Electric vehicle infrastructure investment, deals predicted to exceed US$57.4 billion by 2028

• DLA Piper’s survey of over 100 senior executives identified a 92-percent anticipated increased investor appetite in 2024, with a third expecting significant growth
• Abundant and reliable electric vehicle (EV) chargers, charging systems, and infrastructure are critical to the progress and pace of the transition to EVs in the US and major markets throughout the world
• The primary risk associated with investing in EV charging infrastructure is the operational and maintenance cost of charging stations. Insufficient standardization and compatibility between charging equipment is considered the most significant barrier to investment
• 97 percent of respondents believe the tax incentives created by the Inflation Reduction Act (IRA) have led to an increase in cross-border investment interest in the US EV industry
• The US government alone intends to invest more than US$6 billion in charging infrastructure through legislation under the Infrastructure Investment and Jobs Act and the IRA 

A global survey and report by DLA Piper, with support from Infralogic, forecasts that, over the next five years, the total value of electric vehicle (EV) infrastructure deals worldwide is set to increase to US$57.4 billion. 

Recent dealmaking activity illustrates the clear increase in trajectory of these deals over the past five years. In 2019, there were nine reported EV infrastructure deals completed. Of these, five disclosed their deal values, with a total of US$321 million. This rose dramatically to 78 such deals in 2022, with 47 disclosing deal values with a total of total of US$12.5 billion. Despite the difficult worldwide economic conditions, there were at least 134 reported deals, of which 77 announced deal values with a total of US$33.8 billion in 2023.

DLA Piper’s survey of over 100 senior executives involved in EV infrastructure from across the globe has identified that nearly all respondents (92 percent) anticipate increased investor appetite in this asset class over the next nine months, with a third expecting significant growth. Even taking a relatively conservative growth trajectory from the past five years, this would lead to a forecast combined deals value of US$57.4 billion by 2028.

The accelerating growth of the global EV market is being driven by a combination of favorable tailwinds. These include supportive regulation, subsidies, and incentives across major car markets worldwide; ambitious corporate environmental, social, and governance (ESG) goals; and shifting consumer preferences. Increasing demand for EVs also correlates to demand for, and investment in, EV charging stations and related technologies. Conversely, continued growth in consumer demand for electric vehicles may depend on rapid deployment and wide availability of reliable high-speed EV charging infrastructure, particularly in geographically large markets such as the US.

When it comes to the rollout of EV charging infrastructure over the last three to five years, the largest share of respondents overall (65 percent) identify the US as having made the most significant progress, followed closely by China (59 percent). After the US and China, survey respondents identify several European markets as having made significant progress in EV charging infrastructure, especially Norway (46 percent), the Netherlands (39 percent), and Sweden (34 percent).

Reflecting on the key drivers of progress in the introduction of EV charging infrastructure, respondents cite supportive government policies and regulations as the most significant factor. However, investing in still-nascent sectors inherently carries risk. Our survey respondents believe the primary risks associated with investing in EV charging infrastructure are the operational and maintenance costs of charging stations (46 percent) and the high upfront costs and investments (44 percent). Insufficient standardization and interoperability of chargers and related equipment are thought to be the most significant barriers to greater investment in EV charging infrastructure.

Paul Hemmersbaugh, chair of DLA Piper’s Transportation Practice, said:

Due to a favorable regulatory environment, shifts in consumer preferences, ongoing advances in battery technologies, and aggressive decarbonization efforts, the EV industry is anticipating tremendous growth in the coming years. One of the remaining hurdles for widespread deployment of EVs is the development of sufficient, readily available EV chargers and related infrastructure. Gasoline stations for internal combustion engine vehicles are ubiquitous in the US. EV charging stations are not. EV infrastructure investment and deals may provide historic opportunities for risk-tolerant investors in North America, Europe, and other markets.

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