Global Electric Commercial Vehicle Market - 2022-2029

Global Electric Commercial Vehicle Market - 2022-2029

Market Overview

Electric commercial vehicle market reached US$ YY million in 2021 and is estimated to record significant growth by reaching up to US$ YY million by 2029, growing at a CAGR of 34.5% during the forecast period (2022-2029).

Electric commercial vehicles use electricity for power generation instead of diesel or gasoline. Electric commercial vehicles include buses, vans, trucks, agricultural equipment like combine harvesters and tractors and construction machines like excavators and wheel loaders.

An onboard battery refilled from the power grid provides the energy to power them. Like in an e-car, the electric motor turns electrical energy into mechanical energy. The DC-to-DC converter, which feeds the power network, is one of the most important components in the electrical system. The inverter in the drive turns the direct current from the battery into the alternating current needed to power the vehicle.

Furthermore, the issue of electrification in commercial vehicles, on the other hand, is not limited to the drive. Electricity can be used to power tools, air-conditioning systems, superstructures and attachments. Some of the power used to drive hybrid versions comes from a combustion engine, but the electric drive provides the extra torque needed to deal with peak loads.

The benefits of electric business cars are obvious: they do not consume fossil fuels and do not generate CO2. They are fully clean if their electricity comes from renewable sources. Another advantage is that an electric drive has fewer moving components than a mechanical drive, which implies fewer breakdowns and less maintenance, lowering ownership costs. Because electric vehicles have a simpler design, they can be produced in more compact forms. Another advantage is that they are quiet than vehicles powered by combustion engines. They are also more efficient since they accelerate faster and a considerable amount of energy is recovered through electronic braking.

Market Dynamics

Growing government support to increase awareness about e-mobility is expected to boost the market for commercial electric vehicles globally.

Growing government support to increase awareness about e-mobility is expected to boost the market for commercial electric vehicles globally

Governments globally are putting pressure on vehicle manufacturers to minimize carbon emissions caused by diesel fuel combustion and combat greenhouse gas emissions, prompting them to invest in developing electric trucks. Governments are offering special incentives in the form of programs and plan to encourage the manufacture of battery-electric trucks, which is expected to move the market forward.

Furthermore, governments globally are providing tax credits and incentives to encourage the purchase of electric vehicles. Furthermore, the governments of a few nations are excluding electric vehicles from paying highway tolls.

For instance, the Indian government proposes reducing the Goods and Service Tax (GST) on electric vehicles from 12 % to 5% to speedier adoption. Furthermore, tax exemptions of up to US$ 2,101.5 will be offered on loans obtained to purchase an e-mobility. Furthermore, the South Korean government has pledged US$ 900 million in tax exemptions and incentives for developing and purchasing electric and fuel cell vehicles. One of the primary elements driving demand for electric trucks is growing government support for developing and purchasing electric mobility through tax credits, subsidies and incentives.

Furthermore, the EPA's Diesel Emissions Reduction Act (DERA) Program 2020 pays grants and rebates that reduce hazardous emissions from diesel engines, protecting human health and improving air quality. National, state and tribal grants are all available. Also, ChargePoint compiles a list of government and utility tax credits, rebates and subsidies for purchasing and installing commercial electric vehicles and charging infrastructure. Such initiatives are expected to drive the growth of the global electric commercial vehicle market.

High cost and lower lithium availability for commercial electric vehicles hurdle the market growth

Electric buses, trucks and other commercial vehicles currently have disadvantages over vehicles powered by a combustion engine. Electric vehicles continue to be more expensive at present. They can't go as far on a single charge as a combustion engine car can right now. As a result, e-buses are nearly exclusively used in cities. Thus, to give a longer range, larger batteries would be required. It takes longer to charge buses and trucks than refill and the charging infrastructure isn't perfect yet. A diesel-powered truck has the potential to get refueled at any service station, whereas e-truck drivers must first locate and travel to the appropriate charging station.

Furthermore, commercial vehicles face additional hurdles that an e-car does not. Because they are heavier, larger and more powerful batteries are required. They must also be more resilient than a passenger automobile, as commercial vehicles employed in construction or agriculture, for example, are subjected to high vibrations. Thus, the factors mentioned above act as a major hurdle to the market growth of commercial electric vehicles.

COVID-19 Impact Analysis

The COVID-19 pandemic has compelled consumers to shop online, resulting in a surge in demand for home delivery. Furthermore, growth has the potential to resume after the pandemic. In addition to consumer products, the genie has been let out of the bottle for home food delivery, which many consumers will want to continue after experiencing it for the first time. Thus growth in-home delivery services have created a demand for commercial electric vehicles to grow during the pandemic.

However, closing factories, resulting in worker expulsions and the fear of stagnation due to the coronavirus are causing a significant drop in electric truck sales in the first and second quarters of 2020. Nonetheless, demand for electric trucks is projected to grow once the current limits are lifted. However, in the second half of 2020, sales increased and, in most cases, sales losses for the previous months were decreased. Due to the expanding trend of vehicle electrification globally, electric car sales surged in 2020 and 2021.

