Electric Commercial Vehicle Market Size 2024-2028

The electric commercial vehicle market size is forecast to increase by USD 364.4 billion at a CAGR of 36.92% between 2023 and 2028. 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 is driven by various factors, including government initiatives to reduce carbon emissions, increasing awareness of environmental issues, and the availability of advanced technologies such as lithium-ion batteries and electric motors. 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.

Market Forecasting and Size

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The market is experiencing significant growth as more businesses seek sustainable transportation solutions. According to the context, the market for ECVs is expected to experience impressive growth, with Emissions Reductions being a key driving factor. The market includes a variety of Motors, such as Electric Motors, and Transmissions, including those designed for Commercial Duty. The Sliding Doors and Largest Markets for ECVs are in Europe, Asia Pacific, and North America. The Electric Vehicle Axle market is also a significant component of the ECV market. The market is expected to be driven by the need for Delivery Vehicles and the shift towards Sustainable Transportation. The CO2 Emissions Reduction targets set by various governments are also contributing to the growth of the ECV market. The Van and Truck segments are expected to dominate the market, with the Electric Van market showing particular promise. The market is expected to continue growing, with the Electric Vehicle Axle market and the European market being particular areas of focus. Hence, such factors are fuelling the growth of this segment during the forecast period.

Market Segmentation

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Product Outlook 
  • LCVs
  • Buses
  • Heavy and medium commercial vehicles
• Type Outlook 
  • Battery electric vehicle (BEV)
  • Plug-in hybrid electric vehicle (PHEV)
  • Fuel cell electric vehicle (FCEV)
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Product 

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.

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The LCVs segment was the largest segment and was valued at  USD 24.10 billion in 2018. 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. Hence, such factors are fuelling the growth of this segment during the forecast period.

Regional Analysis

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APAC is estimated to contribute 45% to the growth during the forecast year.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout 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. 

The market in APAC is experiencing significant growth due to several factors. The expansion of retail and e-commerce sectors in China and India has increased the demand for logistics and transportation services, benefiting ECV vendors. Zero carbon emission, traffic congestion alleviation, and last-mile services are key advantages of ECVs, making them increasingly popular. Fuel consumption and economic concerns, including operational expenses and financial stability, are driving the shift towards ECVs. Technological advances, such as battery technology and energy density, have improved electric vehicle (EV) driving ranges and charging times. Fleet operators seek operational efficiency and cost savings, leading to the adoption of innovative business models like electric vehicle leasing and fleet management solutions. Transitioning from fossil fuels to ECVs requires substantial upfront costs and infrastructure development, including charging infrastructure and fleet management systems. Consumer awareness and climate change concerns continue to influence market growth, with sliding doors, electric drivetrains, and consumer-friendly features like wireless charging becoming standard in Electric Vans. Despite geopolitical tensions and uncertainty, the largest market for last-mile delivery in APAC is embracing ECVs to address range anxiety and improve overall transportation infrastructure. Hence, such factors are driving the market in APAC during the forecast period.

Market Dynamic

The market is experiencing significant growth due to the increasing demand for sustainable and eco-friendly transportation solutions. Moreover, the ECV market is witnessing in demand from sectors such as logistics and transportation, construction, and agriculture, where heavy-duty vehicles are commonly used. Buses, especially electric buses, are also gaining popularity due to their ability to reduce operating costs and improve air quality in urban areas. The ECV market is highly competitive, with key players such as Tesla, Caterpillar, Daimler, and Volvo leading the charge. These companies are investing heavily in research and development to bring new and innovative products to market. The market is expected to continue its growth trajectory in the coming years, driven by increasing demand from both developed and developing economies. In conclusion, the Electric Commercial Vehicle market is poised for significant growth in the coming years, driven by government initiatives, increasing awareness of environmental issues, and the availability of advanced technologies. The market is highly competitive, with key players investing heavily in research and development to bring new and innovative products to market. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.  

Key Market Driver- Increasing adoption of EVs for improved logistics and transportation

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 during the forecast period.

Significant Market Trends - Integration of telematics and autonomous technologies

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.

Significant Market Challenge - High costs associated with ECVs

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.

Key Companies & Market Insights

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.  

Market Analyst Overview

The market is experiencing significant growth due to increasing environmental concerns and the need for more sustainable transportation solutions. This growth can be attributed to several factors, including the availability of government incentives, advancements in battery technology, and the rising demand for electric vehicles in the commercial sector. Moreover, the use of electric commercial vehicles (ECVs) offers several advantages, such as reduced operating costs, lower emissions, and improved fuel efficiency. Some of the most popular types of ECVs include electric buses, delivery trucks, and refuse collection vehicles. These vehicles are becoming increasingly common in urban areas, where air quality is a major concern.

Furthermore, the ECV market is witnessing intense competition, with major players such as Tesla, Caterpillar, and Proterra leading the charge. These companies are investing heavily in research and development to bring new and innovative electric commercial vehicles to market. Overall, the market is poised for significant growth in the coming years, driven by a combination of technological advancements and increasing demand for sustainable transportation solutions. The market is witnessing significant growth as industries prioritize sustainability and environmental consciousness. With the rising cost of petrol and increasing concerns over greenhouse gas emissions, the adoption of electric vehicles, including the SAFE vehicles rule, electric trucks, tractors/harvesters, is gaining traction in the farming sector. Electric vehicles are powered by electricity, utilizing an electric motor for propulsion, offering enhanced safety and assistance systems and features. They play a crucial role in last mile delivery and road transport, particularly in Class 2-5 electric work trucks. With investments totaling JPY 2, the market for electric commercial vehicles is poised for rapid expansion, offering efficient and sustainable transportation solutions for various industries.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the electric commercial vehicle (ECV) market between 2024 and 2028
• Precise estimation of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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