Have you noticed more electric vehicles out on the streets lately? From 2017 to 2018, the EV market grew in the US grew 80%. Although there was a contraction the subsequent year, Deloitte still forecasts a 950% increase in global electric vehicle sales by 2030, compared to the 2018 numbers. There is an overall consensus that electric vehicles are the future of the transportation industry. Over 80% of automobile manufacturers have announced that they plan to introduce electric options to their product line in the next few years. GM said they will stop making and selling internal combustion engine vehicles by 2035.
Companies are increasingly aware of the correlation between their sustainability efforts and their bottom-line performance. It’s no longer a feel-good strategy but a tangible return that businesses realize when the green line is also part of performance metrics. The Dow Jones sustainability world index is a tradable security comprised of the top 10% largest 2,500 companies in the S&P Global BMI based on long-term economic, environmental, and social criteria. It has seen a 12.36% yearly return as of 2020. Capital markets demand sustainable business practices out of their equity holdings.
People are also demanding similar action from their governments. For example, California expects to be 100% carbon neutral by 2045. Sustainability is increasingly a core value because corporations know it’s a good business practice to advance the triple bottom line, including people, planet, and profits.
Image: E-Mobility On Demand concept architecture
Electric Mobility On-Demand is SAP’s answer to the challenge of electrifying the transportation industry as quickly as possible. The cloud-based software provides a complete package to Charge Point Operators CPOs to run the business efficiently and lucratively. The enterprise-grade capabilities will offer integration with SAP Concur, Analytics and Spend Management, and Billing & invoicing.
Other first-release solution capabilities scheduled for the second half of 2021 include starting and stopping ongoing charging sessions and reviewing historical sessions. A detailed database of all EVs supported is available. If you have an onsite community-scale energy storage device, you can monitor its charge and discharge profiles. Under Assets, you can also review your solar panel array performance throughout the day. You can use detailed statistical capabilities to see how the charging facilities’ usage sharply dropped in March and April of 2020 and how it recovered in October with progressive growth going forward.
Image: E-Mobility On-Demand backend solution, list of historical sessions.
Potential customers can be broadly organized into two groups:
- A- Companies where mobility is core to the business
- B- Companies where mobility is NOT core to the business
Group A includes logistics companies managing large vehicle fleets. For example, the US Postal Service, DHL, and FedEx. Of course, mobility is core to public transit, municipalities, and private ground transportation, sometimes known as Mobility-as-a-Service MaaS providers. A third customer segment that is often overlooked as a potential charge point operator is automobile manufacturers. It is crucial to their EV programs’ success to facility their customers’ access to a reliable charging network, either proprietary, public, or at home.
In our second group, you will find customers that will also benefit from the transition to electrified transportation—for example, Utilities looking to extend their service offerings supplying power to charging facilities. Utilities most often own and operate service vehicles with the potential for electrification. There is also retail, hospitality, workplace, residential sectors. Finally, some non-mobility-focused companies operate large fleets due to the nature of their business. The largest of these in the United States are AT&T, Coca-Cola, and Verizon.
Group A organizations will be the hungriest and more amicable to the idea of investing in charging infrastructure, hardware, and software.
To summarize, we’ve seen how capital markets rewarded robust sustainability strategies and how SAP is working to provide solutions to help businesses achieve their decarbonization goals. There are multiple customer segments and industries that will benefit from EV’s future ubiquity, most prominently organizations with mobility at their core.
What are your thoughts on the future of electrified transportation and the charging infrastructure needed to support it? Please post your comments and questions below. I look forward to your feedback. I’ll be posting more topics related to electric vehicles, charging networks, and sustainability in general; follow me to be notified.
If you have other related or specific questions you’d like answered by the community, please post them in the community’s Q&A tool here. Another helpful link is the community’s topics page. You can engage with peers on the Climate21 topics page, and it’s your one-stop-shop to learn more about other sustainability initiatives at SAP.
Finally, if you’d like to interact with the E-Mobility On-Demand solution managers make sure you attend the upcoming International SAP Conference for Utilities between 18 to 20 May 2021. Joerg Ferchow and Johannes Weber will present the solution live on May 20 at 13:30 CET.