The adoption of plug-in electric vehicles (PEVs) is driving automakers to seek out new sources of revenue—both to take advantage of PEVs’ extensive vehicle data, energy storage, and communications capabilities, and to replace expected lost revenue due to the stabilizing or slowing of vehicle sales in mature markets. Among these new revenue streams are carsharing services, sales of electric vehicle (EV) charging equipment through dealers, home energy management, residential solar photovoltaic (PV) sales, and grid services. Click to tweet: According to a new report from Navigant Research, worldwide automaker revenue from alternative revenue streams will grow from $426.8 million in 2014 to $5.26 billion in 2023.
“Many automakers are seriously exploring new products and services they can bring to market related to energy management, renewable power, and sustainable mobility,” says Lisa Jerram, senior research analyst with Navigant Research. “While carsharing is already a major revenue generator, other services will be slower to grow and will serve more as a way to drive plug-in electric vehicle sales, rather than as new revenue streams.”
In taking advantage of these emerging opportunities, automakers are challenged with the entry into new types of markets, where they have little or no experience and face strong competitors, according to the report. What these companies do have is a built-in market for new services and, in most cases, highly trusted and powerful brands on which to build new offerings. If an automaker takes an aggressive approach to any of the smaller revenue markets, in terms of investing in or acquiring companies already in the market, they could see more revenue from these services.
The report, “Alternative Revenue Streams for Automakers”, examines services that automakers are already offering or developing, either in conjunction with their PEVs, or simply as standalone services associated with sustainable transportation. The study analyzes the following services: vehicle-to-grid (V2G), vehicle-to-building (V2B), home energy management, solar energy, EV charging equipment and networks, carsharing, and smart parking. Global forecasts of the total addressable market and projected OEM revenue from these services, segmented by region, extend through 2023. The report also examines the existing market dynamics for each of the services covered, the drivers and challenges for automakers entering those markets, and the key market players. An Executive Summary of the report is available for free download on the Navigant Research website.
* The information contained in this press release concerning the report, “Alternative Revenue Streams for Automakers,” is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the repor