This strategy has helped ChargePoint amass some 70%2 share of the EV charging market in North America. Now, as a newly publicly traded company, it is set to broaden its expansion into Europe, leveraging HSBC’s expertise in seamless global transactions and in regulations and policies of local markets to do so. “Banks and other financial institutions need to lead by example and support decarbonization because of the role [they] play throughout the economy,” says Scott Pendrey, HSBC’s global relationship manager of corporate banking.
“While we can reduce our own carbon footprint, given our primary activity is the financing of companies, we can have more of an impact across the entire supply chain through our customers—whether that is supporting new initiatives in the electric mobility space such as ChargePoint, or helping traditional companies that are more carbon intensive transition to a cleaner alternative.”
The size of the global EV market is expected to grow at a compounded annual rate of at least 20% through the next five years.3 Despite a rocky year for traditional car sales during the 2020 lockdowns, sales of EVs continued their steady march towards capturing incremental share of the overall market. EVs accounted for 4.2% of car sales in 2020, almost double the volume in 2019 of 2.5%, with Europe displacing China in new EV sales.4 ChargePoint’s growth, however, is tightly aligned to the adoption rate of EVs, and with that transition expected to happen over decades, Mr Romano sees years of ChargePoint growth ahead.
In the case of EVs, market growth acutely depends on the greater availability of electric options. Although sales of EVs have been rising, they are still a fraction of the overall market. Auto manufacturers are making greater inroads into expanding their electric offerings, but the switch to all-electric mobility will still take time.