Electric Commercial Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

 The Electric Commercial Vehicle market is poised to register a CAGR of over 25.0% over the forecast period (2020-2025).  

The continuous expansion of the industrial sector in the emerging markets and the development of commercial operations in logistics, a significant demand for commercial vehicles was observed in 2018, and this demand is anticipated to continue to grow during the forecast period, However, this increase in demand creating emission problems, owing to which the countries are heading towards electrification of commercial vehicles. 

The UN estimates that the world’s population will grow to 9.8 billion by 2050. They will have to get from A to B and be supplied with goods. In turn, more commercial vehicles mean more exhaust gases and more noise. Few countries have already included electric vehicles in the
existing commercial fleet. For instance, China is a forerunner when it comes to the use of e-buses. It has already realized that electrification of commercial vehicles offers great opportunities and advantages. However, there are also challenges that still have to be overcome. 

Electrification will grow in importance in the coming years and decades. The climate protection targets defined in the 2016 Paris Agreement are ambitious: All transport is to be zero emission by 2050. That means countries worldwide have to cut their traffic-related emissions. Some, such as the U.S., Canada, China, Japan and India, have already introduced thresholds for commercial vehicles. The EU is slowly following suit: The average CO2 emissions of heavy-duty commercial vehicles there are to be at least 30 percent below 2019 levels by 2030.  

Scope of the Report

The electric commercial vehicle market covers the latest electric mobility demand trends, technological development, latest government policies and sales of electric vehicles, etc. Also covers market share of major electric commercial vehicle manufacturers across the globe.   

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Key Market Trends

High Initial Cost and Battery Concerns Are Hindering the Growth Of Electric Commercial Vehicle Market

 The biggest challenge hindering the growth of the electric truck market is the high initial investment needed. Electric trucks are expensive because of the high cost of the batteries. The earlier versions of electric vehicles used lead-acid batteries. These are now being replaced with Li-ion batteries, as they have a less adverse impact on the environment and provide greater efficiency. However, Li-ion batteries are more expensive compared to lead-acid batteries, which in turn increase the total cost of the electric truck. 

The cost of the battery in an electric truck is about one-third of the total price of the truck. The average price per usable kilowatt of a Li-ion battery for an electronic powertrain range from USD 900 to 1,250. The battery of the electric vehicle makes up the largest portion of the vehicle's cost. The cost of the battery makes an electric truck fleet cost much more than a diesel truck fleet, increasing the investment amount by a huge margin. A regular diesel-powered truck costs approximately USD 400,000- 500,000. However, a diesel-electric hybrid truck costs about USD 800,000. 

In addition to the battery cost, the time taken to charge an electric truck battery, combined with a limited number of charging stations can also hinder the growth of the market.  

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