How can your company grab a share of the growing EV market?
WHY should you play?
In the UK, a new electric battery car is registered every 15 minutes and the number grew by 230% compared to last year [Department for Transport]. Despite automotive and energy companies leading the way in this rapidly growing market, there are currently no clear market leaders (except Tesla). This presents a huge opportunity for companies in any industry to define an offering and become key EV ecosystem players. The environmental benefits experienced during the Covid19 crisis will further accelerate the demand for EV and eco-friendly transportation.
WHERE should you play?
Charging stations are one of the biggest EV industry challenges and current providers struggle to generate revenues. Going beyond solely providing access to charging infrastructure is key and offers plenty of opportunities. The EV charging network is already much more scattered compared to conventional petrol stations, but nevertheless there is still something to be learnt from the latter’s’ additional revenue streams. Case in point; petrol stations make most of their revenues not from selling fuel but from on-site convenience stores where they charge significant margins on coffee, food, tobacco and other products.
Companies that can create the right suite of products and services around the charging infrastructure will be EV market leaders. To identify the right services to offer, companies must look at B2C and B2B customer pain points across the charging value chain. The three main areas that provide opportunities are lack of access, long wait time while charging and lack of payments interoperability.
HOW should you play?
We have used our market-led, outside-in approach to identify commercialisation opportunities within EV charging, inspired by examples from other industries. Using adjacent thinking can help companies create more innovative E2E customer propositions by linking different customer journey elements and then launching those in the market by utilising emerging technologies and business models.
Use these ideas as a stimuli/prompt to start conversations within your organisation on how you can enter or expand your presence in this growing market. If you would like to hear more about the outside-in industry examples and how to commercialise on the opportunities presented, please reach out to us on EV@sia-partners.com or aby.handler@sia-partners.com
Authors: Svetlana Jefimova, Jessica Davis, Aby Handler
