The Inflation Reduction Act provides for hundreds of millions of dollars in incentives and credits for EV buyers and manufacturers
The Bipartisan Infrastructure Law provides billions of dollars to help build out the EV charging station network
New EV sales grew by more than 80% YOY from 2020 to 2021
It’s an EV moment, indeed — and savvy EV charging companies are looking for their place in it. Let’s take a look at how the above factors are all contributing to this EV moment.
EV Recipe for Success: Government Action
Now more than ever, opportunities abound in the exciting and fast-growing EV market. Governments worldwide are smoothing the way for all facets of the EV industry as they set climate goals, and the demand from consumers continues to grow at break-neck speed. Federal and state governments, through recent, historic legislation, have established regulations to encourage EV use by consumers, and committed tens of billions of dollars in support of sustainable energy solutions, including all aspects of EV production.
Much of the government’s current thinking on EVs is already encoded in law: Alongside the Inflation Reduction Act we’ve already mentioned, the Bipartisan Infrastructure Law commits $89.9 billion to modernizing public transit and $7.5 billion to building a nationwide EV charging network. The CHIPS and Science Act is aimed at encouraging domestic semiconductor production, requiring companies to establish a reliable domestic supply chain for EV batteries. Battery production in the US is up 700% since 2021 and is expected to continue to grow.
EV Recipe for Success: Consumers
On top of all of the legislative and regulatory action, consumers have reached the tipping point regarding their openness to switching to electric vehicles, as record-breaking sales of EV vehicles year-over-year clearly indicate. EVs have traditionally been more expensive to purchase than ICE vehicles, but as EV production costs have declined—battery costs fell 40% since 2010—consumers have responded enthusiastically. Once purchased, all but luxury model EVs are cheaper to operate than ICE cars.
In terms of EV buyer segmentation, younger generations—Millenials and Generation Z’ers—are more likely to be informed about the benefits and are more open to buying electric vehicles than their Baby Boomer grandparents and to some extent their Gen X parents, as well. That said, though, EV sales are strong for those over 50, a fact most likely accounted for because of their higher purchasing power.
EV Recipe for Success: EV Charging Companies
Though still woefully insufficient to meet rapidly increasing demand, the number of EV charging stations grows every day. This is especially important for urban dwellers, who might want to switch to an EV but who do not have a garage or designated parking spot where they can reliably charge one, and for EV owners who are looking to take long-distance trips. This latter segment of EV owners struggle with “range anxiety,” the fear that an EV won’t be charged long enough to get them where they want to go. Fears are easing as technology continues to improve and consumers become more educated about the benefits of EVs. Driving ranges are getting longer—up to 320 km and more—thanks to advances in battery technology, and the market, assisted by federal, state, and local governments, is responding to the growing demand for more, and more convenient, charging stations.
Advances in technology and education, and the support of federal and local governments through regulation and financial incentives, have made this the EV moment. Savvy EV charging company leaders know that market opportunities like this EV moment come along only rarely. It’s time to seize the day and lead your business into the exciting and ever-growing EV charging industry.
Important Next Steps for EV Charging Companies
If you’re an EV charging company and would like to talk with Kajeet about our multi-carrier approach to providing EV charging station connectivity, please contact us here.