Electric Commercial Vehicle Market Size

Report on Industry Size & Market Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Electric Commercial Vehicle Market is Segmented by Vehicle Type (Bus, Trucks, Pick-up Trucks, and Vans), Propulsion (Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, and Fuel Cell Electric Vehicles), Power Output (Less than 150 kW, 150 250 kW, and Above 250 kW), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers market size and forecasts for the Electric Commercial Vehicle Market in value (USD) for all the above segments.

Electric Commercial Vehicle Market Size

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Electric Commercial Vehicle Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 25.10 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific
Market Concentration High

Major Players

Electric Commercial Vehicle Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Electric Commercial Vehicle Market Analysis

The Electric Commercial Vehicle Market size is estimated at USD 105.66 billion and is expected to reach USD 323.73 billion at a CAGR of 25.1% during the forecast period.

  • The COVID-19 pandemic hit the market, posing challenges to the entire automotive industry. Lockdowns in many countries led to limited global vehicle sales and disrupted the entire supply chain. The global electric commercial vehicle market, which was impacted by COVID-19, is gaining attention for its post-pandemic industry trends. It is expected that the industry will gradually pick up the pace in the coming years, with companies gaining momentum as the economy grows.
  • In November 2022, Farizon New Energy Commercial Vehicles (Farizon), a Geely subsidiary, officially shipped its E200S mini-trucks to Chile from the Guangdong Province port of Shenzhen. This is the second batch of mass exports to South America, following the June 2022 shipment to Costa Rica.
  • In November 2022, under the Powered by Karma brand, Karma Automotive held its first customer handover of production commercial vehicles electrified by Karma.
  • Electric vehicle adoption is fairly visible in many emerging economies, owing to a significant expansion in areas such as logistics and supply chain companies. Furthermore, strict pollution regulations in several countries around the world are pressuring many corporations to electrify their vehicles, which is propelling the market forward. Governments around the world are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and address greenhouse gas emissions by investing in the development of electric vehicles. Meanwhile, low-emission zones are causing fleets to switch to cleaner diesel trucks.
  • The market is expanding due to advancements in battery technology and the extensive use of cutting-edge technologies such as ADAS, AI, IoT, and others in providing the most up-to-date features to their products. Major corporations invest in increasing Original Equipment Manufacturer's competition and assisting market growth. Many countries are attempting to adopt electric mobility, but as new vehicles enter the market, charging infrastructures remain a major concern. Therefore players are also collaborating and developing new products and required infrastructure for electric commercial vehicles.
  • In November 2022, Flash Electronics announced a collaboration with Elimen Group to develop EV components. The two companies will collaborate to develop and manufacture traction motors and controllers for all EV segments, including two- and three-wheelers, passenger and commercial vehicles, and electric buses with capacities of up to 300 kW.
  • The Asia Pacific electric commercial vehicle market is being driven by the demand to reduce urban pollution and reliance on fossil fuels. This is also the world's largest ECV market. China, India, and Japan are the largest contributors to the global market for electric commercial vehicles. Therefore, players are focusing on developing new products.

Electric Commercial Vehicle Market Trends

Stringent Emission Regulations are Fueling the Market Growth

  • With growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws that may increase the manufacturing cost of electric drivetrains and fuel-efficient diesel engines in the coming years.
  • Heavy-duty vehicles are responsible for roughly one-quarter of the EU's CO2 emissions from road transport. Emissions in this sector have risen yearly since 2014, with a drop only in 2020 due to the COVID-19 pandemic. The primary cause of this trend for trucks is increased freight transport demand. It is partially offset by increased energy efficiency in road freight transportation. A combination of changes is required to contribute to the goal of a climate-neutral EU, including faster improvements in energy efficiency, a shift to vehicles with lower emissions, and/or more efficient transportation modes.
  • Europe has set ambitious emission reduction targets to combat climate change. Tighter regulations, especially in urban areas, are aimed at reducing pollution and encouraging the introduction of electric vehicles (EVs). These regulations, such as low emission zones and stringent emission standards, are encouraging fleet managers to switch to electric commercial vehicles. Governments across Europe offer various incentives to encourage the uptake of electric vehicles. These incentives include purchase subsidies, tax incentives, and subsidies for building charging infrastructure. This help offset the high acquisition costs of electric vans, making them more economically attractive to fleet operators.
  • In the United States, the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) have proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) vehicles rule to be implemented from 2021 to 2026. The rule may set corporate average fuel economy standards and greenhouse gas emissions for passenger and light trucks. Major players are also getting involved in the government's green drive by developing electric trucks. For instance,
  • In November 2022, VIA Motors announced a collaboration with EAVX, JB Poindexter & Co.'s (JBPCO's) newest business unit, to develop fully electric Class 2-5 electric work trucks.
  • All these aforementioned factors and developments are expected to drive demand in the market and likely contribute to faster adoption of e-mobility across the truck segment over the forecast period.
Electric Truck Market Volume Worldwide Between 2018 and 2022 (In Units)

