The Electric Commercial Vehicle Market size was valued at USD 56.5 billion in 2023 and is expected to reach USD 315.80 billion by 2031 and grow at a CAGR of 24% over the forecast period 2024-2031.
The environmental impact of traditional gasoline and diesel vehicles is a growing concern, fueling rapid growth in the electric commercial vehicle market. These electric alternatives are gaining traction, particularly in e-commerce and logistics where companies are embracing electrification for "first and last mile" deliveries. This shift is driven by a combination of factors: pressure to go green, zero-emission government initiatives like electric garbage trucks and buses, and the rising importance of environmental, social, and governance practices for automakers. The growth of logistics and supply chains, stricter pollution regulations forcing companies to electrify their fleets, and the implementation of low-emission zones requiring cleaner diesel trucks are all contributing to the market growth. Advancements in battery technology and the integration of advanced features like ADAS (Advanced Driver-Assistance Systems), AI, and IoT are making electric commercial vehicles even more attractive. Major players are investing heavily, fostering competition among OEMs (Original Equipment Manufacturers) and propelling market expansion.
KEY DRIVERS:
Consumer pressure for eco-friendly deliveries fuels electric commercial fleets in logistics.
As consumers become more environmentally conscious, they're demanding sustainable delivery options, pushing businesses to adopt electric commercial vehicles. A major online retailer exemplifies this trend, electrifying their delivery vans in response to customer pressure for eco-friendly shipping. This move reflects a market attuned to environmental concerns and consumer values. By embracing electric vehicles, commercial logistics are not only aligning with customer preferences but also accelerating the shift towards a more sustainable future.
Government Incentives Drive Electric Commercial Vehicle Adoption by Lowering Business Costs
RESTRAINTS:
The availability of skilled technicians for maintenance and repair of electric commercial vehicles can be limited in certain regions.
Higher upfront costs of electric commercial vehicles compared to traditional ones can be a barrier for businesses.
OPPORTUNITIES:
Electric Vehicles Power Efficient Last-Mile Delivery in Growing E-commerce and Urban Markets
The rise of online shopping and the growth of cities are creating a need for faster and greener ways to deliver goods directly to customers. Electric vehicles (EVs) are emerging as a perfect solution for this "last-mile" delivery challenge. With minimal emissions, EVs are ideal for navigating busy city streets without contributing to air pollution. They're also much quieter than traditional delivery trucks, making them a more pleasant presence in residential areas. Additionally, their compact size and movability allow them to navigate tight streets and parking spaces with ease, ensuring efficient deliveries even in densely populated areas.
Public Concern for Environment Fuels Consumer and Business Adoption of Electric Commercial Vehicles
CHALLENGES:
Higher upfront costs of electric commercial vehicles compared to traditional gasoline or diesel options.
Limited availability of qualified technicians to service and maintain electric commercial vehicles.
The war in Russia-Ukraine has disrupted the electric commercial vehicle (ECV) market, impacting its growth in several ways. The conflict has exacerbated existing supply chain issues, particularly for critical battery materials like nickel which is a key component in lithium-ion batteries of which Russia is a major producer. This disruption has led to price hikes of up to 50% for nickel compared to pre-war levels, translating to potentially higher manufacturing costs for electric vehicles. The war has caused a surge in global energy prices, including oil and natural gas. While this might incentivize businesses to consider electric alternatives in the long run, the immediate effect might be a hesitation due to rising electricity costs depending on the region. Thus, the war has diverted global resources and investment away from clean energy initiatives, including electric vehicle development.
The electric commercial vehicle market's growth could face problems from an economic slowdown. Businesses might limit their budgets, delaying electric vehicle purchases, especially for larger companies with limited cash flow. The economic downturn could strain government budgets, potentially leading to cuts in subsidies and tax breaks that incentivize electric vehicle adoption. This could decline demand, particularly for smaller businesses reliant on these incentives to offset the higher upfront costs. The decrease in fuel prices during an economic slowdown could make traditional gasoline and diesel vehicles seem more economical in the short term, swaying some businesses on the fence about electric vehicles, especially those with high fuel consumption fleets.
KEY MARKET SEGMENTS:
By Vehicle Type:
Pickup Trucks
Trucks (Medium and Heavy-duty Trucks)
Vans (Light Vans and Full-size Vans)
Buses & Coaches
Trucks (Medium-duty & Heavy-duty) is the dominating sub-segment in the Electric Commercial Vehicle Market by vehicle type holding around 40-50% of market share. The primary reason lies in the well-established infrastructure for long-haul trucking routes, making them readily adaptable to electric versions. Additionally, government regulations targeting emission reduction in the commercial transportation sector heavily incentivize the electrification of medium and heavy-duty trucks.
