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Wireless charging systems for electric vehicleBusiness model for Q-Bo
National University of SingaporeMT4002 group project
Anna Maria HaeggbomJohannes Noeke ([email protected])
Tobias Kobold ([email protected])
Ukko Kilpinen
Juilus Riikonen
Agenda
1. Electric Vehicle – Why does it matter
2. Wireless charging technology
5. Business model
4. Market scenario
3. Market analysis
6. Future outlook
Agenda
1. Electric Vehicle – Why does it matter
2. Wireless charging technology
5. Business model
4. Market scenario
3. Market analysis
6. Future outlook
Electric vehicle – Why does it matter?
• Facing the climate change, reducing the carbon footprint of transportation sector plays
0 50 100 150 200 250 300 350
SUV (15l/100km)
Medium Car (9l/100km)
Average local bus (US)
Airplane (full, Airbus 320)
Small Car (6,5l/100km)
Electric Car (US grid)
Hybrid car (5l/100km)
Transit bus (3/4 full)
Electric Car (Solar)
Walk/bike
Gramm CO2 per passenger -kilometer
Electric vehicle – Battery technology can’t compete
0
5
10
15
20
25
30
35
40
0 20 40 60
Sp
eci
fic
En
erg
y [
MJ/
kg
]
Energy density [MJ/L]
Energy density Battery vs. Gasoline
Diesel
Gasoline
Lithium-Ion (Phone old)
Lithium-Ion (Phoine new)
• Energy density of batteries is not competitive
• Average improvement rate of lithium-Ion batteries: 6% p.a.
• Concerning lithium-ion batteries forEV:• The good news:
The improvement rate: 19% p.a.• The bad news:
The energy density in cars is even lower
0
200
400
600
800
1000
1200
2010 2015E 2020E 2025E
US
$ p
er
kW
/h
Lithium battery cost to decline>50% by 2020
Batteries for EV – Recent improvements
http://theenergycollective.com/onclimatechangepolicy/347491/making-low-carbon-future-better-well-cheaper
http://insideevs.com/declining-battery-prices-boost-electric-car-market/
• BUT 1. improvement rate of 19%p.a.2. Costs are dropping by 25% p.a.
How will cheaper and better batteries influence the EV market?
The solution: Better infrastructure
• Lower energy density is proportionally linked to shorter range of EV
• Beside low energy densityweight of battery is also negative factor (EV around 30% heavier).
• Linear improvement of batteries questionable?
0 200 400 600 800 1000
Efficient diesel car
Average gasoline car
Tesla Model S
Mini E
Toyota RAV4
BMW ActiceE
Honda Fit
Forda Focus
VW Golf
Nissan Lead
Mitsubishi i
km
Range in km per charge
The only technically and economically feasible option for the EV market in the upcoming years in order to face the
low range of cars is to set up an infrastructure which allows EV to be charged frequently.
Electric vehicle – What is required
As low energy density of batteries is the given restricting constraint, a technology system is required which significantly improves the infrastructure (charging) for EV.
Affordability
Energy capacity
SafetySustainability
Infrastructure
Environmental
Gasoline vs Battery
Agenda
1. Electric Vehicle – Why does it matter
2. Wireless charging technology
5. Business model
4. Market scenario
3. Market analysis
6. Future outlook
Types of wireless charging
Technologies
Radiative
Micro wave
Light wave
Non radiative
InductionCapacitive
Resonantly enhanced induction
Most suitable technology
Micro wave
Distance: longDirectivity: highPower: lowEfficiency: lowFrequency: GHz
Receiver
Transmitter
Light wave
Distance: longDirectivity: highPower: highEfficiency: mediumFrequency: kHz to few MHz
Transmitter
Resonantly enhanced induction is the superior technology
Capacitive
Distance: very shortDirectivity: lowFrequency: kHz to few MHzAntenna: Electrodes
Induction
Distance: shortDirectivity: lowFrequency: kHz to few MHzAntenna: Wire coils
Resonantly enhanced induction
Distance: mid rangeDirectivity: lowFrequency: MHz to GHzAntenna: tuned wire coils
Resonantly enhanced induction
1. Magnetic field similar to induction
2. Resonance of two coils with the same impedance
3. Due to resonance greater distance is possible
+ up to 6.6 kilowatts of power+ “transparent” to magnetic fields: wood, gypsum wall board, plastics,
glass, brick, and concrete are + Efficiency up to 95%
https://www.qualcomm.com/products/halo/features
ApplicationSet up of driving lane
• New infrastructure: power rails embedded underground
• Estimated cost for new system: less than 0.4 million $/km (Huh et al., 2011)
Problem: charging proportional to the time above the wire coils.
wireless charging on high ways and fast lanes is inefficient.
