The first crude electric vehicle (EV) came in the 1800s. In 2016, EVs’ share of new cars sold was less than 1% in the US; in 2022, this percentage increased to 7%; and one year later, in 2023, EVs jumped to 10% (Statista). In the growth of new sales, EVs are surpassing gasoline cars. This shift grows the demand for robust EV charging infrastructure. For parking lot owners and land developers, understanding the profitability and current trends associated with owning EV charge points becomes more important now than ever.
The Future of the US EV Market
While forecasts vary in exact market growth rates, there is a consensus that EV adoption in the US will continue its upward trend. For one, consulting firm J.D. Power projects that annual EV sales volumes will reach 36% market share by 2030 and 58% by 2035.
The increasing number of EVs on US roads correlates with the demand for reliable charging infrastructure. Despite the progress in deploying charging stations, the rapid growth in EV adoption presents a considerable opportunity for investment in charging solutions. Addressing this imbalance is not only essential for meeting the current and future needs of EV owners but also for powering electric mobility.
Profitability Models for EV Charging Services
EV charging infrastructure offers multiple pathways to profitability with different revenue stream models:
Electricity consumption: Ties revenue directly to usage, though operators must balance competitive pricing with fluctuating electricity costs
Time-based: Charging users per minute, this incentivizes faster turnover rates.
Subscription: Provides stability through recurring revenue and develops a dependable customer base by offering discounted rates for loyal users
More than charging fees, owners can boost revenue through partnerships and advertising. Collaborating with nearby businesses creates value-added experiences for drivers, while digital ads on charging screens monetize idle time, as charging infrastructure like viveEV’s DCFCs offer large LCD screens for desired display. Future profit opportunities also exist, like anonymized data sales to energy providers.
Key Factors Influencing Profitability
Location: Stations near retail centers, highways, or dense residential areas see higher use, higher revenue.
Reliability: Well-maintained stations with high uptime build trust and repeat usage
Meeting needs: Charging speed impacts usage, which can be increased with adaptable, site-appropriate infrastructure.
As a result, the choice of charging stations is a significant one. For infrastructure like viveEV’s 600kW Tron, the >95% uptime and controllable output range from 80kW to 600kW pose competitive advantages.
User experience cannot be ignored: intuitive interfaces, seamless payment systems, and competitive pricing ensure user satisfaction. Smart energy management, such as load-balancing during peak hours, can optimize costs. Government programs significantly lower barriers to entry. In the US, federal tax credits cover up to 30% of installation costs. The aforementioned methods for charging depot owners will drive profit.
Strategic Recommendations
For space owners and developers, success is determined by the plan that goes into it.
Prioritize high-traffic locations.
Diversify charging speeds to serve both commuters and road-trippers.
Utilize government incentives to offset upfront costs.
Focus on reliability.
Finally, plan for scalability.
By aligning with these strategies, EV charging stations will transform into resilient assets owned by early movers, who stand to reap the financial and environmental rewards.
At viveEV, we are committed to providing fast chargers that people can reliably utilize, boasting industry-leading uptimes. Check out viveEV.com for more information.