Electric Van Market Forecasts to 2028 – Global Analysis By Range (Up to 100 Miles, 100–200 Miles and Above 200 Miles), Battery Capacity (Up to 50 kWh and Above 50 kWh), Battery Type, Propulsion, End User and By Geography

Electric Van Market Forecasts to 2028 – Global Analysis By Range (Up to 100 Miles, 100–200 Miles and Above 200 Miles), Battery Capacity (Up to 50 kWh and Above 50 kWh), Battery Type, Propulsion, End User and By Geography

According to Stratistics MRC, the Global Electric Van Market is accounted for $16.7 billion in 2022 and is expected to reach $64.0 billion by 2028 growing at a CAGR of 25.1% during the forecast period. These electric vehicles are widely utilised in industries such as logistics, e-commerce, and public transit. The battery electric van is driven by an electric motor and does not release exhaust gas. The e-van is powered by a big lithium-ion battery pack and a high-capacity motor. The output of the lithium-ion battery is direct current (DC), whereas the drive motor of an electric car is alternating current (AC). As a result, an inverter that converts DC to three phases AC must be installed. Some electric vans feature petrol engines and are classified as hybrid vehicles. When the battery charge in a hybrid car is reduced, the engine can be utilised to move the vehicle, or the battery can be saved for town and city driving.

According to the United Nations Environment Program (UNEP), the transport sector contributes around one-quarter of greenhouse gas (GHG) emissions and is one of the largest sources of air pollution.

Market Dynamics:

Driver:

Growing desire for zero-emission and energy-efficient mass transit systems

The transport industry is a major contributor to global greenhouse gas (GHG) emissions. According to the United Nations Environment Programme (UNEP), the transportation sector accounts for around one-quarter of GHG emissions and is one of the major contributors of air pollution. Vehicle emissions are responsible for emitting 29% of ozone-depleting chemicals, which cause air pollution and are hazardous to the environment. Various governments throughout the world have launched attempts to make urban public transit more ecological and fuel-efficient through the use of electric vehicles. Electric vehicles will revolutionise public transit in the future years by improving air quality, lowering noise levels, and enhancing fuel efficiency.

Restraint:

Low vehicle range is a hindrance logistics over great distances

Many fleet owners of electric commercial vehicles are worried about the range or distance achieved on a single charge. Electric vans have a lower driving range than ICE commercial vans. Because of the poor energy density of batteries, many ECVs have ranges of 80 to 120 miles. An ECV has a maximum range of 300 miles. Users desire to go long distances without stopping, especially on lengthy excursions, and a long-range EV is much more expensive. This aspect has the potential to stifle the expansion of the electric van market. Various R&D efforts are underway to minimise the area required for housing and connections, allowing for additional batteries to be accommodated and increasing the van range to around 600 miles. FCEVs have a significant impact. Due to the lower requirement for frequent charging which hindered commercial use in many circumstances, FCEVs offer a big possibility for electric vans.

Opportunity:

Government assistance for public transit electrification

Governments throughout the world have been giving lucrative economic incentives to encourage shared mobility and clean transport in order to push the commitment to decrease greenhouse gas (GHG) emissions and improve air quality in metropolitan areas. Government all around the world have introduced enticing projects and programmes to encourage the use of electric cars. Developed-country governments have launched the bidding process to promote the usage of electric vans in their cities. The introduction of e-vans will contribute to local emission reduction commitments. The benefits will be considerably larger if power generation in densely populated cities such as China, Japan, and India is also greened.

Threat:

Inadequate charging infrastructure

The low availability of supporting infrastructure has hindered the expansion of the electric van sector. Every electric car requires a battery charging station on a regular basis. In Europe, North America, and other developed nations, charging infrastructure is being established in metropolitan areas. However, there aren't enough charging stations. The time required to recharge a car adds to the inconvenience. Finding an appropriate charger might be difficult due to the variety of charger designs and the fact that each charger utilises a different port. In emerging economies like as India, South Africa, and South Korea, a lack of charging infrastructure is a key issue which hamper the growth of the market.

