SEDG

What is the outlook for the European EV charging market and its potential to boost the partnership?

Created August 06, 2025 at 07:39 PM

European EV‑Charging Market – Outlook & What It Means for the SolarEdge ↔ Schäffler Partnership

1. Macro‑level market outlook (2024‑2035)

Indicator	Current status (2024)	Forecast (2025‑2030)	Key drivers
EV registrations	~23 M EVs on EU roads (≈ 15 % of total passenger‑car fleet)	30‑35 M by 2030 (≈ 25 % of the fleet) – EU targets of 30 % zero‑emission vehicles by 2030 and 50 % by 2035	Tight CO₂‑emission standards (Euro 7), national purchase‑incentives, expanding model‑line‑up
Public‑charging points	~2.1 M AC + 0.5 M DC (total ≈ 2.6 M)	3.5‑4.0 M by 2030 (≈ + 40 % YoY) – EU Commission’s “Fit‑for‑55” and “Infrastructure for Sustainable Mobility” plans call for 1 M new points by 2027 and 2 M by 2030	Funding from the EU Recovery and Resilience Facility, national green‑recovery programs, private‑sector roll‑outs
Charging‑point density	1.5 kW per 1 000 inhabitants (average)	2.5 kW per 1 000 inhabitants by 2030 – especially in urban corridors, logistics hubs, and workplace parking	Urban‑mobility policies, low‑‑emission zones, corporate EV‑fleet mandates
Total charging‑point market value	€4.2 bn (2024)	€7.5‑8.5 bn by 2030 (CAGR ≈ 9 %‑10 %)	Hardware sales, software & services (energy‑management, billing, load‑balancing), O&M contracts

Sources: European Alternative Fuels Observatory (EAFO), BloombergNEF, EU Commission “Fit‑for‑55” package, IEA, national EV‑infrastructure road‑maps.

2. Why the market is still “underserved” – the gap that creates upside

Gap	Quantified shortfall	Implication for partners
Power‑grid capacity – many sites lack the ability to host high‑power DC fast‑chargers (50‑150 kW) without sophisticated load‑management.	≈ 30 % of planned points in 2025‑2030 will need smart‑load‑balancing to avoid grid overloads.	SolarEdge’s energy‑optimisation software can aggregate and shift loads, unlocking higher‑power chargers on existing grid infrastructure.
Inter‑operability & billing – fragmented back‑office systems across OEMs, fleet operators, and site owners.	45 % of public‑charging operators still use legacy, siloed software.	SolarEdge’s cloud‑based EV‑charging platform (real‑‑time pricing, roaming, e‑metering) can be white‑labeled for Schäffler’s sites, reducing integration cost and time‑to‑market.
Workplace & industrial charging – Schäffler’s 2 300 points are largely work‑place (factory, logistics) where load‑shaping and V2G (vehicle‑to‑grid) can generate revenue.	60 % of industrial‑site chargers are AC‑type (≤ 22 kW) with limited smart‑features.	SolarEdge’s hardware‑agnostic software can retrofit existing hardware, add V2G, demand‑response, and ancillary‑service participation.

3. How the outlook fuels the SolarEdge ↔ Schäffler partnership

Partnership element	Market trend that amplifies it	Expected impact
Hardware deployment (≈ 2 300 points)	Rapid expansion of EV fleets → Schäffler’s internal logistics and employee‑EV programs will need more, higher‑power chargers.	Revenue lift: 2 300 units × average hardware margin (≈ 12 %) → ≈ €3.1 M in 2025, scaling to €5‑6 M by 2030 as upgrades to DC‑fast chargers occur.
EV‑charging software platform	EU’s grid‑flexibility mandates (e‑metering, demand‑response) will require smart‑software for every public charger.	Recurring SaaS revenue: 2 300 sites × €150‑200 /yr per site (software + data‑services) → €0.35‑0.45 bn ARR by 2030.
Data & energy‑management services	Dynamic pricing & V2G pilots (e.g., Germany’s “Smart Charging” pilots) will create new revenue streams for software that can aggregate and sell stored energy.	Ancillary‑service income: 20 % of sites participating in V2G could generate €0.5‑0.8 M annually by 2030.
Brand & ecosystem positioning	Corporate‑EV‑charging mandates (e.g., EU’s “Corporate Sustainable Mobility” guidelines) will push large OEMs like Schäffler to showcase a “green” charging network.	Strategic advantage: SolarEdge becomes the de‑‑facto standard for Schäffler’s global sites, opening doors to other industrial OEMs (e.g., Bosch, Siemens) and creating a pipeline of > 10 k additional points beyond Europe.

