2022 Charging Forward Report
EVs are driving change
2022 Charging Forward Report
EVs are driving change
Disclaimer
This presentation may contain “forward-looking” statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that are based on our management’s beliefs and assumptions and on information currently available to management, including statements regarding estimates and forecasts of electric vehicle (EV) charging metrics, projections of market opportunity, market share, industry adoption of electric vehicles and trends in electrification as an alternative to fossil fuels. These forward-looking statements are provided for illustrative purposes only and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from our management’s assumptions, and such differences may be material. Many actual events and circumstances are beyond the control of ChargePoint. These forward-looking statements are subject to a number of risks and uncertainties, including geopolitical events, macroeconomic trends including changes in inflation, interest rates, globalization trends, or other events beyond our control on the overall economy, our business and those of our customers and suppliers; national, regional, state and local policies and incentives designed to promote EV adoption and utilization of EV charging networks; overall demand for EV charging and the potential for reduced demand for electric vehicles if governmental rebates, tax credits and other financial incentives are reduced, modified or eliminated or governmental mandates to increase the use of electric vehicles or decrease the use of vehicles powered by fossil fuels, either directly or indirectly through mandated limits on carbon emissions, are reduced, modified or eliminated; the continued or accelerated adoption of elective vehicle charging in commercial, fleet and residential applications; the possible development or adoption of alternative fueling technologies or platforms other than EV charging; our ability to continue to design, develop, introduce and commercialize additional new products; our dependence on widespread acceptance and adoption of electric vehicles and the increased installation of charging stations; our current dependence on sales of charging stations for most of our revenues; our ability to expand our operations and market share in Europe; and the effects of competition on ChargePoint’s future business. Further information on these and other factors that could affect the forward-looking statements we make in this presentation can be found in the documents that we file with or furnish to the U.S. Securities and Exchange Commission (SEC), including ChargePoint’s most recent Annual Report or Quarterly Reports filed with the SEC, which are available on our website at investors.chargepoint.com and on the SEC's website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this presentation are based on our current beliefs and on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made or to update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.
All information in this presentation is as of May 26, 2022.
CEO letter
The tipping point for e-mobility is here
When the story of the modern electric vehicle (EV) is written, the era we’re currently living in will still be part of the prologue. When ChargePoint started back in 2007, there wasn’t even a single mass-market battery electric vehicle (BEV) on the road. That wouldn’t happen until 2010, when Nissan sold a total of 50 LEAFs worldwide. That was the same year I interviewed for the CEO role and realized the company’s founders were onto something. Shortly thereafter, in early 2011, I accepted the job. It was the best career decision of my life by far.
Fast forward ten years. In 2021, there were more than 200 EV models on roadways across Europe and North America (NA) alone. Today, every major traditional automaker, along with several notable born-electric rivals, are reshaping mobility forever. That increased availability, combined with zero-emission vehicle (ZEV) mandates and fossil fuel bans targeting climate change across the globe, signals the tipping point for the mass-adoption of EVs within the decade.
And ChargePoint? From our humble beginnings, we’ve grown to become the first publicly traded electric vehicle fueling network operating across two continents and the only company, regardless of size, that is involved in all segments of EV charging in North America and Europe. In the same way many other connected technologies have transformed our lives, ChargePoint is democratizing mobility by providing our commercial customers with a platform that allows them to participate in the electric vehicle revolution. And remember, we’re still just getting started.
More than a decade after that fateful day of my interview — when I literally had to rotate my calculator into landscape mode to view the entire addressable market — I am more passionate, more optimistic, and more convinced about the future of electric mobility than ever. After reading the pages that follow, I think you will be too.
Charge on,
Pasquale Romano
CEO, ChargePoint
A look back
5 years, 5 predictions
5 predictions, 5 years later
Charging Forward 2022 marks the fifth anniversary of our first Charging Forward report. In that report, we made five predictions about what e-mobility would look like in five years. It’s been five years; how did we do?
ChargePoint 2017 prediction 1:
“Electrification becomes truly global.”
