Loading...

Messages

Proposals

Stuck in your homework and missing deadline?

Get Urgent Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework Writing

100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Market Analysis Report on Electric-Charging Value Chain

Category: Marketing Paper Type: Report Writing Reference: APA Words: 10150

The value chain for E-charging stations will be developed by two key stakeholders, the first one is the owner of the infrastructure, and the second one is the operator of the charging stations. These two stakeholders will determine what value chain will be developed by consumers so that they can make a proper perception of this value chain. The consumers will know what they will be receiving through a proper value chain of E-charging. It is important to understand that there can be various elements for the value chain of the E-charging stations. The first one in this regard will be Charging Station Supplier, who will play a supportive role in this regard. Then the other elements of the value chain would be the Owner of Infrastructure, who will build the infrastructure for the station. The other important part of the value chain is Operator of the Charging Station, who will use the resources and infrastructure to provide charging to its end consumers; the EVs owners.[1]

In the early 1990s, the electric vehicle is going to dominate the market, and it attracts most of the customers in 2006 when this agenda is going to appear at an increased level. On technological boundaries, the business logic of electric vehicle very much depends and many key factors must be recognized in the real-life usage of this advanced technology. As personal transportation, a resolution is going to pass in the parliament, and the main purpose of this resolution is to share the technical standards that depend on the European market. As the foundation for the development of the country, with open communication protocol, the standardization of the charging infrastructure and technologies are serving. A socket outlet or charging point is going to use in the level of electric vehicles to charge. This point provides electricity to the vehicle through charging infrastructure. Electric vehicle supply equipment can be developing with the charging station and its connection to the electricity distribution grid.[2]

Charging can be divided into two different forms according to the physics perspective; direct current (DC) and alternative current (AC). The car receives the AC electricity goes through the AC EVSE and the for the car battery an onboard charger transforms to DC electricity. DC electricity straight to the battery through DC EVSE that also includes the off-board charger. The costlier DC charging stations are used for the fast charging and AC charging is used as a normal option. In a charging system three different elements are identified as an operating system, EV and EVSE.and normally three connections are included in it; a connection between electric grid and EVSE, a connection between the operator system and EVSE that utilize multiple EVSEs and a connection between EV and EVSE that can be used as bidirectional or unidirectional. [3]

Demand for Energy for the electric vehicles

The demand for the electric vehicles related to total charging energy increase from 2020 to 2030 as increase reached to 280 billion kilowatt-hours instead of 20 billion kilowatt hours. This estimation explains the distance covered by the cars according to the total miles driven per year and required per mile the kilo hours. This requirement of the energy is showing very high, but in real terms, it only covers the four markets by 10 per cent. EV can be recharge at multiple locations in different ways, but the traditional internal combustion engine only refuels at gas stations. Many other cases and technologies are emerging, but the model normally analyzes charging in four different cases that consider wired plug chargers on high way for long distance trips, in public, in work, and at homes.[4]

In the workplace and at home, those chargers are used according to installed chargers, and the charger provides the amount of energy. At home, the charger depends on the electric vehicle, and at the workplace, it depends on the choice of employer. Normally people are not using the vehicles to reach their workplaces. The energy demand can be cover by the charger that utilizes at every place according to requirement. The consumption of energy and charging also depends on the drivers who used the cars according to their requirement and the utilization of energy depends that who the driver move its vehicle in better way to avoid the wastage of the energy and if the drivers forget to charge at home or work then they may visit public stations to get their vehicle charged and easy to use according to their requirement. [5]

Electric Vehicle Charging Stations Market Analysis

A major hurdle for the market station of electric vehicle charging handling a high initial cost related to the batteries of electric vehicles. The market of the electric vehicle and its battery also very much affect the price of electric vehicle and also affect the customer demand according to their price range and also affect the demand of its batteries. In the market, also renewable energy batteries available to those customers who cannot afford new batteries every time and also decline the price of electric vehicle batteries according to a significant customer base that uses an electric vehicle. Another trend related to charging is powering the EV charging stations through renewable energy resources for the batteries. This is also trending that the solar panel is used to charge the charging stations. And their usage is going to increase due to manageable price and those usages going to increase in the businesses and also their easy installation. The market of the charging station of the electric vehicle going to increase shortly due to their utilization and conveniently supply energy to electric vehicles without chargers. [6]

Market momentum can be gained by electric vehicles. From 2019, all the model is going to be electric or hybrid. In France and the UK, many policymakers are deciding to remove the diesel-powered vehicle from the road and make common usage of electric vehicles. To the electronic vehicle, consumers are attracting too much now a day. At the start of 2017, new registration of approximately 4.2 per cent is accounted as an alternative fuel vehicle in many of the countries. Either from grants or vehicle manufacturers operating models, to access funding have been designed by small scale players on a large number that has been established properly. The efficiency of electronic cars is improved by the involvement of innovations in their manufacturing. There is now a day the trending is that electronic vehicles showrooms and repairing houses are being developed that can charge the electronic vehicle through hydrogen cell refuelling other than the diesel and petrol pumps traditional patrols that refills the pumps. With the number of insufficient available stations for charging of electronic vehicles, a new record is being recorded up till 2017 almost the sold cars number is in 1 million, and the majority is in Germany that deals with manufacturing electric cars along with its charging stations.[7]

As charging of these electric cars on time is very necessary; otherwise, its battery becomes dried, and you have to change the complete kit which is expensive, so consumer should know this fact before purchasing new electric cars. The ratio of electric charging stations along with the manufacturing of electric vehicles. The use of energy in making electric cars are very less as compared to the other regular cars the new in making electric cars. In the coming time, there is a trend that is gone viral of using electric vehicles in people. The rates of petrol are increasing gradually, and the people are very tense about this, so they wanted to have an alternate for their vehicle issue. Electric cars are considered to be the best alternative in the future as they will save the excessive fuel expense and consume very less electricity to get charged from charging stations.[8]

