Until recently, EV charging was considered a niche business with little profit potential. However, many countries are now experiencing a major shift toward electric drive, and demand for charging stations is growing rapidly.According to a new report from @NavigantRSRCH, while large utilities and energy companies are making investments in vehicle charging networks, the challenge is to develop profitable business models for charging solutions that can expand EV ownership to those who do not yet have a dedicated place to charge.
“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,” says Scott Shepard, senior research analyst at Navigant Research. “As the future for transportation looks to be favoring electric drive, the need for ubiquitous, simple, safe, and easy rapid charging is essential to ensuring the long-term elimination of gasoline and diesel from the options for vehicle fuel.”
According to the report, successful business models of the future are likely to involve providing greater value to both consumers and the grid. To stay competitive, Navigant Research recommends market players take advantage of the potential of vehicle-to-grid integration and factor disruption into business plans, while automakers leverage charging to boost EV market demand and hardware suppliers and software developers focus on further collaborations.
The report, Navigating the Emerging EV Charging Business Model Landscape, 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.