Wireless charging: Qualcomm and Bosch

Wireless charging
systems for electric
vehicle
Business model for Q-Bo
National University of Singapore
MT4002 group project
Anna Maria Haeggbom
Johannes Noeke (jnoeke@gmail.com)
Tobias Kobold (tobiaskobold@yahoo.de)
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

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
SpecificEnergy[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 for
EV:
• 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$perkW/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 density
weight 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

Types of wireless charging
Technologies
Radiative
Micro
wave
Light
wave
Non
radiative
Induction
Capacitive
Resonantly
enhanced
induction

Most suitable technology
Micro wave
Distance: long
Directivity: high
Power: low
Efficiency: low
Frequency: GHz
Receiver
Transmitter
Light wave
Distance: long
Directivity: high
Power: high
Efficiency:
medium
Frequency: kHz
to few MHz
Transmitter
Resonantly enhanced induction is
the superior technology
Capacitive
Distance: very
short
Directivity: low
Frequency: kHz to
few MHz
Antenna:
Electrodes
Induction
Distance: short
Directivity: low
Frequency: kHz to
few MHz
Antenna: Wire
coils
Resonantly
enhanced induction
Distance: mid range
Directivity: low
Frequency: MHz to
GHz
Antenna: 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

Application
Set 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 6
number charging station 6 2
Cost of the station 2,000 3,000
total investment cost 12,000 6,000
Absolute Cost difference 0 -6000
Relative 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/

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/globalevoutloo
k_2013.pdf
http://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 • Aftermarket
solutions
• 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-2019-1240570
https://www.navigantresearch.com/research/wireless-charging-systems-for-electric-vehicles
https://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)

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 station
The government will partner with a company to set up a build-transfer-operate (BOT)
model.
10% rule for Public sector and private companies
Institutions 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 manufacturer
EV car manufacturer have to ensure that all newly built EV can be charged by the wireless
charging technology
Tax restitution for wireless charging
The government will refund the tax for both wireless charging stations and EV with
wireless 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 equipment
Charging station Charging station & equipment

Introduction of
Q-BO
Company
• Company: Q-BO
Joint 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-BO
Q-BO’s unique selling proposition
Technology
Manufacturing/
Sales
Operation
Cities/
Government
Wireless
charging
stations
EV
Owners
Car
manufacturers
EV
Parking lot
owner
Legend:
Q-BO
Q-BO
Q-BO

Customer
selection
Customer selection
Cities/
Government
Wireless
charging
stations
EV
Owners
Car
manufacturers
EV
Parking lot
owner
Legend:
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
selection
Customer 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, 2014
by 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
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 repeater
technology
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 Phase
First phase: Entering the market
Win cities
for BOT
Standardization
and network
effects
Keep winning
without patents
and subsidies

First Phase
Where 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-up
Subscription /
Pay as used

First PhaseSoA - Manufacturing
Q-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 charging
systems
Level of ownership
Supplychain
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 cities
for BOT
Standardizat
ion and
network
effects
Keep winning
without patents
and subsidies
BOT ends
Standardization
Network effects

Second
phase
Network 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
Valueforuser
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 Threatof
substitute
products
Threatsof
new
entrance
• 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
Licensing
High end
equipment sales
Operation will decide about a successful
business model

Second
phase
Improving the business model
R&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 future
Setting 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 company
Q-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

Future outlook
App/Smart charging
• Smart charging,
measuring electricity
prices and charging when
low
• Value for the customer as
the car loads when
it’s most economical
Technology
improvement
• Charge while driving
 Lane charging

Wireless charging: Qualcomm and Bosch

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