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Home » Automotive » Electric Commercial Vehicle Market Size | Growth Forecast 2030

Electric Commercial Vehicle Market By Component, By Battery Type, By Battery Capacity, By Payload Capacity of Truck, By Propulsion, By Vehicle Type (Van, Bus, Truck, Pickup Truck), By End User (Field Services, Refuse Services, Long Haul Transportation, Last Mile Delivery, Distribution), By Electric Autonomous Vehicle (Electric Autonomous Bus, Electric Autonomous Truck), By Bus Length (<9m, 9 to 14m, >14m), Global Report by Size, Industry Analysis & Forecast, 2021 - 2030

Published On: Aug-2022   |   Base Year: 2021   |   No Of Pages: 145   |   Historical Data: 2017 - 2020   |   Formats: PDF   |   Report ID: 97004846

Report DescriptionTable of Contents

Industry Report and Statistics

The global electric commercial vehicle market will witness a robust CAGR of 35%, valued at $57 billion in 2021, expected to appreciate and reach $848.94 billion by 2030, confirms Strategic Market Research. 45% of the global market was controlled by Asia-Pacific in 2021. An electric vehicle is one that runs on electricity rather than an internal combustion engine, which generates power by burning fuel and gases. To solve the issues of increasing pollution, global warming, decreasing natural resources, etc., such a vehicle is considered a potential substitute for the current generation of automobiles. Instead of using diesel or gasoline, electrical power is used to operate construction equipment like wheel loaders and excavators as well as commercial vehicles like buses, trucks, and vans. An internal battery on the inside of these cars' recharges itself using the power grid. Electrical energy is transformed into mechanical energy by an electric motor. Electric commercial vehicles are becoming increasingly popular because of their low carbon emissions, cheap maintenance requirements, smoother ride, and reduced engine noise.

The market for electric commercial cars is one of the world's most rapidly developing markets due to increased public awareness of the dangers and threats to the environment and the harm done to the ecosystem by conventional gasoline and diesel vehicles. The market is mostly known for cars that operate on electricity rather than gasoline, crude oil, diesel, or other by-products. In the future, electric business cars will be more prevalent. To reduce emissions associated with traffic, most governments are targeting electrification by 2050. Governments in nations including China, Japan, the United States, Canada, and India have already established commercial vehicle thresholds. During the forecast period, government policies, monetary incentives for E.V.s, and the quick advancement of infrastructure to facilitate E.V.s are expected to propel market revenue growth. Research indicates that by 2030, e-trucks such as vans or articulated trucks will make up about 15% of the market. By 2040, it is anticipated that 80% of buses will be electrified in cities all over the world. Smaller commercial vehicle shares will be 35% in Europe and China.

 

Key Industry Drivers - The Cheaper Cost of Electricity and Rising Fossil Fuel Costs Will Result in Increased Demand for Ecvs; Government Initiatives Will Also Increase Demand for Electric Commercial Vehicles.

  • EIA (Energy Information Administration), United States, estimated that 97.45 million barrels of gasoline were consumed daily in 2021. Except for a few rare occasions like the COVID-19 outbreak, gasoline prices have been growing over time at a global level. With an astounding 48.7% increase since last year and a 22.75% increase just in the past six months, the price of gas in particular is getting even more out of reach. To put those figures into perspective, AAA reports that the national average cost of a gallon of gasoline in the United States is $4.99. The strong demand for gasoline is the main reason for the increase in gasoline prices globally. Gasoline is a non renewable source of energy; hence it will likely run out within the next few decades. Gasoline prices also rise as a result of the change in supply and demand of gasoline globally. Even though several accords have been established to regulate petrol prices on the global market, prices have increased with time. Automakers are now thinking about alternate sources of fuel for their vehicles due to the depletion of petroleum supplies and the rising cost of gasoline. Petroleum prices, which have already increased in the past few decades, are expected to increase further as a result of the conflict between Russia and Ukraine in 2022. This is anticipated to spark new efforts to switch to E.V.s to lower everyday transport expenses across the globe. Moreover, Tax rates also influence the cost of fossil fuels globally. According to reports, the United States has the lowest fuel tax of about 19 percent, whereas India imposes a tax on fuel of over 69 percent. Conversely, ECVs have significantly lower operating costs than traditional commercial vehicles. Their cheaper operating costs compared to the high expense of driving ICE commercial vehicles will increase the market for electric commercial vehicles.

