Electric vehicle charging stations poised to offer added revenue options

As the aftermarket starts plugging into the prospect of repairing plug-in electric vehicles that currently remain mostly within the domain of car dealership service centers, opportunities are also arising for installing and maintaining the vast array of charging stations necessary to ease “range anxiety” and further spark PEV sales.

In addition to servicing the growing presence of charging units, collectively known as electric vehicle supply equipment (EVSE), “there is also a business for the installation of them, especially for home chargers,” reports Lisa Jerram, principal research analyst at Navigant Research, which has prepared several in-depth studies on the EV segment. “You’ll see more people wanting to install home chargers; a local company can offer a package deal” that could include vehicle maintenance offerings along with charging station upkeep.

“There is an opportunity to make the process as seamless for the customers as possible.” Dealerships currently dominate the EV realm because of the complexity of the designs. “The technology is relatively new and the technology is changing rapidly,” Jerram explains. Yet continued proliferation of charging stations is an endeavor that can benefit the entire category – reducing range anxiety issues will drive heightened acceptance. “This will help the EV market as well, so the automakers should be interested” in cooperating with convenient charging sites.

“It’s still a competitive Wild-West space,” Jerram continues, referring to an ever-changing and ever-expanding EV marketplace; 2015 sales of PEVs in the U.S. are expected to reach 220,000 vehicles. And although these purchases amount to just 1 percent to 2 percent of the domestic car parc, “it’s definitely a solidly growing market,” she points out. “There’s a real potential as more companies put chargers into place.”

Two segments are involved: Residential and commercial. Residential charging is closely tied to PEV sales levels and continues to grow in tandem with the PEV market. Commercial charging is dependent on a viable business model or major governmental efforts and initiatives for its success, according to Jerram. “Both markets exhibit different trends at a national or state level, depending on factors such as population density, utility involvement and policy push for PEV adoption.”

With the number of PEVs in use projected to reach 12 million globally by 2023, EVSE demand is expected to evolve as well, rising from $152.6 million in 2015 to nearly $3 billion over the next decade. “Sales of EV charging systems are expected to grow steadily in the coming years, surpassing 2.5 million units by 2023,” says Jerram.

In the U.S. there are about 250,000 charging units currently in place. Expect to see more than 900,000 of them by 2023, amounting to a $1.4 billion EVSE domestic marketplace. The category includes plug-in hybrids (PHEVs).

Publicly located chargers continue to proliferate at rest areas, shopping centers and other gathering spots, and workplace charging is picking up as well. Some charging networks have usage fees, others charge via subscription, and an increasing amount of entities offer EV charging as a free service to entice customers or as an employee perk, according to Jerram, whose research is highlighted in Navigant’s recent 72-page Electric Vehicle Charging Services report.

Thus far charging unit providers are maintaining the installation and service aspect of the business as an in-house operational strategy. “It’s a control thing because the networks are relatively new – their reputation is at stake.” However, Jerram expects that business model to shift as chargers become more common, opening up opportunities for aftermarket enterprises and other entrepreneurs interested in tapping in to the PEV segment. Installing and maintaining EVSE will become an ongoing need throughout the nation.

Charging sites along highways that connect PEV-friendly metropolitan areas are prime EVSE candidates; spreading into adjoining smaller towns is an anticipated follow-up scenario. “It will be more like a gas station model, except you leave your car and go do something else,” says Jerram. Yet that model – having shopping or other activities nearby to occupy drivers’ time while they wait – may also be poised for future change as charging time is already being shaved down to a half-hour or even 20 minutes. “It will be interesting to see the demand for fast-chargers,” she observes.

A seamless experience

During the first quarter of 2015 Tesla sold a record-setting 10,030 EVs, a 55 percent increase over 2014’s first quarter. This year’s global sales are expected to double, reaching 55,000 cars, and Tesla says it also intends to double its network of free superchargers. The ability to drive cross-country and up and down the East and West coasts is already in place.

In January BMW, Volkswagen and ChargePoint rolled out an initiative to install nearly 100 publicly available chargers sited 50 miles apart to support long distance and metropolitan travel for BMW’s i3, VW’s e-Golf and other EVs along heavily trafficked corridors on both coasts.

“A robust network of conveniently located DC fast-charging stations will go a long way toward increasing electric vehicle adoption and making electric vehicle ownership even more enjoyable,” says Robert Healey, BMW’s head of EV infrastructure. “The express charging corridors are another important step in the development of the U.S. e-mobility infrastructure that makes longer distance travel a real option for consumers, particularly along the most heavily trafficked portions of both coasts – making the BMW i3 and other electric vehicles even more appealing.”

The automaker has also demonstrated a solar-powered home charging station.

“Volkswagen believes in a holistic approach to e-mobility in order to create a seamless experience for the consumer,” reports Jörg Sommer, VW’s vice president of product marketing and strategy. “The investment in the express charging corridor will provide e-Golf and other electric vehicle owners with the added support to travel their day-to-day and popular long distance routes.”

