Wireless charging: Qualcomm and Bosch

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



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?

http://onclimatechangepolicydotorg.files.wordpress.com/2014/02/battery-cost-and-density.jpg

http://onclimatechangepolicydotorg.files.wordpress.com/2014/02/battery-cost-and-density.jpg

http://theenergycollective.com/onclimatechangepolicy/347491/making-low-carbon-future-better-well-cheaper

http://insideevs.com/declining-battery-prices-boost-electric-car-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



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


Distance: mid rangeDirectivity: lowFrequency: MHz to GHzAntenna: tuned wire coils


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

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/

http://www.leonardo-energy.org/blog/cutting-cost-wireless-charging-electric-vehicles

Agenda



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

Key success factors

Success

Partners

Economy of scales

Standard technology

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



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



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


EV Owners

Car

manufacturers

EV

Parking lotowner


Q-BO

Q-BO

Q-BO

Customer selectionCustomer selection

Cities/Government


EV Owners

Car manufacturers

EV

Parking lot owner


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


Value proposition


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


Value proposition


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


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



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

Thank You, lah!

Q&A