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EV subscription services to reach seven million by 2024, says ABI Research

ABI Research, the technology market advisory firm, is estimating that subscription services for electric vehicles (EV) will grow by 270% over the next four years to reach seven million.

ABI Research said the connected services market for EVs will reach $378 million (£296.4m) by 2030, with products like charging-station locators, eco-routing and EV telematics leading the growth.

Maite Bezerra, smart mobility and automotive analyst at ABI Research, said that while EV sales have presented slow market growth in the past years, the increasing number of countries setting up deadlines to end the sale of Internal Combustion Engine (ICE) vehicles will propel higher EV adoption.

She said: “While Norway voiced its intention to end the sales of new ICE vehicles by 2025, Germany, Sweden, India, China, among other countries, seek to ban the sales of ICE vehicles from 2030.

“Moreover, with an increasing number of cities in Europe enforcing emission rules, only EVs will be able to run in urban areas in the next years.”

Bezerra said there is still a general perception of deficient charging infrastructure due to a lack of communication between vehicles and charging stations.

However, connected services, such as HERE’s EV Charging Stations and TomTom’s EV Routing Services, can help improve that perception by displaying information such as charging station location, compatibility, and real-time availability to drivers or fleet managers. 

Existing Horizon applications, which have yet to gain substantial market traction, can also be used by EVs to optimize acceleration and break events, saving energy, and increasing the range of EVs.

Bezerra highlighted Tesla, Nissan, and Peugeot as leading the way by offering connected services for EVs.

The rapid adoption of EVs will pose challenges for utilities as the increased capacity creates overload peaks that compromise the stability of the grid.

Therefore, communication between charging stations and utilities is also of high relevance for sustained EV adoption. 

Smart Energy Management solutions monitor, control, and restrict the use of chargers for optimal energy consumption.

Meanwhile, Vehicle to Grid (V2G) communication, offered by companies such as Nuvve and Virta, the ability to balance the grid by reading the frequency of power production and adjusting charging and discharging.

EVs can then smooth the increase in electricity demand and sell the energy back to the national grid or use the stored energy to reduce energy consumption from houses or buildings.

Presently, Nissan and Mitsubishi are at the forefront of V2G.

Bezerra said: “Vehicles are assets for fleet managers, so they tend to value services that decrease costs, such as Vehicle to Grid (V2G) communication and EV telematics

“For instance, Mercedes PRO e-Vito services that use Geotab telematics units.”

ABI Research anticipates two million subscribers by 2030 and a revenue opportunity of $156m (£122.3m).

Bezerra added: “While smartphone applications offer location services for EVs, only in-vehicle solutions can provide accurate information from embedded sensors and offer a seamless experience inside the car.

“Besides, connected solutions do not only provide information to the user, but also to fleet managers and car manufacturers that can use it to improve their vehicle’s performance or offer target solutions.”

The findings are from ABI Research’s Connected Services for Electric Vehicles application analysis report.

This report is part of the company’s Smart Mobility & Automotive research service, which includes research, data, and ABI Insights.

Watch now: Connecting Policy To Solutions Virtual Conference 2021

Smart Transport Conference returned on June 8th & 9th, to facilitate pivotal discussions on the future of transport. 

The UK’s most senior public and private sector transport leaders discussed the impact of Covid-19, achieving the Government’s decarbonisation ambitions, the need for more efficient living and better health, and much more.

Kwasi Kwarteng, secretary of state at the Department for Business, Energy and Industrial Strategy (BEIS), who spoke on BEIS's approach to decarbonising transport, particularly the electrification of the vehicle industry. Watch his presentation below:

 



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