In the year 2018, the number of charging stations in Germany is increasing day by day as they are inventing more electric vehicles with new technologies. The most important thing is that the quality of the product is A class and they run as many of the other electrical products run on electricity having the same DC system of electricity. The number of stations is also increasing that charges these vehicles having fast DC charging systems having level 2 facilities. Every 20 minutes of their charging will take around 60 to 80 miles of travel easily and conveniently. The high profile electric cars are being launched by big car companies like Audi, Jaguar, BMW, etc. they are making their already high demanding luxurious cars to electrical mode as people are now demanding electrical cars.[9]

They already have a great benefit of having great fame, and they are utilizing this for making innovations in electric cars. Many of the experts are the electricity department has concerns about this that how much power of batter these cars will charge and how much growing battery prices will tackle this issue. This question is very valid an important as many of the experts are still failed to conclude this, but vehicle manufacturing companies give this surety that they are going to produce new batteries that take very light electricity to run these cars, and it will not affect the amount of electricity in the charging stations. The certainly encouraging mass markets EVS introduction and its rapid increase in the batteries prices between 2008 to 2014 and this is making people more trustworthy towards purchasing EVs. As the trend is just approached, so the prices of Electric vehicles is very high. Only high-class people can afford it for now. As they have tested and experiments happened to don them so still, they are less in the market available for purchase for the people, but companies are working on its increasing amount.[10]

Electric Vehicles and its Value Chain

The value chain of EV charging will use the current electricity manufacturing & distribution value chain as a source and will need two consecutive elements of the value chain: the operator of charging station and the owner of the infrastructure. These players together will make an innovative value chain that is extremely integrated and not takes any tangible product.  It will also permit consumers to promptly design how they recharge their vehicle; use of energy source, distributor, producer, etc. Around two decades ago, the Internet was about the IT, logistics, and better-quality infrastructure, allowed independence of choice and a value chain providing numerous scopes to its consumers. In the FMCG industry, the value chain elements can easily be connected to generate a wide range of plans that allowed mass diversification and customization. This also means this offering can now be personalized to the needs of the consumer, for example, buying the online product. The overall electric cars Sales in Germany have passed 1 million, as the consumers are convinced to choose for green energy production.[11]

The value chain link with the companies and its customers are downstream and upstream according to the requirement of time. To obtain the cost reduction and differentiation, value chain approach is used to determine the core competencies of the company. The value chain includes two different types of relationship; supportive and primary activities. Its primary activities include sale and services, marketing, distribution logistics, operational and inbounded logistics. And its secondary activities include technology development and acquisition, human resource management and infrastructure. Based on the logistics and global supply, this approach is reached to global value analysis. Their usage is going to increase at the global level because they offer features at the global infrastructure level and also cover the requirement of customers at a global level. There are lots of industries that offer the same services at a global level, and they are part of a network of the global supply chain in many countries.[12]

For increasing the productivity, profit and finally, the macroeconomic growth of a country, the global value chain utilize to determine the product differentiations and cost reduction techniques that belong to core competencies of the companies. These all type of features increase the worth of the company and also built its reputation in the market. The proprietary supercharging devices are built having intensive capital investments of people along with purchasing expensive vehicles having many charging advantages with saving time and electricity with a long backup system as a must. People in this era of competition like to work smoothly and efficiently and hence, they wanted all the unique and new technologies among their use.[13]

The more powerful batteries are inserted in the longer-range EVs to allay driver’s larger anxiety are now coming to market. To charge the battery the time taken by the battery and to expedite dwell times, the requirement is to get in plugged of larger charging systems in the batteries. Third party network can be relying on this issue, but there is always a choice to automakers that what they wanted to do whether they wanted to rely on the third party or whether they wanted to make their system efficiently. The mainstream system of EVs batteries is dependent on the selection of charging networks inserted in the system properly or efficiently. The proprietary supercharging devices are built having intensive capital investments of people along with purchasing expensive batteries having many charging advantages with saving time and electricity with a long backup system as a must. The unique things in EVs are that they are manufactured in the same way as they are manufactured the simple cars, but the difference in between them is that they work on electricity and the others are just simple.

Cars run on the old way of manufacturing from the start they have made with. All the big cities are working efficiently on the making of such cars that uses EVs systems along with the best quality of working providing smooth regular efficiency. The Ev's system is uniquely designed, and it is very much famous now a day as people a day like to have different perspectives, and they always wanted to try unique and different products especially in vehicles. People in this era of competition like to work smoothly and efficiently and hence they wanted all the unique and new technologies among their use. Ev's system is not unique having the latest technology but also inspires people to take them as it has too much cost, but people do not have any issue with the cost of it as they can afford as much as an expensive product.[14]

The most important thing is that people will not only idealize the other people having interest in the unique items but also wanted to show off their expensive products, so people are going to manage a very good image by having Ev's system cars because they not only expensive but also they are very much highlighted and convenient to show to people that we have the best and most luxurious thing to us. The Ev's system is introduced in the whole world, and hence it has decided that every carmaker's company will make EVs system cars, and hence they compete with one another that who is the best whose sale is better and who is going to achieve maximum unique identification in making Ev's system cars. These unique systems parts are very expensive and hence they are going to manage by taking a high amount of money from the people who are going to purchase such cars from us so that their brand consciousness can be fulfilled properly.[15]

It is simply presented by the research that the industry of electric vehicles, batteries, and its all-electric component will increase the productivity of the industries and also increase its profitability in a positive manner. There are lots of people that are connected with this industry, and more advancement is going to appear in this field according to t usage of customers and their new requirements. This is going to be the main need of the current period and at a global level, most countries replace their old vehicles with these new ones to get more and additional benefits with these vehicles. Because these electric vehicles are environmentally friendly and easy to cost. Although their cost is high due to their advanced features at a global level, their purchase and sales going to increase day by day and people prefer to use such type of vehicles. [16]

This is going to be a great challenge globally to handle these technologies for the benefit of the users and also provide such effective technique that is convenient to use and also provide lots of benefits to the users.

