite these improvements, fast charging remains a significant challenge in much of Eastern Europe. Public fast-charging networks, essential for long-distance travel and for drivers without home charging options, are limited. Addressing this issue is crucial for the region to fully embrace electric mobility.

The growth of fast DC charging

A positive development in Europe’s EV infrastructure is the rise of fast DC charging. Across the continent, more public chargers are being upgraded to high-speed options, reflecting the increasing demand for quicker and more convenient charging solutions. As EV adoption extends beyond urban areas, the availability of fast chargers becomes increasingly important for long-distance travel and for EV owners who lack access to home charging.

Austria and Spain have been particularly proactive in expanding their fast-charging networks. In Austria, EV sales are growing rapidly, but the country faces a shortage of fast DC chargers, which could impede future progress. Spain, on the other hand, has witnessed rapid growth in its public charging infrastructure, although the availability of fast chargers still does not meet the demand.

Overall, the expansion of fast-charging options is a promising trend, but it will require time for the rest of the infrastructure to catch up with the swift growth in EV sales across Europe.

OEMs and emerging market dynamics

Another significant trend highlighted in the 2024 Roland Berger Index is the increasing involvement of original equipment manufacturers (OEMs) in the EV charging market. While their participation remains limited in some areas, many automakers are beginning to enter the charging space to support vehicle sales. In Europe, OEMs are collaborating with utility companies, retailers, and other stakeholders to develop branded charging networks that enhance the overall EV experience.

This growing engagement is particularly evident in Southern Europe, where countries like Italy and Spain are seeing OEMs take a more active role in infrastructure development. These partnerships could help bridge some gaps in public charging networks, especially in regions where government support has been inconsistent.

In addition to OEM participation, Europe’s charging market is becoming more dynamic, with new entrants from related industries, such as utilities and supermarket chains, joining the field. This increased competition is fostering innovation and aiding the expansion of charging infrastructure, although it will take time for these developments to have a widespread impact across the continent.

The future of Europe’s EV landscape

Despite its challenges, Europe remains one of the leading regions globally for EV adoption and charging infrastructure. However, the latest Roland Berger Index underscores that substantial work is still required. The gap between EV sales and charging points continues to widen, particularly in the fast-charging sector, which could impede future progress if not addressed.

To bridge this gap, Europe needs to significantly increase investment in its charging infrastructure, especially in fast DC chargers that cater to the needs of today’s EV drivers. Policymakers must also shift their focus from vehicle subsidies to infrastructure development, ensuring that the growth in charging points keeps pace with the rising number of EVs on the roads.

If Europe can overcome these obstacles, it is well-positioned to lead the global transition to electric mobility. However, without sustained investment and innovation, the region risks falling behind as other markets, particularly in Asia, continue to accelerate their progress.

Conclusion

The 2024 Roland Berger EV Charging Index presents a mixed outlook for Europe’s EV sector. While the region continues to advance in EV adoption, the development of infrastructure is not keeping up. Fast DC charging is expanding, but the number of chargers still falls short of what is necessary. If Europe can address these challenges through ongoing investment and innovation, it has the potential to maintain its position as a global leader in electric mobility. However, the path forward remains challenging.

Source: Roland Berger