3Q 2018

Navigating the Emerging EV Charging Business Model Landscape

The market for EVs has been growing steadily over the last decade, and the prospects are good for stronger growth in both light duty consumer vehicle and commercial vehicle electrification. One of the key global drivers is renewed appetite at all levels of government for cleaner air. Investments in battery technology and mass production have been critical factors. Widely available charging infrastructure that is fast and convenient is also being promoted as a powerful enabler.

Until recently, EV charging has been considered a niche business with little profit potential. Today, many countries are experiencing a major shift toward electric drive and demand for rapid growth in the number of charging stations. Large utilities and energy companies are making investments in vehicle charging networks. The challenge is to develop profitable business models that do not depress market demand for EVs by pushing up electricity prices. Future success is likely to involve providing greater value to both consumers and the grid.

This Navigant Research report examines the current state of business models for the provision of EV charging stations and networks. It provides an overview of some of the business models in place today and examines the recent new entrants to the market. The study also explores the potential benefits to be expected from successful technology investments. Recommendations are provided to hardware and software suppliers on how to take advantage of the market potential and to utilities and energy supply companies on planning for the future.
Pages 20
Tables | Charts | Figures 4
  • What are the key products and features being developed for the global EV charging market?
  • What types of companies are moving into the EV charging business?
  • What are the drivers for new EV charging infrastructure technology?
  • How can companies maximize ROI when investing in charging networks?
  • Which actions must firms take immediately to prepare for the coming growth in the EV market?
  • How can charging suppliers best influence and develop the EV market?
  • Government agencies
  • City managers
  • EV charging suppliers
  • Energy utility companies
  • Energy supply firms
  • Automotive OEMs
  • Software developers
  • Investor community

Spark

Context

Recommendations

Competition in the Charging Market Ramps Up as Big Companies Start to Invest

Charging Infrastructure Is a Key Factor for Vehicle Electrification

Charging of EVs Benefits the Grid

The Consumer Light Duty Vehicle Market Is Embracing Electric Drive

The Commercial Vehicle Market Is a Different Prospect

Alternative Fuels Have Not Yet Conceded the Vehicle Market to EVs

The Four Primary Applications for EV Charging Are Becoming Clear

There Are Different Ways to Evaluate EV Charging Business Models

Major Players Vary from Startups to Long-Established Multinationals

Utilities and Energy Suppliers Recognize the Potential of EV Charging and Are Getting Involved

Hardware Suppliers Are Pushing Fast Charging Technology into Production to Help Promote EV Ownership

Software Developers Are Pushing to Develop V2G Capability

Developing New Revenue Streams Will Be Key to Success

Vehicle Charging Is Just the Start

The Conventional Energy Supply Model Is the Core Business Today

Vehicle Grid Integration Offers Additional Revenue Streams

The Clean Consumer LDV Market Is Expected to Continue Steady Growth

The Commercial MHDV Market Looks Set for Electric Drive Growth

Some Charging Types Will Justify Higher Prices

Different Business Models Adopted by Market Players

Infrastructure Provider: Key Takeaways

Load Balancer: Key Takeaways

Charging Service Provider (Commodity): Key Takeaways

Mobility Provider: Key Takeaways

Utilities and Energy Suppliers Are Getting Involved

Hardware Suppliers Are Being Flexible as the Market Develops

Software Developers Aim to Develop an Industry Solution

Success Factors Include Long-Term Investment and Industry Collaboration

Where the European Union Leads, Others Tend to Follow

Automakers Leverage Charging to Boost EV Market Demand

Existential Disruption Is Ahead and Should Be Accounted for in All Business Plans

Business Models Should Vary by the Type of Product Offered to Each Market Segment

Infrastructure Provider: Key Takeaways

Load Balancer: Key Takeaways

Charging Service Provider (Commodity): Key Takeaways

Next Steps: Four Concrete Project Proposals

Assess and Prioritize Value Pools: Geographies for Expansion and Offerings

Analyze Customers’ Needs, Purchasing Triggers, and Regulatory Review

In-Depth Review of Specific Business Models and Synergies (Bundled Offers)

Refine and Adapt Technology and Platform

Quality of Service Will Be Improved by Upgrading Charge Point Hardware

Utilities and Oil Companies Should Invest Carefully

Hardware Suppliers and Software Developers Need to Collaborate More

Market Players Should Take Advantage of the Potential of V2G Integration

  • Plug-In EV Population by Region, World Markets: 2018-2027
  • Each Business Model Operates Under a Different Revenue Structure with Specific Pricing Components
  • Consumption, Uses, Products, and Revenue Models for Different Supply Sources
  • Outlook for Offerings from Infrastructure Providers and Load Balancers Differs by Profitability, Innovation, and Customer Demand
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