Furthermore, the government has also supported the industry and prioritized this sector over subsidizing old technologies, which is expected to regain the market momentum in the forecast period.

Segment Analysis

The global electric commercial vehicle market can be segmented on component, vehicle type, battery type, battery capacity, propulsion, autonomous vehicle, end-user and region.

Growing greenhouse emissions by the transport sector have encouraged the government to install more number electric vehicles across the globe

The global electric commercial vehicle market is segmented by vehicle type into the bus, pickup truck, truck and van. The highest market share is expected to hold by bus. Electric buses provide passengers more comfort than gasoline or diesel buses. NVH levels in electric buses are low compared to regular diesel buses, providing passengers with more comfort. The vehicle's reduced vibrations and moving mechanical parts during operation improve its life, lower maintenance costs and provide passenger comfort.

Furthermore, the transportation industry is one of the greatest contributors to global greenhouse gas (GHG) emissions. According to UN Environment Program (UNEP), the transportation sector accounts for around a quarter of all energy-related greenhouse gas (GHG) emissions. It is one of the significant contributors to urban and regional air pollution.

According to U.S. Environmental Protection Agency (EPA), buses also produced 1.1 % GHG emissions from the transportation sector in 2019. Vehicle emissions are responsible for discharging 29 % of ozone-depleting compounds, which pollute the air and endanger the environment. Various governments have attempted to deploy electric buses to make their metropolitan public transportation systems more sustainable and fuel-efficient. Thus growing government support to reduce greenhouse emissions by installing many electric buses has propelled the market share for bus segments in the global electric commercial market.

Geographical Analysis

Expanding national government initiatives toward sustainable public transportation drive the electric commercial vehicle market in Asia- Pacific.

Asia-Pacific is predicted to lead the electric commercial vehicle market, followed by Europe and North America. Growing government policies encouraging the adoption of electric vehicles, as well as aggressive expansion by OEMs and suppliers in the area to meet expanding demand from China's automotive industry, are likely to boost market growth over the projection period.

For instance, China's government encourages citizens to switch to electric vehicles. The country has already begun phasing out diesel fuel, which is used to power today's tractors and construction equipment. By 2040, the country intends to eliminate all diesel and gasoline automobiles.

Furthermore, Japan boasts one of the world's best electric vehicle ecosystems. Automobile manufacturers such as Toyota and Nissan are exploring the possibility of producing electric vehicles in the country. The availability of many electric cars charging stations in the country, which outnumber petrol and diesel outlets, can be used to measure improvements in the hybrid and electric vehicle industry. These favorable characteristics are projected to propel the market for commercial electric cars and demand in Japan.

Competitive Landscape

The global electric commercial vehicle market is highly competitive with local and global companies. Some prime companies contributing to the market's growth are AB Volvo, Dongfeng Motor Company, Geely Automobiles Holdings Limited, BYD Compay Ltd., Daimler AG, Man SE, Paccar Inc, Scania, Tata Motors, Workhorse and others.

The major companies are adopting several growth strategies such as acquisitions, product launches and collaborations, contributing to the global growth of the Electric Commercial Vehicle market.

• Volvo Trucks, the flagship truck brand of Sweden's AB Volvo, plans to sell a full range of electrified heavy-duty trucks throughout Europe starting in 2021.

AB Volvo

Overview: The Volvo Group is a multinational manufacturing company based in Gothenburg, Sweden. Volvo provides maritime and industrial drive systems, financial services and its primary function of manufacturing, distributing and selling trucks, buses and construction equipment. Both AB Volvo and Volvo Cars use the Volvo logo and the two companies work together to maintain the Volvo Museum in Sweden.

Product Portfolio:

• Volvo FH Electric: The Volvo FH Electric offers exceptional comfort and a clear perspective of the road ahead. It's the same famous and competent truck that drivers worldwide enjoy, but with a carbon footprint that fits your lofty goals. Furthermore, the vehicle can be equipped with charging, route and range planning, battery monitoring and support packages to make the transition to electric mobility easier.

Key Development

• Volvo BZL Electric Chassis was launched in September 2021 by AB Volvo for sustainable and efficient public transportation in cities worldwide and clients' reliable and profitable operations.

Why Purchase the Report?
• Visualize the global electric commercial vehicle market segmentation by component, vehicle type, battery type, battery capacity, propulsion, autonomous vehicle, end-user and region, highlighting key commercial assets and players.
• Identify commercial opportunities in the electric commercial vehicle market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global electric commercial vehicle market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global electric commercial vehicle market report would provide approximately 93 market data tables, 98 figures and 220 pages.

Target Audience 2022
• Service Providers/ Buyers
• Paints & Coating Companies
• Research Laboratory
• Manufacturers
• Textile & Carpet companies
• Distributors