EV Charging Station Companies Are Getting Charged Up For A Global Race

Electric Vehicles (EVs) have grown massively in popularity and sales in the last few years.

From the introduction of new players (read more), existing ones expanding their capabilities (read more) and adding a range of new partnerships (read more), the sector has also seen various initiatives aimed at improving production methods (read more), EV software (read more), enhancements to batteries (read more) and even major pushes for electric aircraft, luxury yachts and flying vehicles AKA eVTOLs (read more).

An associated industry that’s been booming, thanks to the massive adoption of EVs, is that of electric vehicle charging stations.

While industry leader, Tesla, has seen good days, with even its competitors adopting Tesla’s technology (read more), governments around the world, including the US (read more), EU (read more), have taken strong initiatives to address charging anxieties, even trying out alternative methods (read more).

Of course, other companies aren’t far behind. In fact, as far as charging stations go, it’s quite a competitive industry that only seems to be growing more competitive!

So, what’s the latest that’s happening in the EV charging industry? Let’s explore!
 

How Is The EV Charging Industry Growing?

 

• According to a study, there are over 900 EV charging companies across the world. 

• With so many competitors engaged in the sector and more pouring in, bigger companies are on the lookout to consolidate with smaller ones. In fact, there have been at least 85 acquisitions since 2017, with the sector witnessing over $12 billion in venture capital funding since 2012.

• The consolidation move is attracting attention from big energy companies such as Shell, Statkraft, EDF, BP, Engie, etc., hardware companies such as ABB, Schneider Electric, etc. and even other charging companies such as Blink, ChargePoint, Charge Enterprises and others.

• The list also includes automobile manufacturers such as Hyundai, Volkswagen, Mercedes-Benz, BMW, Volvo and others, who have invested in infrastructure projects or startups. This move extends to investment companies like BlackRock, Fidelity and Wellington Management.

• The way the scenario of the sector keeps changing in terms of acquisitions, investments and consolidations, leads Michael Hughes, Chief Revenue and Commercial Officer at ChargePoint, to say, “The fast-changing landscape will look pretty different from the landscape that exists today.”

 

What Are EV Charging Station Looking For In The Future?

 

• Owing to the large number of EV charging station companies present across the US and Europe, they have begun competing for the best spots to build fast public chargers. 

• So much so, that Tomi Ristimaki, CEO of Kempower (a Finnish EV charger manufacturer) says, “If you look at our customers, it's like a land grabbing game now … Who gets the best locations now can guarantee electricity sales in the coming years.”

• As more money and players enter the arena, the competition will get fiercer. According to Loren McDonald, CEO of EVAdoption (a research firm), the number of fast-charging networks in the US will increase from 25 in 2022 to 54 in 2030.

• As a result, it’s all about finding the best locations for charging station companies to increase investment. ChargePoint’s Michael Hughes believes, “There's a race for space … but it will take longer than anybody expects to find, build and enable these new sites for the next generation of fast charging.”

• As far as investing heavily in the sector goes, Christophe Bordes, MD at Infracapital, said, “With the right locations, long-term investments in (charging companies) absolutely make sense.”

 

What Alternative Methods Are EV Charging Companies Using?

 

• On the other hand, EV charging companies are also competing to get contracts with businesses that possess realty for other services.

• In this regard, charging company InstaVolt has a deal with McDonald’s to build charging stations at their locations. According to InstaVolt CEO Adrian Keen, “If you can win that partnership, it's yours until you blow it.”

• As for the acquisitions and consolidations witnessed across the sector, Loren McDonald, CEO of EVAdoption believes, “Like all industries started by a bunch of small startups, over time the big guys jump in and ... they consolidate … At the end of this decade, the logos are going to be very different.”

What methods do you think EV charging station companies can exploit to remain competitive? Will a popular location be a major advantage for EV charging stations soon?

Let us know in the comments below!