Further many changes will appear in the electric vehicle according to new technologies and also offer new and advance technology that makes the electric vehicle more comfortable and easy to use at all levels. Although fossil fuel refuelling and EV charging industry serve the main determination of technical constraints, their value chains, economics, and refuelling vehicles are different. Consequently, it seems suitable to examine industries with some of the features to EV charging to look for signs about how it will arise and be planned in the coming years. Now, adopters of cars battery-powered have found it comparatively easy to charge up their vehicles, as they do not travel far away.  The state supports have resulted in charging stations bouncing up in the car parks the city centre. Even though Germany has sufficient points of charging for the present EVs on roads, numerous industry forecasters query whether the administrations, private sector, and block owners apartment will cope up with upcoming demand for charging set-up.[17]

Processes involved in Electric Vehicle and Value Chain

Analogous to the current electricity generation value chain, this value chain is not likely to deliver any a tangible product. It is possible that in the case of E charging the company in Germany might transport mass customization without extra charge. For the electric vehicle user, it is suggested that he can rapidly organize products according to preferences and needs; for example, energy source, the way to produce it. This value chain characteristic can be mentioned as multi-dimensional. Moreover, the value chain can be measured as very segmental due to the elements of the value chain that can easily remove or added. It is also expected that the electric vehicle charging will provide its consumers with these preferences, as some of the users want the freedom of choice and often choose solutions that meet with their needs and wishes. To more consumer choice understanding and its overall reaction to value chains modular with several dimensions, the FMCG industry also has some impact on it[18]. Some of the major processes that are involved in the value chain of E- charging are as follow.


Process of Recharging Station Receives Electricity From The Grid

An electric vehicle presently can have a range of about 150 km, though the rise is estimated. This needs the driver to frequently recharge the electric vehicle that he preferably does when convenient. Instead, the electricity grid density guarantees that the driver of the electric vehicle will have a source of power at his disposal to be used even ever needed. The electric vehicle can use household networks and also devoted the charge stations, both linked with a grid of electricity. In this case, the vehicle can be recharged by drivers anywhere. It is envisioned that in the future when parking the people can plug-in car for recharge. For instance, when the incoming home they would plug-in the cars using the slow charger and the next morning they can wake-up with a charged battery in their vehicle. Similarly, in case of the power station of the E-charging, the grid connection needed for a distinctive Charging station with 50 kW speed is broadly accessible ( for example an office building has a powerful connection of grid). These are said to be the stations will permit to plug-in their vehicles for charging. Ideal locations might include shopping centres, restaurants, and the workplace.[19]

Electrical vehicle required to recharge often as compare with currently familiar cars, and consequently drivers can choose to recharge their cars when suitable. It is also found that the compressed grid of electricity can generate a charging station at any location. Commercially, it can be feasible because of the low costs of the charging station. At approximately 30 to 60 thousand euros, a profitable charging station can be measured as less expensive as compared with the typical filling station.[20]

Costs and Installations Requirement of Electric Vehicle

Recorded since the growth of cars used for transportation is the refuelling price. The electricity cost and also the energy capacity to be occupied is lower as compared with the car consuming fossil fuel. Though it forms a ‘game-changing’ part, the component will go ignored by numerous who can see this as a development of operating costs. There are many of the entrepreneurs in Germany who notice that expenses of topping-up battery around 20 kWh range the onset of equaling the Starbucks cup of coffee price. This attribute can change our thinking about vehicle refuelling and it will also propose many companies an innovative way of attracting more customers. In the future, the company using the E charging can go for offering free charge to their customers to increase their sales, because the customers will consider this offer as a luxurious gift. So it is anticipated that numerous new models of business will get up using a trait to benefit.[21]

 For installation, a charging station the companies will require to install equipment accepted by local establishments and the customers have to be careful about the regular construction licenses. As compared with the gas station construction, the lot of governmental restrictions remains minimal. When combined with the relatively low amount of capital investment required, the E-charging obstacle to entry in the industry is comparatively low. This will open the refuelling field to SMEs segment, as intended by multi-dimensional outlook value chain. The E-charging need to often renew as compared with the present situation and therefore, many of the drivers prefer to charge their cars when suitable. The grid of electricity can make a charging station at any site. Commercially, it is possible as the costs of charging station are low. At about 30 to 60 thousand euros, a commercial charging station can be dignified as less expensive as compare with filling station. This can effortlessly cost a lot of money to make as the fuel piping and tanks that need installation. The infrastructure is installed by the company, and it also allows the customers access for monthly fee contracted, enlarged by variable cost. So it can be said that although the overall operating cost of the charging station is low, the capital cost of installation f the charging station is higher.[22]

