Electric Vehicle Charging Market Emerges as New Blue Ocean Business

As the electric vehicle market surges, the electric vehicle (EV) charging market is also expanding. Major corporations are entering the EV charging market, emerging as core new businesses.

It is difficult to find a large domestic company that is not involved in the EV charging business nowadays. Apart from Samsung, all four of the top five conglomerates have entered the charging market in various ways, such as acquiring EV charging companies or launching their own services.

The SK Group has been the most active. It has several subsidiaries engaged in the EV charging business, such as SK signet, which manufactures EV chargers, SK electlink, the largest private rapid charger operator in the country, and SK E&S, which has been offering charging services linked to parking.

LG Electronics has acquired a company called AppleMango to speed up its entry into the EV charging business, later renaming it to HiEV Charger. Founded in 2019, HiEV Charger owns EV charging technology.

Hyundai Motor Group, which produces electric vehicles, is focusing on installing and operating ultra-fast chargers. To this end, it is investing in its subsidiary, Korea Electric Vehicle Charging Service. The ultra-fast chargers of Korea Electric Vehicle Charging Service feature a “Plug&Charge” function that allows customers to authenticate, charge, and pay at once without any separate operation. Hyundai and Kia have carried out a capital increase of 30 billion won (US$23 million) in Korea Electric Vehicle Charging Service. The plan is to establish 3,000 ultra-fast chargers by 2025.

Lotte Group has entered the charging market through its ICT subsidiary Lotte Information Communication, which acquired the EV charging infrastructure company JOONGANG CONTROL (currently EVSIS). The goal is to install about 13,000 EVSIS chargers in major urban parking lots by 2025. They are also exploring overseas market penetration. Lotte Information Communication has a high chance of winning orders as the smart city, being built as Indonesia relocates its capital, needs EV charging infrastructure in large supermarkets and malls.

Mid-sized groups are also increasingly listing the EV charging business as a new business opportunity.

LS Group recently established LS E-Link, which operates an EV charging business. Based on E1 gas charging stations located nationwide, they have entered into the rapid charging business for large EVs such as electric buses, taxis, and trucks. In collaboration with Logen Co., Ltd., the plan is to establish an EV charging infrastructure at Logen’s logistics bases in 350 regions nationwide.

Hanwha Group introduced the EV charging business brand Hanwha Motive through Hanwha Q CELLS, which operates a solar power business. They are currently operating chargers at more than 200 locations.

The reason why large corporations are actively entering the EV charging market is due to its bright prospects. According to the German consulting firm Roland Berger, the global EV charging market is projected to grow about sixfold from $55 billion this year to $325 billion in 2030.

Despite the promising outlook, the speed of charger distribution is still slow. According to the Ministry of Land, Infrastructure, and Transport, and the Ministry of Environment, as of March this year, the number of EVs supplied in Korea is 424,186, but the number of chargers is only about half, at 225,731.

While companies are working hard to tap into the EV charging market, there are also concerns. It can be difficult to differentiate technology in the case of EV charging infrastructure, and once a certain supply volume is built up, it could potentially devolve into a game of chicken. The need for large-scale investment to expand EV charging infrastructure and services is also a point that needs attention.