The global electric-vehicle charging market is experiencing growing pains, right along with the overall EV industry.
The charging segment has seen the exit of some major players over the past year as the industry tries to find its footing and consolidation takes hold, according to a new report by London-based EV data provider and consultant Rho Motion.
Multiple charging companies have entered bankruptcy or closed shop in North America and in Europe as the segment undergoes a natural consolidation process, the report says.
“Expectations for the EV market have not panned out as many anticipated just two or three years ago,” it says. “Scaling operations and achieving profitability remains a significant challenge, as building and maintaining charging infrastructure demands substantial upfront investment. For many operators, this has proved too costly, forcing them to reconsider their position in the market.”
Though EV adoption increased in the years after the Covid pandemic, it has now slowed, along with charging equipment demand, Rho Motion said.
It cited several high-profile EV charging company failures, including Australia-based DC charger maker Tritium. Founded in 2001, the company went bankrupt and was acquired this year by India-based Exicom.
Europe’s EV charging segment is still fragmented, while consolidation has picked up steam in North America, where six players dominate, the report says.
“The country has a relatively high EV to charger ratio when compared to European nations, suggesting that there is still room for smaller operators to establish a foothold,” the report says, referring to the U.S. “However, political uncertainty in the U.S. and uncertainty in the EV market can leave players unwilling to invest and expand networks in the market.
