E-Mobility

Why should CPOs become technological, software-oriented companies?

24 OCTOBER 2024 • 4 MIN READ

Gabriela Stawiarska

Gabriela

Stawiarska

software ev charging

eMobility seems to have gotten to an interesting point, where patching up of what’s lacking behind and implementation of the newest technologies occur simultaneously. This dual approach, though seemingly contradictory, has led to surprising progress. On one hand, there are ongoing efforts to fix issues like range anxiety or limited charging infrastructure - persistent concerns that have plagued electric vehicles since their inception. On the other hand, innovations in autonomous driving, AI-powered energy management, and vehicle-to-grid technology are pushing the boundaries of what eMobility can offer.

What may seem weird for industry outsiders, has found its usability for those operating in eMobility daily. The parallel efforts appear to complement each other and accelerate mass EV adoption.

However…

With twofold streams of work, the need to keep it all well-controlled, balanced and profitable at the same time should become a high priority on everyone’s list. And it’s not an easy task, especially for those who fall behind in terms of technology that’s in the background of a lot of these processes - software.

Software is the common ground in retrofitting old challenges and embracing the latest tech. It also connects the two and makes them fully functional. Looking at some of the unfolding trends in eMobility, software will continue to firmly take part in all of the upcoming proceedings. Amongst those, we can surely differentiate:

  • integrations with energy sector
  • creating new revenue streams
  • far-reaching automation with AI and software
  • software-defined vehicles

With all the progress and growing number of companies joining the market, existing and new EV charging brands should really consider upgrading their software game. There are several reasons that particularly stand out.

Risk management

One of the key reasons EV charging companies should prioritize becoming more software-oriented is risk management. For Charge Point Operators (CPOs), the core of their business revolves around managing large networks of EV charging stations, which can number in the thousands. The backbone of this infrastructure is the software that controls these stations, ensuring they run smoothly and efficiently. However, many CPOs rely on third-party software providers for this critical component, which introduces significant risks.

When CPOs outsource their Charging Point Management Systems to external providers, they expose themselves to vulnerabilities beyond their control. These include the possibility of the SaaS provider going bankrupt, being acquired by a competitor, or suddenly changing their pricing structure, leading to unpredictable and growing operational expenses. Even more concerning, CPOs might find themselves at the mercy of the software provider’s product development roadmap, unable to influence features or updates that are crucial for the future success of their charging network. In a market that’s rapidly evolving, this lack of control can be detrimental. By taking ownership of their software (i.e. by licensing, thus owning the source code), CPOs can mitigate these risks, ensuring greater security and long-term stability for their operations.

Reliability & support

Reliability is an absolute must-have in eMobility, whether we’re talking about implementing the latest innovations like AI-powered energy management or simply ensuring that legacy features run smoothly. As the sector continues to evolve, the demand for systems that work seamlessly across all aspects of the EV ecosystem—charging, infrastructure, energy management—grows stronger. No matter how advanced or basic a system may be, reliability is the foundation that enables progress without setbacks.

Unfortunately, one of the most common and frustrating issues facing Charge Point Operators today is a lack of continuity in their software systems. Shockingly, almost 30% of charging sessions fail due to poor software performance. There's a growing concern across the industry that CPMS downtime is becoming far too common. It’s an all-too-familiar scenario: a software update is deployed with the intent to improve system functionality, only for the entire platform to go down. Instead of streamlining operations, these disruptions create significant setbacks, a troubling pattern in a fast-moving industry like eMobility where every minute counts.

The expectation is simple: updates should enhance performance, not bring the system to a standstill. Yet, many legacy systems still struggle with this, and the widespread acceptance of frequent downtimes only adds to the problem. These outages, often coupled with poor customer service and outdated user experiences, can wreak havoc on a CPO’s operations, leaving both the business and its customers frustrated. Moreover, CPOs relying on third-party software lose control over product quality, roadmaps, and innovation, putting them at a disadvantage. Lack of reliable support further compounds the issue, impacting day-to-day operations and straining relationships with clients. If CPOs are to thrive in this competitive environment, owning and improving their software infrastructure is crucial for both reliability and long-term success.

Profitability

Like with any other businesses, CPOs try to make profit off their companies and in today’s competitive market, finding those margins is becoming more challenging. As CPOs scale their operations, many find that the software tools they rely on for managing charging stations are eroding their profitability instead of enhancing it. This often happens when these tools are structured to take a percentage of the revenue or when their costs increase linearly with the expansion of the business. The bigger the network grows, the higher the costs, making it difficult for CPOs to turn a healthy profit.

Instead of continuously paying for software that chips away at their margins, CPOs should consider a one-time investment in CAPEX to either build or license their own digital ecosystem. By developing their own Charging Point Management System (CPMS), CPOs can have full control over costs, reducing the long-term operational expenses associated with third-party providers. This move not only safeguards profitability but also opens up new avenues for growth, as owning the software allows for customization and flexibility that can further optimize business performance. A well-executed, in-house CPMS offers CPOs a path to profitability while providing the autonomy to shape their business as the industry evolves.

In the fast-paced world of eMobility, running an EV charging business without strong software capabilities is a bit like trying to steer a ship without a rudder—you might make progress, but you’ll struggle to stay on course when challenges arise. The dual task of retrofitting old systems while simultaneously embracing cutting-edge technologies requires more than just hardware solutions. From risk management to reliability and profitability, the software that powers these charging networks is the invisible hand guiding the entire operation.

Outsourcing software may seem convenient, but as the industry grows, so do the risks. Without control over critical software, CPOs expose themselves to vulnerabilities that can affect everything from operational stability to financial margins. Unreliable systems lead to downtime that frustrates customers and hampers growth, while software tools that chip away at revenue make profitability increasingly elusive.

Investing in an in-house digital ecosystem is like building a reliable foundation under the house of your business—it not only ensures stability but also future-proofs your operations against evolving industry demands. Whether it's keeping up with the latest innovations or addressing long-standing issues, software is the key that unlocks the full potential of a charging network. For CPOs, upgrading their software game isn’t just a smart move—it’s an essential step toward staying competitive and ensuring long-term success in the ever-changing sphere of eMobility.