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Electric Commercial Vehicle Market to Grow at a CAGR of 41.1% | MarketsandMarkets

Electric Commercial Vehicle Market to Grow at a CAGR of 41.1% | MarketsandMarkets
Electric Commercial Vehicle Market

Electric Commercial Vehicle Market by Propulsion Type, Vehicle Type, Range, Battery Type, Length of Bus, Power Output Type, Battery Capacity Type, Component Type, Autonomous Vehicles Type, End-User and Region

The global Electric Commercial Vehicle Market size is projected to reach 2,026 thousand units by 2028 from a projected 129 thousand units in 2020, at a CAGR of 41.1%. 

The electric commercial vehicle segment has witnessed rapid evolution with governments across the world promoting electrification of public transport fleets and with the increasing demand for zero-emission vehicles in the eCommerce and logistics sector.

Advancements in battery pack technologies and electric powertrains are some of the major factors driving the growth of the electric commercial vehicle market. Factors such as a rise in pollution and environmental hazards, stringent government regulations, and stiff competition have compelled automotive OEMs to make fuel-efficient and environment-friendly vehicles. In this pursuit, automotive OEMs and component manufacturers are exploring ways to develop and design commercial vehicles that can meet the standards of fuel efficiency as well as vehicle emissions. 

Opportunity: New revenue pockets in North America and Europe

North America is a high growth market for electric commercial vehicles. The region has witnessed a surge in demand for low-emission, fuel-efficient, high-performance vehicles due to stringent emission norms and the growing logistics sector. The market in the US is expected to grow exponentially by 2028 due to the high adoption of electric vans and the large order placement of electric pick-up trucks.

Growth opportunities are also available in Nordic countries, including Denmark, Finland, Iceland, Norway, and Sweden. These countries have seen a rapid increase in demand for electric vehicles due to government incentives and the presence of supporting infrastructures, such as free charging stations and parking allotments.

The global electric commercial vehicle market is dominated by major players such as BYD (China), Yutong (China), Proterra (US), VDL Groep (Netherlands), and AB Volvo (Sweden). 

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The electric van segment is estimated to be the fastest-growing market during the forecast period in North America

The electric van segment is expected to be the fastest-growing market as there is a high demand for electric vans from the logistics sector, especially in the North American region. The growth of the logistics and e-commerce sectors is expected to drive the market for electric vans during the forecast period.

The usage of electric vans in the logistics sector would minimize the cost of transportation. Many leading logistics companies in Europe and North America have started using electric vans for shipping and delivery purposes. For instance, DHL, one of the leading logistics companies in the world, is using electric vans while Amazon announced plans to use electric delivery vans to be built by Rivian from 2021 onwards.

North America: the U.S is expected to lead the market

The North American region is projected to be the fastest-growing market during the forecast period. The region is a hub to major players such as Proterra (California, U.S), Tesla (California, U.S), Workhorse Group (Ohio, U.S), Nikola Motor Company (Arizona, U.S) and Rivian (Michigan, U.S). North America is a key region for innovations; significant R&D; and technological advancements in electric vehicles, battery technologies, and charging solutions.

The U.S is the largest market in North America, followed by Canada. Also, the U.S is home to many established OEMs providing electric vehicles and also has a higher adoption rate for electric commercial vehicles.

The Asia Pacific is expected to lead the global market during the forecast period

The Asia Pacific region is the largest electric commercial vehicle market in the world. It comprises some of the fastest developing and developed economies in the world, such as China, India, and Japan. The market growth in the region can be attributed to the dominance of the Chinese market in the electric bus segment and the presence of market-leading OEMs in the country as well, resulting in the exponential growth of the electric commercial vehicle market in the Asia Pacific. The large demand for electric buses, favourable regulations for electric commercial vehicles, and the rapidly growing logistics sector are expected to boost the electric commercial vehicle market in the region.

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