Electric Commercial Vehicles Market Overview:
Electric commercial vehicles market size was worth over USD 216.43 Billion in 2022 and is anticipated to reach over USD 912.46 Billion by 2030, registering a CAGR of 19.7% during the forecast period (2022-2030).
An electric vehicle runs on electricity rather than the engine which generates power by burning fuels and gases. Electric vehicles are used in several industries such as automobile and transportation, agriculture, and many more. Majorly these vehicles are used in the agricultural industry for various purposes such as harvesting. Conventional vehicles were the major cause of global warming and pollution posing a threat to the environment. Using conventional vehicles also leads to the depletion of natural resources as they work on diesel and gasoline. Therefore, electric vehicles are considered a substitute to overcome these issues. Electric vehicles are quick, extremely silent, cost-effective, and trouble-free to operate. They have low running costs as they have fewer moving parts for maintenance. Moreover, they are environment-friendly as they do not operate on fossil fuels. A large number of manufacturers are focusing on the production of electric vehicles to serve their customers in a better way. For instance, automakers in India, such as TATA Motors have added electrified vehicles to their product portfolio which is a major milestone in the global electric commercial vehicles market.
Electric vehicles are the greatest invention of all time. The market for electric commercial vehicles is expanding due to growing consumer awareness among the population in terms of the negative impacts on the environment caused by fossil-fuel-based vehicles. The demand for fuel-efficient and high-performance vehicles is driving the growth of the global market. Therefore, the market of electric commercial vehicles has immense potential and is anticipated to grow in the forecast period.
Electric Commercial Vehicles Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||912.46 Billion|
|By Propulsion||Battery Electric Vehicles (BEV), Plug-In Electric Hybrid Vehicles (PHEV), And Fuel-Cell Electric Vehicles (FCEV)|
|By Vehicle Type||Electric Bus, Electric Trucks, Electric Vans, And Electric Pick-Up Trucks|
|By Battery Capacity||Less than 50 kWh, 50-250kWh, and Above 250kWh|
|By End-Use||Last Mile Delivery, Distribution, Field Services, Long Haul Transportation, Refuse Services|
|By Geography||North America [United States, Canada, Mexico]
Europe [Germany, Spain, UK, Italy, France, Russia, Netherlands, Turkey, Switzerland]
Asia-Pacific [China, India, Southeast Asia, Japan, Korea, Western Asia]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Argentina, Brazil, Columbia, Peru, Chile]
|Key Players||AB Volvo, Zhengzhou Yutong Bus Co. Ltd., BYD Company Limited, Zhongtong Bus Holding Company Limited, Proterra Inc., Dongfeng Motor Corporation, Hino Motors Ltd., Nikola Corporation, Workhorse Group Incorporated, Isuzu Motors Ltd.|
The low maintenance costs of electric vehicles are also fascinating for people to opt for environment-friendly vehicles. Moreover, the government is providing incentives to encourage manufacturers as well as people to produce and purchase electric vehicles. This strong initiative by the government will also help in protecting the environment from harmful emissions by conventional petrol-driven vehicles. All these factors are expected to drive market growth in the forecast period.
The high production cost of electric vehicles is the major factor of concern among the manufacturers of such vehicles. Moreover, high prices for purchasing electric vehicles along with their accessories such as batteries and many more hamper the market growth. Furthermore, the battery life of these electric vehicles falls short of the requirements for long and time-consuming applications. This prevents the use of electric vehicles thus, restraining the market growth.
The scope of technological advancements during the forecast period is expected to develop the regenerative mode of charging wherein users of EVs will have easy convenience without worrying about vehicle range. Moreover, rapid digitalization in logistics companies has increased the demand for more efficient and collaborative vehicle models for completing their daily tasks. New advanced technologies will open new doors for the growth of the global market. Thus, rising logistics activities are expected to increase the usage of electric vehicles for transportation providing lucrative opportunities for the growth of the electric commercial vehicle market.
The outbreak of the COVID-19 pandemic had a significant impact on the global market. In an attempt to stop the spread of the virus, supply chains were disrupted as a result of lockdowns. The manufacturers of electric vehicles continued to face challenges in getting the supplies of the raw materials for the production of electric commercial vehicles. Due to the COVID-19 restrictions, daily operations were stopped which resulted in less demand for electric vehicles also. For instance, public transport vehicles such as autos stopped functioning due to the government’s restrictions. As a result, the demand for such vehicles also decreased during the pandemic. Therefore, COVID-19 had a negative impact on the electric commercial vehicles market.
