IMPROVED Corporate Finance and P3 are delighted to publish their co-authored white paper on the most recent market developments and investment activity in Smart Charging: “Smart Charging: The Upcoming Revolution of Electric Vehicle Economics”.
Amsterdam | Stuttgart (January 20th, 2022)
Enhanced integration of EV charging in a smart and connected environment will become a key success factor, enabling up to 5 billion euros of incremental annual revenue in Europe by 2030.
Reliable and smart charging infrastructure is the key enabler for the transition towards mass electric mobility adoption of electric mobility. Only reliable and scalable infrastructure networks and business models can facilitate the move towards emission-free mobility. Sitting at the intersection of existing energy infrastructure and mobility, the successful integration of EV charging into an increasingly connected and smart environment is imperative.
Being the key enabler for the transition towards mass adoption of electric mobility globally, Smart Charging presents a game-changer in EV Economics. While investment and M&A activity in Smart Charging is accelerating rapidly as the market is gaining scale, limited analysis and overview has been put together to analyse this emerging sector, the investment and M&A trends, and its overall economic potential.
IMPROVED and P3 have decided to work together to produce a white paper highlighting:
- Roadmap for Smart Charging
- Expected evolution phases & business models
- Technical enablers
- Future market potential
- Overview of global investment and M&A activity
Smart Charging offers significant business opportunities for numerous established and new players within the EV charging ecosystem. The creation and investment in valid cross-industry “ecosystems” based on powerful standards and interfaces, will unleash attractive business models and a EUR 5bn market in annual revenue of hardware, software and value-added services in Europe up until 2030. The Smart Charging domain offers an attractive business case for investors, as rapidly increasing unit economics and commercial feasibility of Smart Charging applications present significant new opportunities with high potential returns.
As such, from 2019 to 2021, global smart charging investment activity has multiplied nearly six times and has really accelerated as of H1 2021. As such, the total transaction volume globally increased from 8 transactions in 2019 to 51 transactions in 2021. Similarly, the total transaction value increased nearly six times from EUR 205mn to EUR 1.8bn in 2021. The capital formation growth rate has been far superior to the growth of the E-mobility market of about 40% per year, underpinning a strong appetite to capture future potential, a “landgrab” of market share, and the increasing value-added of the products and services offered by these companies.
Ultimately, Smart Charging will be key in enabling the inevitable transformation of the mobility sector from fossil to renewable and emission-free sources.
The report was co-authored by Dominique Houde (Partner), Bas Hendriks (Senior Associate), and Nicolas Magnus (Senior Analyst) of IMPROVED Corporate Finance, and Dr. Jan Traenckner (Senior Advisor E-Mobility), Johanna Heckmann (Head of Charging Infrastructure), and Falko Bartnik (Consultant E-Mobility) of P3.