The electric vehicle (EV) charging station infrastructure market is booming worldwide. Images courtesy Broadsign
By Catherine Lee
The electric vehicle (EV) charging station infrastructure market is booming worldwide. Valued at US$6.4 billion (C$8.7 billion) in 2023, it is expected to expand at a compound annual growth rate (CAGR) of 18.5 per cent by 2030, according to a report from Global Data.1 While ample opportunity abounds for media owners and EV charging startups looking to enter the market, competition is fierce. Cutting through the noise requires a dedicated approach to attracting and retaining customers. Adding a digital display that can play video, ads, and other visual content can help a network stand out and drive incremental revenue.
These emerging digital out-of-home (DOOH) displays unlock new opportunities to connect with climate-conscious consumers, which is a highly desirable audience for advertisers. Whether promoting a brand, restaurant, retail store, or event in the surrounding area, or another product or service, EV charging station advertising is opening up new ways for companies to interact with users through more personalized, contextually relevant content from the moment they step out of their cars. This is not only a potential gold mine for advertisers looking to market their products and brands, but it is also a huge revenue generator for EV charging networks.
However, to make the most of this emerging market, it is essential to examine the challenges currently facing the industry, as well as its promising future.
Eighteen per cent of cars sold globally this year are expected to be EVs.
EV charging networks: Revenue pitfalls or revenue generators?
According to the International Energy Agency, 18 per cent of cars sold worldwide this year are expected to be EVs.2 With more of these types of vehicles taking to the road, companies are working to rapidly meet the demand with networks of conveniently located charging stations. The environmental benefits are clear, as studies show driving an EV produces a smaller carbon footprint than driving a gas-powered vehicle over its lifespan.3 However, the upfront installation and ongoing maintenance costs of chargers can be a hindrance.
To ensure the availability of convenient, affordable, publicly accessible chargers and offset some of these installation costs, many governments are subsidizing the creation of EV infrastructure. While those contributions are helpful to the networks, there are other maintenance and incidental ownership costs to consider. For example, commercial EV chargers often involve a costly network connection and payment processing system.
While one might think the charge profits could go towards these costs, the electricity service itself does not yield a massive return. Many EV owners opt to recharge at work or at home, largely for convenience.4 The charging locations they gravitate to outside of these areas also tend to be based on this factor. For these reasons, capturing the business of these audiences requires competitive, low-cost charging services spread across convenient, high-traffic locations. Similar to gas stations, which have been found to generate a majority of profits from on-site convenience store purchases, EV charging stations without a DOOH display or on-site retail outfit likely do not stand to gain a high profit margin.5 This is partly why more EV charging networks look to DOOH advertising as a self-sustaining path to profit. Savvy business owners are quickly realizing the revenue potential in leveraging DOOH displays to not only engage more meaningfully with their EV charging customers, but also to make this audience more accessible to advertisers, whose spend can help offset maintenance costs and greatly enhance their profit margins.
