Enjoy complimentary customisation on priority with our Enterprise License!
The Electric Commercial Vehicle Market size is forecast to increase by USD 166.58 billion at a CAGR of 26.02% between 2022 and 2027. The growth of the market depends on several factors, such as the growing focus on reducing vehicular emissions, the increasing adoption of EVs for improved logistics and transportation, the favorable government initiatives. This market growth and forecasting report extensively covers market segmentation. The market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. It also includes an in-depth analysis of market dynamics, customer landscape, Competitive analysis, and market segmentation along with regions. Furthermore, the report includes historic market data from 2017 to 2021.
Market Forecast 2023-2027
To learn more about this report, Request Free Sample
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Reduced maintenance costs and minimal breakdowns, reduced fuel consumption, and increasing popularity of the green logistics concept are the major factors associated with the increasing adoption for logistics and transportation purposes. In order to make the logistics supply chain more seamless across industries, are widely recognized as an appropriate alternative to traditional modes of transport.
Moreover, electric engines are highly efficient at low speeds, which, in turn, aids logistics and transport operators in urban areas. Industry's increasing focus on achieving sustainability in the environment and economy, coupled with effective logistics and supply chains, is fueling the growth of the market. Industries are also increasingly placing orders for ECVs for logistics and transportation, which, in turn, is propelling the growth of the market.
To improve the effectiveness of their operation, companies have been concentrating on the integration of telematics and autonomous technologies in ECVs. The integration of telematics solutions in ECVs helps in obtaining real-time data on the battery charge percentage and the battery charging status.
Data related to the charging status helps ECV owners and operators to charge the vehicle in time. The use of such tools will help the companies present in the market to enhance the efficiency of their vehicles. To raise the efficiency of ECVs, companies are also focused on the integration of autonomous technologies. It is expected to boost the global ECV market during the forecast period.
Most of the light- and heavy-duty commercial vehicles that are operational run on gasoline or diesel. The rising cost of fuel and the need to comply with the regulatory standards on the emission of gases by these vehicles are driving the adoption of ECVs among consumers.
High capital investments are required for the manufacturing of EVs. They are subject to different costs, depending on various factors like their brand and the type of batteries they use in commercial vehicles. Therefore, it is likely that their deployment will be hampered by the need to invest in high capital, as costs are high. This, in turn, is expected to hamper the market to a certain extent during the forecast period.
The LCVs segment is estimated to witness significant growth during the forecast period. Light commercial vehicles (LCVs) are mainly designed for the transportation of goods. The gross vehicle weight of an LCV is nearly 3.5 tons. LCVs include vans and pick-up trucks. In the delivery of significant goods and support services, LCVs are involved in an integral role.
Get a Customised Report as per your requirements for FREE!
The LCVs segment was the largest segment and was valued at USD 19.83 billion in 2017. The rapid growth of the retail and e-commerce industries, increasing traffic congestion in urban areas, advances in technologies, and The growth of the LCVs segment in the vehicle market is driven by the rising development of new light commercial vehicles by automobile manufacturers. Stringent regulations on emissions from LCVs are increasing the demand for electric LCVs across the globe.
Based on type, the market has been segmented into battery electric vehicles (BEV), and plug-in hybrid electric vehicles (PHEV), fuel cell electric vehicles (FCEV). BEV had the largest share of the global ECV market in 2022. As concerns about climate change and air pollution grow, many consumers are turning to BEVs as a more environmentally friendly transportation option. To the reduction of greenhouse gas emissions and local air pollution, BEVs produce zero tailpipe emissions. The development of battery technology has led to more energy storage capacity, extended driving range, and a quicker charging time for BEVs. Global efforts to reduce carbon emissions are encouraging individuals and businesses to adopt more sustainable practices, including using electric vehicles for commercial use. Due to all these factors, the demand for the BEV segment is expected to surge, which, in turn, will boost the global market in focus during the forecast period.
