Global primary energy supply mainly comes from fossil fuels that are limited in supply and have negative impacts on the environment. A large number of conventional vehicles, present on the streets, mainly consume fossil fuels and emit greenhouse gases. The popularity of electric vehicles is increasing rapidly due to various social and economic factors as well as significant environmental impacts. Governments across the world are shifting their sentiments towards electric vehicles (EVs) to reduce these negative effects. Due to this support from governments and public awareness, EVs are increasing rapidly and bringing new types of problems to the existing power system. The rapid increase in charging high-power electric vehicles (EVs) poses challenges to the power system, including load profile distortion, voltage deviation, frequency imbalance, harmonic injection, distribution system component capacity overloading, excess power loss, and grid instability. This study quantitatively analyzes the impact of EV charging on the power system. With an increase in EV penetration from 25% to 50%, the peak power demand on the system rises by 166%. However, implementing a smart charging system optimizes system parameters, leading to reduced power loss, decreased voltage deviation, and a remarkable 96% decrease in the grid's peak power demand compared to conventional uncoordinated charging. Smart charging not only solves existing problems but also facilitates the integration of next-generation technologies like autonomous vehicles, connected mobility, and the energy internet. This research highlights the significant benefits of smart charging in addressing the challenges posed by the rapid growth of EVs while promoting sustainability and technological advancement in the power system.