Electric Fleets Will Drive Growth in EV Charging Infrastructure

Overview

Future demand for both electric vehicles (EVs) and the associated electric vehicle supply equipment (EVSE) will, of course, be driven by the increased adoption of electric vehicles by individuals and commercial fleets. This ARC Insight will explore how the economics of EVs prove particularly favorable for electric fleet operations, focusing on full-battery, as opposed to plug-in, hybrid electric vehicles (BEVs vs. PHEVs).

Many of the advantages that BEVs bring apply to private as well as commercial user cases.  However, low annual mileage and the time-value of money mean that, without subsidies, BEVs don’t currently make economic sense for all individual consumers.

Though the prospects of private BEV use are improving rapidly, those for commercial operations are already favorable. Electrification announcements from Amazon, UPS, and Uber have made headlines, and ARC believes that the strong economic case will continue to drive this transformation. EVSE suppliers have an opportunity to position themselves at the crest of this wave — becoming valued partners for the new electrified fleets.

Electric Vehicles vs. Internal Combustion

For the past decade or so, battery electric vehicles could mainly be found in the garages of technophiles and gearheads. Though offering obvious environmental benefits over vehicles powered by internal combustion engines (ICEVs) as well as plug-in hybrids, BEVs were low-range, more expensive, and not quite ready for practical use. The relative scarcity of charging infrastructure did not help their case either.

As of this writing, however, BEVs are elbowing their way into the mainstream. There a few reasons for this.

ARC Advisory Group clients can view the complete report at ARC Main Client Portal or at ARC Office 365 Client Portal

If you would like to buy this report or obtain information about how to become a client, please Contact Us  

Keywords: Electric Vehicles (EVs), Electric Vehicle Supply Equipment (EVSE), Battery Electric Vehicles (BEVs), Fleet Operations, Electric Fleets, ARC Advisory Group.