Different Voltages Options of Electric Vehicle

An onboard charger for the vehicles should be comparatively inexpensive, lightweight and small in size to simply fit in a vehicle without acquiring any extra costs. To recharge vehicle this charger normally takes 8 hours and can be linked with any standard outlet of the household. The fast charger or off-board is more luxurious and social group the mass and size of FIAT 500. It means, the fast charger would not combine onboard and therefore occur as a separate station and therefore it can be shared with the other people. It is capable of producing more electricity and can presently recharge the vehicle in approximately 15-30 minutes. In the case of DC, charging usually help in charging 500 volts for cars. Some high-end passenger car electric vehicle and numerous duty electrical vehicle buses and trucks use DC charging with an insignificant 700 V DC voltage or more, but under 1000 V. The CHAdeMO organization is also working to normalize fast chargers. In Germany, the DC chargers frequently use 480 VAC transporting 62.5 kW power that is up to 120 kW and is diverse across charge. To the charger, 208 VAC inputs are used, and in Germany, 400 VAC is normal. The Tesla Supercharger is universal, like the Tesla Model S 75, a charger can add about 275 km in 30 minutes, or the complete charge will take up to 75 minutes. As of April 2018, it is reported by Tesla that they have 1,210 charging stations and is incessantly increasing network.[23]

So it can be said that these players together will make an innovative value chain that is extremely integrated and not take any tangible product. Although fossil fuel refuelling and EV charging industry serve the main determination of technical constraints, value chains, economics, and refuelling vehicles are different. This value chain characteristic can be stated as multi-dimensional. Furthermore, it can be seen that the directions of game need vehicle drivers to control their electric vehicle more often as compared with they are familiarized to. Preferably, they go for it when suitable. By the company, infrastructure is installed that allows the customers to access for a monthly fee contracted, amplified by an adjustable amount depends on its use. Likewise in case of power station of E-charging grid connection required for a distinctive charging station with 50 kW speed is accessible. There are entrepreneurs in Germany who notice that expenses of topping-up battery around 20 kWh range the onset of equaling Starbucks cup of coffee price. The infrastructure is installed by the company, and it also allows the customers access for monthly fee contracted, enlarged by variable cost. To recharge vehicle this charger normally takes 8 hours and can be linked with the standard outlet of the household. The off-board or fast charger is more social group the size and mass of FIAT 500. [24]

German Power Industry of Electric-Charging Value Chain 

In Germany, the power industry is working to produce renewable energy and distribute power to the end-users and customers. Utility companies are mainly working to fulfil the required demand of customers. Some energy generating companies produce energy at fossil powers plants and renewable power plant to deliver this energy and power to the households, businesses, and industries. If we analyze the market of Germany, then we will find several companies working in the utility industry and energy-related industries. Famous companies working in utilities of Germany are Innogy, E. On, Vattenfall, RWE, Uniper, and EnBW. These companies have some specific infrastructures to carry power to the recharging stations. The presenting below figure describe the traditional value chain infrastructure adopted by the German utility companies.[25]


Figure: Traditional Infrastructure of Power distribution

The figure mentioned above shows the simplest process of power distribution in accordance to which powerhouses (or energy generating plants) transfer energy to the grids and mass-energy distribution plants to supply this energy or power to the customers and small industries. Basically, in Germany to fundamental distribution and regulation of energy is the prime responsibility of State network agencies and Federal network agencies. State network agencies have the responsibility to distribute and supply energy to the smaller firms and local municipal utilities in Germany. The issues regulated in Germany and means used to regulate these issues are evident to the rigid application of the regulatory regimes. The regulated issues are requirements for unbundling, grid operation license, metering, grid access, and grid tariff requirements. While on the other hand, related means of regulation are administrative acts, licenses, supervision acts, abuse proceedings and investigations. Analysis project that energy transition system in Germany is relatively complex for some utility companies, particularly, for the companies that are working in the competitive market. See the presented below regulation and distribution infrastructure for the companies working in the competitive market.[26]


Figure: Infrastructure of the modern and complex distribution system

Comparing the simple infrastructure with the modern infrastructure, it is clear that the new distribution system is relatively a longer and time taking process. Somehow, it is only implemented in highly demanding and competitive markets. The distribution system is consist of several system operators. Federal network agency of Germany (Bundesnetzagentur) ensure the supply of required energy or power to the state network agencies to fulfil demand with the support of German transmission grid operators. Four highly functional and important operators are discussed here in detail.[27]

  • Amprion GmbH

In the western Germany Amprion operates the grid. The selected areas for the functions and operations of these operators start from Lower Saxony to the borders of Austria and Switzerland. The prime functions of these operators are to coordinate load and frequency between the control areas of Germany.[28]

  • TenneT TSO GmbH

The TenneT TSO operates in the north to the south side of the country. The area covered by this operator is from Bavaria (in southern Germany) to the Schleswig-Holstein. The key responsibility of this operator is to manage the transmission grid of Netherland. According to the estimate, more than 40% of the gird running in Germany takes the support of TenneT operator.[29]

  • 50 Hertz Transmission GmbH

In northern and eastern Germany 50Hertz operates the transmission grids. 50Hertz also perform some additional functions such as connecting to the offshore wind farms as almost 50% wind installation in Germany are located in this area.[30]

  • TransnetBW GmbH

TransnetBW is responsible for the operations of transmission girds installed in Baden-Wurttemberg/. The grid is not limited to the networks of Germany only as it also connects to the Austrian, Swiss and French networks.[31]

The presented below the graph to represents the geographical locations of these four operators.


