Electric Commercial Vehicle Market 2022-2028

Electric Commercial Vehicle Market 2022-2028

Global Electric Commercial Vehicle Market Size, Share, & Analysis by Vehicle type (Electric Buses, Electric Trucks (Heavy Duty), Light Commercial Vehicles (LCVs) Pickup Trucks and Vans), by Range (Less than 250 km, 250-500 km and More than 500 km), and by Application (Public and Private) Forecast Period (2022-2028)

The electric commercial vehicle market is estimated to grow at a CAGR of 23.1% during the forecast period. The market was valued at $19.0 billion in 2021 and is projected to reach around $74.0 billion in 2028. The government purchase of the electric bus for public transportation, development of charging infrastructure, and stringent target to curb carbon emission are the major factors driving the growth of the market. Moreover, the entrance of a new player in the electric commercial vehicle industry and increasing R&D funding by the well-established automaker is also driving the market growth. These companies are regularly showcasing and launching new commercial vehicles with a higher traveling range and fewer charging time.

Market Segmentation

The global Electric commercial vehicle market is segmented on the basis of vehicle type, range, and application. Based on vehicle type, the market is segmented into electric buses, electric trucks (heavy duty), and light commercial vehicles (LCVs) that include pickup trucks and vans. The electric bus segment dominated the market in 2021 and will continue its dominance over the forecast period. The market was valued at around $17.3 billion in 2021 and is projected to reach around $65.3 billion in 2028, growing at a CAGR of 22.8% during the forecast period.

Based on range, the market is segmented into less than 250 km, 250-500 km and more than 500 km. The commercial EV with less than 250 km of range dominated the market and generated around $14.9 billion in 2021. This value is projected to reach around $56.1 billion in 2028, growing at a CAGR of 22.7% during the forecast period. The commercial vehicles with this range re required to transport goods within city or for intercity transportation, which drives the segmental growth of the market. Furthermore, the commercial vehicles this range are affordable and cost effective. Moreover, currently no commercial vehicles with range above 500 km are available. Few of the vehicles with this range is in trial and it is expected that the vehicles with range over 500 km will hit the market by 2028 when lack of charging infrastructure will not be a barrier for the market.

By application, the market is bifurcated into public and private. Among these, public sector dominated the market and generated around $13.8 billion in 2021 and is projected to reach around $52.6 billion in 2028, growing at a CAGR of 22.9% during the forecast period. The segmental growth is attributed to the dominance of bus segment in the overall commercial EV landscape that is majorly used for public transport. Moreover, private sector is projected to grow at the fastest CAGR of 23.7% during the forecast period. The segmental growth is attributed to the increasing demand for electric vans and pickups by retail and e-commerce companies. For instance, in 2021, Amazon has ordered 100,000 custom electric delivery vehicles from electric vehicle maker Rivian which may hit the roads by the end of 2021.

Regional Analysis

The global Electric commercial vehicle market is segmented into North America (the US and Canada), Europe (Germany, UK, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, and Rest of Asia-Pacific), and the Rest of the World. Among these, Asia-Pacific dominated the market and generated around $16.9 billion in 2021. This value is further projected to reach around $64.2 billion in 2028, growing at a CAGR of 22.9% during the forecast period. The regional growth is attributed to the increasing deployment of electric vehicles in China. China is the largest Electric commercial vehicle market, and the increasing adoption in the country has been in line with the clean energy policy. Moreover, the Government of China has been providing both financial and non-financial incentives for promoting the adoption of EVs in the country.

Key Players Analysis

The global Electric commercial vehicle market is characterized by the presence of several players that are operating in the market and are providing their products across the globe. Some of the key players of the market include Tesla Inc., Volvo AB, BYD Auto Co. Ltd., and others. Further, to capitalize on the market opportunities, these market players are adopting various strategies such as product launch & expansion, geographical expansion, partnerships, and collaborations. For instance:

● Volvo Trucks, Sweden's AB Volvo's main truck brand, aims to sell a complete range of electric, heavy-duty trucks in Europe from 2021.

● In September 2021, BYD unveiled two revolutionary battery-electric heavy-duty trucks, the third-generation 8TT, and 6F. The extended range versions of the 8TT and 6F offer a range of up to 200 miles on a charge. The trucks come standard with Advanced Driver-Assistance Systems (ADAS), making driving easier and safer.

● In August 2021, General Motors announced its plans to add two new electric vehicles to its commercial lineup in the coming years. The company plans to add a full-size battery electric cargo van for Chevrolet as well as a medium-duty truck for service and utility vehicles.

● In June 2021, MAN announced its plans to start series production of electric trucks at its main plant in Munich from 2028. With the MAN eMobility Center now open at the plant, the commercial vehicle manufacturer is laying the foundations for producing electric trucks in large industrial quantities.