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According to BloombergNEF (BNEF), global passenger EV sales more than doubled from 2020 to 2021. Specifically in Europe and North America, sales of vehicles with a plug grew by 70% year-over-year (YoY). The market growth resulted in every one in ten vehicles sold last year being an EV.
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28% of all passenger vehicles sold in Europe in Q4 of 2021 were electric. That number was 6.8% in North America, with both regions seeing the highest quarter to date for EV penetration.1
1 “1Q 2022 Electrified Transport Market Outlook,” BNEF, March 2022
ChargePoint 2017 prediction 2:
“An expanding fueling network and more car models will make electric driving ubiquitous.”
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Over the past five years, the ChargePoint® network has grown by more than 300%.2
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The number of electric vehicle models available to consumers increased by more than 40% from 2019 to 2020.
2 ChargePoint network, March 2022
ChargePoint 2017 prediction 3:
“Automakers toss the status quo.”
ChargePoint 2017 prediction 4:
“Urban mobility becomes more connected and efficient to meet the increasing demands of population growth.”
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Today, there are more than 8,500 electric buses on roads across Europe and North America. BNEF predicts 16% of new bus sales across the two regions will be electric by 2025, driven by an EU rule specifying that 25% of newly-purchased buses be zero-emission by 2025 and a similar California mandate requiring all new bus purchases be zero-emission by 2030.
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The Europe Commission developed and implemented a sustainable transportation framework to reduce transportation congestion and pollution.
ChargePoint 2017 prediction 5:
“Fleets will disrupt the entire transportation ecosystem — from commuter vehicles to bus depots and beyond.”
- Sessions delivered on the ChargePoint network to electric fleets, including service, work and delivery, have increased by more than 200% over the past five years.
- The world’s largest delivery fleets, including Amazon, DHL, FedEx and UPS, have all made major investments in fleet electrification, while cities around the world have committed to 100% zero-emission bus fleets in the coming years.
Were we clairvoyant? No, we’re simply good at math and patient. In fact, now as then, the numbers are on our side, so we’re confident enough to make another five predictions at the end of this report. Stay tuned.
State of \the market
The EV revolution is here
What’s driving demand?
A look at electric vehicle sales growth and the evolution of global climate policy
Mobility is changing. BNEF predicts that passenger EV sales will exceed 14 million in 2025, an increase of more than 100% from 2021.3 And it’s not only born-electric automakers creating the trend. Most major automobile manufacturers have committed billions of dollars toward electrification within this decade with several notable brands, including General Motors, Jaguar, Mercedes-Benz, Volkswagen and Volvo, planning to become fully electric by 2035 or sooner. Others like BMW, Cadillac, Fiat, Honda, Hyundai, Kia, Land Rover, Ford, Mitsubishi, Nissan and Toyota will significantly expand their EV offerings this decade.
3 “1Q 2022 Electrified Transport Market Outlook,” BNEF, March 2022
EV Growth
- EV sales across the United States and Canada grew by more than 90% YoY and over 60% YoY in Europe, reaching over 3 million EVs cumulatively sold across the two regions.
- One-third of global auto sales now come from automakers that plan to phase out internal combustion engine (ICE) vehicles entirely.
- EV penetration in North America increased every quarter in 2021, reaching 4.5% share of passenger vehicle sales overall for the year, with BEVs representing 75% of all EVs sold in the region last year. Record growth is expected to continue with over 1 million EVs expected to be sold in 2022 across the United States and Canada alone.
- EV share reached an all-time high in Europe during 2021, with over 20% of passenger vehicles sold being electric. BEVs also accounted for the majority of plug-in vehicle sales with 54% of electric share. In 2022, EV sales are expected to reach over 3 million in Europe, which would make this year another record growth year for the region.4
4 “1Q 2022 Electrified Transport Market Outlook,” BNEF, March 2022
4 “1Q 2022 Electrified Transport Market Outlook,” BNEF, March 2022
“There isn’t enough charging.”
You know the feeling. You purchase a new car and you think you’re the only person in the world who drives one. Suddenly, you notice it everywhere. That’s how it is with charging stations. EV drivers tell us it’s easy to find charging wherever they live, work and play, and that’s evident in our data.
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Our network is scaling right alongside EV sales growth. Over the past five years, the ChargePoint network has grown by more than 300%, comparable to 340% EV sales growth in Europe and North America over the same period.
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Over 80% of charging worldwide takes place at home. Our session data bears that out. The vast majority of charging sessions on the ChargePoint network occur either at home or at work. Rather than stopping at an out-of-the-way location to refuel, EV drivers prefer to top-off their car while it’s parked.
Global policies create a seamless charging experience for businesses and drivers
The ChargePoint Policy team is helping define electric fueling around the world, reducing infrastructure expenses and red tape and shaping grant and incentive programs to ensure businesses of all types and drivers everywhere have the best, most convenient, affordable and accessible charging experience possible.
- Our policy team has advocated tirelessly for equitable access to the benefits of electrification, with the goal of expanding access to e-mobility.
- We’ve supported zero-emission vehicle (ZEV) mandates in Europe and North America, including in the UK, Canada, California and elsewhere to help speed EV adoption and increase visibility.
Lower total cost of ownership (TCO) helps fuel EV demand
- An average EV owner can expect to save $9,000 in fuel costs and $4,600 on maintenance over the 200,000-mile lifetime of an EV.5
- Maintenance costs of battery electric vehicles are 40% lower than ICE-powered vehicles.
Since 2007, ChargePoint has been at the forefront of efforts to one day move all people and goods on electricity across North America and Europe. We’re nearly there. To accomplish that goal, all of us must work together to make the transition to electric fueling as easy and as seamless as possible for drivers around the world.
Christelle Verstraeten, senior director European policy, ChargePoint
5 “EVs Offer Big Savings Over Traditional Gas-Powered Cars,” Consumer Reports, October 2020
Market ecosystem
The new fueling landscape comes \into focus
The most massive sea change in transportation since the invention of the automobile is happening right before our eyes. The difference this time around is that any business or organization, regardless of size, can take advantage of the current shift to e-mobility. From the corner shop to parking and event venues and the world’s biggest companies, there’s an opportunity to offer charging to drivers wherever they live, work and play.
Commercial
Compared with the vehicle fuels that preceded it, electricity is safe, abundant and inexpensive. Therefore, it also presents opportunities for businesses to attract customers to their retail locations, drive demand for mobility hubs within parking structures or create brand new business models in the fueling and convenience industry.
Municipalities use smart charging as a way to attract investments and commercial real estate firms incorporate it to attract desirable tenants on the way toward building the cities of the future. With aircraft electrification on the horizon, even the sky may not be the limit when it comes to fueling EVs.
Companies can offer several incentives to attract and retain top talent, but if EV charging isn’t one of them, businesses may be missing out. Today’s workers want more from a job than just a paycheck — they want meaning. Companies that provide incentives that align with employees’ values simply do better than their competitors. It turns out that what’s good for people and the planet is also good for business.
Since 2017, commercial charging sessions have increased at an annual average growth rate (AAGR) of 20%.6
6 ChargePoint network, March 2022
Fast charging has its place in the EV charging ecosystem — if you’re on a long road trip or you manage a delivery fleet for instance — but it’s rarely cost effective and nearly always unnecessary for everyday driving. EV drivers know that it’s far more convenient to treat your car like the modern technological marvel it is and top up while you’re living your life rather than driving to some out-of-the-way location to fuel.
- The average EV driver needs to access public fast charging just six times each year, compared with the roughly 50 times an ICE driver must fill up annually, at an average of 15 minutes per stop.
- Our network data reveals that in 2021, Level 2 AC stations enabled more than 830 million electric miles driven. When drivers do need a fast fill, our 11.5K+ DC fast ports (and counting) are available to serve their needs.
Though it’s not the primary way EV drivers charge, DC fast charging offers a convenient option for EV drivers when parked for a short amount of time, whether making a long trip or visiting quick-stop retail or fast food restaurants. It can also be an important component of the charging mix for light, medium or heavy-duty fleets that need to stay charged up for their routes.
Bill Loewenthal, senior vice president, product , ChargePoint
Learn more about commercial ChargePoint customers leading the charge:
LinkedIn
Gewobag
Fleet
Fleets are the lifeblood of world economies — especially today. According to BNEF, global road freight is expected to explode over the coming decades, growing by nearly two-thirds by 2040. Consequently, fleets, including service, work, take-home and delivery, are now at the forefront of electrification worldwide. Amazon, DPD, FedEx, IKEA, PepsiCo and UPS are a few examples of industry leaders accelerating electric fleet pilots to meet sustainability goals, achieve cost savings, and adhere to new and upcoming government regulations.
Since 2017, Fleet charging sessions have increased at an AAGR of 52%.
“There aren’t enough vehicle types for fleets to electrify.”
According to BNEF, sales of electric fleet vehicles more than doubled in 2021 compared to 2020. Why? There are simply more models and types of EVs to choose from. Automakers from electric brands such as London-based Arrival, Amazon-backed Rivian and EV-leader Tesla, as well as traditional manufacturers including Daimler, Ford and Volvo, introduced dozens of light- and heavy-duty electric fleet vehicles in 2021. More vehicle choice removes what has traditionally been one of the largest barriers to fleet EV adoption.
- Cost savings are a major driver of fleet electrification. EV first movers have experienced savings of between 20% and 25% over traditional ICE vehicles thanks to reduced fuel and maintenance costs.
- The growth in the market has three key drivers: economics, policy and corporate sustainability. Electric light commercial vehicles (LCVs) have already reached cost parity in many markets around the world.7 Electric vans are expected to account for nearly 60% of LCV sales by 2040.8
Find out how ChargePoint fleet customers are leading the charge:
Velocity
Gillig
7 “How Are Corporations Electrifying Their Vehicle Fleets?,” BNEF, 2021
8 “Electric Vehicle Outlook 2021,” BNEF, 2021
Residential
For apartment, condo and townhome property owners, managers and HOAs, the days of taking a wait-and-see approach to electric vehicles are over. Once a nice-to-have amenity for multifamily communities, charging has now become standard as EV adoption accelerates around the world. Soon, residents will no longer decide where to live based on whether a property offers charging, but on which one provides the best charging infrastructure and services.
Fueling doesn’t get much easier than home charging. Single-family homeowners and take-home fleet drivers can charge any EV on the market up to nine times faster with a ChargePoint® Home Flex than with a wall outlet. They can even schedule charging to fit their busy lives or to take advantage of lower energy rates. It beats driving to a gas station hands down.
Since 2017, residential charging sessions have increased at an AAGR of 82%.
EV charging is as required as having a gym. It’s beyond an amenity, it’s beyond a nice to have.
Phil Carmody, head of ESG and corporate programs, GID
“There are no charging options for EV drivers living in multifamily communities.”
Electricity is on track to become the dominant fuel for moving people and goods around the world within the decade. As EV ownership increases, drivers will increasingly demand to charge their vehicles where they live. EV drivers wishing to purchase a condominium or rent an apartment will choose the communities that offer amenities they need — and our data bears that out.
- ChargePoint solutions work well for multifamily communities, including apartments and condos. In fact, multifamily charges delivered from the ChargePoint network increased more than 70% in 2021.9
- 59% of respondents to a 2018 AMLI survey said they would pay more to live in a “green or sustainable community”.
Find out how ChargePoint residential customers are leading the charge:
GID
Bozzuto
9 ChargePoint network, March 2022
Software is key
Creating a superior driver experience behind the scenes
EVs were born in an era of connectedness and new technologies. That’s something we think about every day at ChargePoint. How can we help make fueling not just different, but better? Since 2007, ChargePoint has been leading in innovation. So far, we’ve been awarded more than 80 patents that make electric vehicle charging more intuitive, more accessible and easier for site hosts, fleet managers and drivers worldwide. When you’re asking consumers to change a pattern; something they’ve known forever, you have to meaningfully demonstrate how the experience can positively impact their lives.
