EV Adoption Creates More Demand for Workplace Charging Stations

NORTHAMPTON, MA / ACCESSWIRE / May 14, 2024 / CBRE Group, Inc.
CBRE

Executive Summary

• With more people driving electric vehicles (EVs), commercial property owners and large occupiers are installing EV charging stations as a crucial amenity. Last year, workplace charging sessions grew twice as fast as new installations, indicating an inability to keep pace with rising driver demand.
• The use of public transportation has decreased with the rise of hybrid work schedules, leading to an increase in vehicle traffic and changed commuting patterns.
• Post-pandemic workplace charging in North America became more concentrated from Tuesdays through Thursdays and in alignment with the highest office attendance days, according to ChargePoint, North America's largest public networked charging port provider.
• Providing EV charging stations at workplaces is not only vital for accommodating the rapidly growing EV market, but also contributes to achieving environmental, social and governance (ESG) goals.

New workplace EV charging installations present a major opportunity for U.S. office property owners and large occupiers. More people are driving EVs due to government purchase incentives, environmental consciousness and an expanding charging infrastructure. EV drivers charge more often than gasoline drivers fill up because they tend to top-off rather than deplete batteries, making charging at workplaces a valuable amenity.

Last year, the U.S. was one of the world's fastest-growing countries for EV sales, with sales up 50% year-over-year, according to BloombergNEF. EVs sold in the U.S. last year represented 9.2% of new light-duty vehicle sales and accounted for about 1.6% of all light-duty registered vehicles.¹ The largest and fastest-growing U.S. EV markets are California, Florida, Texas, Washington, New Jersey and New York. About 37% of all U.S.-registered EVs are in California.

Looking ahead, BNEF predicted that U.S. EV registrations will grow at an average rate of 40% annually over the next five years, potentially reaching 26 million by 2028. However, in April, it issued a revised forecast of 31% year-over-year sales growth in 2024, suggesting a near-term slowdown.

Active workplace charging ports from ChargePoint increased by 22% year-over-year in 2023.² The number of unique drivers actively charging in workplace settings grew by 57% over the same time period. This surge in activity led to a 64% increase in charging sessions and higher utilization of existing ports. There was an average of twelve drivers per active port in 2023 compared with an average of eight pre-pandemic (2018-2019). This indicates that the growth of workplace charging ports has not kept up with rising driver demand and evolving commuting patterns.