 

  • The market for electric commercial vehicles has grown in importance as more people want to switch to electric vehicles. Governments in various nations work to improve public transportation by converting it to electricity, which lowers carbon emissions and is more affordable, secure, quieter, and appealing. One of the main motives for government agencies to support zero emission cars over petrol or diesel ones is worries about the changing environment brought on by the automobile industry's excessive pollution. For instance, 8 million city buses were in use worldwide by the end of 2020, as per the Bloomberg New Energy Finance; of these, 885,000 are electric buses. Hence, it would be more accurate to state that around 11.06% percent of city buses are electric buses. Moreover, the market for electric buses and trucks is anticipated to have significant expansion in the upcoming years as a result of rising government measures targeted at recovering the economy in the wake of the Covid-19 crisis. Due to the rising costs of conventional fuels, several logistics organizations have also switched to using electric trucks to reduce costs. The creation of low-emission zones, strict emissions standards, and ultra-low NOx laws will support the expansion of the market for electric commercial vehicles.

 

Restraints - Lack of E.V. Infrastructure will Hinder the Adoption of ECVs.

  • The lack of an adequate E.V. charging infrastructure prevents most countries from having high charging densities, which will limit the growth of the ECV business. Although most nations aspire to improve their E.V. infrastructure, very few have created the necessary infrastructure for a complete shift to E.V.s. Netherlands has the highest density, with more than 100 EV chargers per km. Most fleet providers prefer dedicated charging stations for their fleets of commercial vehicles; however, vans & pickup trucks can also be recharged using the charging stations created for electric passenger cars. Additionally, pantographs and certain charging ports are needed for the daily charging of electric buses and trucks. The infrastructure for charging commercial vehicles is far more constrained than electric cars.

 

Opportunities - Advancement of Wireless Electric Charging Technologies for On-The-Go Charging Method

  • Over the past few years, wireless on-the-go charging technology has evolved. When this technology will further advance, users won't have to charge their cars because the cars will do so automatically while they are in use. Although this technology is now quite expensive, it might be used in the ensuing decades. As sales are anticipated to rise quickly once this technology is used, it is anticipated to substantially impact the E.V. market on a positive note. According to reports, the ability to charge stationary E.V.s wirelessly will be available by the end of 2022. In Norway, a wireless on-the-go Electric charging trial is being conducted. This is planned to support and facilitate charging for a fleet of 25 Jaguar I-pace taxis stationed in Oslo. The capital of Norway has started a program called ElectriCity to have an emission-free taxi system by 2024. The advancement in technology for the on-the-go charging method will positively influence the growth of the global electric commercial vehicle market.

 

Market Analysis Of Different Segments Covered in the Report

This report includes a thorough analysis of market revenue using both quantitative & qualitative intelligence and market forecasts. This research breaks down the market into broad and specialized divisions. This research report also examines market sales growth and its global, regional, and national trajectory from 2021 to 2030. It divides the market and estimates its revenue by segmenting it into various parts:

Based on Component

  • Fuel Stack

  • Humidifier

  • Battery Cells & Packs

  • Air Compressor

  • On-Board Charge

  • Power Conditioner

  • Motor

  • Fuel Processor

  • Reducer

  • Battery Management System

  • Power Control Unit

 

Based on Vehicle Type,

  • Van

  • Bus

  • Truck

  • Pickup Truck

 

Based on Battery Type,

  • Solid-state battery

  • Nickel-manganese-cobalt (NMC)

  • Lithium-iron-phosphate (LFP)

  • Others

 

Based on Battery Capacity,

  • <150 Miles

  • 150 to 300 Miles

  • >300 Miles

 

