- It’s likely that a future led by fewer, larger CPOs is on the horizon. However, this doesn’t preclude the success of small to medium players. These companies can still find their niche by delivering unique, customer-centric experiences. Without innovative differentiation, these smaller entities may succumb to the competitive pressures exerted by their larger counterparts; be it through market pricing or acquisition strategies.
- The historic pursuit of rapid market share expansion is pivoting towards the pursuit of profitability. CPOs must now refocus their business models to maintain their appeal to investors and satisfy existing shareholders. This necessitates a sustainable business approach, emphasizing profitability per charging location. Critical to this strategy is the astute allocation of assets to augment revenue and profits and the outsourcing of non-essential operations to more cost-effective service providers.
- CPOs will see a shift in customer profiles as consumer’s use of on-the-go charging decreases, matched by an uptick in residential, workplace, and destination charging. To compensate for diminished on-the-go charging volumes for consumers, CPOs must prioritize superior customer service to retain lucrative B2B clients. Fewer, but higher value sessions will increasingly become the new normal. Diversifying revenue streams while users charge, through quality offers in food, beverage, and ancillary services with business clients in mind, either directly or via strategic partnerships, will become increasingly important.
The charging point operator market: A roadmap to success in the evolving electric vehicle landscape
Article written by Maria Bengtsson, Partner, Electric Vehicle Lead and Ian Smith, Partner, Sustainable Mobility from EY.
With electric vehicles (EVs) expected to account for 50% of overall automotive sales in Europe by 2027*, the question is, how are we going to charge them? This article will discuss the increasingly vital role of Charging Point Operators (CPOs) within the electric vehicle ecosystem and the challenges and opportunities that await them.
Charging Point Operators are at the heart of the clean energy transition, bridging the gap between transportation and energy. As the EV market advances from early adopters to a broader audience, CPOs face a transformative period that will dictate not only their success but also the sustainability of EV adoption.
There are three strategic priorities for CPOs in this maturing market; consolidation, profitability and improving the customer experience to drive retention and loyalty to their brands.
