Global Electric Commercial Vehicle Market Size, Share & Trends Analysis Report, By Propulsion, Vehicle Type, Range, Battery Type, Power Output, Battery Capacity, Component, End User, Body Construction, By Region Forecasts, 2024 – 2032

Global Electric Commercial Vehicle Market Size, Share & Trends Analysis Report, By Propulsion, Vehicle Type, Range, Battery Type, Power Output, Battery Capacity, Component, End User, Body Construction, By Region Forecasts, 2024 – 2032

Global Electric Commercial Vehicle Market was valued at US $ 43.5 billion in 2023 and is expected to reach US $ 558.4 billion by 2032 growing at a CAGR of 29.9% during the forecast period 2024 – 2032.

Due to growing demand for zero-emission commuting and government support for low-emission vehicles through tax breaks and subsidies, manufacturers have started to accept electric vehicles. The development of an electric commercial vehicle that is more suited than it was previously has led to even more market expansion. The majority of governmental organisations choose internal combustion engine vehicles over zero-emission ones, mostly due to growing concerns about the role that automobiles play in contributing to environmental pollution. The public is starting to realise how much more of zero-emission automobiles are required as pollution levels rise. Governmental organisations from several nations are developing innovative plans and rewards to promote the purchase of electric cars. These consist of lowered road taxes, lowered vehicle acquisition taxes, and lowered road taxes for cars with zero emissions.

In an attempt to mitigate the effects of climate change, Europe has set very ambitious goals for lowering emissions. Reducing pollution and encouraging the widespread manufacture of electric vehicles (EVs) are the overarching objectives of these stricter rules, particularly in urban areas. Fleet managers are being urged to convert from diesel to electric commercial vehicles due to the introduction of stringent emission regulations and low-emission zones. European governments use a range of incentives in an attempt to spur the use of electric vehicles. These incentives consist of infrastructure construction charges, tax incentives, and purchasing subsidies. This lessened the initial high cost of electric vans, increasing their economic appeal to fleet managers.

“BEVs segment, by propulsion, to be dominating market from 2023 to 2030.”

BEVs are vehicles that only use batteries for power. The car is propelled by a permanent magnet motor that runs on batteries. A BEV can travel 150–200 kilometres on average. Nevertheless, the type of battery that is placed affects the range. It is forecasted that the overall cost of BEVs will decrease over time due to advancements in battery technology and a steady decline in battery prices. Furthermore, compared to traditional motors, electric motors are far more efficient, have a lot fewer moving parts, and require a lot less maintenance. Due to variations in weather, battery electric vehicles' (BEVs) average range currently ranges between 150 and 250 miles. Scania AB, Nikola Corporation, and the Mercedes Benz Group AG all sell BEV electric vehicles. Mercedes provides the heavy-duty electric car eActros with a battery capacity of 420 kWh. The Rivian R1T is a semi-autonomous electric pickup truck that runs on batteries and has a 135 kWh capacity. According to Tesla, Inc., the Cybertruck is an electric pickup truck with a 500-mile range and a 200 kWh battery.

“Asia Pacific to be largest region in electric commercial vehicle market.”

Asia-Pacific will see a rise in the demand for electric commercial vehicles as a result of the desire to minimise pollution and the region's dependency on fuel and diesel. China and other developing nations will see an increase in this sector as disposable income rises. Dongfeng Motor Corporation declared in January 2021 that it would establish a new electric off-road vehicle manufacturing facility in Wuhan. It is anticipated that production of 10,0o automobiles would begin in 2023. BYD said in March of last year that it would launch an electric pickup truck under a different brand. Along with American General Motors and German company Mercedes Benz Group AG, German automaker Volkswagen has also relocated its factories to emerging economies.

Electric commercial vehicle Competitive Landscape

The competitive landscape of the Electric commercial vehicle market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Electric commercial vehicle technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Electric commercial vehicle market is highly competitive, with numerous companies vying for market share. Prominent companies in the Electric commercial vehicle Market include:

Major Players:

BYD (China), AB Volvo (Sweden), Mercedes Benz Group AG (Germany), PACCAR Inc (US), Tesla, Inc (US), and others.

Recent Developments:

In February 2024, a branch of VE Commercial Vehicles, Eicher Trucks and Buses entered the small commercial vehicle (SCV) market with the world premiere of its first electric truck at the Bharat Mobility Global Expo in 2024. The recently introduced truck, which ranges in gross vehicle weight (GVW) from 2 to 3.5 tonnes and is intended for city and near-city distribution, is intended to revolutionise last-mile logistics. First to be introduced is the electric variant, followed by clean CNG and diesel versions, as part of Eicher's increased focus on sustainability and clean mobility options. The product will be produced at the Bhopal site; it was created and developed in India.

In September 2023, Ashok Leyland's Hinduja Group launched two new electric light commercial vehicles (LCVs) under the Switch Mobility brand. The IeV 3 and IeV 4 vehicles are made to provide last-mile transportation demands with effective and environmentally responsible options. These cars, which belong to the 2-3.5 tonne commercial vehicle category and have a 330 V high voltage EV architecture, have a roomy cargo body with a 340 cubic foot container capacity. They have features designed to lessen driver fatigue and can be charged to 80% in less than an hour. With competitive interest rates and flexible repayment options, this partnership aims to make electric mobility more accessible to consumers by offering up to 100% financing on the on-road price of electric two-wheelers, thereby providing an eco-friendly and efficient solution for last-mile transportation needs.

Four out of MAN Truck & Bus's five funding requests were approved by the Bavarian State Government in June 2023. The development of high-voltage batteries for buses and electric vehicles is aided by this financing. The Nuremberg operation receives 25 million euros from the government.