Cars stand a long time on parking places so charging stations are more cost effective than road integrated charging
It will get cheaper!
2.
1.Repeater like in a Wi-Fi network
1. One charging station per parking lot
RepeaterMain charging unit
Transmitter + Repeater
2. With the repeater technology it is possible to charge several (in this case 3) parking lots with only one main charging station. That saves a lot of investment cost.
Wired vs. Wireless
Type of Charing station wired Wireless
number of parking lots 6 6number charging station 6 2Cost of the station 2,000 3,000total investment cost 12,000 6,000Absolute Cost difference 0 -6000Relative cost difference 0 -50%
Example calculation
RepeaterMain charging unit
Transmitter + Repeater
Technology is superior and economically feasible
Source http://www.leonardo-energy.org/blog/cutting-cost-wireless-charging-electric-vehicles
http://cleantechnica.com/2014/05/03/ev-charging-station-
infrastructure-costs/
Agenda
1. Electric Vehicle – Why does it matter
2. Wireless charging technology
5. Business model
4. Market scenario
3. Market analysis
6. Future outlook
Market Size – Electric vehicles
Current (2014) Future (2020)
Number of EV’s 700 000 20 000 000
Annual sales of EV’s 300 000 6 000 000
CAGR Around 70%
https://www.iea.org/publications/globalevoutlook_2013.pdfhttp://cleantechnica.com/2015/03/28/ev-demand-growing-global-market-hits-740000-units/http://www.iea.org/evi/Global-EV-Outlook-2015-Update_1page.pdf
Market Size – Wireless car charging
Current (2013) Future (2019)
Market Size ( M USD) 1,7 4600
Annual sales (Units) 350 000
Solutions • Aftermarketsolutions
• No Built-In OEM solutions
• Dynamic applications will start to emerge
CAGR Around 200%
Market is growing rapidly offering huge opportunities for companies
http://www.mynewsdesk.com/us/pressreleases/global-wireless-car-charging-market-at-1-7-million-will-reach-4-6-billion-by-2019-1240570https://www.navigantresearch.com/research/wireless-charging-systems-for-electric-vehicleshttps://storify.com/jayshripatil/global-wireless-car-charging-market-will-be-4-6-bi
Inductive charging is most attractive new charging methodology
All other manufacturers but Ford and Mia are showing interest towards wireless charging.
Wireless charging is found more attractive than competing methods (DC Charging or Combo charging)
Agenda
1. Electric Vehicle – Why does it matter
2. Wireless charging technology
5. Business model
4. Market scenario
3. Market analysis
6. Future outlook
Conclusions based on market studies
• The EV market is growing rapidly.
• As energy density of battery and, thus the range of EV will not improve significantly, the need for a higher density of charging stations is given.
• Due to EV’s lower the carbon footprint, the government will subsidize the market.
• Charging stations must to be up-to-date and must charge in a more convenient way than the existing one.
• -> Wireless charging technology is chosen
• Need for standard to keep the market alive
Market scenario
• To promote EV and its infrastructure the government has announced the following action plan
BOT-model to promote the infrastructure of charging stationThe government will partner with a company to set up a build-transfer-operate (BOT) model.
10% rule for Public sector and private companiesInstitutions and companies having parking lots with more than 50 lots are required to equip at least 10% of the lots with wireless charging station
Adaption obligation for EV car manufacturerEV car manufacturer have to ensure that all newly built EV can be charged by the wirelesscharging technology
Tax restitution for wireless chargingThe government will refund the tax for both wireless charging stations and EV withwireless charging technology
Simplified value chain
Technology
Manufacturing/Sales
Operation
Cities/Government
Wireless charging stations
EV Owners
Car manufacturers
EV
Parking lot owner
Legend:Manufacturing process Car equipmentCharging station Charging station & equipment
Agenda
1. Electric Vehicle – Why does it matter
2. Wireless charging technology
5. Business model
4. Market scenario
3. Market analysis
6. Future outlook
Introduction of Q-BO
Company
• Company: Q-BOJoint venture of Qualcomm and Bosch
• Technology supplier and manufacturer, both for charging station and for the EV charging equipment
• Operation of charging station
Q-BO
Introduction of Q-BO
Company – competitive advantage of Q-BO
• Strong relationship to car manufacturer
• Experience in car charging station
• “German” engineering quality
• High venture capital and market power
• Experience in wireless technology
• Patent for wireless inductive charging
• Research alliances with car manufacturer
Introduction of Q-BOQ-BO’s unique selling proposition
Technology
Manufacturing/Sales
Operation
Cities/Government
Wireless charging stations
EV Owners
Car
manufacturers
EV
Parking lotowner
Legend:Manufacturing process Car equipmentCharging station Charging station & equipment
Q-BO
Q-BO
Q-BO
Customer selectionCustomer selection
Cities/Government
Wireless charging stations
EV Owners
Car manufacturers
EV
Parking lot owner
Legend:Manufacturing process Car equipmentCharging station Charging station & equipment
Q-BO
As Key customer selected- Car manufacturer- Cities/Government - Parking lot owners
EV owners as final customers- Decision maker over the whole
success of the value chain- Challenge: Less direct influence
Customer selectionCustomer selection
Segment Need
Car manufacturer
• Acquiring new customers for EV’s• Meeting governmental requirements• Reliable partnerships• Manufacturing cheaper EV’s cars
Private users • Easier, faster and safer way of charging• Convenience of charging at home
Cities and Government• Promotion of EV • Better and more convenient infrastructure• Reliable partner and operation
Parking lot owners(those which have or operate a parking lot with > 50 parking slots)
• Meeting governmental requirements • More convenience for customers / employees• Opportunity to attract new customers segments • Opportunity to enter new business models• Reliable partner and operation
What needs does wireless charging satisfy?
