Why should utilities look towards the electric vehicle market?
Much has been said about electric vehicles and their environmental and socioeconomic benefits. However, leaving aside the benefits of this technology, there is a large business opportunity for utility companies that are getting prepared to support this new kind of mobility. Learn more about this opportunity to prepare and succeed in this new industry challenge.
In a global context where environmental issues are becoming increasingly relevant in the economic and socio-political spheres, it is understandable that electric vehicles be a technology that raises growing interest; it is estimated that half of all new cars will be electric vehicles by 2040. Furthermore, there are a large number of national governments that are promoting initiatives related to this technology through investment and incentives, as well as a growing number of stakeholders that are getting engaged in this business as either producers or buyers.
In the case of utilities, the implementation of this technology as a new business model will help them encourage the reduction of greenhouse gas emissions, promote new rate programs, and increase revenue through the offering of charging station-related services.
Utilities should keep in mind that the business opportunity is not only in the supply of energy for vehicles, a segment that represents about $1.7 trillion and is subject to high competition amongst several energy suppliers but also in the offer of new e-mobility services such as remote charging apps, integrated home-EV energy management, payment processing and even financing for EV purchases, which represent an opportunity of around $250 billion.
According to a research lead by Accenture Strategy, electric vehicles will create a business opportunity of about $2 trillion dollars in e-mobility businesses for utility companies.
With such growth expectations, it is worthwhile to take a look at the immense business opportunity that utility companies have around the electric vehicle market and analyze what steps companies should take to maximize the benefits of these new market conditions.
Given the above circumstances, utilities must also start to analyze the different technological solutions that will enable them to serve this new market successfully. They should take software solutions into consideration, which will support not only the operational side of energy supply but also the commercial management of e-mobility services. Indeed, some Customer Information Systems are already beginning to incorporate the functionalities to provide end-to-end support to this new business model. At Open, we are already prepared to help you succeed in this market.
To find out more about how Open Smartflex helps utilities make the move to electric vehicles, request a demo.