The automotive sector is in the midst of an enormous change. A combination of social and political forces are pushing the industry more and more toward adoption of electric vehicles (EVs) as a new standard – although the internal combustion engine is not likely to be fully phased out, EVs are certain to find a large niche. ‘Last mile’ delivery, and various fleet businesses are already finding that EVs can meet their needs efficiently.
But the electric car market isn’t just about cars. They may get the headlines, and Tesla may have boomed into a trillion-dollar company, but no EV will go anywhere if it can’t be recharged. And it’s a fact that leads us directly to the EV charging market.
The charging market is no small potatoes. It’s estimated that it will hit $25.5 billion by 2027. That growth will come from a combination of private and public support; EV charging networks found a place in President Biden’s recent Infrastructure Bill, which set aside $7.5 billion to fund the build-out of 500,000 public charging stations, a goal that will form a coast-to-coast network. According to estimates from the US Energy Department, reaching that goal by 2030 will require annual installations exceeding 11,000 charging stations.
The build-out is just the beginning. A nationwide public charging net work will bring with it a host of jobs in manufacturing, distribution, maintenance – all in all, it will be a boon for companies involved in the EV charging market. This will include the big automakers, and the smaller EV companies, who are all working on charge points that can sold with their cars, but will also include a host of pure-play EV charging companies.
The pure-plays will deserve a second look from investors. While the market is still young, and most of these companies are generating very little in the way of a revenue stream or profits, they’ve still been valued high in recent months. This is mainly a function of investors’ desire to buy into a growing…
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