Revenue From Electric Car Charging Services To Hit $2.9 Billion Annually By 2023

MAR 10 2015 BY MARK KANE 12

Navigant Research: Electric Vehicle Charging Services

Navigant Research: Electric Vehicle Charging Services

Navigant Research’s new report “Electric Vehicle Charging Services” states that by 2023, when plug-in electric cars sold will reach 12 million, revenues from electric vehicle charging services will grow to $2.9 billion.

Sales of “EV charging systems” will then exceed 2.5 million.

According to the forecast, in 2015, revenues will stand at some $152.6 million – twice the value from 2014 at $81.1 million.

At such a high growth rate of EVSE production, hopefully prices will fall down too.

“The market for plug-in electric vehicle (PEV) charging equipment (also known as electric vehicle supply equipment, or EVSE) is expanding, while experiencing predictable growing pains. With the number of PEVs in use projected to reach 12 million globally by 2023, the market for EV charging services is likely to continue to evolve to respond to growing demand. Click to tweet: According to a new report from Navigant Research, worldwide revenue from charging services is expected to grow from $152.6 million annually in 2015 to $2.9 billion by 2023.

“Sales of EV charging systems are expected to grow steadily in the coming years, surpassing 2.5 million by 2023,” says Lisa Jerram, principal research analyst with Navigant Research. “That represents a significant market for providers of charging systems, but the market landscape and the business models, particularly for commercial charging, are yet to be fully defined.”

Residential chargers are increasingly a commodity, competing more on price than on innovative features, according to the report, making the market for commercial chargers (defined as installations outside vehicle owners’ residences) the most dynamic and the most uncertain. Public chargers continue to spread, and workplace charging is picking up. Some charging networks have usage fees, some charge via subscription, and some companies offer EV charging as a free service to entice customers or as an employee perk. Automakers and utilities are moving to the forefront in the financing and build-out of EV charging networks, the report concludes.

The report, “Electric Vehicle Charging Services,” analyzes the global market for PEV charging equipment sales and charging services. The report covers the residential and commercial charging market segments and analyzes the potential uptake of alternating current (AC), direct current (DC), and wireless electric vehicle charging equipment. Global market forecasts for residential and commercial EVSE unit sales and revenue, broken out by region, charger type, and segment (residential, workplace, public, and private), extend through 2023. Forecasts of revenue from charging services and electricity demand are also included. The report also examines the different regional drivers and business models related to PEV charging and the key industry players within the competitive landscape. An Executive Summary of the report is available for free download on the Navigant Research website.”

Categories: Charging


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12 Comments on "Revenue From Electric Car Charging Services To Hit $2.9 Billion Annually By 2023"

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I live in DC, a friendly EV city, I moved to an apartment complex because they offered EV charging station in the parking garage, managed by Chargepoint, so for my surprise and after I moved they charge $0.45 cents per Kw/h average price in DC $0.11 to $0.12 cents Kw/h, now I use my ICE car because charge my electric become more expensive than use Gas. I started to google prices of public charging stations and they go from free all the way to $0.75 cents per Kw/h. I just realized that this is the worse threat to EVs, now for some people like me Back to Gasoline is the best option.

That is just sad to me. It’s a shame that they are charging such a premium for “home” charging. It’s also a shame that you don’t have work charging.

I personally don’t mind them charging $0.49/kWh at our local mall. But that’s because I can charge at home for $0.14/kWh. I use very little energy from the mall. For you, that would be your main source of power.

I am guessing that the problem is the high fees imposed by ChargePoint. My employer looked at them but went with GE Durastations instead. GE’s fees are much lower although they aren’t really configured for public use. Seems like GE’s model would be better for an apartment complex than ChargePoint’s.

Charging four times the going rate for electricity in your area certainly would be a deal-killer, all right.

Sounds like price gouging to me, but I don’t know what the economics are of for-profit EV chargers. Obviously the entrepreneur wants to make his money back for the installation. Looking at, it looks like the lowest price is for units which cost $550-600.

I hope as the EV revolution progresses, less expensive options will become available for entrepreneurs who want to install for-profit EV chargers.

At least for the situations I am aware of, the property owners rather than ChargePoint sets the rates. The ChargePoint stations I’ve used near where I live have rates ranging from free for the first two hours to $4 for up to four hours.

I assumed ChargePoint owned the chargers and set the rates, but then I talked to the guy responsible for installing the chargers where I work and he told me that he got to choose the rate. Of course things might be different in your situation. But you might have some luck contacting the property owners where you live and discussing the high rates with them.

I don’t know why we even need companies like Charge Point. Why can’t they just install a credit card reader on the charger and charge the card directly rather than go through a middle man? I really don’t see the value of companies like Charge Point.

MDEV, I feel your pain. At those prices charging is necessity charging only.

On the flip side, it has to be tough for ChargePoint, Blink, etc. to charge a fee less than that and be able to sustain the equipment and network, based on current utilization levels.

The charger was without use for 18 moths because people look for alternatives and nobody charge in my apartment , what kind of business is that? Chargepoint is not making a penny with that.

I believe chargepoint still collects monthly service fees from the stations, even if they aren’t used.

No they don’t charge a monthly fee I have a chargepoint card. You can also charge using a credit card

Try to work out a business case for public charging.
Please make an effort and estimate the cost of installation, it will surprise you.
In most of the cases you’ll also have to get your own connection and meter from local utility. You would be paying business tariffs, not residential which in some cases are higher.

Exactly. And it’s not nearly enough to calculate the cost of installation. The service provider must have personnel for marketing, management, support and other. In the end the customer must pay salaries for everyone.

It shouldn’t cost more than $0.10/kWh in addition to the electricity rate to make it sensible for customer, but I just don’t think there is enough EV’s yet to make profitable business with that kind of pricing.

That is my point if the business model only works overcharging 400% to 700% EVs have a grim future and will remain away of massive adoption. Still driving a ICE will beeven cheaper for most folks.