Based on Propulsion,

  • Plug-in Hybrid Electric Vehicle (PHEV)

  • Battery Electric Vehicle (BEV)

  • Fuel Cell Electric Vehicle (FCEV)

 

Based on End User,

  • Field Services

  • Refuse Services

  • Long Haul Transportation

  • Last Mile Delivery

  • Distribution

 

Based on Payload Capacity of Truck,

  • <10,000 LBS

  • 10,001 to 26,000 LBS

  • >26,001 LBS

 

Based on Electric Autonomous Vehicle,

  • Electric Autonomous Bus

  • Electric Autonomous Truck

 

Based on Bus Length,

  • <9m

  • 9 to 14m

  • >14m

 

Regional Coverage Analysis

Asia Pacific

  • South Korea

  • China

  • Japan

  • India

 

North America

  • United States of America

  • Canada

 

Europe

  • Italy

  • United Kingdom

  • Austria

  • Switzerland

  • Belgium

  • Sweden

  • Denmark

  • Spain

  • France

  • Portugal

  • Germany

  • Norway

  • Ireland

  • Netherland

 

Propulsion Analysis & Insights

A BEV (Battery Electric Vehicle) is an entirely battery-powered electric vehicle based on propulsion. A battery that is built inside the vehicle powers a magnet motor that drives it. Depending on the battery type installed, BEVs typically have a range of 150 to 200 miles. Typically utilized for intracity travel, buses, vans, and lorries are outfitted with BEV propulsion systems. BEVs are anticipated to experience considerable demand in the coming years because intracity travel is the most frequent use for these vehicles. Further, reducing operating costs for buses is because the energy used to operate the vehicles is less expensive than gasoline. The overall cost of BEVs is decreasing due to improvements in battery tech & declining battery pricing. According to reports, pure battery electric buses are being purchased by transit agencies in the United States and numerous other nations at a growing rate, and this trend is anticipated to pick up speed in the upcoming years. Additionally, because electric motors are significantly more efficient than conventional motors and have a smaller number of moving components, they require much less maintenance. For instance, The University of Michigan placed the first order for approximately fifty-four battery buses with NFI (Canada) in November 2021. Innovative technology is included in the modern pure electric buses offered by BYD, Proterra, Ankai, and Yutong. For instance, the 17-seater BEV with a top speed of 100 km/h is Ankai's HFF6705BEV electric bus. Original Equipment Manufacturers (OEM) are concentrating more on releasing BEV buses, which will help fuel the growth of the BEV market in the future.

 

End User Analysis & Insights

The global electric commercial vehicle market is divided into segments based on end-use, including long-distance transportation, field service, distribution service, and last-mile delivery. The last-mile delivery market is estimated to expand at a pretty quick CAGR during the projected period due to the increase in online sales and the robust spread of e-commerce. According to a SMR survey, same-day delivery, or more precisely last-mile delivery, is predicted to grow by 20–40% in the upcoming years. The e-commerce sector has experienced a significant boom in recent years. With major changes in consumer purchasing patterns brought on by the COVID-19 pandemic, internet shopping has become yet another new norm for all of us. Many individuals started switching to online shopping during COVID 19, even for necessities, which has led to growth in home delivery of items. As a result, there have been noticeably more trucks involved in last-mile delivery operations. Fuel consumption & carbon emissions have risen as a result. As a result, fuel usage and carbon emissions have increased. By 2030, the top 100 suburbs in the world are anticipated to have 36% more delivery vehicles due to the increasing demand for last-mile deliveries. As a result, many supply chain businesses are adopting greener logistics strategies in an effort to minimize their environmental impact and reduce their carbon footprint. For instance, by 2030, the world's largest online retailer Amazon wants to run entirely on renewable energy. To that end, it is collaborating alongside Rivian Automotive Inc. to buy 100,000 battery-electric delivery trucks for its Prime delivery service. Moreover, Flipkart, which Walmart owns, declared in August 2020 that it would join The Climate Group's worldwide electric mobility project, EV100, and pledged to adopt 100% electric vehicles by 2030. To help them achieve zero emissions by 2040, Walmart also plans to run a complete fleet of all-electric cars and trucks.

