U.S. Competitive Product Outsourcing Sector Demonstrates Consolidation; European Market Remains Fragmented
In the rapidly evolving world of electric vehicles (EVs), the markets for charging infrastructure in the United States and Europe are taking distinct shapes.
France has made a bold move to support its local economy by excluding Chinese-made vehicles from its EV purchase incentives. Meanwhile, across the Atlantic, the US has approximately 3 million battery electric vehicles (BEVs) and 150,000 public EV chargers, resulting in a 20:1 vehicle-to-charger ratio. Europe, on the other hand, boasts around 6 million BEVs and 750,000 public chargers, giving it a more favorable 8:1 ratio.
The UK's exit from the EU adds another layer of complexity to the European EV charging market. However, local leaders in Europe are eyeing potential mergers to form regional powerhouses. Companies such as Electra (market leader in France and Belgium), EnBW (Germany’s market leader in fast charging), Kostad Steuerungsbau GmbH (Austrian pioneer with 22,500 installed chargers worldwide), and KEBA (leading manufacturer of wallboxes with innovative AC and DC fast chargers) could be among the contenders. The Renault Group, with its significant role in European electric mobility, may also support infrastructure growth through its alliances.
In contrast, the US market for charging point operators (CPOs) is relatively less fragmented, with major players like Tesla, EVgo, Electrify America, and ChargePoint dominating, particularly in states like California, Texas, and Pennsylvania.
Europe's fragmented market presents significant opportunities for consolidation, which could lead to a more integrated market, rivaling the established US leaders. Germany's leaders in the CPO market include EnBW, Aral Pulse, Tesla, Ionity, and Allego. In the UK, leading CPOs include InstaVolt, Tesla, BP Pulse, Osprey, and Gridserve.
The US benefits from unified federal policies, with the 2021 Bipartisan Infrastructure Law allocating $7.5 billion for EV charging, the 2022 Inflation Reduction Act providing tax credits for EVs and chargers, and the federal government setting up the Joint Office of Energy and Transportation to streamline the deployment of fast-charging stations along highways.
However, Europe's EV charging market is more fragmented compared to the US, with differences in the pace of application of the European Green Deal by member states. McDonald's in Europe uses different charging point operators in each country, reflecting the market's diversity.
Consolidation in Europe can improve economies of scale and provide a more consistent customer experience. As both the US and European EV charging markets evolve, it will be interesting to see how the landscape changes, particularly in light of Germany's lobbying for exemptions to the EU's 2035 ban on new combustion engine car sales to protect its car industry.
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