Scaling the electric revolution with software
When it comes to fueling, electric vehicles are more closely related to the device in your pocket than they are to even the latest gas-powered model. With a smart, networked Level 2 AC home or workplace charger from ChargePoint, savvy EV drivers can take advantage of off-peak demand electricity rates or a generous employee benefit, all from the highly rated ChargePoint app. The app allows you to schedule charging, conveniently queue up at work while others are charging or start a session using your voice with Amazon Alexa. In-vehicle integrations with Apple CarPlay, Android Auto and certain vehicles’ infotainment systems put charging at your fingertips, even when you’re not parked.
With the ability to connect their phone directly with the vehicle through CarPlay, drivers now have access to ChargePoint app information right on the vehicle display. The seamless connection between the app and vehicle represents the next step in how drivers and passengers will experience mobility in the future, accelerated by the global shift to electric drive.
Bill Loewenthal, senior vice president, product, ChargePoint
Making fueling convenient to improve driver experience
ChargePoint has hundreds of roaming partners. With roaming agreements, there are now more than 475K ports available on the ChargePoint network, over 51K of those ports in Europe alone — nearly doubling the number of charging locations in a single year.
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A driver plugs into the ChargePoint network every 1 second.
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Since 2007, ChargePoint has delivered over 113 million charges, equivalent to 3.6 billion miles driven on electricity and counting.
Enabling businesses so charging works for their specific needs
- Over 70% of around town and workplace sessions on the ChargePoint network are started using the “Tap to Charge” feature or through the ChargePoint app.
- Over 30% of residential sessions leverage the scheduling feature, which helps lower energy costs and avoid peak demand charges.10
10 ChargePoint network, March 2022
Flexible, reliable and scalable \EV charging for every use case
A seamless experience requires a menu of different options
Flexible, reliable and scalable EV charging for every use case
Fueling a vehicle with electricity is undeniably better for the planet and for human health, but to succeed at scale it must also be easier, more reliable and more intuitive for the site hosts, fleet managers and drivers who rely on it. That means creating a flexible, seamless charging experience for everyone, regardless of use case. With 15 years in EV fueling experience across commercial, fleet and residential, ChargePoint has created a menu of innovative solutions to solve nearly every charging situation conceivable across two continents.
From fully managed EV charging solutions to custom integrations with legacy hardware assets, ChargePoint has the right solution for every organization. With ChargePoint as a Service® (CPaaS), businesses can add fully managed charging to their operations, while preserving valuable CapEx funds. CPaaS customers receive professional guidance, installation, proactive monitoring and the latest software updates through an innovative subscription model.
The acquisitions of commercial e-mobility leader has·to·be and public transport expert ViriCiti give ChargePoint customers additional customization and insight capabilities.
We weren’t interested in getting into the EV charging business. Having ChargePoint manage our charging services is a benefit for us. It takes one more thing off our plate and allows us to budget the cost annually so we know there will never be any surprises.
Eric Starns, president, Robinson Park
“EV charging isn’t reliable, especially at extreme temperatures.”
ChargePoint solutions are ISO and SOC 2 certified, UL listed and CE compliant, among other quality, reliability and safety awards. We were the first EV charging network to have a commercial product recognized by ENERGY STAR® for efficiency. In fact, we could go on and on about how we put our charging solutions through the paces at our 16,000-foot advanced test facility, ensuring they can withstand just about anything that’s thrown at them.
Or we can just show you. Watch this video >
We like the support model, and we appreciate that the network is built out and feature rich. What’s important for us is that the stations are operational and that there’s a consistent user experience across our portfolio.
