Electric Commercial Vehicle Market Size, Share, Growth Analysis, By Vehicle Type, By Speed, By Class, By Component, By Region - Industry Forecast 2024-2031

Global Electric Commercial Vehicle Market size was valued at USD 57.17 Billion in 2022 and is poised to grow from USD 71.04 Billion in 2023 to USD 405.01 Billion by 2031, growing at a CAGR of 24.3% in the forecast period (2024-2031).

The latest trend among governments, non-profit organizations, and numerous businesses is the adoption of vehicle fleets powered by renewable energy sources. In recent years, there has been a significant increase in technological innovation and advancements in transportation. The International Energy Agency (IEA) forecasts that by 2030, there will be 145 million electric vehicles (EVs) on the roads, potentially reducing global oil demand by 5.3 million barrels per day. By 2040, it's anticipated that 58% of new passenger cars worldwide will be electric, with Europe reaching up to 81%. Additionally, the report suggests that by the mid-2020s, the cost of batteries will have decreased and production volumes will have risen to the point where electric vehicles will become competitively priced compared to traditional cars. The proliferation of electric vehicle charging stations, surpassing the number of petrol and diesel stations, further indicates the growth in the hybrid and electric vehicle markets. Government incentives also play a crucial role in this expansion. For instance, in India, the government offers a subsidy of Rs 5,000 per kWh of battery capacity, up to Rs 30,000 for two- and four-wheeled vehicles, along with savings on registration and road taxes. The subsidy amounts to Rs 10,000 per kWh, with a maximum of Rs 1.5 lakh for these vehicles, supporting the growth of EV sales.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Electric Commercial Vehicle market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Electric Commercial Vehicle Market Segmental Analysis

Global Electric Commercial Vehicle Market is segmented based on vehicle type, class, propulsion, battery type, battery capacity, power output, speed, range, end use, body construction, component, and region. Based on vehicle type, the market is segmented into Pickup Trucks, Trucks (Medium-duty trucks, Heavy-duty trucks), Vans (Light vans, Full-size vans), and Buses & Coaches. Based on propulsion, the market is segmented into BEVS, and FCEVS. Based on Battery Type, the market is segmented into NMC Batteries, LFP Batteries, Solid-state Batteries, Others. Based on Battery Capacity, the market is segmented into Less Than 60 KWH, 60-120 KWH, 121-200 KWH, 201-300 KWH, 301-500 KWH, 501-1,000 KWH. Based on Power Output, the market is segmented into Less Than 100 KW, 100-250 KW, and above 250 KW. Based on speed, the market is segmented into Less Than 100 MPH, 100MPH to 125MPH and Above 125 MPH. Based on Range, the market is segmented into Less Than 150 Miles, 151-300 Miles, and above 300 Miles. Based on class, market is segmented into low classed, mid classed and High Classed. Based on End Use, the market is segmented into Last-mile Delivery, Field Services, Distribution Services, Long-haul Transportation, Refuse Trucks. Based on Body Construction, the market is segmented into Integrated, Semi-integrated, and Full-sized. Based on Component, the market is segmented into Battery Packs, Onboard Chargers, Electric Motors, Inverters, DC-DC Converters, and Fuel-cell Stacks. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global Electric Commercial Vehicle Market

Recent advancements in battery technology have significantly improved the practicality and cost-effectiveness of electric commercial vehicles. Innovations in battery design have led to longer-lasting and faster-charging batteries, enhancing both the range and performance of these vehicles and making them more suitable for commercial applications. Another crucial trend in the electric commercial vehicle sector is the expansion of charging infrastructure. This development is vital for supporting the market's growth, as adequate charging facilities are essential for the widespread adoption of electric commercial vehicles. Both governments and private companies are investing heavily in building and upgrading charging networks to accommodate the increasing number of electric commercial vehicles on the road.

Restraints in the Global Electric Commercial Vehicle Market

Electric commercial vehicles typically come with a higher price tag compared to conventional vehicles, primarily due to the cost of batteries and other specialized components. This increased expense can make them less appealing to potential buyers, particularly in markets where cost is a significant factor. The higher upfront cost of electric commercial vehicles can be a deterrent, especially in price-sensitive markets where budget constraints are more pronounced. Despite the long-term savings on fuel and maintenance, the initial investment may limit their attractiveness to businesses and fleet operators concerned about immediate financial outlays.

Market Trends of the Global Electric Commercial Vehicle Market

The electric commercial vehicle market is seeing a surge in new entrants, with both startups and established automotive manufacturers stepping into the arena. This influx of new players is intensifying competition and fostering innovation within the sector. As more companies enter the electric commercial vehicle space, the competition is becoming more robust, pushing the boundaries of technological advancements and encouraging fresh, innovative solutions. This dynamic environment is accelerating progress and development in the market.