In place of diesel or gasoline, an electric commercial vehicle can run entirely or partly on electricity. Electric commercial vehicles are also very affordable because they have fewer moving parts to maintain and use little to no fossil fuels (petrol or diesel). The newest trend for governmental entities, nonprofit organizations, and many commercial businesses support sustainable development is fleets of vehicles power by renewable resources.
The market worth of the electric commercial vehicle in 2021 was USD 57 billion. And it will be worth USD 848.94 billion by 2030, growing at a 35% CAGR during the forecast period.
The government’s increased emphasis on electrifying public transportation, the rising need for electric powertrains. And the expanding demand for zero-emission vehicles are the primary factors contributing to the market growth.
Market Dynamics
Drivers
Recent advancements in the automotive industry have paved the way for creating an economically viable electric car for commercial use. The growing consumer awareness of these vehicles’ low operating and maintenance costs is driving market expansion. Implementing favorable rules relevant to the decrease of fuel-driven vehicles also stimulates the market for electric commercial vehicles. Additionally, a number of governmental organizations are encouraging the use of electric vehicles in the commercial sector by offering tax breaks or subsidies on their purchase. The market is growing due to an increased emphasis on electrifying public transportation fleets. And an increase in the use of electric cars for various logistical purposes.
Restraints
Most nations cannot have high charging densities due to a lack of a sufficient E.V. charging infrastructure. which will restrain the expansion of the ECV industry.
Opportunity
The technology for wireless on-the-go charging has advanced recently. Users won’t need to charge their cars because they will do so automatically while they are in use as this technology develops. Although the cost of this technology is high right now, it might be utilize in the next decades. Sales will increase quickly if this technology is use, which will significantly impact the market for electric vehicles.
Market Segmentation
By Vehicle Type
On the basis of vehicle type, the electric van segment led. The entire market with the largest revenue share of 40.26%. In order to lower overall transportation costs. The logistics industry has seen a sharp increase in demand for electric vehicles as a result of the ongoing increase in fuel prices. There are currently about 26k electric vehicles in the U.K. logistics sector. Representing an increase of about 200% from 13k in 2021.
By Battery Type
On the basis of battery type, the li-ion phosphate/LFP segment ruled the entire industry with 58.56% of the revenue share. LFP is used to eliminate toxicity problems and to give battery a considerably longer lifespan in addition to the powerful performances of the ECVs. Due to the cheaper cost of LFP batteries, Tesla has begun using them. Tesla presently has about 310,000 ECVs, of which about 48%, or 150,000 ECVs, employ LFP battery packs.
By Propulsion Type
On the basis of propulsion type, the PHEV/Plug-in Hybrid EV segment led the market with 46.77% of the revenue share. As a result of their greater electrical and storage capacities, PHEV demand is suddenly increasing. Both internal combustion engines and electric motors are combine into these vehicles. Around 2.4 million PHEVs were in circulation globally in 2020. Accounting for nearly one-third of all plug-in electric passenger cars on the road today.
By End-User
On the basis of end-user, the last-mile delivery segment ruled the market with 29.87% of the revenue share. Due to the e-commerce industry’s explosive growth and the online sale of ECVs. For instance, Jet-Freight Logistics used electric vehicles (EVs) for last-mile deliveries for e-commerce businesses. The organization’s usage of ECVs for delivery has a predetermined path for which controlling the electric-charge rate is challenging. Which raises the need for last-mile delivery solutions.
Regional Insights
Asia Pacific significantly ruled the entire regional market, with the highest share of 48.18%. The market expansion in this area is mostly driven by Chinese electric bus. China alone produces nearly 99% of all-electric buses in the Asia-Pacific area. In addition, the market expansion in the region is being aided by the rise in demand for electric buses. And the quickly expanding logistics sectors in nations such as Japan, Australia, and India.
Key Players
- Volvo Group
- Rivian Automotive, Inc.
- VDL Group B.V.
- Workhorse Group Incorporated
- BYD Co.
- Tesla, Inc.
- Zhengzhou Yutong Group Co.
- Ebusco B.V.
- Proterra, Inc.
The market worth of the electric commercial vehicle in 2021 was USD 57 billion. And it will be worth USD 848.94 billion by 2030, growing at a 35% CAGR during the forecast period. The main drivers of market expansion are the dropping cost and rising operating efficiency of batteries. As well as the long-term cost advantages of EVs. Along with this, the market is anticipated to profit from expanding government support for such vehicles through grants and subsidies. As well as growing concerns over greenhouse gas (GHG) emissions throughout the projected period.