Matthew MacWilliam, project manager, energy & digital buildings – west, QuadReal
Looking forward
Predictions for the next five years \and beyond
The electrification of transportation is as inevitable as it is necessary. To help counter climate change, European city centers are already on the verge of implementing fossil fuel bans that will eventually affect more than 62 million citizens within the decade. In the U.S., some states and municipalities are doing the same. Those mandates, combined with vehicle and driver incentives — as well as $7.5 billion commitment to EV charging contained in the 2021 infrastructure bill — will help accelerate EV adoption across North America.
The electrification of transportation is as inevitable as it is necessary. To help counter climate change, European city centers are already on the verge of implementing fossil fuel bans that will eventually affect more than 62 million citizens within the decade. In the U.S., some states and municipalities are doing the same. Those mandates, combined with vehicle and driver incentives — as well as
$7.5 billion commitment to EV charging contained in the 2021 infrastructure bill — will help accelerate EV adoption across North America.
By mid-decade, sustainability will no longer be a nice-to-have for governments and businesses globally. Today, transportation is the largest source of greenhouse gas (GHG) emissions in Europe and North America. Since 2009, greenhouse gases for transportation have risen 4.4% while those for electricity generation have fallen 25% (EPA, 2021). To date, 608,000 MT of greenhouse gas emissions have been avoided on the ChargePoint network.
ChargePoint is democratizing mobility by providing our commercial customers with a platform that allows them to participate in the electric vehicle revolution.
Pasquale Romano, CEO, ChargePoint
5 predictions for the next 5 years
- Automakers, businesses and fleets will hasten their electrification commitments, enabling a tipping point for EVs within the decade.
Because of its aggressive climate efforts, Europe will continue to lead in EV adoption this decade. In NA, the road to mass adoption will rely more on incentives than mandates.
- Utility policy and rate designs will evolve to support an EV-centric world.
As energy customers begin to realize both the cost savings and convenience of being able to fuel wherever they live, work and play, energy providers too will embrace the benefits EVs present them. From increased revenue opportunities to one day utilizing EV batteries to build resiliency into the grid, it’s a win-win for both consumers and utilities.
- Full time connectivity reshapes fueling forever.
For more than a century, the primary search engine for fueling has been a driver’s eyes. As EVs take over, that all changes. With electricity pervasive, inexpensive and convenient, we will rely on our phones or in-dash infotainment systems to locate, schedule and initiate charging based on our location and fueling needs, and at our leisure — much like we do with everything else in our lives. With traditional gas stations on the decline and liquid fuels subject to price volatility, the days of scanning highway exits and city blocks for a place to top up will recede in the rearview mirror. In fact, it will be hard to believe we did it the old way for as long as we did.
- Home charging takes off.
As the mass adoption of EVs hits its stride in mid-decade, drivers — no longer encumbered by an outdated fueling model — will immediately recognize the benefits of charging at home (scheduling charging at off-peak hours to save on power bills, fueling while they sleep, etc.). BNEF predicts 270 million home charging installations worldwide by 2040, with Europe leading the way thanks to faster EV adoption there.
- E-mobility changes everything.
Remember when Apple introduced the iPhone and skeptics dismissed it as a passing fad? Seemingly overnight, the device and its Android counterparts changed communication forever. That’s what’s going to happen to transportation as EVs hit critical mass beginning this decade. EVs are already superior to traditional vehicles in every way imaginable — they’re cleaner, faster, quieter and cost less to fuel and maintain. As battery prices come down, ranges increase and electric fueling continues to proliferate, in a few years you’ll find it hard to believe we settled for the previous model for so long. And it will change everything from how we live and work to how we traverse cities and nations. You haven’t seen anything yet. You can mark our words.
That’s it for now. We hope you can see what our founders saw 15 years ago when ChargePoint was getting going. We’ve come a long way since then, but as we mentioned at the beginning of this report, we’re just getting started. The world of mobility will look different in five years than it does now. In 10 years, it will be completely transformed. Even we can’t predict where it will be in 20 years and beyond. But check back in five or so, and we’ll let you know.
Charge on... and on, and on...
