Although sales of plug-in electric vehicles (PEVs) to date have been lower than previously forecast, the PEV market is expected to continue to grow, and to see stronger growth when the worldwide economy improves and as battery prices come down.
A key enabler, and a direct result, of that growth will be expanding sales of EV charging equipment (better known as electric vehicle supply equipment, or EVSE).
According to a recent report from Pike Research, a part of Navigant’s Energy Practice, annual revenue from EVSE sales will grow from $355 million in 2012 to more than $3.8 billion in 2020 – more than a tenfold increase.
“The EVSE industry is still grappling with the best way to create a viable return on investment on EVSE station deployments for site hosts – an issue that will move front and center as publicly funded EVSE deployments wind down,” says senior research analyst Lisa Jerram.
“At the moment, there are too many players chasing this market, and this industry is likely to see some consolidation over the next year. Companies that can weather this shakeout period, however, are likely to enjoy growing demand as the market expands.”
The key short-term challenge for commercial EVSE sales is to devise viable business models. Currently, it seems likely that both “all-you-can-eat” subscription plans and single price per charge models will be used in the near future. Pike Research’s analysis indicates that the industry seems to be converging around a very low price point for per-charge costs that affords little cushion for the host site to make money. According to the report, the subscription model appears to hold the most promise as a way to generate revenue from public charging systems at a price that will be acceptable to drivers.
The report, “Electric Vehicle Charging Equipment”, examines the state of the global EVSE market today, and provides forecasts through 2020. Including market analysis and forecasts for residential, workplace, public, and private EVSE, the report covers the development of fast charging over the past year and forecasts DC charging sales. It also forecasts the growth of wireless charging equipment, set to become commercially available in the 2013–2015 timeframe.
EVSE forecasts cover the major regions of the world and include breakouts for key adopter countries including the United States, Canada, Germany, France, the United Kingdom, Japan, China, Korea, and Israel. The report also includes profiles of more than 40 industry players, including EVSE manufacturers and service providers, their suppliers, vehicle OEMs, and utilities. An Executive Summary of the report is available for free download on the Pike Research website.