Market Analyst Overview
In today's evolving transportation landscape, the Electric Commercial Vehicle (ECV) Market stands at the forefront of innovation and sustainability. With a surge in demand for Electric Buses and Electric Fleet Vehicles, the market showcases the pivotal shift towards Zero-Emfission Vehicles. Powered by advanced Battery Electric Vehicles (BEVs) and supported by a growing infrastructure of Fast Charging Stations, these vehicles redefine urban mobility. The dominance of Lithium-ion Batteries ensures an extended Electric Vehicle Range, while Electric Vehicle Incentives drive adoption rates. Amidst tightening Environmental Regulations, businesses increasingly prioritize Sustainability Initiatives and Fleet Electrification. Green Transportation is no longer a vision but a reality, propelled by innovative solutions like Vehicle-to-Grid Technology and Energy-efficient Transport. Comprehensive market analysis and reports forecast exponential market growth and trends, reflecting the undeniable trajectory toward a greener future.
For more insights on the market share of various regions View PDF Sample now!
APAC is estimated to contribute 48% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The rapid growth of the e-commerce and retail industry, the rising number of charging stations for electric vehicles, favorable government policies, the presence of a huge number of automobile manufacturers, technological advances, and the presence of global and local companies are the major factors driving the growth of the market in APAC.
Moreover, the opportunity for the providers of the market has arisen from their high reliance on both retail and eCommerce operators to supply logistic services and thereby fueled the growth of the market for ECVs in APAC. The establishment of adequate charging infrastructure in APAC is also driving the growth of ECVs. The rise in the number of charging stations and related infrastructure is also encouraging automobile manufacturers to introduce new variants of ECVs, which in turn, is boosting the growth of the market across APAC. Such factors will increase the market growth in this region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo - The company offers electric commercial vehicles such as electric trucks, including Volvo FH, Volvo FM, Volvo FMX, Volvo FE, Volvo FL, and the Volvo VNR.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Anhui Jianghuai Automobile Group Co. Ltd., BYD Co. Ltd., Daimler Truck AG, Ford Motor Co., General Electric Co., Hyundai Motor Co., Mahindra and Mahindra Ltd., NFI Group Inc., Nissan Motor Co. Ltd., Olectra Greentech Ltd, PACCAR Inc., Proterra Inc., Renault SAS, Rivian Automotive Inc., Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., Volkswagen AG, and Xiamen King Long United Automotive Industry Co. Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
Commercial Vehicle Market- The commercial vehicle market share is expected to increase by 3,785.23 thousand units from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 4.06%.
The global electric commercial vehicle market is experiencing significant growth, driven by supportive government policies such as subsidies, grants, tax credits, and exemptions. These incentives encourage the adoption of electric pickup trucks, vans, and trucks and promote the establishment of EV charging stations and hydrogen fueling stations.
Original Equipment Manufacturers (OEMs) are capitalizing on this trend to establish a sustainable revenue stream and expand their geographical presence. In regions like Europe, sales of electric vans, pickups, and trucks are on the rise. Technological advancements are reducing EV battery costs per kilowatt-hour (kWh), making the initial investment more attractive compared to petroleum or diesel vehicles. Innovations like wireless charging and on-the-go charging are enhancing the EV market ecosystem, while advancements in battery technology are improving efficiency and reducing maintenance costs.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and opportunities from 2017 to 2027.
Electric Commercial Vehicle Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 26.02% |
Market growth 2023-2027 |
USD 166.58 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
25.02 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Anhui Jianghuai Automobile Group Co. Ltd., BYD Co. Ltd., Daimler Truck AG, Ford Motor Co., General Electric Co., Hyundai Motor Co., Mahindra and Mahindra Ltd., NFI Group Inc., Nissan Motor Co. Ltd., Olectra Greentech Ltd, PACCAR Inc., Proterra Inc., Renault SAS, Rivian Automotive Inc., Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., Volkswagen AG, and Xiamen King Long United Automotive Industry Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.