Tussell: Government to spend £3.3bn on EV charging by 2030

By James Piggott
The UK public sector is forecast to spend over £3.3 billion on new EV Charging infrastructure by 2030, new analysis indicates

A new report produced by Tussell - a public sector market intelligence provider - used data on government EV Charging Point (EVCP) contracts since 2013 to predict that, based on the current trajectory, the UK public sector is likely to award billions of pounds more of these contracts by 2030.

Tussell’s analysis shows that UK contracting authorities awarded 20x more EVCP contracts in 2023 compared to 2013. Nearly three-quarters of these originated from Local Government. 70 individual EVCP suppliers have won a contract since 2013.

Credit: Tussell | Volume of EVCP contract Awards

Tussell’s report shows that the public sector EV Charging market is rapidly expanding - a trend that is set to remain as the UK Government’s 2030 Net Zero target draws closer.

“All EV Charging infrastructure providers and consultants should have their eye on the public sector market”, argues Lloyd Johnson, Tussell’s COO.

“The average number of EVCP units awarded per public sector contract currently sits at 55. If the government is to meet its pledge of having at least 300,000 public EV Charging stations nationwide by 2030, a staggering 4,474 new EVCP contracts would need to be awarded in the next six years. It’s safe to say that significant growth in this market is expected.”

Tussell’s analysis indicates that only a small handful of suppliers dominate the market today.

The 10 largest EV Charging suppliers have won 73% of all EVCP contracts awarded since 2013.

Credit: Tussell | Proportion of EVCP contracts won by the top 10 suppliers and the rest of the market

Several smaller suppliers have also started making headway though. 28 companies have won their first public sector contract in the past three years alone.

Despite the market’s rapid growth, it still very much remains in its infancy, Tussell argues.

“Contracting authorities are still figuring out the best way to buy EVCP infrastructure and services, and they are heavily reliant on consultants and infrastructure providers for guidance”, argues Lloyd.

Tussell estimates that the taxpayer could be saved up to £637 million by 2030 if buyers started using smarter tactics when going out to market for EV Charging.

Suppliers would benefit from being on one of the five frameworks agreements that are pivotal to procurement in this market. They account for 71% of all contracts awarded via this route, while Dynamic Purchasing Systems (DPSs), in particular, are always open to new entrants.

There's long term exit potential for new firms too. Since 2018, the report highlights six major acquisitions that have taken place - demonstrating the growth potential larger firms see in this dynamic, fast-growing market.

Finally, funding is key. The LEVI fund means money is pouring into the Local Government market, with the first five councils having received their funding in early February. Suppliers will need to support contracting authorities as they navigate their - often first time - procurements of EV charging infrastructure.

 

To learn more about Tussell’s new EV Charging market report, head over to their website, or get in touch with their team at [email protected]

This content was sponsored by Tussell for publication on EV Magazine. 

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