Figure: Geographical Location of German grid operators

Power grids and distribution network working in Germany ranks among the most reliable in all over the world. The German government is continuously working with the federal network agencies to bring more refinement and improvement in the infrastructure and value chain of the utility or power distribution system.[32] Somehow, the renewable energy sector has increased the use of energy in the society, which causes problems for the government and regulatory institutes to ensure highly effective supply system or value chain. The continuously growing market of renewable power generations sometimes causes upheaval in the traditional supply chain and distribution network. According to the statistics of 2017, almost 33.3% of whole renewable energy generations are supported by solar PV, volatile sources, and biomass plants. The grid system is being upended by the installation of the renewables as according to statistics solar PV installations are more than 1.5 million and wind turbines working in the area exceeds 30,000. Considering these facts, a new complex infrastructure of distribution is introduced that is supported by the other private agencies and suppliers.[33]


Figure: Modern System

The modern system is capable of supplying energy for consumer utilities in all areas of Germany. The power supplied to the houses, and commercial areas are enough to fulfil the requirements and demand of the customer. For instance, if a car power recharging satiation is going to be opened in Germany, it would be able to register this station for commercial use and get the power supply from the power operators, suppliers, traders, brokers, or directly from the state network agency. Considering the whole value chain infrastructure, the process of power supply would be started from the energy generation plants. The generated plants will transmit energy to the grids and operators. Brokers and suppliers will supply this energy or power to the car charging power station. Then car stations will transfer this energy to the electric cars.[34]


Figure: Value Chain for electric car recharge

The above-presented value chain process will be reduced to a simple value chain if the car charging station is getting utilities directly from the State Network Agencies.

Functions in the charging value chain

The charging value chain and its functioning can be explained with the explanation of the functions that usually occur in the complete value chain of the electric vehicles.  Due to rapid growth in the prices of petrol, the trend of electric vehicles is going to be more commons.  These papers explore the complete functions of the charging value chain in the EV. The procedure of the value chain of EV is starting from the generation of the energy and electricity with all resources as;

·         Generation of the energy by using solar resources and its usage in electric vehicles.   

·         Generation of the energy by using the hydro resources and its usage in electric vehicles.

·         Generation of the energy by using wind resources and its usage in electric vehicles.

Before explaining the energy generation process in the value chain analysis top explain the value chain analysis is more important in this process. The stakeholders and participants who are involved in this study can be explained as given in the below-drawn procedures. The value chain of the electric vehicle charging is given below.[35]


Electric Vehicle Value Chain Sources

Sources are one of the most important components in the value chain of the many products or procedures. Because iota is related to sourcing and types of products that are is used for particular value chain analysis. It is also similar to the value chain of electricity production. The major purposes of the value chain are related to the covey the intangible products such as providing the services to its ends user is include the value chain. It is possible to transfer the mass customization without paying any cost and using any tangible products. This procedure is applied to the user of the electric vehicles he can rapidly configure the products according to his preferences and serval other products. It also includes which source of energy use wants to use along with its production and distribution. In the multidimensional, this characteristic of the value chain can exist. It is also considered as the highly modular due to its changing factors it can easily remove or added. Such kind of all options is offered to the consumers of the Electric vehicle by the electric vehicle charging industry.  The freedom of the choice is preferred by the consumers. The source type has related the source of the products that are used by the consumers in the markets.[36]

The multiple dimension is offered by the value chain of the existing electricity company to its consumers. The utility company is engaged in playing essentials role in providing services to its customer’s related to the facilities. The trend of electric vehicles is going to be more common in European countries. The value chain of the existing electricity includes as; utility provider and choice of the resources. The utility companies are engaged in providing the services for storing the power in the batteries of the electric vehicles.[37]

The Operator of The Charging Station

The front end consumer and the end user are presented in the previous paragraphs are presented in extensive manners along with their basics needs owns desire related to EV. The more diversified products are presented to the end users. The wide variety of the operator’s pf the charge station is spread across all of these things. The rules and other regulations that require for the electric vehicles must see by the operators that are required to the consumer to charge their vehicles to consume or accustomed as well. They can do it as they feel its best conveniences. The emergence of the small piece can be viewed in the retail industry, but the mechanism of this industry quite different than the retail industry. It has been decided the drivers of the vehicles that either to charge their vehicles that is rely on their patterns of the travel and need.[38]

It is decided by the operator of the charge station that which the business model is required for adopting that he will own the responsibilities of the charge station. It also can lease by the third party. The decision of the operator is based upon the activity, and these activities are not the parts of the core business. The simple rule is employed by most of the business. They are also engaged in leasing the equipment that is commonly used in such activities. It can be said that front-end users will be offered with a differentiated product, spread across a widespread charge station operators. Moreover, it can be seen that the directions of game need vehicle drivers to control their electric vehicle more often as compared with they are familiarized to. Preferably, they go for it when suitable. As in the case of the retail industry, it is likely to understand the development of charge station operators in the niche market and also in case of the parties that offer solutions for large mass-market. The operator of the charging station controls the overall current flow and voltage that has a huge impact on the value chain processes.[39]

The Infrastructure Owner of Electric Vehicle industry

The variety of lease construction and ownership can be seen in the industry of electric vehicle charging. The most important two generic ownership of this construction is illustrated in this section. This two generic ownership are financial lease construction and the infrastructure company. In both of these concepts, the variation is possible, and the ownership of the infrastructure can be varied as well. For the business of the telecommunication, the infrastructure companies are presented as comparable.  For controlling the monthly fee the commonly install the infrastructure on its own cost. It also can increase according to the amount of the variables on which Electric vehicle can be used in good manners. There are two most important points that are common in the telecommunications and EV charging industry.  One these is both if this business needs a heavy amount of the investment of the equipment as well as the arable cost that is relatively low.[40]

The profitability is increased by every additional user along with the low variable cost, and their revenue is increased by almost the same numbers. In the case of the E- charging, there is a variety of lease constructions and ownership for the better value chain. For example, if there are two ownership in the charging station, it can be said that financial lease construction and infrastructure company. The differences between these two owners are also possible, that can also affect the quality of the whole service. The infrastructure of E-charging is similar to a business of telecommunication. The infrastructure is installed by the company that allows the customers to access for a monthly fee contracted, amplified by an adjustable amount depends on its use. There are two important fundamentals that the E-charging industry have are that the businesses need comparatively large reserves in equipment, and the variable expenditures are significantly low.[41]

