According to Wood Mackenzie’s recently published forecast for electric vehicle

According to Wood Mackenzie’s recently published forecast for electric vehicle (EV) charging infrastructure, electric vehicle charging stations will increase at a CAGR (compound annual growth rate) of 12.3% from 2026 to 2040, reaching 206.6 million globally.

The residential charging station segment will continue to dominate the market, with 133 million worldwide by 2040, the report said.

To achieve this, annual global spending on electric vehicle charging infrastructure is expected to grow at a CAGR (compound annual growth rate) of 8% from 2026 to 2040, reaching $300 billion.

“As the uptake of public charging stations increases and infrastructure efficiency improves, we expect the ratio of electric vehicles to public chargers to increase from 7.5 battery electric vehicles per charger in 2025 to 14.2 in 2040, ” said Oliver McHugh, senior research analyst for electric vehicle charging at Wood Mackenzie.

Emil Koenig, also a senior analyst covering electric vehicle charging, energy and renewables at Wood Mackenzie, added: “Residential charging will account for approximately two out of every three chargers globally by 2050. The continued appeal of this segment is due to its ability to provide an optimal balance of convenience, charging performance and value that best meets the requirements of electric vehicle owners. ”

Regional growth highlights:

Asia Pacific is leading the global expansion, with China maintaining its dominance in public charging infrastructure. The region is forecast to grow at an approximate 10% CAGR (compound growth rate) in DC charging from 2025 to 2040, with the public and residential segments accounting for the largest annual capital expenditures through 2040 at $54 billion and $33 billion, respectively. India is emerging as a key growth market, with the number of fast charging stations expected to increase from 14,000 today to 1.1 million by 2040, driven by strong policy support and the rapid expansion of the electric vehicle market.

The Americas are showing resilience despite the challenges, with the public charging station segment in the US set to maintain a steady CAGR (compound annual growth rate) of 14% from 2025 to 2040, reaching 475,000 and generating an annual market value of $3.3 billion by 2040. South America is positioned for accelerated growth, with residential charging stations expanding at a 22% CAGR as the region’s electric vehicle market catches up with that of North America. The residential segment will dominate regional capex with $11.2 billion by 2040.

Europe and the Middle East are showing strong momentum, with European public chargers growing at an 11.3% CAGR through 2040, driven by the expansion of DC chargers at a 13.7% CAGR. The residential segment will reach 57 million AC chargers by 2040, while commercial chargers will grow at a 12% CAGR. Saudi Arabia stands out with an exceptional 29% CAGR growth in DC public chargers, supported by ambitious government targets. By 2040, the EMEA region is projected to have annual spending of $14 billion on public chargers and $30 billion on residential infrastructure.

Compound Annual Growth Rate (CAGR) is the rate of return that an investment would need to generate each year to grow from its starting balance to its ending balance over a given period of time. CAGR assumes that all earnings have been reinvested at the end of each period of the investment's life cycle.