 

Battery Capacity Analysis & Insights

Based on battery capacity, the global market for electric commercial vehicles is divided into three categories: < 150 miles, 150–300 miles, & > 300 miles. Due to end-users increasingly adopting low range electric trucks, notably in last-mile deliveries & intra-city logistics, the less than 150 miles category will account for a bigger revenue share in the worldwide electric commercial vehicle market in the projected time frame. Small-size vans as well as trucks, which are necessary for moving goods within cities or across interstates, are part of the sector less than 150 miles. Because these vehicles are reasonably priced and economical, this market segment is anticipated to rise in terms of revenue throughout the forecast period. For instance, according to a report, it can be stated that after ten years of explosive development, the number of electric cars sold worldwide reached 10 million in 2020, a gain of 43% over 2019. In 2020, low range electric trucks & vans made up two-thirds of the stock and all new electric car registrations.

 

Vehicle Type Analysis & Insights

Based on Vehicle Type, Electric vans are closed wagons or motor trucks powered by an electric engine and connected to the electricity grid. They are anticipated to make up the largest vehicle type category in the market for electric commercial vehicles. Renault (France), Nissan Motor Corporation (Japan), Toyota Motor Corporation (Japan), London Electric Vehicle Company (United Kingdom), Ford Motor Company (U.S.), Mahindra & Mahindra LTD. (India), and Volkswagen AG are major players in the global electric van market. For instance, PEUGEOT (France) will introduce the new PEUGEOT e-Partner, the brand's newest light duty vehicle (LCV), which will be marketed as a complete electric commercial vehicle, in January 2021, extending the range of its electric vans. The market for electric vans used for a variety of applications, including last mile delivery & distribution services, is anticipated to increase. Due to their cheaper operating costs, minimal hazardous emissions, and different government subsidies, electric vans would see an increase in demand throughout the forecasted period.

 

Regional Analysis & Insights

The Asia-Pacific market is anticipated to have a higher revenue share during the projection period than other regional markets. The Chinese electrical public transportation sector is the key driver of revenue growth in the Asia Pacific market. A study found that China produces 99.9% of the world's electrical buses. During the projection period, the region's market for electric commercial vehicles is anticipated to develop due to the increasing popularity of electrically powered buses, favourable laws, and a quickly expanding logistics sector. Due to innovations, extensive research and development, and technological advancements in E.V.s in the region, the North American market is anticipated to have stable revenue growth throughout the course of the projected period. One of the main Electric vehicle hubs in the area is the United States. Additionally, it is anticipated that growing consumer demand for commercial vehicles & increased public awareness of the dangers of fossil fuel pollution will boost market revenue development in this area. Due to the widespread adoption of commercial E.V.s in nations like Norway, the United Kingdom, Sweden, France, Netherland & Germany, the Europe market is anticipated to have consistent revenue growth throughout the projected period. During the projected period, market expansion in this region is anticipated to be fuelled by the increasing popularity for high performance & low emission automobiles as well as supportive government policies and regulations regulating vehicle emissions.

 

Electric Commercial Vehicle Market Report Coverage

Report Attribute

Details

Forecast Period

2021 - 2030

Market size value in 2021

USD 57 Billion

The Revenue forecast in 2030

USD 848.94 Billion

Electrical Commercial Vehicle Market Growth rate

35 %

The base year for estimation

2021

Historical data

2017 - 2020

Segments covered

Component, Region, Battery Type, Battery Range, End-user, Propulsion, Vehicle Type, Battery Capacity, Length of the Bus.

Regional scope

North America, Asia-Pacific, Europe

Key companies profiled

Proterra, Inc., Ebusco B.V., Zhengzhou Yutong Group Co., Tesla, Inc, BYD Co., Workhorse Group Incorporated, VDL Group B.V., Rivian Automotive, Inc., Volvo Group

 

Electric Commercial Vehicle Market Competitive Landscape Analysis

The electric commercial vehicle study offers a competitive landscape based on a careful examination of the significant strategic choices made by the leading industry players in light of recent market developments for electric commercial vehicles. The top industry honchos in the Electric Commercial Vehicle Market are as follows:

  • Proterra, Inc.

