The electric vehicle (EV) charging industry is undergoing rapid transformation, and 2025 is shaping up to be a pivotal year. Technological advancements, evolving regulations, and a dynamic market will drive several key trends that are set to redefine the EV charging landscape.
Let’s take a closer look at the five major trends lying ahead for the EV charging ecosystem.
The Impact of Charger Manufacturer Shutdowns
By 2025, we may witness the exit of the first wave of legacy charger manufacturers from the market. This could result in an increase in stranded assets - chargers that are no longer supported with updates or maintenance, rendering them obsolete. A study by McKinsey & Company highlights the potential risks associated with stranded assets in renewable energy infrastructure, emphasizing the financial implications for operators and owners.
This issue has already surfaced in real-world cases (just think of Powerdale, Enel X, EV Box, Numbat, and others). When Tritium, the Australia-based manufacturer of EV-charging equipment, filed for insolvency, Robert de Leeuw from Pionix shared his thoughts on stranded assets in our dedicated blog post on the topic.
Open-source Flexible Enough For Changing Regulations
To address this effect, regulatory bodies are expected to enforce stricter requirements for software updates, ensuring that charging stations remain operational. This will highlight the benefits of future-proof, on open source technology based solutions providing enhanced adaptability. Open-source software, supported by a thriving developer community, facilitates continuous updates, reduces reliance on a single manufacturer, and ensures long-term usability. This collaborative approach makes it an increasingly attractive option for charging infrastructure providers, as it can maintain innovation and support even if individual contributors face challenges.
Watch this video featuring Alex Thornton, Executive Director Linux Foundation Energy to learn more about the growing role of open-source software in ensuring compatibility and reliability for EV chargers.
The challenging economic environment is driving greater cost-consciousness across the industry. As competition increases, companies are focusing on cost optimization when developing and deploying charging stations. This shift is expected to result in more affordable, high-quality solutions that benefit both consumers and operators, while encouraging the adoption of resilient and sustainable technologies.
The benefits of open source are also making a big impact in other ways. When it comes to implementing relevant standards, there's no way around open source. Linux Foundation Energy's EVerest project is a great example. So far, the community has been working to catch up. But by 2025, EVerest will be leading the way. 2025 we'll see more of a focus on code first, standards second. In several standards committees, we're already seeing that new ideas are being tested within EVerest before a standard is finally approved.
AI in EV Charging: Enhancing Reliability and User Experience
Artificial intelligence (AI) will continue to revolutionize EV charging technology, driving efficiency and service improvements across the sector:
- Support for EV Drivers: AI-powered applications enable real-time assistance, helping drivers locate available charging stations, optimize routes, and even schedule charging sessions based on grid demand. According to several studies, AI-driven systems are expected to enhance charging efficiency and mitigate grid overloads by optimizing charging times.
- Site Planning and Rollout: AI will play a crucial role in the strategic placement of charging stations. By analyzing data on traffic patterns, regional EV adoption, and renewable energy availability, AI identifies and optimizes locations for new chargers, reducing unnecessary infrastructure costs.
- Predictive Maintenance: AI will be instrumental in forecasting charging stations’ maintenance needs or potential breakdowns. By analyzing historical data and real-time monitoring, AI systems alert operators before issues arise, minimizing downtime and improving reliability.
These advancements will create a more seamless and efficient charging experience, benefiting both drivers and operators.
EVs to Become Cheaper than ICE Vehicles
By 2025 or 2026, electric vehicles (EVs) are expected to become more affordable than their internal combustion engine (ICE) counterparts, driven by a steady decline in battery costs. According to several studies and reports like Benchmark Source or Bloomberg, battery costs have already dropped by over 85% between 2010 and 2023, and more than halved on top of this in recent months. This trend is set to continue. The falling costs will make EVs accessible to a broader consumer base, accelerating adoption rates.
The magic number that makes EVs cheaper was 100 USD/kWh, and this number was undercut massively with the recent month's decline down to about 50 USD/kWh. It will take a while for the prices to reach the car dealers, but it’s inevitable.
As a second consequence, the installation of (home) energy storage systems is set to rise significantly. By storing energy from solar panels or the grid, these systems not only help homeowners save money by charging EVs during off-peak hours but also contribute to grid stability. As they store energy during low-demand periods, home storage systems can feed energy back into the grid during peak times, supporting the transition to renewable energy sources.
