Battle for charging customers intensifies

11.01.2024


Source: Energy & Management Powernews

Energy providers are no longer the only ones fighting for customers at the charging station. Vehicle manufacturers, charging station operators and retailers are joining the fray, according to a charging service study by Uscale.

In August last year, the Stuttgart-based market research company Uscale surveyed a total of 2,758 electric vehicle users from Germany, Austria and Switzerland about their charging habits. The market researchers have been conducting this survey once a year for the past five years in order to shed light on trends in the market ramp-up of electric mobility.

On average, electric car drivers charge their vehicles in (semi-)public spaces. The background to this is that, unlike when refueling, they are free to choose which provider they buy the electricity from at the charging station, regardless of the operator of the charging station. According to Uscale, despite the current expansion of the charging infrastructure, hardly any e-car drivers trust that they can charge safely on the road with just one charging provider. On average, electric car drivers use 3.2 charging providers. This is less than in 2022 (3.9 providers).

A key conclusion that the authors draw from their study: Selling charging electricity for electric vehicles is no longer a privilege of energy providers alone. Car manufacturers, charging station operators, oil companies and others are also pushing into this rapidly growing market. "The race in the charging market is far from over," concludes Axel Sprenger from the results of the survey. The founder and Managing Director of Uscale adds: "In addition to energy providers and vehicle manufacturers, oil companies and retailers are likely to enter the market even more strongly than before due to their locational advantages."

Charging power competition is picking up

With reference to industry experts, Uscale currently estimates the number of charging service providers at over 1,000. Competition for customers and customer loyalty for (semi-)public charging power is correspondingly lively. Market observers estimate the market volume for car charging electricity in the public sector in Germany at around 20 billion euros per year. They assume that competition for charging customers will intensify with the expansion of the charging infrastructure and the market entry of additional providers. For the providers, it is important to find the "right combination of coverage, convenience and price" in the still young market, according to the Stuttgart-based company.

Among the public charging providers, the study shows two clear winners: EnBW mobility+ and its partner offer ADAC eCharge are still the most widely used providers in German-speaking countries despite a decline in their market share to 33 percent. The vehicle manufacturers were able to significantly increase their market share compared to the previous year and now have a combined market share of 32%. The remaining 35% of the market is shared by the other providers. These include energy suppliers, charging roaming providers, charging station operators, retailers and oil companies.

Relatively low willingness to switch

Another result of the annual survey: Customers prove to be very loyal when it comes to choosing their preferred charging electricity provider. Despite the significant rise in electricity prices, the willingness of users to switch was comparatively low: only 21% changed their provider. If they did switch, the price increases, particularly in the DC charging tariffs, were the main reason cited by 70 percent. When choosing the preferred eSMP (e-Mobility Service Provider) offer in the past year, the most important criteria included network coverage in Germany, the reliability and availability of the charging offer and the cheapest DC fast-charging tariff.

When it comes to authorization and payment at the charging station, the charging card or charging chip dominates according to the survey. The proportion of e-car drivers who charge ad hoc - i.e. without a contract - is currently only 2 percent. The main reason given for the low level of ad hoc use is the higher kWh price, followed by the lack of availability of the payment method and the lack of transparency regarding prices and charging history. When paying ad hoc with a smartphone, there are also problems with incomplete network coverage in Germany and technical problems. Surprisingly, concerns regarding data protection do not play a significant role.

The results of its "eMobility Charging Service Provider Study 2023" have been summarized by Uscale on its website in a 15-page presentation.

Author: Davina Spohn