Siemens Spinning Off EV Charging Business: Big Managed Services Opportunity Ahead?
September 24, 2024 by Joe Panettieri
Siemens plans to spin off its EV charging business, which includes various managed services and cloud services for EV charging networks. Siemens did not disclose a specific spinout date, nor did the company mention a valuation for the the eMobility business unit.
The spin-off plan surfaces at a key time. Although demand for EV charger networks continues to grow, the reliability of such networks varies greatly from vendor to vendor. Indeed, many EV charger networks suffer from end-point outages, broken infrastructure, vandalism, and even copper wire theft, Bloomberg notes.
Managed Services and Cloud Services for EV Charger Networks
While Tesla is widely considered the EV charger network leader -- particularly in North America -- the industry has room for a major MSP that can improve EV charger network reliability, Sustainable Tech Partner believes.
Dig into Siemens' the EV charging and eMobility efforts, and the company offers Depot360 Managed Services and Depot360 Charging as a Service (CaaS).
The Depot360 Managed Services "optimize charging and fleet infrastructure operations to maximize fleet performance, lower energy costs, reduce cost-per-kilometer and meet sustainability goals," the company said. The managed services leverage homegrown software called the Depot360 AI Platform. Approximately half of the employees developing this software are based in Canada, Siemens said in May 2024.
The managed services help customers to manage energy costs with load-shifting (charging at off-peak, less expensive hours), and peak-shaving (schedule-based load management) capabilities, Siemens has previously said. The effort also involves DERs (Distributed Energy Resources) capabilities -- which allow customers to essentially sell the power they produce to wholesale markets, the company also noted in May 2024.
Meanwhile, Depot360 CaaS is a "one-stop-shop for fleet electrification." The service spans consulting, depot design, construction, commissioning, EV charging equipment, software and ongoing maintenance. The service involves multiple subscription fees and no upfront payments.
Acquisitions and Executive Perspectives
Ahead of the spin-off, the eMobility business unit has grown organically and through acquisitions. Key moves include buying Heliox, a fast-charger specialist focused on eBus and eTruck fleets. Headquartered in the Netherlands, Heliox employed approximately 330 people when the M&A deal was announced in August 2023.
As of September 2024, the overall Siemens eMobility business has production and R&D sites in Germany, Portugal, the United States, India and the Netherlands. Overall headcount and annual revenue figures were not announced.
In a prepared statement about the spin-off, Matthias Rebellius, CEO of Smart Infrastructure at Siemens, said: “The new setup of eMobility will enable the business to accelerate profitability by focusing on high potential business segments and strategically relevant geographies. It will have more freedom to define its focus areas based on business strengths. This business will be well positioned to foster new partnerships to increase customer access through new sales channels and enrich capabilities in new end markets. Building up charging infrastructure for electric vehicles is crucial to achieving the electrification of transport, a central piece in the aspiration to reach net zero by 2050.”
Electric Vehicle (EV) Charging Networks and Infrastructure: Market Trends
The eMobility spin-off plan surfaces at a key time for Siemens and the overall EV charging network market.
The global EV charging station market will reach $12.1 billion by 2030, up from $7.3 billion in 2024, according to Markets and Markets. That's an 8.8% compound announce growth rate (CAGR), the forecast predicted.
Still, the market faces multiple hurdles. Worldwide demand for EVs has slowed or declined in 2024. Moreover, some EV charger networks have suffered from reliability and quality issues, as well as theft involving copper cables.
Tesla's Supercharger network has emerged as a de facto standard in North America, but the company in April 2024 cut hundreds of Supercharger network employees. At the time, CEO Elon Musk offered this context via X: "Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations."
Moreover, multiple EV charging companies have announced layoffs in 2024. Among the companies cutting staff so far in 2024: Blink Charging and ChargePoint.
The Opportunity: A Vendor Neutral MSP for EV Charger Networks
Still, that market turbulence also represents an opportunity for Siemens and the eMobility business spin-off. Once independent, the eMobility business could potentially position itself as a vendor-neutral MSP that improves the reliability, availability and performance of third-party EV charger networks, Sustainable Tech Partner believes.
Sustainable Tech Partner is a digital media platform and online community. Our content empowers technology partners and their customers to achieve a sustainable future.