Covid-19 Impact

Since the COVID-19 outbreak in December 2019, the illness has spread to approximately 100 nations worldwide, prompting the World Health Organisation (WHO) to declare it a pandemic. The pandemic had a big effect on the market in 2020 and 2021. It had an impact on the car industry in three major areas: Small and Medium-sized Enterprises (SMEs), supply networks, and financial markets. Furthermore, it caused a shortage of raw materials and electric vehicle components owing to a disruption in supply networks. It raised the cost of raw materials like as nickel, cobalt, and lithium, which are all required for the production of batteries that power electric vehicles such as vans, automobiles, and trucks.

The above 50 kWh segment is expected to be the largest during the forecast period

The above 50 kWh is estimated to have a lucrative growth, because 50 kWh batteries can often drive longer on a single charge than smaller ones, making them more practical for long-distance driving. The size and weight of the battery are crucial considerations in influencing the overall performance of an electric vehicle; greater battery capacities are often connected with better performance and acceleration. Such a gain from greater capacity batteries increases segmental growth over the predicted period.

The battery electric vehicle (BEV) segment is expected to have the highest CAGR during the forecast period

The battery electric vehicle (BEV) segment is anticipated to witness the highest CAGR growth during the forecast period, due to the numerous benefits of an electric car, the battery electric vehicle category is likely to have a bigger market share and continue to develop. The primary advantages of an electric car include zero pollution emissions, cheap maintenance, and low operating costs.

Region with highest share:

Asia Pacific is projected to hold the highest market share during the forecast period owing to the increasing demand for electric vehicles in China, Japan, and South Korea is due to the increase. These nations have large populations and are rapidly urbanising, which increases the need for last-mile delivery vehicles such as electric vans. Furthermore, government policies and initiatives in these nations are encouraging the usage of EVs, which is propelling market growth. Another factor for Asia Pacific's supremacy is the presence of numerous manufacturers in the area. China, in particular, is a big producer of these vans and has a large number of firms dedicated to researching and manufacturing these vehicles, which is helping to bring down the cost of electric vans.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the second highest market share due to the European Region's (EU) greater focus on sustainability and lowering carbon emissions. The EU has set an ambitious objective for decreasing emissions and increasing the number of EVs on the road; hence, increased acceptance of electric vans promotes regional market growth. Many European governments also give financial incentives, like as tax rebates and grants, to promote the purchase of these vehicles, further fuelling market expansion.

Key players in the market

Some of the key players profiled in the Electric Van Market include General Motors, Toyota Motor Corporation, BYD, Ford Motor Company, Renault, Mercedes-Benz Group AG, Hyundai Motor Company, Nissan Motor Co. Ltd., Honda Motor Company Ltd., Stellantis N.V, Volkswagen Group, Tesla Inc, Workhorse Group Inc., Mahindra & Mahindra Ltd, IVECO and London Electric Vehicle Company

Key Developments:

In May 2022, Ford Motor Company launched E-Transit in Europe with a range of 236 miles.

In October 2021, BYD launched ETP3 Panel Van with a load capacity of 780 kg and a driving range of 275 km. It is also equipped with a 44.9 kWh battery, a 35 kW rated electric motor, and a top speed of 100 km/hour.

In April 2021, Toyota Motor Corporation launched the Proace Electric van which offers a battery capacity of 75 kWh and a range of 175 km.

Ranges Covered:
• Up to 100 Miles
• 100–200 Miles
• Above 200 Miles

Battery Capacities Covered:
• Up to 50 kWh
• Above 50 kWh

Battery Types Covered:
• Lithium-Ion
• Nickel Manganese Cobalt
• Other Battery Types

Propulsions Covered:
• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicles (FCEVs)
• Plug-In Hybrid Electric Vehicles (PHEVs)

End Users Covered:
• Refrigerated Services
• Field Services
• Last Mile Delivery
• Distribution Services

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements