Biplab Das 
Electric vehicle (EV) charging companies are engaged in a heated battle over prime locations for fast public chargers, with industry experts predicting increased consolidation as more significant investors enter the competitive arena. The surge in interest is driven by impending bans on fossil fuel-powered cars in various countries, making the EV charging sector increasingly appealing to infrastructure investors.
Land grab for strategic locations
As the EV charging sector gains momentum, companies are strategically positioning themselves to secure the best locations for their charging stations. The CEO of Finnish EV charger manufacturer Kempower, Tomi Ristimaki, emphasizes the current scenario as a “land-grabbing game,” where securing optimal locations becomes crucial for guaranteeing electricity sales in the years to come.
Global expansion of EV charging companies
A Reuters analysis reveals the existence of over 900 EV charging companies globally, having attracted more than USD 12 billion in venture capital funding since 2012. The sector’s attractiveness is further heightened by notable investments from corporations such as Volkswagen, BP, and E.ON, resulting in 85 acquisitions since 2017.
Rising competition in the UK market
The UK, with over 30 fast-charger operators, has witnessed increased competition, with recent entrants like Australia’s Jolt and Zapgo. These companies are supported by significant investments from BlackRock’s infrastructure fund and Canadian pension fund OPTrust, respectively. The intensifying competition signifies the growing importance of the UK in the global EV charging landscape.
Changing dynamics in the U.S. market
In the U.S., Tesla stands as the dominant player, but the landscape is expected to evolve rapidly with convenience store chains and retail giants like Circle K, Pilot Company, and Walmart investing substantially in charging stations. EVAdoption’s Loren McDonald predicts that the number of U.S. fast-charging networks will more than double from 25 in 2022 to 54 in 2030.
Challenges faced by EV charging companies
While the potential for growth is evident, EV charging companies face challenges such as profitability and regulatory hurdles. It can take up to four years for a strategically placed charging station to become profitable, and red tape in Europe is reportedly hindering expansion efforts.
Long-term investments and consolidation
Despite the challenges, long-term infrastructure investors like M&G’s Infracapital and Sweden’s EQT view the sector as a promising investment. Consolidation is anticipated as larger players seek to secure prime real estate for mega-facilities equipped with numerous fast-charge dispensers, surrounded by retail outlets and amenities.
Exclusive contracts and strategic partnerships
Companies are also vying for exclusive contracts with hosts to secure long-term partnerships. InstaVolt, owned by EQT, has secured deals with companies like McDonald’s to build charging stations at their locations. Winning such partnerships can provide companies with stability and longevity in the competitive market.
Consolidation outlook and room for multiple operators
While consolidation is on the horizon, industry experts believe there will still be room for multiple operators. The evolving landscape, particularly in leading EV markets like Norway, might witness smaller companies either leaving the market or being acquired by larger players.
Future predictions and industry transformation
As EV charging companies navigate the challenges and opportunities, the industry is expected to witness significant transformations by the end of the decade. The involvement of major investors, the influx of funding, and the evolving competitive landscape will contribute to reshaping the logos and key players in the EV charging sector.
The global surge in electric vehicle adoption and the subsequent demand for charging infrastructure have spurred intense competition among charging companies. The strategic positioning for prime locations, coupled with the involvement of major investors, is paving the way for an industry that is poised for significant growth, consolidation, and transformation in the coming years.