The number of the contracted network user is maximized by the telecommunication companies by implementing the wide variety of the propositions. By adopting the modular values, it can be possible seamed as the fast-moving consumer good industry. Therefore, we can predict that electric vehicle charging corporations are going to emerge. It also offers the user to adopt this facility along with its monthly fee and charges. In this model, companies can focus on building fast charging networks with multi-sites. The regional development areas, as well as tourism regions, can be focused in this regard. The second business model is “initiatives from small and local businesses”. The small, as well as local businesses, especially in populated tourists’ destinations, can adopt this model to encourage tourists to come there with EVs as they will have well enough E-charging infrastructures. The third business model is “EV charging on a commercial basis”. It is a great business model for the entire car parking providers, hotels, restaurants, fast food companies, retail stores, big shopping centres as they can provide E-charging facility to its visitors on a commercial basis[42].  The charging infrastructure is given in the below figures.

 

Source: [43]

The Charging Station Supplier

The suppliers of the charging stations are includes as the business that is involved in maintenance, selling and installing of the charging stations. The supplier of the charging station is the most important driver in the charging station of the electric vehicles. It also includes the supply of the charging equipment’s that are required initial commercial charging business. The electric vehicle charging value chain is supported by the primary support of the Electric vehicle. A business that installs sells and preserves the equipment of charging, needed to start a business of commercial charging. The supplier in the charging station has the main role in the primary value chain E-charging, although he is not directly connected with the value chain processes. Some of the major companies in Germany that are using the E-charging infrastructure are  Hensel Electric, Gildemeister Energy Solutions, Leipziger Leuchten, Rowe Mobility, Commercial Charger Gmbh,   Heidelberger Druckmaschinen Ag and Veniox Gmbh & Co. Kg.[44]

Final user Roles in the value chain

It means that once EVs start to get more attention from consumers and people do adopt EVs in their modern lifestyle, the next immediate issue would be that how to keep these EVs charged with enough battery time to travel especially long distances. If a family wants to go far from one place to the other, and they use an EV, then how would they continue their journey without any interruption and delays? The answer to this considerable question is that they will need E-charging stations all way along so that they can keep batteries of car charged enough. But the major issue is that building these E-charging stations is not an easy task, and it needs a lot of thought process, consideration as well as planning before it can be adopted as a proper business model around the world including Germany. In this particular paper, the focus will be given to value chain of E-charging stations by analyzing attractive business models that what could be done, and what kind of value chain will be adopted by these business models.[45]

The batteries of the cars are the most important secondary cell that is required to use and store data. The batteries of the cars contain on the six electrodes and identical that is made up of the lead oxide; meanwhile, the sulphuric acid is diluted by the electrolyte. These are referred s the lead-acid cells. Each of the electrodes is usually converted with other as this battery is used or charged by using its rechargeable battery. Approximate 2 volts of the voltage is occurs in each cell, and 12 voltage occurs in the overall cells of the battery. Hydroelectric Power and Windmills: Energy from Wind are the two most commonly used powers. The hydroelectric power included as the process of the power generation in which the energy is electricity is produced by using the water and resource of the water. In the common term, such kind of electricity is referred to as the hydroelectricity. The falling water rotates the blades of the hydroelectric turbines. Then it moves to the copper armature in the internet area of the electric generator that is required to producing the electricity. The Dams are the greater source of producing the hydroelectric powers are the dam that’s are usually producing the electricity. The blades of the turbines are rotated by the wind power plant than it moves to the copper armature in the internet area of the electric generator that is required to producing the electricity.  In the past, such windmills are used to rotating the wheels of the attached mills. These modern term mills are used, turning the mechanical energy in electrical power.[46]

Discussion on Electric Vehicle Charging Stations Market Analysis

From the above thorough analysis, it can be said that it is a fact that the demand for electric vehicles is increasing slowly and gradually, and it is expected that demand would experience more increase in the coming years. Overall, the whole world may not be ready for this industry as it changes so many things around, but the fact of the matter is that world has been dealing with so many environmental and climate change issues, so EVs are need of the hour in so many ways. It is true that perception about EVs is wrong that these are completely eco-friendly with zero omission because these cars also contribute in environmental pollution of some sorts, but this contribution is very small when it is compared with other conventional vehicles because they emit so much pollution in the air especially vehicles using fuels. So, it is obvious that EVs have a great future ahead and with the increase in its use; the world will also need associated infrastructure as well like EV-Charging Stations.[47]

It means that once EVs start to get more attention from consumers and people do adopt EVs in their modern lifestyle, the next immediate issue would be that how to keep these EVs charged with enough battery time to travel especially long distances. If a family wants to go far from one place to the other, and they use an EV, then how would they continue their journey without any interruption and delays? The answer to this considerable question is that they will need E-charging stations all way along so that they can keep batteries of car charged enough. But the major issue is that building these E-charging stations is not an easy task, and it needs a lot of thought process, consideration as well as planning before it can be adopted as a proper business model around the world including Germany. In this particular paper, the focus will be given to value chain of E-charging stations by analyzing attractive business models that what could be done, and what kind of value chain will be adopted by these business models.[48]