Car unit customers
Charging station customers
Value proposition
Value Proposition Design: How to Create Products and Services Customers Want (Strategyzer) Paperback – October 20, 2014by Alexander Osterwalder (Author), & 4 more
Value proposition – manufacturers
Acquiring new customers for EV's Offering a high density of charging stations
Meet requirements from the government BOT and cooperation with government securing their standards
NEEDS VALUE PROPOSITION
Value proposition
Value Proposition Design: How to Create Products and Services Customers Want (Strategyzer) Paperback – October 20,
2014
by Alexander Osterwalder (Author), & 4 more
Value proposition – car owners
Convenient, fast charging automated charging
Easy payment Payment will be electronically
Cost savings due to a smaller battery high density of charging stations
NEEDS VALUE PROPOSITION
Value proposition
Value Proposition Design: How to Create Products and Services Customers Want (Strategyzer) Paperback – October 20, 2014by Alexander Osterwalder (Author), & 4 more
Value proposition – cities & government
Promotion of EV vehicles Well expanded network of charging stations
Protection against vandalism Damages to the Under ground charging unit are nearly impossible
Low maintenance/operating effort Service contract under ground equipment is protected from weather impacts
Low investment costs More cost effective due to the repeater technology
NEEDS VALUE PROPOSITION
Value proposition
Value Proposition Design: How to Create Products and Services Customers Want (Strategyzer) Paperback – October 20, 2014by Alexander Osterwalder (Author), & 4 more
Value proposition – parking lot owners
Low investment costs more cost effective due to the repeatertechnology
Attract customers Charging station that are well integrated with their customer needs
Low maintenance/operating effort Service contract under ground equipment is protected from weather impacts
Meeting government requirements Q-Bo and close collaboration with government
NEEDS VALUE PROPOSITION
Development roadmap
Q-BO’s road map for successful future
Win cities
for BOT
Standardization
and network
effects
Keep winning
without patents
and subsidies
First PhaseFirst phase: Entering the market
Win cities
for BOT
Standardization
and network
effects
Keep winning
without patents
and subsidies
First PhaseWhere to make revenue
Technology
Manufacturing/
Sales
Operation
Cities/
Government
Wireless
charging
stations
EV
Owners
Car
manufacturers
EV
Parking lot
ownersQ-BO
Q-BO
Q-BO
SALES OPERATING
First PhaseValue capture of the different streams
Q-BO(manufacturing)
Sales(EV equipment)
Sales(Charging stations)
Operation
Mark-upSubscription /
Pay as used
First PhaseSoA - ManufacturingQ-BO – full vertical control
Technology
Raw materials
Vendor parts
Manufacturing
Sales
After-sale service
Full: Qualcomm’s technology patent
Full: Qualcomm’s semiconductor
Partwise: Qualcomm’s & Bosch’s existing supply chain
Full: Bosch’s production site
Full: Bosch’s distribution channels
Full for public stations: Q-BO as Operator
Wireless chargingsystems
Level of ownership
Su
pp
lyc
ha
in
Revenue?
First PhaseSoA - Sales:electric vehicle equipment
Technology
Raw materials
Vendor parts
Manufacturing
Sales
After-sale service
Q-BO supply chain
Technology
Vendor parts(car manufacturer)
Manufacturing/Assembly
Sales
After-sale service(EV owner)
Raw materials
Electric vehicle
Sales:
Why Q-BO?
Bosch / Qualcomm
- Excellenct supplier - Existing relationship- Existing knowledge
First PhaseSoA – Sales & Operation:Public charging station
Technology
Raw materials
Vendor parts
Manufacturing
Sales
After-sale service
Q-BO supply chain
Energy supply
Operation(Cities, parking lot owner)
Marketing
Maintenance(Cities, parking lot owner)
Property
Charging station
OPERATION:
Why Q-BO?
