Kempower bullish on EV charging demand

Finish EV charging equipment supplier Kempower still believes the EV charging market will grow sevenfold by 2030, despite current headwinds.

The firm’s market outlook remains unchanged from a year ago, forecasting a $14bn market for DC fast charging solutions by 2030 — $7.6bn in the EU and $6.5bn in the US — in its full year 2023 results.

Kempower aims to be in the top five charging solution providers by market share at end of decade.

The positive forecasts come despite a slowing of orders seen towards the end of 2023.

“At the end of 2023 we witnessed some European customers reducing their inventory levels and delaying orders driven by improved lead times and components availability,” says CEO Tom Ristkmaki. “We also saw lower investment activity in some markets due to delays in grid connection availability.”

In the US, slower-than-expected distribution of National Electric Vehicle Infrastructure (Nevi) funding has also hit demand.

But improved distribution of this funding will provide a boost to US orders in 2024, Kempower believes.

Moreover, EV registration numbers in the EU and US continue to paint a positive picture for the development of the DC charging market this decade, according to Ristkmaki, who says that “this view is supported by discussions with our customers".

Kempower is targeting revenues of $360-410mn in 2024 and $750mn by 2026, compared to $284mn in 2023.

Growing footprint

Kempower will make all of its chargers compatible with Tesla’s North American Charging Standard (NACS) during the first quarter of 2024.

It will also roll out its next generation of fast charging products – which will use silicon carbide technology to improve efficiency – during the coming year. The firm will offer 1MW and higher chargers for electric trucks.

“This new technology is an enabler for us in achieving our ambitious growth targets as we see the commercial vehicles segment to be the largest segment in DC charging market by 2030,” says Ristkmaki.

The firm has signed a deal to supply 50 charging points in more than 100 Sainsbury’s supermarket locations in the UK by the end of 2024.

Kempower's existing factory in Lahti, Finland will be used to service this order. The firm will expand that facility later this year to serve growing European demand.

Meanwhile Kempower’s new North Carolina production site — which has now delivered its first products to customers — is well positioned to serve the expected uptick in US demand, the firm says.