On top of home owners especially large-scale battery storage capacities will explode. Germany for example has 160 GW of new battery seeking grid connection, while there is currently only storage connection of 1.5 GW.
Will this also mean that there will be tough competition for V2G? Interesting times!
Vehicle-to-Grid (V2G) Technology: Bidirectional Charging As Game-Changer for Grid Stability
With more EV manufacturers incorporating V2G capabilities into production vehicles, Vehicle-to-Grid (V2G) technology will become mainstream by 2025. V2G enables EVs to return electricity to the grid, offering a flexible energy source. This bidirectional energy flow will play a critical role in stabilizing grids, especially as renewable energy generation becomes more variable.
In 2024, the first CCS (DC) and Type 2 (AC) vehicles with V2G technology were sold to the general public, and this trend is expected to grow. A European Commission report on V2G highlights its significance in mitigating grid instability caused by fluctuations in renewable energy generation.
Broader V2G Availability Expected By 2026
For deeper insights into the challenges and opportunities of interoperability and bidirectional charging, watch this engaging video featuring Marco Piffaretti from Task 53, discussing V2G’s impact on future energy markets.
Despite all the hype about V2G, we should not lose sight of V1G, “grid-friendly charging”. Dynamic prices (both for public charging and home charging) are becoming part of everyday life. EVs will therefore play an important role in balancing power generation and demand. The good news is that the technology is on the verge of being available everywhere
This raises another interesting question: How are (or will) V1G and large-scale battery storage systems influencing the development of V2G in the long term?
Chinese EV Manufacturers Expand Their Reach
Import tariffs imposed by the EU and the US will prompt Chinese EV manufacturers to focus on emerging markets such as Australia, Latin America, and Asia. According to the Center for Strategic and International Studies (CSIS), Chinese car manufacturers are increasingly targeting these regions due to favorable market conditions, including lower tariffs and growing demand for affordable EVs.
At the same time, the availability of affordable EVs in Europe and the US may decline. A downside for Western markets: the number of affordable EV models might fall short of expectations in 2025.
By the way, do you know that EVerest will soon get an optional open source GB/T module by a Chinese consortium in early 2025? This will be the next acceleration phase for the EVerest ecosystem!
Conflicts, Cost and Consolidation: Additional 2025 Predictions for the EV Charging Market
- US-China Trade Conflict: Global automakers will face increasing pressure to localize EV production due to ongoing tensions between the US and China.
- Consolidation in the EV Equipment Industry: As the EV market matures, further consolidation among charging infrastructure providers is expected. Smaller players may be acquired by larger companies seeking to expand their market share and capabilities.
- Interoperability: The growing number of charging stations and networks will necessitate greater interoperability between manufacturers. This will increase pressure on charge point operators to comply with stringent quality standards set by regulators.
- Security: Charging stations are part of the critical infrastructure and must be protected against cyberattacks. There will therefore be strict regulations that must be adhered to. Most vendors probably are not yet fully aware what the EU cyber resilience act will mean for their products: taking care of firmware updates for a decade!
For further insights into the industry’s challenges and how it is adapting, watch this video featuring Wulf Schlachter, who shares his perspectives on the biggest hurdles facing the EV sector today.
A Glimpse Ahead: PIONIX milestones in 2025
Looking ahead to 2025, the EV charging industry faces transformative changes. From the rise of open-source solutions to the integration of AI and V2G technology, these innovations will shape the future of EV infrastructure. The trend toward more affordable EVs and home energy storage systems will accelerate adoption, while the expansion of Chinese manufacturers into emerging markets will drive global EV growth.
At PIONIX, we are committed to staying at the forefront of these transformations, working with our ecosystem-partners and customers to shape the future of sustainable charging. Some of the milestones that we are looking forward to include:
- PIONIX BaseCamp being ready for a broad spectrum of use cases
- The launch of a brand-new conference format, the EV:ent
- PIONIX Cloud seeing the light of day. We will launch our cloud offering which will help charger manufacturers and CPOs to accelerate development and simplify maintenance of chargers out in the field. This will improve reliability and interoperability.
- Many new partnerships around EVerest project and PIONIX to be announced.
Stay tuned!
