The UK’s electric vehicle (EV) charging sector is bracing for a wave of consolidation as companies struggle with rising costs, intense competition, and delays in government funding, according to industry executives. Several smaller charge point operators are actively seeking acquisitions by larger rivals, signaling a potential shrinking of the market from its current 150 players to a handful of dominant firms.
Asif Ghafoor, a co-founder of Be.EV, a charging company backed by Octopus Energy, described a crowded market where many operators are facing financial pressures. “Companies are running out of money,” he said. “What we have is a very crowded space. All of these businesses are going to come together… That consolidation will allow investment and that scale.”
The current difficulties represent a significant shift from the pandemic era, when investors eagerly poured capital into green technologies and the EV industry, fueled by low borrowing costs. However, the landscape has changed dramatically. Competition has intensified, costs have risen, and promised government funding has been slow to materialize, leaving some companies unable to cover their expenses.
Simon Smith, chief executive of Voltempo, which focuses on charging solutions for lorries, highlighted the increasing capital intensity and competitiveness of the sector. “That means two things decide who survives: the right sites and fast utilisation,” he explained. “If volumes do not ramp [up], payback stretches, assets get stranded and consolidation follows. That is just infrastructure market logic.”
The UK has seen a rapid expansion in the number of chargers installed in recent years, reaching nearly 88,000 charge points across 45,000 locations by the end of , according to data from Zapmap. While many charge point operators are currently profitable, others have invested in infrastructure anticipating future demand, resulting in insufficient revenue to cover costs – a situation expected to improve as the number of electric cars on British roads continues to increase.
The consolidation trend is expected to yield economies of scale, including reduced back-office staffing costs, the ability to negotiate more favorable nationwide contracts, and increased purchasing power. Ghafoor noted that “numerous” unnamed businesses have approached Be.EV seeking a buyer.
The UK EV charging market is currently led by Shell, which owns the largest network, followed by government-backed Connected Kerb and EDF-owned Pod Point. However, a diverse range of competitors are vying for market share, including supermarket chains like Sainsbury’s, fossil fuel companies such as BP and Total, the Scottish car retailer Arnold Clark, and major automakers like BMW, Ford, Hyundai, Mercedes-Benz, and Volkswagen, which collectively back the Ionity network.
The influx of players into the EV charging space has prompted smaller companies to seek out niche markets where they can achieve profitability. Be.EV, with 2,500 chargers, is concentrating on ultra-rapid charging at high-traffic locations such as retail parks and coffee shops. The company, backed by £110m from Octopus Energy, is also actively pursuing acquisitions of smaller players. Voltempo, meanwhile, focuses on installing charge points at lorry depots, capitalizing on a predictable demand base and the potential to offer charging services to van fleets.
The timing of the initial investment surge, coinciding with the pandemic, is also contributing to the current pressures. Many private equity (PE) and venture capital investors typically aim to realize a return on their investments within a five-year timeframe. Ghafoor suggested that this “PE cycle – flip within five years – that probably creates more pressure” on charging companies that are struggling to achieve profitability.
The broader economic context also plays a role. The report from S&P Global Market Intelligence indicated that UK business activity shrank for the first time in over a year, a contraction attributed in part to the impact of the recent budget and rising employer National Insurance contributions. This weakening economic environment adds further challenges to the EV charging sector, which relies on consumer confidence and spending.
While the consolidation of the EV charging market may lead to fewer players, industry observers believe It’s a necessary step to ensure long-term sustainability and investment. The ability to achieve scale and efficiency will be crucial for navigating the evolving landscape and meeting the growing demand for EV charging infrastructure as the transition to electric vehicles accelerates.