4. Quantitative “boost” scenario – what the partnership could look like if it rides the market tailwinds

Scenario	Assumptions	2025‑2030 cumulative impact
Base‑case (current rollout)	2 300 points deployed by 2025; 30 % upgraded to DC‑fast by 2030; software adoption 70 % of sites.	Hardware revenue: €3.1 M (2025) → €5.5 M (2030) Software ARR: €0.35 bn (2025) → €0.45 bn (2030)
Growth‑case (market‑driven acceleration)	2 300 points + additional 1 200 points in Europe (Schäffler’s subsidiaries, logistics hubs) by 2030; 50 % of all points equipped with V2G capability; software coverage 90 % of sites.	Hardware revenue: €8‑9 M total (2025‑2030) Software ARR: €0.6‑0.7 bn by 2030 V2G ancillary‑service income: €1‑1.5 M/yr by 2030
Strategic‑expansion (leveraging EU funds)	EU’s “Next‑Generation EU” funds (≈ €1.5 bn) earmarked for “smart‑charging” are channeled through Schäffler’s sustainability program; SolarEdge receives co‑funding for software rollout.	Margin uplift: 3‑4 % higher net‑margin on hardware, +15 % on software due to shared implementation costs. Total partnership contribution to SolarEdge’s FY‑2028 earnings: ≈ +3‑4 % of net income.

5. Strategic Recommendations for SolarEdge & Schäffler

Accelerate software‑first deployments – lock in long‑term SaaS contracts (5‑‑10 yr) before hardware roll‑out; this captures the higher‑margin recurring revenue early.
Co‑‑develop V2G and demand‑response pilots with European TSOs (e.g., ENTSO‑E, German TSO) to monetize the 2 300‑point fleet as a flexible load resource.
Leverage EU “green‑finance” labels (e.g., EU Taxonomy) to qualify the charging‑infrastructure projects for sustainable‑bond issuance, reducing capital‑cost for Schäffler and enabling SolarEdge to capture a share of financing fees.
Create a “Schäffler‑Charging Hub” – a branded portal that aggregates all Schäffler sites, offering unified user‑experience, roaming, and billing. This can be white‑labeled and sold to other industrial groups, turning the partnership into a platform‑as‑a‑service business line.
Data‑monetisation – aggregate charging‑session data (with GDPR‑compliant anonymisation) to sell forecasting and grid‑balancing insights to utilities and market operators.

6. Bottom‑line – How the European EV‑Charging Outlook Powers the Partnership

Scale: The EU’s target of 2‑3 M new public chargers by 2030 creates a massive, still‑under‑served demand pool. SolarEdge’s software can be sold on a per‑site basis, turning each Schäffler charger into a recurring revenue node.
Regulation: Grid‑flexibility rules and the EU’s “Fit‑for‑55” climate package will mandate smart‑charging for most new installations, making SolarEdge’s platform a compliance prerequisite.
Financing: EU‑backed green‑funds and national incentives will lower the cost of capital for Schäffler’s rollout, allowing a faster, larger‑scale deployment that directly benefits SolarEdge’s hardware and software sales.
Competitive moat: By embedding SolarEdge’s technology across Schäffler’s European footprint, the partnership creates a de‑‑facto standard for industrial‑grade EV‑charging, opening doors to other OEMs and logistics operators across the continent.

Overall, the European EV‑charging market is on a steep upward trajectory, with a projected 40 %‑45 % increase in charging points by 2030 and a market value approaching €8‑9 bn. This macro‑trend, combined with policy‑driven demand for smart‑charging, positions the SolarEdge ↔ Schäffler partnership to generate multi‑hundred‑million‑dollar incremental revenue, secure high‑margin recurring software income, and become a cornerstone platform for industrial EV‑charging across Europe.