Profits from EV Charging Are Set to Hit Record Highs

Profits for EV charging are hitting record highs as charging infrastructure grows.
Written by Andrew Kidd
Reviewed by Kathleen Flear
Aug 24, 2022
Is
electric vehicle
charging finally profitable enough to ease some of the
anxieties
of would-be electric vehicle buyers?
Per
AccessWire
, demand for electric vehicle charging stations is predicted to rise thanks to the increased adoption of electrified vehicles.
Additionally, wireless charging may see some increased investment as well, as the popularity of consumer wireless charging grows.
Experts project that the overall electric vehicle charging station market will reach a worth of $727 billion by 2031. Supercharging stations—which charge vehicles faster than typical chargers for a premium—are particularly profitable, pulling in high revenues in 2020.
Innovation when it comes to Level 2 charging, which offers fast charging for residential and commercial customers, has been extremely profitable for providers as well.

Why is the market expanding?

It's because enough people have purchased electric vehicles to warrant a higher demand for more charging infrastructure, particularly in North America and Europe. The
Transparency Market Research
report published by AccessWire states that government and automaker initiatives to promote a wider adoption of electrified vehicles—including fully electric and plug-in hybrid vehicles—among consumers have been effective.
The Asia Pacific market—
China
in particular—still holds a large share of the global electric vehicle charging station market, while electric vehicle awareness and purchase incentives will help it maintain that trajectory.
This, in turn, has boosted investment in new charging technologies to make charging more accessible and affordable. 
The increasing need for affordable charging systems for both home and commercial users should generate even greater revenue streams for the charging station industry.

Which companies are in the EV charging market?

Companies in the electric vehicle charging station market include Siemens AG, Hitachi, Ltd., Tesla Motors, Inc., Schneider Electric SE, Panasonic Corp., Nichicon Corp., KYOCERA Corp., General Electric Co., Enel Group, Eaton Plc., Delta Group, ChargePoint, Inc., and AeroVironment, Inc.

What does this mean for vehicle owners?

As we've
reported
before, electric vehicle charging is becoming more widespread and accessible, with nearly one public charging port for every gas station in the U.S. This growth is necessary if electric vehicles are to fully supplant their gas-powered counterparts.
The U.S. is projected to see 35 million EVs on the road by 2030. That means it will need to install about 478 charging ports every day for the next eight years to build the necessary infrastructure to support them.

How pervasive are charging stations today?

According to U.S. Department of Energy
data
, the U.S. has 56,825 public charging station locations and 141,717 EVSE ports, the vast majority of which (50,376) are Level 2 charging stations.
For comparison's sake, the
American Petroleum Institute
reports more than 145,000 gasoline and diesel fueling stations in the U.S., which makes for an almost 1:1 ratio of gas stations to charging ports.
Where the comparison falters is that gas stations typically have multiple pumps—let's say eight on average. That means if these 145,000 gas stations each had eight pumps, you're looking at 1,160,000 pumps versus just 141,717 electric charging ports at 56,825 charging stations. 
Gas stations have a much higher throughput than electric charging stations as well, taking mere minutes to refuel as opposed to 30-45 minutes for even the fastest chargers.
But that's not really a problem, as charging infrastructure has a distinct advantage over gas: its ability to be installed just about anywhere without the overhead of your typical gas station and attached convenience store.
That means even if you don’t have a charging station for your electric vehicle nearby, you're not out of luck, as you can usually
install one at your own home
and charge at your leisure.
It's also relatively cheap depending on electricity rates. You’ll pay between $0.30-0.60 per kWh at a public charging station, which means a full charge will come out to around $20.00 depending on your battery size. 
But you’ll pay closer to $0.13 per kWh if you charge at home, meaning you'll spend about $9 for a 200-mile range battery.

What if I can't afford an EV?

You might be able to get some assistance. In the U.S., the Inflation Reduction Act of 2022 is set to cement a $7,500 incentive for consumer electric vehicles (so long as automakers adhere to stricter parts sourcing requirements) and a $40,000 subsidy for heavy-duty commercial electric vehicles.
If you're intent on saving even more, you should be warned that electric vehicles cost a bit more to insure than their gas-powered cousins. The best way to get the lowest rate on your car insurance is to shop around—and
Jerry
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