- The opportunity in the EV charging station business
- How Electrical Distributors (ED) can break into an exploding market?
- Conclusion
The International Energy Agency estimates that by 2030 Electric Vehicles(EVs) will represent 60% of all vehicles sold globally. In the US, The number of EV cars sold in 2020 was about 2.4% and is expected to grow to account for 25% of all light-duty vehicles and passenger cars by 2030. This rapid growth has its origins in the global crises-triggered rising fuel prices, increasing environmental awareness among consumers, and government mandates for cleaner transportation options (such as targets set by California).
EVs are also changing consumer behavior all around the world – An increasing number of businesses are offering EV charging stations, which means that more drivers can charge their cars at work. Meanwhile, more customers are requesting EVs from dealerships as they better understand how beneficial they can be.
The opportunity in the EV charging station business
“Greater and more widespread EV adoption results in increased needs for charging infrastructure across various locations, including home, workplace, and public.”
– The International Council on Clean Transportation (ICCT)
The rapid growth in the EV industry has put tremendous pressure on the need for charging infrastructure in cities across the world. And this has started impacting the global EV Charger market greatly. According to a report by the International Energy Agency(IEA), public charging stations have grown by 40% in 2021 compared to the previous year. This is the same year when EVs tripled their number year on year!
How Electrical Distributors (ED) can break into an exploding market
With the EV charging station market growing tremendously in the last three years, many electrical distributors (ED) are starting to capitalize on the growing EV market. As EV sales increase, so does the demand for chargers and other related products.
EV charging stations have become an important part of many EDs’ business operations, but it is not enough for them if they want their company’s name associated with this growing trend in the industry. Because EDs aren’t just selling hardware anymore—they’re selling services as well! This means partnering with EV charger manufacturers because it allows both parties access to each other’s customer bases through referrals or partnerships that allow them both access to new markets where there isn’t currently a presence.
Many EDs are partnering with EV charger manufacturers to offer a more holistic service offering to customers. This is because, as the market grows, so does the need for the repair and maintenance of chargers.
For example, CyberSwitching, a veteran in power management technologies, has developed EV Charging solutions, Power Submetering, Intelligent Data Rack Power Distribution Units, and Building Infrastructure Power Management. They have recently launched a new distribution-based sales channel where EDs can now avail of the best terms and wholesale pricing in the EV charging industry, along with the chance to sell the best-performing EV charging stations out in the market.
A growing trend in the Electrical distribution business
EDs can provide an integrated service within their existing offering and/or on a stand-alone basis. In addition to selling EV charging stations, they may also offer:
- Installation (including permitting)
- Maintenance contracts
- Repairs
Maintenance contracts can be a significant source of revenue for EDs, as the charger manufacturer will expect them to provide ongoing support for their products. Repairs are another important offering that EDs can provide—because the chargers are so expensive, there is often little financial motivation for EV drivers to repair them themselves. There is an increase in demand for these services over time, and expect this trend to continue going forward.
A word of caution – While the opportunity is huge, EDs need to be aware of new trends and technologies to keep up with this demand. They also need to adapt their business model to capture these opportunities.
Conclusion
With manufacturers and government agencies making investments in technology and the infrastructure required for EVs, this is a market worth investing in.
EVs are more than just a fad. They’re here to stay, and customers will expect businesses to be ready as they transition from fossil-fuel-powered vehicles to electric ones. What if businesses don’t understand how it works? They risk being left behind by competitors who understand what all of this means for them—and how they can make good use of it!
Interested in multiplying your revenue potential through EV chargers? Reach CyberSwitching to explore partnership opportunities here.
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Nick Zamanov is a head of sales and business development at Cyber Switching. He is an expert in EV infrastructure space and he is an EV enthusiast since 2012, Since then Nick strongly believed that electric vehicles would eventually replace Internal Combustion Engine (ICE) cars.