Opportunities in the US Electric Vehicle Charging Market for Retailers

The number of electricvehicles (EVs) in the US israpidly increasing

According to the US Department of Energy, fewer than 20,000 plug-in hybrid(PHEV) or all-electric vehicles (EVs) were sold in 2011; by 2015, this numberhad risen to over 110,000. 72,000 of which were all-electric.

Buyers of today’s EVs arehigh-income Americans

The average annual household income of an EV buyer is at least USD150,000(double the average household income of the average new car buyer),according to TrueCar

Some automakers arebeginning to offer affordableEVs to the mass market

Automakers – such as Tesla with its new Model 3 (priced from USD35,000before incentives) – are beginning to offer high-volume all-electric vehicles tothe mass market with long-range batteries.

An efficient fast chargingnetwork is a crucial part ofEV mass adoption

Fast chargers currently comprise less than 15% of total public stations in theUS. Their convenience (30-45 minutes for an 80% charge) is essential indense urban areas, or when on long-distance journeys where drivers do nothave access to a dedicated charging port or time to wait for slower alternatives

Retailers best suited tohouse electric vehiclechargers meet threecharacteristics

Automakers’ investment in EV charging stations will likely come in the longterm in the US. In the short term, businesses with the following characteristicsshould invest in EV chargers: ample parking spots; urban or inter-urbanlocations; stable or growing in-store demand from wealthy consumers.

Investing in EV chargingstations will allow retailersto secure an early-moveradvantage, and can be aprofitable investment

With the exception of Tesla, no major automaker has backed significantelectrification initiatives in the US; neither has the US government. Privatecompanies are left to pick up the slack, which means that the most primecharging locations remain available. Retailers that invest now will benefit froman early-mover advantage and secure investments with a positive long-termreturn