“Our goal at ChargePoint is to get everyone behind the wheel of an EV and provide EV charging everywhere they go,” says CEO Pasquale Romano. “With strategically placed stations where drivers need them, these express charging corridors will give EV drivers the freedom to go farther and have an EV as their only car without limitation.”

In August of last year Bosch Automotive Service Solutions began installing its ChargePoint-networked BMW i DC Fast Chargers at North American BMW i Centers and the automaker’s authorized partners.

“With our BMW partnership already covering BMW i3 drivers who wish to charge their electric vehicles at home, we’re now helping them charge quickly on the road, at BMW i Centers and elsewhere nationwide,” says Kevin Mull, Bosch’s vice president of business development. “As we’ve grown our relationship with BMW over the years, including residential charging, this is another way we can help both dealer and driver realize the full capabilities of the BMW i3.”

“BMW strongly believes DC fast-charging is a critical element in increasing overall acceptance and adoption of the BMW i3 all-electric vehicle,” adds Cliff Fietzek, BMW’s connected eMobility group manager. “In working with Bosch to develop and install the DC fast-chargers we continue to underscore the company’s commitment to the BMW i3 and to the future of electric mobility.”

Radical change

BMW’s i3 is a car to keep your eye on, according to consultant Sandy Munro at Munro & Associates, calling it “the most revolutionary car in terms of creative engineering and manufacturing since Henry Ford’s Model T” at March’s Manufacturing for Growth conference in Florida.

“James Watt’s steam engine, Eli Whitney’s cotton gin, the Ford Model T, Eastman Kodak, Frank Whittles’ jet engine, Chester Carlson and the Xerox machine, Ruth Handler and Barbie, Steve Jobs’ first computer and many other game-changing technologies caused revolutions in their respective industries,” Munro says. “Those that got the message of change forged ahead and the rest became historic footnotes.”

The i3’s material and process technologies “will cause this type of radical change not just in the automotive manufacturing sector, but also in the aircraft, high-speed train, household appliance, computer and cell phone industries,” he notes. “How these industries choose to react to the new technologies and processes introduced through the BMW i3 will determine the next generation of innovators and the next generation of footnotes.”

Practical options

Leviton has recently launched single and dual charging station pedestals for employer environments.

“From our nearly 3,000 electric vehicle installation experiences at dealerships throughout North America and our membership in the Department of Energy’s Workplace Charging Initiative, we’ve learned that consumers desire a workplace electric vehicle charging system that delivers on the principles of safety, convenience, cost-effectiveness and reliability,” says Manoj Karwa, senior director of EVSE programs. “Leviton designed the electric vehicle charging station pedestals to meet the requirements of the next generation of electric vehicles while still providing a cost-effective charging solution.”

In addition to the two charging stations already located at its Michigan headquarters, Freudenberg-NOK Sealing Technologies will be installing four more as part of the DOE’s Workplace Charging Challenge Pledge.

“We’re proud to support the development of electric vehicles, and it’s something important to many of our employees,” says Freudenberg-NOK President Ted Duclos. “Our company is fully committed to making electric vehicles a more practical option,” he adds. “By taking these steps, we hope to increase public awareness of the benefits and capabilities of electric vehicles. The technology is here, but there is an opportunity for infrastructure development to expand the use of PEVs.”

Logical rollout plans

After introducing its Soul EV late last year in California, Kia is increasing the availability of its urban runabout into five new states: Georgia, Texas, Oregon, Washington and Hawaii. More than 1,800 dealership charging stations are hooked-up to facilitate the expansion. Additional markets are slated to come online in 2016.

“With the level of demand and supporting infrastructure in the state, California was a natural place to start, but we’ve been carefully studying other markets,” reports Orth Hedrick, vice president of product planning. “Between consumer reaction to the Soul EV and growing infrastructure programs in these five states, this is a logical – and exciting – next step in our rollout plan.”

Hyundai’s debut 2016 Sonata PHEV will be hitting showroom floors in California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island and Vermont later this year.

After unveiling its Chevrolet Bolt concept EV at January’s North American International Auto Show in Detroit, the effusive reaction among attendees drove General Motors to fast-track production of the $30,000-car at its Orion Assembly plant in Michigan – investing $200 million in the factory’s tooling and support processes.

“The message from consumers about the Bolt EV concept was clear and unequivocal: Build it,” according to GM North America President Alan Batey. “We are moving quickly because of its potential to completely shake up the status quo for electric vehicles as the first affordable long-range EV in the market.”

“The Bolt EV concept is a game-changing electric vehicle designed for attainability, not exclusivity,” explains GM CEO Mary Barra. “Chevrolet believes electrification is a pillar of future transportation and needs to be affordable for a wider segment of customers.”

She goes on to point out that “we have made tremendous strides in technologies that make it easier and more affordable for Chevrolet customers to integrate an all-electric vehicle in their daily lives. The Bolt EV concept demonstrates General Motors’ commitment to electrification and the capabilities of our advanced EV technology.”

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