A recent report by Reuters disclosed the way the Electric Vehicle charging industry is involved. Data shows that currently there are more than 900 EV charging companies around the globe and the main cause of concern is that all want prime locations for fast public chargers.
With the urges to more eclectic vehicles the market is attracting a lot of players and investors. Data shows that the sector has captured more than $12 billion in venture capital funding since 2012, according to PitchBook. This shows how vast the market is.
While talking to Reuters, EVAdoption’s CEO Loren McDonald said, Tesla is the king in the U.S. but more fuel stations and convenience stores are setting up contracts with other companies, with the number of fast charging networks expected to double to 54 in 2030 from 25 in 2022.
Partnerships are a big part of the strategy right now. Charing companies are doing try and tricks to get exclusive contracts with companies like McDonald’s and Starbucks. The recent announcement between ChargePoint, Starbucks and Volvo is a great example.
Reuters further says that An EV charging station placed in a prime location can take about four years before it becomes profitable “once utilization hits around 15%.” The process in Europe might be slow due to bureaucratic hurdles but either way, it’s still viewed as an enticing bet for long-term infrastructure investments such as Infracapital, the report said.
There are companies running for the prime locations but still there are some companies who have different future plans. They are planning mega-stations with dozens of chargers with the concept of bringing amenities to the chargers. But to attract business they need to take advantage of the coming wave of drivers at these locations.
The report further concluded that while there are lots of small startups in the game now. But they are pitted against the market giant, consolidation is on its way to grab opportunities. So we can expect to see a lot of name changes and logos in the coming years.
