Electric vehicle charging – the next big opportunity : KPMG Reports

Mumbai : EV charging is rising as the next big opportunity in the fast-evolving Indian EV ecosystem. Quite a few private and non-private enterprises from completely different spheres have already made in-roads on this attention-grabbing house, which embody charger OEMs, pure-play cost level operators, oil advertising corporations, utilities and EV fleet operators. The competitors on this house is more likely to intensify as EV gross sales go up and the market matures. It is, subsequently, essential that corporations in search of success on this business rigorously select their ‘field of play’ and develop profitable methods to realize a aggressive edge over their opponents by way of modern merchandise, top-notch service, robust community, and a number of strategic partnerships.

Today KPMG launched an in depth report ‘Electric vehicle charging – the next big opportunity’. The report says pushed by environmental issues and dedication to a greener planet and catalysed by rising gas costs, electrical automotive gross sales have elevated. As the fledgling EV ecosystem matures at a speedy tempo, a important facilitator of EV adoption is prepared availability of sluggish and quick chargers guaranteeing easy accessibility to environment friendly and cost- efficient charging.

Some key highlights from the report

• India’s e-mobility journey is on a quick monitor, with an estimated 45-50 million EVs on highway by 2030
• Investors see gamers in the EV charging market as promising funding prospects
• Charging applied sciences will range by completely different vehicle segments. Public and personal charging options will likely be deployed to serve completely different buyer segments and use instances
• 2Ws and 3Ws are finest suited to AC sluggish charging. Battery swapping more likely to be the extra prevalent mannequin to be used instances requiring fast charging turnaround
• Home/office and fleet charging options present most potential in the quick time period; shift to happen to public charging as the market matures – Indian market is more likely to have a dense community of AC personal and public chargers; DC chargers to be restricted to buses and few use instances for 4Ws and LCVs
• Customer expectations from completely different charging options will range i.e. expectations from Home/ Workplace Charging are anticipated to be completely different from Destination Charging or On the Go Charging which is able to differ from Fleet Charging
• Strategic partnerships for actual property and interoperability amongst CPOs/ Service Providers are essential to strengthen buyer proposition

Winning the battle in the charging ecosystem

• Charger producer – Product customisation, design innovation and software program integration would function key differentiating elements along with product and repair high quality and value competitiveness
• CPOs – Location, know-how, reliability of energy are hygiene elements. Loyalty applications, partnerships, integration with fee gateways and so on. will drive stickiness
• Strategic partnerships and alliances are paramount to grab the opportunity in the burgeoning CPO section

Rohan Rao, Partner, M&A Consulting, KPMG in India says, ‘Development of a robust charging network has gone hand-in-hand with accelerated EV adoption across the world, and we believe a similar trend is expected to play out in India. With an estimated 50 million EVs on Indian roads by 2030, the potential opportunity for a pure play charging business is enormous.’

According to the report charging infrastructure, as a important enabler for EV adoption, creates a number of market alternatives for gamers in the quickly evolving electrical mobility panorama.

Favourable market developments and coverage assist enhance the world charging infrastructure market

The world charging infrastructure market has witnessed vital progress over the previous couple of years (Figure 1). While residential and office charging stay the dominant modes of charging, public charging infrastructure has expanded manifold to alleviate the ‘range anxiety’ concern of shoppers, which is probably going to assist facilitate EV deployment objectives quickly.

Countries with higher charging infrastructure have seen accelerated adoption of electrical automobiles

An evaluation by World Bank signifies that investing in charging infrastructure is 4-7 times6 simpler in EV adoption than offering EV buy subsidies. Countries like Norway and China have seen quicker EV adoption by way of their sustained efforts in direction of increasing the public charging infrastructure. China is at present the world chief in the variety of publicly accessible chargers, accounting for 85 per cent of worldwide quick chargers and 55 per cent7 of sluggish chargers.

Global funding exercise has been on the rise, with anticipated funding of USD2.3 billion by the finish of 2022

Investment exercise on this area of interest section has surged in the final two–three years, with corporations acquiring funding by way of IPOs, enterprise capital (VCs) and strategic acquisitions. Based on long-term income projections, traders see gamers in the EV charging market as promising funding prospects.

India’s e-mobility journey is on a quick monitor, with an estimated 45-50 million EVs on highway by 2030

India‘s electrical mobility story is quickly evolving, with EVs regularly getting into the mainstream, leading to a threefold rise in EV gross sales over the final fiscal 12 months. The progress is at present being led by two-wheeler (2W), three-wheeler (3W), and bus segments. While EV penetration in India is at present low (about 1 per cent10), a big improve in EV gross sales is anticipated because of beneficial elements on the demand, provide and regulatory entrance.

As of March 2022, the variety of EVs on Indian roads had surpassed a million. This quantity is more likely to develop to 45-50 million EVs on highway by 2030. This presents an infinite opportunity for gamers in the EV charging ecosystem. Currently, solely about 1,700 public charging stations are operational throughout the country12 which is insufficient to assist the EV progress. Nevertheless, there was a robust authorities push to enhance penetration of charging community and rising curiosity from private and non-private gamers, which is probably going to herald the much-required investments on this house.

India‘s charging infrastructure calls for are distinctive, contemplating that the vehicle combine is dominated by 2Ws and 3Ws, versus superior international locations the place 4W is the dominant section. As energy requirement varies throughout EV segments, the similar charging technique is just not appropriate for all segments:

• 2Ws and 3Ws have small, low voltage batteries, and regular AC energy charging is ample for these segments
  • 4Ws have assorted battery sizes and utilise completely different charging requirements. While single- part AC chargers are appropriate for automobiles with single-phase onboard chargers, three-phase AC chargers are required for automobiles with bigger onboard chargers

• Buses have giant battery sizes and high-power necessities, which makes DC quick charging the best suited for this section

While all EV house owners desire quick charging, this mode of charging is just not appropriate for all vehicle segments. Aside from the larger value related to quick chargers, it might need an opposed influence on battery life and subsequently, not all vehicle fashions are designed to deal with quick charging. Most of the present e-2W and 3W fashions in the Indian market are suited to sluggish charging and battery swapping is rising instead to be used instances the place quick charging is required.