  • Ebusco B.V.

  • Zhengzhou Yutong Group Co.

  • Tesla, Inc

  • BYD Co.

  • Workhorse Group Incorporated

  • VDL Group B.V.

  • Rivian Automotive, Inc.

  • Volvo Group

 

Recent Developments

  • On 22nd August 2022, the integrated ESG technology platform STEER Holdings Inc., a wholly-owned subsidiary of Facedrive Inc., announced that it had signed an agreement with Enterprise Fleet Management to lease more than 1000 electric vehicles valued between 80-100 million dollars for its electrical vehicle subscription business. This Agreement is important to the Company because it will help STEER expand, support its U.S. expansion, and strengthen its position as the market leader for Electric Vehicle subscriptions. The business plans to expand into new, carefully chosen U.S. markets in addition to adding automobiles to its current operational hubs.

 

  • On 18th August 2022, the largest commercial vehicle maker in India, Tata Motors, revealed that the Bangalore Metropolitan Transport Corporation had placed an order for 921 electric buses. As per the contract, Tata Motors will provide, operate, and service 12-meter electric buses for 12 years.

 

  • In March 2022, one of the European company has chosen the AKASOL ultra high energy battery system from BorgWarner in order to power its initial line of heavy duty electric trucks. Beginning in the first quarter of 2024, series manufacturing of the 4x2 solid axle, 18-ton truck, and 6x2 solid axle, and the 26-ton truck is planned.

 

  • The upgraded Volvo VNR Electric, which has an up to 85% longer range and faster charging, was introduced by A.B. Volvo in January 2022.

 

  •  A new age of 5G-enabled smart buses was inaugurated in December 2021 with the debut of 90 new vehicles by Yutong in Liaoning Region, China. This launch has enabled the 5G smart, fast bus system to be implemented while also reducing traffic congestion and environmental pollution.

 

Various Devices that Key Market Leaders are Manufacturing:

Name

Feature

Key Player

 

VNR Electric
  • Range: More than 250 Mile.
  • Battery Capacity: 565 Kwh
  • Enhanced Charging capabilities

 

Volvo

K7M Transit busses
  • Length: 30.7 feet
  • Height: 128 inches
  • Width: 95.7 inches
  • Wheelbase: 195.2 inches

BYD

C10 MS
  • Length: 45 feet
  • Height: 160 inches
  • Width: 102 inches
  • Wheelbase: 283.3 inches

BYD

Frequently Asked Question About This Report

b: The global electric commercial vehicle market size was $57 billion in 2021 and is expected to reach a value of $848.94 billion by 2030.

b: The global electric commercial vehicle market is expected to grow at a compound annual growth rate (CAGR) of 35% from 2021 to 2030 to reach USD 848.94 billion by 2030.

b: 25 percent of the trucks sold globally are electrically powered.

b: The major growth drivers for global electric commercial vehicles are as follows: • The cheaper cost of electricity and rising fossil fuel costs will result in increased demand for ECVs. • Government Initiatives will also increase demand for Electric Commercial Vehicles.

Sources 

https://www.businesstoday.in/latest/economy-politics/story/69-india-now-has-highest-taxes-on-petrol-and-diesel-in-the-world-257494-2020-05-06

https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/May/IRENA_Innovation_Outlook_EV_smart_charging_2019.pdf

https://www.virta.global/blog/ev-charging-infrastructure-development-statistics

https://www.infineon.com/cms/en/discoveries/electrified-commercial-vehicles/

https://energy.economictimes.indiatimes.com/news/oil-and-gas/india-now-has-the-highest-taxes-on-fuel-in-the-world/75590141

https://www.bloomberg.com/news/articles/2018-02-01/electric-buses-will-take-over-half-the-world-by-2025