• Technology know-how as operator - Lower downtime- Higher efficiency
• Market leader- Better promotion of stations
Second phaseWhats coming next?
Free market
Win citiesfor BOT
Standardization and network effects
Keep winning without patents and subsidies
BOT ends Standardization
Network effects
Second phaseNetwork effects
•More charging stations
•More value of having an EV
•More people will buy an EV
•Charging stations more occupied and thus more profitable
>Economics of scale<Network effects
Charging stations
Val
ue
for
use
r
This network effects is connected to the technology and will increase value for buyer and seller at the same time
Entrance Barrier for competitors
Critical mass for good service
Second phaseStandardization
Broad integration of the wireless charging systems
efficient infrastructure
• low cost manufacturer could enter market
• Growing competition will shrink Q-BO’s margin
• BUT: R&D and improvements are necessary to maintain market position
• If another standard wins, huge loss for Q-BO – huge cab to catch up to be able to compete
• BOT: Government choses Q-BO’s successful technology as a standard
• Q-BO has technology know-how and experience thus is the preferred partner
• Competitors have to prove feasibility of their technology to enter the market
• revenues from license Patent
• Exporting standard – new global markets
requires standardization as it maximizes compatibility
requires a standard
Second phaseStrategic control – 5 Forces
Rivalry among existing
competitors
Bargaining power of
buyers
Bargaining power of suppliers
Th
reat
of
sub
stit
ute
p
rod
uct
s
Th
rea
ts o
f n
ew
entr
an
ce
• Several companies offering WC• First Entrance barrier high
because of no existing market• Entrance barrier will drop when
patent expired• Cheap low-tech equipment
• All made of standard parts (integrated circuits, amplifier, cables, etc.)
• Can be purchased from several suppliers
• fierce competition on WC market
• Car manufacturer/ car parking place owner could chose other products
• Substitute is the wired charging station
• Could have a higher gradient of cost reduction
high
low
low
highlow
Second phaseStrategic control – What’s important?
Business model has to be modified
Dropping entrance barrier
Cheaper low tech products will be available
Unique value proposition is important
Strategic alliances are necessary
Differentiation strategy
Second phase
2nd Phase – Market changes lead to new value capture
Q-BO manufacturing
Sales (EV equipment)
Sales (Charging stations)
Operations
LicensingHigh end
equipment sales
Operation will decide about a successful business model
Second phase
Improving the business modelR&D, Premium cars and licences
R&D and premium cars• New innovations with premium car
manufacturers• Premium market = chance for higher margin• New patents
Licences• Providing standarized technology for other
manufacturers• Taking money out of competed, low margina but
huge market
Technology
Vendor parts
Manufacturing/Assembly
Sales
After-sale service
Raw materials
Electric vehicle
Second phase
Improvement for existing and new stations
Energy supply
Operation
Marketing
Maintenance
Property
Charging station • Long term offtake contract for energy with utility company
• Q-BO is market leader and market will increase Q-BO has high bargain power
• Utility companies want to have a share of the growing EV market
• Getting cheaper energy higher commisions while operating
Second phase
Facing the futureSetting up more charging stations
• Alliances with largest parking lot owners• Property (thus fixed cost/risk) are split • Stations are operated by Q-BO
• Advantages for Q-BO:- Expanding the station network - More revenues- Higher convencience for customers
• Advantages for parking lot owners:- Get a share of the revenue- Profit from Q-BO customer base- No worries about operation
Energy supply
Operation
Marketing
Maintenance
Property
Charging station
Second phase
Marketing to set up new opporunities
• Cooperation with rental companyQ-BO can offer customers with subscription plan lower rates for rental for long distance journeys.
• Release of Q-BO app- App will show all locations of public charging
station- Subscribed customers can monitor their accounts- “Q-BO” community feeling
• Access to private stations- Private owners of the charging station offer their
station to public via app- Private owners can set their price for charging by
themselves - Q-BO will receive small commission
Energy supply
Operation
Marketing
Maintenance
Property
Charging station
Second phase
Improved subscription model for higher value capturing
•Core business model of the operation
•Goal: long-term customer relationships
Subscription
type
Payment method Requirements Features
Standard •Monthly fixed rate•Fare for every charge
•Access to every Q-BO station •Customer account
Gold •Higher monthly fixed rate•Reduced fare for every charge
•Minimum purchase of energy per month
•Discount for rental cars
Agenda
1. Electric Vehicle – Why does it matter
2. Wireless charging technology
5. Business model
4. Market scenario
3. Market analysis
6. Future outlook
Future outlook
App/Smart charging
• Smart charging, measuring electricity prices and charging when low
• Value for the customer as the car loads whenit’s most economical
Technology improvement
• Charge while driving Lane charging