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By Mark van der Geest
A teeming electric-vehicle marketplace presents significant investment opportunities in EV-charging. Soon, we may be charging our homes and offices, too.
Those standing dominoes seem to keep popping up—the ones lit by gently glowing lights in calming eco-associated colors, with a protruding hose or two. Be it near your office, favorite restaurant or local shop, demand for fast and convenient electric-vehicle (EV) charging keeps rising and the industry appears poised for exponential growth.
Some listed European EV-charging leaders reported 200% year-over-year sales growth in the first half of 2022, much of it driven by public charging stations as more people return to the office. Many companies are stoking further demand by investing in car parks and only allowing employees to lease EVs for work trips. And though sales are unlikely to continue at such a surge, we believe they could grow at a 40% compounded annual rate through 2030.
Home charging currently accounts for around 80% of all charging sessions in Europe. But not everyone has a driveway or dedicated parking space, and more than 40% of potential EV drivers in Europe don’t have the option of charging at home. That’s why quick-stop public-charging stations are key.
Public stations also tend to be a lot faster than the home variety. At 350kW, ultra-fast stations will get you moving in just 20 minutes, whereas 3kW-7kW home chargers need much of the night to finish the job. Chargers are getting smarter, too: Next-generation stations are expected to support ISO 15118—the latest international communications standard for EV-charging, which enables capabilities such as Plug & Charge and Bi-Directional Charging.
With Plug & Charge, drivers can reinvigorate their EVs without an app or Radio-Frequency Identification (RFID) card—the vehicle and the charger automatically identify themselves by exchanging certificates issued in advance. Few vehicles currently support this technology, but we think it will be mainstream by 2025.
Bi-Directional Charging transfers energy from an EV’s battery back to the grid, allowing drivers to power their homes during an outage or even ease overall congestion on the electrical grid—a significant challenge throughout Europe and a potentially attractive market for grid technology and equipment.
The dominoes appear to be lined up for a spectacular performance—and not the toppling kind. We remain plugged in to investment potential in this electric space and switched on to future grid technology opportunities.
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