Smart Charging White Paper
IMPROVED Corporate Finance and P3 publish white paper “Smart Charging: The Upcoming Revolution of Electric Vehicle Economics”
Amsterdam | Stutgart (January 20th, 2022)
The enhanced integration of EV charging in a smart and connected environment will be the key success factor in the mass adoption of electric mobility, enabling up to EUR 5bn of incremental annual revenue in Europe only by 2030.
The co-authored white paper: “Smart Charging: The Upcoming Revolution of Electric Vehicle Economics” published today by IMPROVED Corporate Finance and P3, is the first analysis of this kind in the Smart Charging domain to be conducted and looks at the most recent market developments and investment activity in Smart Charging, and outlines the roadmap for Smart Charging, the expected evolution phases and business models, the technical enablers and the future market potential. The paper also includes a detailed overview of global investment and M&A activity in the Smart Charging domain.
Smart Charging offers significant business opportunities for numerous established and new players within the EV charging ecosystem. The creation and investment in valid cross-industry “ecosystems” based on powerful standards and interfaces, will unleash attractive business models and a EUR 5bn market in annual revenue of hardware, software and value-added services in Europe by 2030.
When looking at the investment activity and capital formation in the sector, from 2019 to 2021, global Smart Charging investment activity multiplied nearly six times, with growth accelerating further since H1 2021. As such, the total transaction volume globally increased from 8 transactions in 2019 to 51 transactions in 2021. Similarly, the total transaction value increased nearly six times from EUR 205mn to EUR 1.8bn in 2021.
Dominique Houde, Partner at IMPROVED commented, “Given the massive growth in energy demand of electric vehicles, only smart and truly efficient EV Charging infrastructure will enable a successful transition to mainstream E-Mobility. The integration of EV charging in the electricity grid and energy systems represents the “revolution within the revolution” in the road to achieving sustainable transportation. The ecosystem of companies providing hardware, software and full solutions enabling smart charging is now taking shape, leading to an unprecedented inflow of capital driving this crucial sector.”
Jan Traenckner Senior Advisor E-Mobility at P3 added: “Being the key enabler, Smart Charging presents a game-changer in EV Economics. While investment and M&A activity in Smart Charging is accelerating rapidly as the market is gaining scale, limited analysis and overview has been put together to assess this emerging sector, the investment and M&A trends, and its overall economic potential.”
Johanna Heckmann, Head of Charging Infrastructure at P3 complemented: “The capital formation growth rate has been far superior to the growth of the E-Mobility market of about 40% per year, underpinning a strong appetite to capture future potential, a “landgrab” of market share, and the increasing value-added of the products and services offered by these companies.”
Bas Hendriks, Senior Associate at IMPROVED complemented concluded: “The Smart Charging domain offers an attractive business case for investors, as rapidly increasing unit economics and commercial feasibility of Smart Charging applications present significant new opportunities with high potential returns.
Ultimately, Smart Charging will be key in enabling the inevitable transformation of the mobility sector from fossil to renewable and emission-free sources.”
The report was co-authored by Dominique Houde (Partner), Bas Hendriks (Senior Associate), and Nicolas Magnus (Senior Analyst) of IMPROVED Corporate Finance, and Dr. Jan Traenckner (Senior Advisor E-Mobility), Johanna Heckmann (Head of Charging Infrastructure), and Falko Bartnik (Consultant E-Mobility) of P3.
For further enquiries, please reach out to our specialist team:
▪ Bas Hendriks: firstname.lastname@example.org; +31 (0) 6 12 45 34 35
▪ Johanna Heckmann: email@example.com; +49 (0) 163 77 17 204
IMPROVED Corporate Finance was founded in 2013 with the ambition of bringing more creativity, business intelligence and financial skills to corporate finance.
Today, IMPROVED is a premier corporate finance boutique with over 20 people across Europe, the US and APAC, with a combined experience of over 200 years. We have worked with the world’s best entrepreneurs, investors and corporates across the Technology, Energy and Mobility (TEM) sectors.
IMPROVED has a deep conviction that there is no more room for local generalists in corporate finance, and that entrepreneurs, investors and corporates truly benefit from highly specialised boutique investment banks with relevant global sector expertise.
Since the early 2000s, the IMPROVED team has been synonymous with corporate finance for the Technology industry. This focus has enabled us to have a deep understanding of the business models and underlying value drivers of the most valuable tech companies dominating today’s market. The global Energy and Mobility sectors are at the forefront of disruption, driven by iconic innovations that IMPROVED aims to empower.
IMPROVED excels at the intersection of Technology, Energy and Mobility – focusing on megatrends where innovation changes the way people and businesses interact, consume and travel. Entrepreneurs, investors and corporates are best served by a specialist corporate finance partner due to the pace of innovations. IMPROVED is proud of what its clients have achieved, which is evidenced by IMPROVED’s track record of success for its mid-market clients across the TEM sectors.
P3 as an international technology and management consultancy enables its clients to succeed in their business by delivering tangible value.
Founded in 1996 as a spin-off from a globally-recognised, leading technical university, P3 began with the goal of implementing an innovative new process and has remained focused on serving clients from innovation to implementation. P3 has around 1,000 employees across 20 locations globally.
P3 works within organisations and teams to develop and implement innovative solutions to complex technology challenges. Our clients are open-minded, secure leaders who seek solutions. They have the courage to bring in outside experts who can provide long-term value to their organisation.
Since 2005, P3 is active in e-mobility topics along the whole value chain. Its team of technical experts in this field has grown to >200 consultants with a focus on battery & cell technology, electric powertrain, charging infrastructure & grid integration and industrialization. P3 provides a holistic consultancy approach with expertise in technical & cost benchmarking, market & competitor studies, supplier selection and technical M&A topics, e.g., target screening, due diligence and integration strategies.