Profits from investment into electric vehicle infrastructure has been fueling a quickly changing landscape for the auto industry, says new research from Bain & Company. Though anticipated, these changes are happening even more quickly than most analysts predicted, with the U.S., Europe and China leading the way.
“The next decade will be unprecedented for the EV charging ecosystem worldwide,” said Lucas Martin, partner at Bain & Company. “Future winners are moving fast and building partnerships to secure the best locations and digital platforms to provide a seamless charging experience. These leaders are navigating uncertainties in the market by designing scenario-based strategies that allow them to pivot quickly when consumer behaviours or regulations shift.”
The report says that ambitious green energy targets have been introduced by many countries, supporting the transition to EVs. “Charging infrastructure and services critical to the adoption of battery-powered EVs (BEVs) are a huge and strategic new business opportunity.”
According to the report, in the near term, investment will flow into building up the required infrastructure, with the largest profit pool for home and work charging. By 2030, for example, BEVs are forecast to make up 55 per cent of total car sales in Europe, compared with 40 per cent in China and 32 per cent in the U.S.
The predominant type of housing in a specific market is another important factor influencing charging solutions. For example, the market for single-family-home charging products will be bigger in the US, where 82 per cent of the population live in single-family homes, compared with 60% in the EU and 37 per cent in the relevant urban regions of China.
“As companies and investors consider where to play and how to win in the EV charging ecosystem, it will be critical to understand how demand for different charging occasions and regulatory landscapes differ by region today and in the future,” said Eric Zayer, partner at Bain & Company. “While consumers in suburban areas around the US and Europe will be able and keen to charge at home, consumers that live in dense urban areas, such as in China, will be forced to charge more in other locations, like work, at destinations such as restaurants or in transit.”
