Pike Research, a part of Navigant’s Energy Practice, projects annual revenue from sales of electric vehicle supply equipment (EVSE) will grow from $355 million in 2012 to more than $3.8 billion in 2020 – more than a tenfold increase - but the market research firm expects some turbulence in the market as it matures toward that level, according to a press release.
“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, Pike said. 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.