Electric Vehicle Charging as a Service Market Trends

Growth Drivers

• Rising focus on sustainability in the automotive sector - Recently, sustainability has been a hot topic in the media and in society at large. It is also being explored in science from a variety of angles. Due to past corporate scandals, sustainability is becoming increasingly essential, particularly for the automobile sector. Essential concerns of concentration are electric motors, lightweight construction, and reducing CO2 emissions.
  
  As per the World Economic Forum published in May 2024, the car sector is proving that it is willing to adapt. For instance, the Science Based Targets program offers standardized reporting principles, and the EU and the US have committed to producing net-zero carbon cars by 2050.
• Rising focus to switch from fossil fuel - The capacity of renewables is expected to increase throughout the next five years. For instance, 96% of new capacity during the timeframe is anticipated to come from solar PV and wind power plants; additions are forecast to be more than fourfold by 2028 compared to 2022 levels, reaching almost 710 GW. Therefore, people are switching from fossil fuel to electric fuel because of the high efficiency and sustainable nature of the later.
  
  In the opinion of the International Energy Association (IEA) released in October 2023, after being locked at almost 80% for decades, the percentage of fossil fuels in the world's energy supply will drop to 73% by 2030, with carbon dioxide (CO2) emissions connected to energy reaching their peak worldwide by 2025.
• Increasing customer demands to intensify charging stations for EVs - Electric vehicle charging-as-a-service offers a productive infrastructure that makes charging an electric car (EV) rapid, convenient, and easy. Not only the customers but also the EV charging providers can benefit greatly from charging-as-a-service, or CaaS, as it refrains them from the hassle of setup, control, and maintenance cost.
  
  In conformity with the IEA reported in the year 2024, EV drivers can overnight charge their cars from a standard home outlet in areas where the power grid voltage is 220V or higher. This is the most typical scenario, and it is valid throughout much of Asia, considerable portions of Latin America, Europe, and Australia.

Challenges

• The higher cost of raw materials of electric vehicles - The introduction of new cars is probably going to be slowed down by the increased production costs, which will force automakers to put profitability above volume. Moreover, even one of the most significant EV markets in the U.S. is experiencing a customer crunch because of the high cost of EVs. In fact, the high making cost of EVs makes it accessible to only a few wealthy customers.
• Time-consuming charging options of electric vehicles - The trouble of charging electric vehicles (EVs) is the most evident cause of consumer dissatisfaction. A small percentage of drivers are prepared to arrange their entire life around locating a charging station and waiting for their battery to fully recharge.