EV Adoption Creates More Demand for Workplace Charging Stations

Rhea-AI Summary

The growing adoption of electric vehicles (EVs) is increasing the demand for workplace charging stations. In 2023, workplace charging sessions grew twice as fast as new installations, highlighting a gap between demand and supply. The rise in hybrid work schedules has shifted commuting patterns, concentrating EV charging from Tuesdays to Thursdays.

Workplace EV chargers contribute to environmental, social, and governance (ESG) goals, making them a strategic asset for attracting employees and tenants. The U.S. saw a 50% increase in EV sales last year, representing 9.2% of new light-duty vehicle sales. Projections indicate U.S. EV registrations will grow at an average rate of 40% annually over the next five years. Despite this, a revised forecast suggests a near-term slowdown with a 31% sales growth expected in 2024.

ChargePoint's data shows a surge in workplace charging activity, with a 64% increase in sessions and 57% more unique drivers year-over-year. However, the availability of charging ports hasn’t kept up with demand. The pandemic has changed commuting behaviors, with vehicle traffic returning to pre-pandemic levels but public transport usage at 71% of pre-pandemic levels.

CBRE's survey indicates that 30% of companies prefer offices with EV chargers, rising to 40% among large companies. While not sufficient alone to bring workers back to the office, EV charging stations can incentivize more frequent and longer office visits.

Positive

• EV sales in the U.S. increased by 50% year-over-year.
• EVs represented 9.2% of new light-duty vehicle sales in 2023.
• Projections indicate a 40% annual growth in U.S. EV registrations over the next five years.
• Workplace EV charging sessions grew by 64% year-over-year in 2023.
• The number of unique drivers using workplace charging grew by 57% year-over-year.
• 70% of prime U.S. office buildings are now equipped with EV charging ports.
• CBRE's survey shows 30% of companies prefer offices with EV chargers, rising to 40% among large companies.

Negative

• Workplace charging sessions are growing twice as fast as new installations, highlighting a supply-demand gap.
• Revised projections suggest a slowdown in EV sales growth to 31% in 2024.
• Public transport usage is at 71% of pre-pandemic levels, indicating not all commuting issues are resolved.
• The average number of drivers per active port has increased, suggesting higher competition for charging spots.

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.

The pandemic changed the frequency, destination and transportation mode for people commuting to work, with geographic variations. CBRE's Spring 2023 U.S. Office Occupier Sentiment Survey revealed that office workplace attendance policies became more decisive in 2023. Two-thirds of the 207 real estate executives surveyed mandated some office attendance, while only 30% have voluntary return-to-office (RTO) policies, a decrease from over half the prior year. Technology companies had the most flexible RTO policies, with only 26% requiring employees to be in the office more than 2.5 days per week. In contrast, over half of the respondents in the financial and professional services sectors required more than 2.5 days per week in the office.

People are using public transportation less as hybrid work schedules become increasingly common. Total U.S. public transit usage in 2023 was 71% of pre-pandemic levels, according to the American Public Transportation Association. Meanwhile, vehicle traffic volumes in California have nearly returned to pre-pandemic levels, though the timing and dispersion of congestion has shifted.³ This shift suggests changes in the day of week and time of day that drivers are commuting to their workplaces. For EV drivers, ChargePoint data shows increases in charging sessions that align with RTO schedules.

Kastle Systems data shows office attendance is highest across all markets on Tuesdays through Thursdays and lowest on Mondays and Fridays. According to ChargePoint, popular workplace charging days similarly shifted from Mondays through Thursdays in 2018-2019 to Tuesdays through Thursdays in 2022-2023. Austin, TX had the most change, transitioning from relatively flat charging behavior from Mondays through Fridays to peak charging occurring on Tuesdays and Thursdays, with a significant decline on Fridays. However, charging trends vary across top U.S. EV markets. For example, more Texans than Californians charge their vehicles at the workplace over the weekend, while Californians are more likely to do so on weekdays. This is partly due to better availability of charging infrastructure away from workplaces. The average time of day to start charging sessions remained consistent with pre-pandemic trends, peaking in the morning with a smaller surge around lunchtime.

Outlook

Workplace EV charging has become a valuable amenity, with roughly 70% of prime U.S. office buildings equipped with charging ports.⁴ CBRE's Occupier Survey reported that 30% of companies favor offices with EV chargers, a preference that rises to 40% at large companies. While charging alone may not be enough to bring workers back to the office, it could incentivize them to visit more and stay longer to charge their vehicles. On the ChargePoint network, 63% of workplace chargers are free for authorized users, who are typically employees.

EV chargers are increasingly recognized as a strategic asset for companies seeking to draw more employees back to the office and for property owners seeking to attract and retain tenants. Workplace charging sessions accounted for 28% of all charging sessions on the ChargePoint network in 2023, second only to the 40% share of home charging. Providing smart EV charging at workplaces is, therefore, crucial to accommodating the rapidly growing EV market while helping to achieve corporate ESG goals.

¹ Registration data from U.S. Department of Energy, 2022. CBRE estimated 2023 EV registrations using sales data.
² Includes general, government and municipal workplaces in the U.S. and Canada, but excludes retail and places open to the public.
³ National Library of Medicine. "Rush hour-and-a-half: Traffic is spreading out post-lockdown." https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10499251/
⁴ Includes about 10% of U.S. office building inventory by sq. ft.

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SOURCE: CBRE Group, Inc.

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FAQ

Why is there an increased demand for workplace EV charging stations?

The increased adoption of electric vehicles and changes in commuting patterns due to hybrid work schedules have driven the demand for workplace EV charging stations.

What is the growth rate of workplace EV charging sessions according to the CBRE press release?

Workplace EV charging sessions grew by 64% year-over-year in 2023.

How did EV sales perform in the U.S. last year?

EV sales in the U.S. increased by 50% year-over-year, representing 9.2% of new light-duty vehicle sales.

What is the projected annual growth rate for U.S. EV registrations over the next five years?

U.S. EV registrations are projected to grow at an average rate of 40% annually over the next five years.

How has the pandemic affected public transportation usage?

Public transportation usage in the U.S. is at 71% of pre-pandemic levels due to changes in commuting patterns.

What percentage of prime U.S. office buildings are equipped with EV charging ports?

70% of prime U.S. office buildings are equipped with EV charging ports.

What percentage of companies prefer offices with EV chargers according to CBRE's survey?

30% of companies prefer offices with EV chargers, rising to 40% among large companies.