Moreover, e-charging stations are very important throughout the world. The increasing sales of EVs are certainly a good sign for the future, but the fact of the matter is that there are not enough E-charging infrastructures to comply with these sales. If numbers go higher in coming years, then the problem can get even worst because E-charging stations demand will rise, but no one is building them to meet these potential demands. It has been estimated that if one driver wants to travel between Evanston and Laramie, then the distance between these two locations is 300 miles. So, a driver may see around forty gas stations on this way, but if someone is driving an EV, then there might be only 3 or 4 E-charging stations on this journey, which shows the real essence of this problem. It has also been observed in different reports that consumers are hesitant to buy and use EVs because they think that the number of E-charging stations is not enough to meet their needs.[49]

The studies have also concluded that if people would see more E-charging stations around their areas and towns, then they certainly will make quick decisions to buy EVs. Moreover, one must understand that these E-charging stations are not only demanded by consumers, but they are also indispensable for the business of automakers, who want to manufacture EVs and increase its sales. That’s why companies are focusing on investing in this regard, and one good example comes from Volkswagen as they have committed to invest $2b on E-charging stations. But overall efforts from the power companies as well as automobile companies are not doing enough for E-charging infrastructure. So, summing up this discussion, it can be said that if EVs sales would increase and if the world needs more eco-friendly vehicles, then E-charging stations are needed in big numbers.[50]

The above analysis has shed light on EVs sales in Germany and other countries; It is important for all stakeholders to realize that E-charging stations demand is extensively growing with time because the developed world is taking this step as a serious one for the future. The countries are taking considerable interest in the electric transport sector, which ultimately would need the support of E-charging stations, as, without E-charging stations, the survival of this sector is almost impossible. But the issue is that E-charging business models are not yet developed with full essence, which means that they may not look as profitable for companies as they might be. Moreover, only large firms are interested in making some investments, but more investment is needed from all other sectors to boost this E-charging business. One of the research analysts from Navigant Research, Mr Scott Shepard has said that “As the future for transportation looks to be favouring electric drive, the need for ubiquitous, simple, safe, and eas, rapid charging is essential to ensuring the long-term elimination of gasoline and diesel from the options for vehicle fuel.” His statement very well sums up the situation in a few words.[51]

Keeping all relevant information in mind, it is important to analyze what is being done by countries like Germany, and how things will be continued in the future in this regard. It is a well-known fact that carbon emission is a serious issue all around the world, and Germany has taken it as a serious concern for the climate and environment. So, a pledge was made by Germany that till 2020, they will reduce 40% carbon emission as compared to the carbon emission in 1994, and to achieve this feat, they have a plan to get 1 million EVs on German roads. It has been said that EVs may not be the only solution, but still the German government is backing this policy of electrifying transport system by encouraging the use of EVs. That’s why the government is offering various rewards and incentives to German citizens if they purchase EVs like they can get €4000 from the government on the purchase of an electric vehicle. It shows the real intent and purpose by the German government, but the next part of this campaign should focus on developing E-charging stations as well.[52]

The German government has not only provided benefits to the consumers, but they are also providing funds to companies for expansion of E-charging stations’ infrastructure. Currently, 29 various kinds of EVs models are being developed by German manufacturers, and they are being encouraged to come up with more. It is expected as per government estimates that till 2020, 1 million EVs will hit roads of Germany. In 2017, the federal government of Germany had spent around €210 million for electric mobility R&D, and since 2012, 22 total flagship projects have got award and acclaim by the German government. It depicts that Germany is looking forward in this sector, which means that they will need to boost the business of E-charging stations as well.[53]

Such kind of intent is also shown by various other countries of the world as well like London and Paris have pledged that till 2024, the cities will experience only the electric cars. The goal is very ambitious as when overall sales of EVs are analyzed all over the world; the UK sales are only 1% of that. Europe is also moving faster towards this sector, but facts have shown that China wins the race in this regard who is ahead from the United States and Europe. The Chinese EV market is more diverse as well as dynamic, and it offers more variety than any other country in the world. The way countries are taking an interest in this sector; it looks obvious that more and more E-charging business models will come with great value chains in the future. China is way ahead in the global market from other countries in the world with regards to EVs. Europe is not far behind and results from the United States are also encouraging. The good thing is that other developed countries are also increasing their EVs sales, and Germany has remained in the top ten countries at least, which promises a lot for the future.[54]

Also, the business for EV stations is growing fastly; the investors, automakers, and stakeholders can look for various business models for E-charging stations that how infrastructure would be built, and how the process will move forward being profitable enough. The boom of the EVs industry is asking for building more E-charging stations, but the business is still new, and no one knows which business model will be suitable in this regard. Various business models have been discussed, but in this paper, the focus will be given to five business models for E-charging business. The first business model is called “Regional fast charging networks”. In this model, companies can focus on building fast charging networks with multi-sites. The regional development areas, as well as tourism regions, can be focused in this regard. The second business model is “initiatives from small and local businesses”.[55]

 The small, as well as local businesses, especially in populated tourists’ destinations, can adopt this model to encourage tourists to come there with EVs as they will have well enough E-charging infrastructures. The third business model is “EV charging on a commercial basis”. It is a great business model for the entire car parking providers, hotels, restaurants, fast food companies, retail stores, big shopping centres as they can provide E-charging facility to its visitors on a commercial basis. The fourth business model for E-charging is “Enterprises & E-fleet”, and the fifth one is “Sustainable e-mobility by municipalities. So, these business models range from small level to large commercial level, and potential investors and companies can look into these models and chose a suitable one for them, which is easy to built infrastructure for them, and they can also make it a profitable one after making an investment into it.[56]

References of Electric Vehicle Charging Stations Market Analysis

Bruns, Elke, Dörte Ohlhorst, Bernd Wenzel, and Johann Köppel. 2010. Renewable Energies in Germany’s Electricity Market: A Biography of the

Innovation Process. Springer Science & Business Media.

