In the coming years, automakers are likely to see their revenue from sales of conventional vehicles flatten or even decline in mature markets as vehicle sales continue to slow in developed countries. As a result, automakers are actively exploring new revenue streams, such as carsharing services, sales of electric vehicle (EV) charging equipment through dealers, home energy management, residential solar photovoltaic sales, and grid services. Click to tweet: According to a recent report from Navigant Research, cumulative worldwide automaker revenue from alternative revenue streams will total $22.1 billion from 2014 to 2023.
“The onset of the plug-in EV market means that car makers now have thousands of customers connecting to their home electricity network, as well as potentially connecting at their workplace and other commercial locations that offer vehicle charging,” says Lisa Jerram, senior research analyst with Navigant Research. “That provides opportunities for vehicle-to-grid and home energy management services that automakers are only beginning to understand and tap into.”
In addition to businesses enabled by the unique characteristics of plug-in EVs, automakers are also exploring other avenues, including carsharing, which is already a major revenue generator. Automakers’ revenue from carsharing services will reach more than $418 million in 2014, according to the report, increasing to $5.2 billion by 2023.
The report, “Alternative Revenue Streams for Automakers”, examines services that automakers are already offering or developing, either in conjunction with plug-in EVs, or simply as standalone services associated with sustainable transportation. The study analyzes the following services: vehicle-to-grid, vehicle-to-building, 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.