Global Electric Commercial Vehicle Market Ascends at a Noteworthy CAGR of 25.20%

Introduction

Electric commercial vehicles are ones whose propulsion is supplied by a battery pack. These vehicles are categorized as either light, medium, or heavy-duty. Several governments are imposing stringent emission laws, urging fleet owners to adopt electric trucks and buses. In addition, electric commercial vehicles are silent, emit no pollutants, and are a cost-effective mode of transportation, making them the preferred alternative for fleet owners. In addition, the governments of several developing countries are establishing charging infrastructure for electric vehicles to assist future operations. In many developing economies, the adoption of electric vehicles is evident due to the rapid expansion of industries such as logistics and supply chain management.

Market Dynamics

Growing Use of Electric Buses Drives the Global Market

Today, diesel vehicles are widely used all over the world. Furthermore, these vehicles are frequently used in urban areas with large population densities when other pollutants have already affected the local air quality. Even while electric buses are still more expensive than their diesel-powered counterparts, data suggests that when lifetime expenses are examined over 12 years, they can have a low cost of ownership and are similar to diesel buses. This results from their more straightforward, more effective, and low-maintenance drivetrains.

Between 2021 and 2026, the EPA and NHTSA were supposed to implement the Safer Affordable Fuel-Efficient (SAFE) automobile policy in the United States. The law may set minimum standards for greenhouse gas emissions and company-average fuel efficiency for passenger and commercial cars. Under the Zero-Emission Vehicles (ZEV) Program, OEMs are mandated to sell a specific number of clean and zero-emission vehicles (electric, hybrid, and fuel cell-powered commercial and passenger vehicles).

Developing E-Commerce and Logistics Sector Creates Tremendous Opportunities

E-commerce is one sector that has grown significantly since the COVID-19 pandemic. The e-commerce industry depends heavily on the logistical delivery services now provided by logistics providers. These businesses use leasing to add vehicles to their fleets. To support its enormous expansion, the sector seeks partners who can provide a total mobility solution. A company offering mobility solutions has an excellent opportunity to develop and prosper. Electric vehicles are necessary for this supply chain because they provide a high-demand service industry with good profit margins and scalability. Using E.V.s in the middle and last miles of connectivity offers tremendous mobility solution possibilities when used as delivery vehicles. The last mile of a 2/3-wheeler is vital since customer satisfaction ultimately depends on how well it operates.

The logistics industry has historically welcomed the commercial use of electric vehicles. Over the next five to ten years, many logistics companies will work hard to create a green supply chain. An increasing number of companies are introducing electric vehicles to reduce pollution associated with transportation. The logistics industry would be the first to adopt electric cars.

Regional Analysis 

Asia-Pacific is the most significant revenue and is anticipated to grow at a CAGR of 25.30% over the projection period. Due to its limited oil supplies, India has developed into one of the world's top oil importers. As a potential solution to this problem, the Indian government is encouraging the purchasing and use of electric automobiles. The Indian government is working to develop a shared, connected, and electric mobility option even though there have been many barriers to the adoption of electric vehicles, such as a lack of readily accessible charging infrastructure, reliance on imported batteries, parts, and components, and the high cost of E.V.s.

North America is anticipated to grow at a CAGR of 25.20 percent during the projection period. For instance, introducing electric buses is expected to reduce fuel costs for the nation's transit agencies significantly. All of the factors mentioned above and multiple investments in the industry will propel the electric commercial vehicle market in the United States. Due to the strong support and increasing expenditures from local manufacturers and governments, Canada has been one of the North American countries to install electric buses the fastest.

Key Highlights

• The global electric commercial vehicle industry size was valued at USD 84.90 billion in 2022. It is projected to reach USD 641.72 billion by 2031, growing at a CAGR of 25.20% during the forecast period (2023-2031).
• The global electric commercial vehicle market is bifurcated based on vehicle type into Buses, Trucks, Pickup Trucks, and Vans. The buses segment is the highest contributor to the industry and is estimated to grow at a CAGR of 17.80% during the forecast period.
• Based on propulsion, the global electric commercial vehicle market is bifurcated into battery electric vehicles, plug-in hybrid vehicles, and fuel-cell electric vehicles. The battery-electric vehicles segment is the highest contributor to the market and is estimated to grow at a CAGR of 23.80% during the forecast period.
• Based on power output, the global electric commercial vehicle market is bifurcated into Less than 150 kW, 150-250 kW, and Above 250 kW. The 150-250 kW segment is the highest contributor to the market and is estimated to grow at a CAGR of 24.20% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 25.30% during the forecast period.

Competitive Players

1. BYD Auto Co. Ltd
2. Proterra Inc.
3. AB Volvo
4. Daimler AG
5. Tata Motors Limited
6. Ford Motor Company
7. Tesla Inc.
8. Traton SE
9. Rivian Automotive Inc.
10. and Yutong Bus Co. Ltd.

Recent Developments

Recent Developments

• November 2022- Farizon New Energy Commercial Vehicles (Farizon), a Geely subsidiary, sent its E200S mini-trucks to Chile from the port of Shenzhen in Guangdong Province. This is the second consignment of bulk exports to South America, following the shipment to Costa Rica in June 2022.
• November 2022- Karma Automotive delivered its first electrified production commercial cars to a customer-powered Karma brand.

Segmentation

1. By Vehicle Type
   1. Buses
   2. Trucks
   3. Pickup Trucks
   4. Vans
2. By Propulsion
   1. Battery Electric Vehicles
   2. Plug-in Hybrid Electric Vehicles
   3. Fuel Cell Electric Vehicles
3. By Power Output
   1. Less than 150kW
   2. 150-250 kW
   3. Above 250 kW