By Propulsion:
BEV
FCEV
BEV (Battery Electric Vehicle) is the dominating sub-segment in the Electric Commercial Vehicle Market by propulsion holding around 80-85% of market share. BEVs offer a mature technology with established charging infrastructure, making them a readily available and cost-effective option. FCEVs (Fuel Cell Electric Vehicles) are a promising
future technology with longer range potential, but hydrogen refuelling infrastructure is still limited.
By Battery Type:
LFP Batteries
NMC Batteries
Solid-state Batteries
Others
NMC is the dominating sub-segment in the Electric Commercial Vehicle Market by battery type. NMC batteries offer a high energy density, allowing for longer ranges on a single charge compared to other battery chemistries. This is crucial for electric commercial vehicles operating in applications requiring extended operating times.
By Battery Capacity:
Less than 60 kWh
60−120 kWh
121−200 kWh
201−300 kWh
301−500 kWh
501−1,000 kWh
60-120 kWh is the dominating sub-segment in the Electric Commercial Vehicle Market by battery capacity. This range offers a good balance between driving range and vehicle weight for lighter commercial vehicles like vans operating within urban areas. Lower capacity batteries are used in smaller electric commercial vehicles, while higher capacities might be needed for future long-haul applications with heavier trucks. The optimal battery capacity will depend on the specific vehicle type, application, and driving range requirements.
By Power Output:
Less than 100 kW
100−250 kW
Above 250 kW
By Range:
Less than 150 Miles
151−300 Miles
Above 300 Miles 100−250 kW
By End Use:
Last-mile Delivery
Field Services
Distribution Services
Long-haul Transportation
Refuse Trucks
By Construction:
Integrated
Semi-integrated
Full-sized
By Component:
Battery Packs
Onboard Chargers
Electric Motors
Inverters
DC-DC Converters
E-Axels (Including Gearboxes)
Fuel-cell Stacks
The Asia-Pacific is the dominating region in the Electric Commercial Vehicle Market holding 50-55% of market share, fueled by factors like well-developed cycling infrastructure which creates a welcoming environment for electric cargo bikes and light-duty vehicles. The government support in the form of subsidies, tax breaks, and stricter emission regulations incentivizes electric vehicle adoption.
Europe is the second highest region in this market. Dense urban environments make electric vans and light trucks ideal for last-mile delivery and urban logistics due to their movability and lower emissions. Some of the world's strictest emission regulations push manufacturers and businesses towards cleaner technologies like electric commercial vehicles.
North America is the fastest-growing region in this market. This growth is driven by active development of innovative electric vehicles, including long-range electric trucks and feature-rich delivery vans by North American manufacturers.
REGIONAL COVERAGE:
North America
US
Canada
Mexico
Europe
Eastern Europe
Poland
Romania
Hungary
Turkey
Rest of Eastern Europe
Western Europe
Germany
France
UK
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Western Europe
Asia Pacific
China
India
Japan
South Korea
Vietnam
Singapore
Australia
Rest of Asia Pacific
Middle East & Africa
Middle East
UAE
Egypt
Saudi Arabia
Qatar
Rest of the Middle East
Africa
Nigeria
South Africa
Rest of Africa
Latin America
Brazil
Argentina
Colombia
Rest of Latin America
Tesla (US), Continental (Germany), Siemens (Germany), Nissan (Japan), BYD (China), Daimler (Germany), ABB (Switzerland), Mitsubishi Electric (Japan), Proterra (US), LG Chem (South Korea), Zhongtong Bus Holding Co., Ltd (China), Panasonic (Japan). Delphi (US), Toshiba (Japan), and Ballard Power Systems (Canada) are some of the affluent competitors with significant market share in the Electric Commercial Vehicle Market.
In Jan. 2024: Dongfeng Motor and Huawei partner to develop Voyah, Dongfeng's electric car brand. Huawei will supply advanced technology like autonomous driving and infotainment systems for Voyah vehicles.
In Jan. 2024: Electric car company Tesla plans an Indian factory, potentially investing $30 billion over five years. This move signifies Tesla's growing focus on the Asian market.
