British electric vehicle charging firms are actively approaching rivals for potential buyouts as they grapple with dwindling cash reserves, escalating operational expenses, and fierce market competition, according to insights from industry leaders.
Market Consolidation on the Horizon
A significant wave of mergers and acquisitions is anticipated to dramatically shrink the number of charge point operators in the UK. Currently, the market boasts as many as 150 different players, but this figure is predicted to consolidate down to a mere five or six dominant entities. Asif Ghafoor, co-founder of Be.EV, a charging company supported by Octopus Energy, highlighted this trend, noting that the overcrowded sector is ripe for such consolidation.
Financial Pressures Mount
The initial surge in investment during the pandemic, driven by cheap borrowing and a rush into green technologies, has given way to a more challenging landscape. With intense competition, rising costs, and delays in government funding, many charger companies are now facing cash shortages. Investors, eager for returns on their capital, are pushing for profitability, adding further strain to these businesses.
Simon Smith, CEO of Voltempo, which specialises in charge points for lorries, explained the market dynamics: "Charging is becoming more capital-intensive and competitive simultaneously. Survival hinges on securing prime locations and achieving rapid utilisation rates. If volumes fail to increase, payback periods extend, assets become stranded, and consolidation inevitably follows—this is the fundamental logic of infrastructure markets."
Growth Amidst Challenges
Despite these financial hurdles, the number of chargers installed across the UK has skyrocketed in recent years as companies vie for market dominance. Data from Zapmap reveals that by the end of 2025, there were nearly 88,000 charge points spread across 45,000 locations nationwide.
While many operators are profitable, others have installed points in anticipation of future demand, meaning they currently do not generate sufficient revenue to cover costs. However, as the adoption of electric vehicles on British roads accelerates rapidly, these businesses are likely to become profitable over time.
Seeking Economies of Scale
Ghafoor disclosed that "numerous" unnamed companies have approached Be.EV in search of a buyer, citing cash flow issues. "This is a very crowded space with too many operators," he remarked. "Consolidation will enable necessary investment and achieve the scale required for sustainability."
Takeovers are seen as a strategic move to gain economies of scale, such as:
- Reducing back-office overheads by managing more charge points with the same staff.
- Negotiating larger, more cost-effective nationwide contracts.
- Leveraging bulk purchasing power for equipment and services.
Diverse Competitive Landscape
The UK's charging market is dominated by major players like Shell, which operates the largest network, followed by government-backed Connected Kerb and EDF-owned Pod Point. However, the sector also includes a wide array of competitors, from Sainsbury's supermarkets and fossil fuel giants like BP and Total, to Scottish car retailer Arnold Clark, and car manufacturers such as BMW, Ford, Hyundai, Mercedes-Benz, and Volkswagen, which support the Ionity network.
Ghafoor observed, "EV charging has been the widest 'I'll have a go' sector I've been involved in, with everyone initially jumping in to try their luck."
Niche Strategies for Survival
In response to intense competition, smaller players are carving out specialised niches to secure profits. Be.EV, with its 2,500 chargers, focuses on ultra-rapid charging at high-traffic destinations like retail parks and coffee shops. Backed by £110 million from Octopus Energy, the company is also pursuing acquisitions of smaller operators. Meanwhile, Voltempo targets lorry depots, where predictable demand and opportunities to hire out chargers to van fleets offer a stable revenue stream.
Investment Cycle Adds Pressure
The timing of pandemic-era investments may exacerbate pressures on charge point operators. Many private equity and venture capital investors operate on five-year cycles, requiring returns to show their backers. Ghafoor noted that this "PE cycle—flip within five years—creates additional pressure" on charging companies struggling to achieve profitability.
As the UK's electric vehicle infrastructure continues to evolve, this period of consolidation is expected to reshape the industry, fostering a more streamlined and financially robust charging network for the future.