Capgemini Invent. 2019. Key Factors Defining The E-Mobility of Tomorrow. Accessed July 1, 2019. https://www.capgemini.com/wp-

content/uploads/2019/02/Capgemini-Invent-EV-charging-points.pdf.

Cleanenergywire.org. 2018. Set-up and challenges of Germany's power grid. https://www.cleanenergywire.org/factsheets/set-and-challenges-

germanys-power-grid.

CoulterWrightbUgoIbusukic, Ailton CondeJussaniaJames Terence. 2017. Battery global value chain and its technological challenges for electric

vehicle mobility. 7. https://www.sciencedirect.com/science/article/pii/S180920391730027X.

Daina, Nicolò. 2017. "Modelling electric vehicles use a survey on the methods." 68 (1): 447-460.

DEATON, JEREMY. 2019. Everybody wants EV charging stations, but barely anyone is building them. Accessed July 1, 2019.

https://www.fastcompany.com/90321889/everybody-wants-ev-charging-stations-but-barely-anyone-is-building-them.

Dw.com. 2018. German e-cars still hampered by lack of charging stations. August 8. https://www.dw.com/en/german-e-cars-still-hampered-by-

lack-of-charging-stations/a-45245116.

Ee.co.za. 2019. "The Electricity Distribution Industry in Germany and South Africa - A Review of Policy and Regulation." www.ee.co.za.

http://www.ee.co.za/wp-content/uploads/2018/09/Discussion-Paper-The-EDI-in-SA-Germany-A-Review-of-Policy-Regulation_Sept-2018.pdf.

Electrive.com. 2019. Germany: Shell to set-up 50 HPC stations this year. May 13. https://www.electrive.com/2019/05/13/shell-to-build-50-hpcs-

before-the-year-is-out/.

Engel, Hauke. 2018. Charging ahead: Electric-vehicle infrastructure demand. https://www.mckinsey.com/industries/automotive-and-

assembly/our-insights/charging-ahead-electric-vehicle-infrastructure-demand.

ENSTO. 2019. 5 Great EV Charging Business Models. Accessed July 1, 2019. https://www.ensto.com/company/newsroom/blogs/5-great-ev-

charging-business-models/.

Ernst & Young. 2011. Beyond the plug: finding value in the emerging electric vehicle charging ecosystem. Ernst & Young’s Global Automotive

Center.

FEDERAL MINISTRY FOR ECONOMIC AFFAIRS AND ENERGY. 2019. Electric mobility in Germany. Accessed July 1, 2019.

https://www.bmwi.de/Redaktion/EN/Dossier/electric-mobility.html.

Fischer, Hilke, and Dave Keating. 2017. How eco-friendly are electric cars? Accessed July 1, 2019. https://www.dw.com/en/how-eco-friendly-are-

electric-cars/a-19441437.

gtai.com. 2016. "Electromobility in Germany: " 1-44.

Hauke Engel, Russell Hensley, Stefan Knupfer, and Shi. 2018. Charging ahead: Electric-vehicle infrastructure demand. August.

https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/charging-ahead-electric-vehicle-infrastructure-demand.

Iedconline.org. 2009. "INTRODUCTION TO ELECTRIC vehicles." 3-100.

Jussani, Ailton Conde. 2017. "Battery global value chain and its technological challenges for electric vehicle mobility." 14 (4): 333-338.

Keating, Dave. 2017. The race to e-mobility. Accessed July 1, 2019. https://www.dw.com/en/the-race-to-e-mobility/a-39954624.

Korpelainen, Antti. fall 2017. VALUE CREATION IN ELECTRIC VEHICLE.

https://pdfs.semanticscholar.org/63fa/2aeaa328545d4acc334fcdd8c632874a08c8.pdf.

Leg Wa Gov. 2019. BUSINESS MODELS FOR. http://leg.wa.gov/JTC/Documents/Studies/EV/FinalReport_EVChargingNetworksWEB.pdf.

Marketsandmarkets.com. 2019. Electric Vehicle Charging Stations Market by Charging Station. https://www.marketsandmarkets.com/Market-

Reports/electric-vehicle-charging-stations-market-21599205.html.

marketwatch.com. 2019. Electric Vehicle Charging Stations Market – 2019 Trends, Growth Insight, Size, Share, Competitive Analysis, Statistics,

Regional, And Global Forecast To 2023. March 18. https://www.marketwatch.com/press-release/electric-vehicle-charging-stations-market-2019-

trends-growth-insight-size-share-competitive-analysis-statistics-regional-and-global-forecast-to-2023-2019-03-18.

Navigant Research. 2018. New report explores business models for EV charging. Accessed July 1, 2019. https://www.smart-

energy.com/industry-sectors/electric-vehicles/new-report-explores-business-models-ev-charging-stations/.

Oliverwyman.com. 2019. The Electric Vehicle Charging Market. https://www.oliverwyman.com/our-expertise/insights/2017/oct/ev-charging-

market.html.

Semantic Scholar. 2019. Towards Winning Business Models for the EV-Charging Industry.

https://pdfs.semanticscholar.org/b6e9/22c2c119c17a9ee4ebfb56d8a3d751ae0dc8.pdf.

Sturgeon, Timothy, Johannes Van Biesebroeck, and Gary Gereffi. 2008. "Value chains, networks and clusters: reframing the global automotive

industry." Journal of Economic Geography 8: 297-321.

 

 

 

 




 

Our Top Online Essay Writers.

Discuss your homework for free! Start chat

Unique Academic Solutions

ONLINE

Unique Academic Solutions

6510 Orders Completed

Academic Master

ONLINE

Academic Master

2877 Orders Completed

Engineering Guru

ONLINE

Engineering Guru

8001 Orders Completed