Top 5 Electric Vehicle Charging Opportunities for the Coming Decade
Sustainability and climate change are at the forefront of public discussion today, and regulations across all geographies are aiming to reduce greenhouse gases emissions. Significant emphasis is being placed on reducing transportation-related emissions by transitioning to electric vehicles (EVs). Nearly all developed countries are pushing new vehicles to be zero-emission by 2035. However, there is currently a massive gap between the growing market demand for EVs, and the supply and growth rate of sufficiently supportive infrastructure.
The electric charging market is expected to grow sevenfold in the next seven years, together with the number of electric vehicles themselves. As long as the market has not yet fully developed, players should look ahead to understand how they can integrate well in the market and gain a competitive advantage, as well as effectively address the various consumer barriers that stem from the complexity of the charging process itself.
Drive TLV conducted a comprehensive study to shed light on the charging ecosystem, a complex market that is expected to grow substantially in the near future. Based on the study, we predict five primary opportunities in the future of EV charging.
- Currently confusing and complex, the private consumer’s charging experience will become simple and holistic.
The EV charging industry is crowded, unregulated, and disorganized. Typically, a customer is required to interact with 2–3 parties just to complete the cumbersome charging process. Integrations and collaborations between the various entities involved in providing charging are becoming more common, though, and coupled with improving technology, we expect that trend to take off and make the process more streamlined and unified.
- Charging outside of home or workplace during the day will become increasingly popular.
It is projected that the percentages of EV charging at home will decline as more public charging stations and infrastructure become available. By 2030, non-home charging is projected to grow by 30%. On-route charging, destination charging and workplace charging will become more and more prominent. As a result, people will begin to charge their vehicles more often during the day, increasing the demand for charging during off-peak hours. - Innovation in battery technology will change the user behavior.
Large battery manufacturers and startups are all working to reduce the amount of time it takes to charge an EV battery. StoreDot is one of them, developing battery assemblies made of a lithium-ion battery and a fast charging component that enables charging in only a few minutes. Another example is Addionics, a start-up focused on innovating the architecture of batteries on a microscopic level, enhancing the battery’s capacity and reducing charging times by half.
If charging will take as little as 10 minutes, we’ll begin to see more “fueling-like” behavior, leading to more charging on the road and less at home/office.
- EV Fleets will become more common, and will spur even greater charging infrastructure development.
By its nature, a fleet is an efficient, systematic and centralized organization. The rising adoption of EVs in fleets represents huge opportunities for developing dedicated charging infrastructure. Even though electric fleet charging is estimated to be less than 5% of the total charging infrastructure in volume, it will constitute over 30% of the total market value of the charging industry by 2030. - Vehicle to Grid (V2G) Technology might have a significant impact on EV charging infrastructure in the future.
V2G is a term used to describe a system in which EVs communicate with the power grid and adjust their charging by either returning electricity to the grid or by reducing the rate. Implementation of V2G technology by OEMs in EVs will ease authentication and billing process, and will improve the local load balancing management and connectivity between the vehicle and the grid. Someday, it will even be able to convert the car itself to be a player in the energy storage ecosystem; the vehicle could become an energy provider for homes or buildings and even be part of the microgrid solution, offering new revenue potential on the EV value chain.
Between the multitude of players involved in providing charging services, the complexity of the user experience, the regulatory support, and the electricity distribution system, EV charging is a complex ecosystem with significant barriers to overcome. However, it is also an ecosystem that is still maturing. As the world accelerates its shift toward EVs, the charging ecosystem promises significant opportunities for players that are ready to contribute to improving the user experience, innovating the technology, and supporting infrastructure deployment.
Access our full report to gain a comprehensive overview of the EV ecosystem. [Take me There]
We’d love to hear from you! If you have questions about EV charging, or are working on a related startup venture, we invite you to reach out to us directly at raz@drivetlv.com or ariel@drivetlv.com
