What CPOs and investors should know about public EV charging market consolidation

The EV public charging market is entering a new era: consolidation.

For years, the market has been highly fragmented, with thousands of regional networks across Europe competing for growth. Today, with over one million public charge points in Europe and more than 2,000 networks (most with fewer than 100 charge points) the dynamics are changing. Access to capital is tightening, competition is intensifying and only operators and investors with a clear strategy will succeed.

How did we get here? The three phases of the public EV charging market

The evolution of Europe’s EV charging industry can be divided into three distinct phases. Understanding where the market has been and where it’s heading, is crucial for operators and investors preparing their strategies.

Phase 1: Establishment

The first phase was characterised by rapid growth and a rush to expand:

• Market dynamics: new entrants competed aggressively to secure sites, backed by public subsidies, early-stage venture capital, and growth-focused private equity.
• Investment behaviour: investors prioritised future potential over immediate profitability, fuelling expansion across Europe.
• Outcome: networks grew quickly, but many remained unprofitable, and fragmentation increased with thousands of operators vying for position.

European public EV charge point installed base by year

Phase 2: Consolidation

Today, the market has entered a phase where survival depends on scale, performance, and capital discipline:

• Market dynamics: weaker networks are being absorbed through acquisitions or mergers, while some exit altogether. In several countries, a few operators are starting to dominate, while others face mounting pressure.
• Investment behaviour: investors are more selective, focusing on operators with strong utilisation, reliable assets, and clear growth strategies.
• Outcome: only those networks that can demonstrate operational excellence and a clear path to profitability will secure funding and market share.

European investment in EV charging by deal size

The sharp decline in investment since 2023 highlights that only the most efficient and well-capitalised CPOs will thrive in the consolidation era.

Phase 3: Commercialisation

The next phase will see the market mature into a value-driven, customer-focused industry:

• Market dynamics: competition will shift from expanding networks to optimising them, with reliability, customer experience, and energy system integration at the forefront.
• Investment behaviour: investors will seek predictable, stable returns from operators with proven performance and innovative business models.
• Outcome: the market will consolidate around a smaller number of strong networks, with sustained profitability and long-term growth opportunities.

For CPOs: the path to growth and success

Charge point operators face three main options in this new environment:

1. Grow through performance, not just scale

Winning CPOs will focus on site performance, increasing utilisation, improving reliability and enhancing customer experience. Networks that can demonstrate these strengths and a clear pathway to profitability will attract investors and stand out in a crowded market:

For CPOs operating in other segments such as fleet or home charging, developing additional revenue streams, such as flexibility services or vehicle to everything (V2X) capabilities, will also be critical to long-term success.

2. Merge or be acquired

With capital becoming harder to access, many smaller CPOs may consider mergers to strengthen their position, while others may seek acquisition by larger networks. Consolidation will be driven by both strategic partnerships and selective asset deals:

3. Exit the market

Operators that cannot secure funding or partnerships may see their networks split-up with high-performing assets adopted by other operators and underutilised sites removed altogether:

For investors: risks and opportunities

For investors, consolidation creates a mix of risks and rewards:

• Thorough due diligence is essential to avoid acquiring outdated assets or networks with weak strategic plans.
• Early-stage investors will back management teams with clear, executable strategies.
• Infrastructure investors will prioritise networks with proven utilisation and sustainable returns.

Understanding market forecasts, regulatory shifts, the competitive landscape and the overall strength of the offering will separate successful investments from risky bets.

For both CPOs and investors: the role of flexibility and V2X in creating value

Beyond traditional charging revenues, new technologies are unlocking fresh opportunities.

• Flexibility services allow networks to provide grid support, creating additional income streams.
• V2X (vehicle to everything) technologies will enable chargepoints to interact with the wider energy system, offering new ways to capture value.

For operators, these innovations strengthen their investment case. For investors, they present opportunities to back businesses with future-proof revenue models.