The EV charging industry is experiencing significant growth due to government incentives and industry spending. Charging companies are resorting to mergers and acquisitions (M&A) to secure additional funding. Consolidation in the EV-charging sector is the latest trend in the automotive industry. Companies in the electric-vehicle-charging space are acquiring smaller players to expand their territory, and this trend is expected to continue. The development of EV-charging infrastructure is crucial for automakers, who are investing billions in EV technology. However, building this infrastructure is costly and time-consuming, posing challenges for charging companies. M&A activity in the charging space has reached $900 million this year across 25 deals, with the US accounting for at least $200 million across seven deals. The automotive industry has a history of relying on consolidation to integrate expensive technology, and the current M&A frenzy in the charging and electric-vehicle sector is a testament to this. A robust charging infrastructure is vital for the future of the industry, especially with the transition to all-electric vehicles. Despite a potentially cooling economy, experts predict that the demand for EVs will continue to rise, supported by government funding and other sources of capital.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| EV charging boosted by government incentives and spending | Increase in funding and support for EV charging | Expanded and more accessible EV charging infrastructure | Government incentives and automaker investments |
| EV-charging consolidation becoming prevalent | Consolidation of charging companies in the auto industry | Fewer but larger charging companies dominating the market | Cost and time challenges in building charging infrastructure |
| M&A activity increasing in the EV-charging space | Increased mergers and acquisitions in the charging industry | Larger companies acquiring smaller ones for their assets | Need for capital and difficulty in scaling for smaller firms |
| Automakers relying on M&A to integrate EV technology | Consolidation to incorporate expensive EV tech | Strong integration of EV technology across automaker portfolios | Need to incorporate advanced technology quickly |
| Robust charging infrastructure essential for EV industry | Importance of a reliable and widespread charging network | Well-developed and extensive charging infrastructure | Support from governments and transition to electric vehicles |
| Increasing EV demand despite economic conditions | Continued growth in demand for EVs | Sustained demand for EVs even during economic pullback | Government funding and lower overall costs |