In June 2023: Ford establishes an electric vehicle production plant in Germany, the Electric Vehicle Centre, to cater to the European market.
| Report Attributes | Details |
|---|---|
| Market Size in 2023 | US$ 56.5 Billion |
| Market Size by 2031 | US$ 315.80 Billion |
| CAGR | CAGR of 24% From 2024 to 2031 |
| Base Year | 2023 |
| Forecast Period | 2024-2031 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • by Component (Battery Cells & Packs, On-Board Charger, Motor, Reducer, Fuel Stack, Power Control Unit, Battery Management System, Fuel Processor, Power Conditioner, Air Compressor, Humidifier) • by Propulsion (BEV, FCEV, PHEV) • by Vehicle Type (Bus, Pickup Truck, Truck, Van) |
| Regional Analysis/Coverage | North America (USA, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Netherlands, Rest of Europe), Asia-Pacific (Japan, South Korea, China, India, Australia, Rest of Asia-Pacific), The Middle East & Africa (Israel, UAE, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America) |
| Company Profiles | Tesla (US), Continental (Germany), Siemens (Germany), Nissan (Japan), BYD (China), Daimler (Germany), ABB (Switzerland), Mitsubishi Electric (Japan), Proterra (US), LG Chem (South Korea), Zhongtong Bus Holding Co., Ltd (China), Panasonic (Japan). Delphi (US), Toshiba (Japan), and Ballard Power Systems (Canada) |
| Key Drivers | •Electric commercial vehicles are gaining popularity due to their reduced running costs than ICE vehicles. •Due to the lower cost of electricity, as the price of fossil fuels goes up, more people will want to buy ECVs. |
| RESTRAINTS | •Insufficient EV charging infrastructure will limit the ECV market's growth. •Due to modern technology, these vehicles have substantial development costs. |
Ans:- The market size is expected to reach USD 56.5 billion by 2023.
Ans:- Components, Propulsion, and Vehicle type are the different segments of the market.
Ans:- Due to the lower cost of electricity, as the price of fossil fuels, goes up and awareness of oil and diesel automobiles are the most promising aspects/opportunities of the Electric Commercial Vehicle Market.
Ans:- Yes.
ans:- Raw material vendors, Distributors/traders/wholesalers/suppliers, Regulatory authorities, government agencies and NGOs, Commercial research & development (R&D) institutions, Importers and exporters, and End-use industries are the stakeholder of this report.
Table of Contents
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges
4. Impact Analysis
4.1 COVID-19 Impact Analysis
4.2 Impact of Ukraine- Russia war
4.3 Impact of ongoing Recession
4.3.1 Introduction
4.3.2 Impact on major economies
4.3.2.1 US
4.3.2.2 Canada
4.3.2.3 Germany
4.3.2.4 France
4.3.2.5 United Kingdom
4.3.2.6 China
4.3.2.7 Japan
4.3.2.8 South Korea
4.3.2.9 Rest of the World
5. Value Chain Analysis
6. Porter’s 5 forces model
7. PEST Analysis
8. Global Electric Commercial Vehicle Market Segmentation, By Component
8.1 Battery Cells & Packs
8.2 On-Board Charge
8.3 Motor
8.4 Reducer
8.5 Fuel Stack
8.6 Power Control Unit
8.7 Battery Management System
8.8 Fuel Processor
8.8 Power Conditioner
8.9 Air Compressor
8.10 Humidifier
9. Global Electric Commercial Vehicle Market Segmentation, By Propulsion
9.1 BEV
9.2 FCEV
9.3 PHEV
10. Global Electric Commercial Vehicle Market Segmentation, By Vehicle Type
10.1 Bus
10.2 Pickup Truck
10.3 Truck
10.4 Van
11. Regional Analysis
11.1 Introduction
11.2 North America
11.2.1 the USA
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 the UK
11.3.3 France
11.3.4 Italy
11.3.5 Spain
11.3.6 The Netherlands
11.3.7 Rest of Europe
11.4 Asia-Pacific
11.4.1 Japan
11.4.2 South Korea
11.4.3 China
11.4.4 India
11.4.5 Australia
11.4.6 Rest of Asia-Pacific
11.5 The Middle East & Africa
11.5.1 Israel
11.5.2 UAE
11.5.3 South Africa
11.5.4 Rest
11.6 Latin America
11.6.1 Brazil
11.6.2 Argentina
11.6.3 Rest of Latin America
12. Company Profiles
12.1 Continental AG (Germany),
12.1.1 Financial
12.1.2 Products/ Services Offered
12.1.3 SWOT Analysis
12.1.4 The SNS view
12.2 Tesla (US)
12.3 Siemens (Germany)
12.4 Nissan (Japan)
12.5 BYD (China)
12.6 Daimler (Germany)
12.7 ABB (Switzerland)
12.8 Mitsubishi Electric (Japan)
12.9 Proterra (US)
12.10 LG Chem (South Korea)
12.11 Zhongtong Bus Holding Co., Ltd (China)
12.12 Panasonic (Japan)
12.13 Delphi (US)
12.14 Toshiba (Japan)
12.15 Ballard Power Systems (Canada)
13. Competitive Landscape
13.1 Competitive Benchmarking
13.2 Market Share analysis
13.3 Recent Developments
14. Conclusion
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