The propulsion segment is divided into battery electric vehicles (BEV), Plug-in electric hybrid vehicles (PHEV), and Fuel-cell electric vehicles (FCEV). The battery electric vehicles (BEV) segment is expected to witness the highest CAGR in the forecast period. A battery electric vehicle (BEV) is a battery-powered electric vehicle that uses chemical energy stored in rechargeable battery packs. The Plug-in electric hybrid vehicles (PHEV) segment is also expected to account for a larger revenue due to its enhanced electricity storage capacity. Plug-in electric hybrid vehicles (PHEV) vehicles can be operated on electricity or fuel. Fuel-cell electric vehicles (FCEV) employ ‘fuel cell technology’ to generate electricity. The chemical energy of the fuel is converted directly into electric energy to run the vehicle. This type of propulsion is adopted among a wide range of vehicles as it helps in reducing range anxiety among EV consumers.
By Vehicle type
Based on the vehicle type, the market is segmented into electric buses, electric trucks, electric vans, and electric pick-up trucks. The electric van segment is expected to dominate the market during the forecast period. Electric vans produce no carbon emissions leading to improved air quality and a better atmosphere. Electric buses, on the other hand, use electric motors and can store electricity in the battery packs. Electric pick-up trucks are also used in various end industries for picking up and transporting cargo from one destination to another.
By Battery Capacity
Based on the battery capacity, the market is segmented into less than 50 kWh, 50-250 kWh, and above 250 kWh. The less than 50 kWh batteries take around one hour to be charged around 80% of the battery capacity. Each kW adds up to 4 miles of range per hour. The 50-250kWh battery capacity will take up to 3 hours to charge its full capacity. The above 250kWh gives the best battery performance and is expected to give the highest CAGR in the forecast period. This capacity of battery witnesses favorable demand among original equipment manufacturers (OEMs), especially for electric commercial vehicles for fulfilling the need of long-haul transportation.
Based on the end-user, the market is segmented into last-mile delivery, distribution, field services, long-haul transportation, and refuse collection services. The last-mile delivery is expected to expand at a significant CAGR during the forecast period. Electric vehicles are used majorly in last-mile delivery which means the final step of delivering the parcel from the hub to its destination location. They are also used in the distribution of raw materials to various end-use industries for manufacturing purposes. Electric vehicles are also being used for various field services wherein any product or some work has to be done at the customer’s location. Another important application of electric vehicles is long-haul transportation which involves the movement of goods over distances above 400km. This is done usually with the help of electric trucks. Furthermore, electric trucks and cars are also used for refuse collection services engaged in collecting and transporting solid waste for disposal purposes.
The Asia-Pacific region is expected to account for the largest revenue share in the regional electric commercial vehicles market. The public transportation sector in China is the major driver of revenue in the Asia-Pacific region. The market is also anticipated to rise owing to the increasing popularity of electrical buses, and trucks in the region. Moreover, technological advancements in the logistics industries will further drive the electric commercial vehicle market growth.
One of the fastest-growing occupations in North America is truck driving. The United States is the major hub for electric vehicles which is driving the growth of the North-American regional market. Increasing public awareness and growing consumer demand for commercial vehicles is the driving factor in the region.
Electric Commercial Vehicles Market Competitive Landscape:
The nature of competition in terms of the global market is primarily competitive due to the presence of extensive numbers of market players. These industry players have adopted multiple business strategies through product innovations to attract more profits to the market. As a result, other players are also engaging to form collaborative efforts and joint ventures for the creation of revenue generation opportunities in the coming years. Mentioned are the prominent market players that consist of the latest market concentration–
- AB Volvo
- Zhengzhou Yutong Bus Co. Ltd.
- BYD Company Limited
- Zhongtong Bus Holding Company Limited
- Proterra Inc.
- Dongfeng Motor Corporation
- Hino Motors Ltd.
- Nikola Corporation
- Workhorse Group Incorporated
- Isuzu Motors Ltd.
- In August 2022, TATA Motors announced that Bangalore Metropolitan Transport Corporation had purchased 921 electric buses. TATA Motors provided 12-meter electric buses for 12 years.
- In January 2022, A.B. Volvo introduced an upgraded Volvo VNR Electric which has up to 85% longer range and faster charging.
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