Asia-Pacific is Expected to Lead the Market

  • For instance, in November 2022, The Ministry of Land, Infrastructure, Transport, and Tourism of Japan increased its support for the use of green number plates on commercial vehicles. In the 2nd supplementary budget for the fiscal year that ends in March 2023, the Ministry included an additional budget of JPY 2.12 billion. It has also asked for funding for a commercial electrified vehicle promotion project in the fiscal year 2023.
  • The Chinese government is encouraging people to use electric vehicles. The country has already announced plans to phase out diesel fuel, which is used in nowadays, tractors and construction equipment. According to Chinese authorities, by 2035, all new vehicles sold in China must be powered by "new energy." Half of them must be electric, fuel cell, or plug-in hybrid vehicles, with the other half being hybrid vehicles. The state governments in India are including electric buses in their fleet to convert their ICE fleet of buses and reduce operational costs while also reducing carbon emissions and improving air quality. For instance,
  • January 2022: The Delhi government launched 100 electric buses. They became part of the state's public transportation fleet. According to the Delhi Government, an additional 300 electric buses will be added to the city's existing fleet of 100 e-buses. Furthermore, the state plans to buy 2,000 more e-buses over the next few years.
  • Japan has one of the world's best electric vehicle ecosystems. Toyota and Nissan, for example, are taking steps to build electric vehicles in the country. The presence of a large number of electric vehicle charging stations in the country, which outnumber the petrol and diesel outlets, can be used to gauge the developments in the hybrid and electric vehicle market. These favorable factors are expected to drive the market and demand for commercial electric vehicles in Japan. Moreover, government funding is also backing the growth of the electric commercial vehicle market in Japan. 
  • For instance, in November 2022, The Ministry of Land, Infrastructure, Transport, and Tourism of Japan increased its support for the use of green number plates on commercial vehicles. In the 2nd supplementary budget for the fiscal year that ends in March 2023, the Ministry included an additional budget of JPY 2.12 billion (USD 0.02 billion). It has also asked for funding for a commercial electrified vehicle promotion project in the fiscal year 2023.
Electric Commercial Vehicle Market, Growth Rate by Region, 2022-2027

Electric Commercial Vehicle Industry Overview

The electric commercial vehicle market is dominated by a few major players, including BYD Auto Co. Ltd, AB Volvo, Daimler AG, Zhongtong Bus Holding, and Traton SE. Commercial electric vehicles are developed by manufacturers through joint ventures, partnerships, and the conversion of their existing IC engine fleet to electric.

Further, governments across the globe offer various incentives to encourage the uptake of electric vehicles. These incentives include purchase subsidies, tax incentives, and subsidies for building charging infrastructure. This help offset the high acquisition costs of electric vans, making them more economically attractive to fleet operators. For instance,

In June 2023, the Bavarian State Government approved four out of five funding projects of MAN Truck & Bus. This funding supports the advancement of high-voltage batteries for electric trucks and buses. The government subsidy of EUR 25 Million at the Nuremberg site.

Electric Commercial Vehicle Market Leaders

  1. BYD Auto Co., Ltd

  2. AB Volvo

  3. Traton SE

  4. Daimler AG

  5. Zhengzhou Yutong Bus Co., Ltd.

*Disclaimer: Major Players sorted in no particular order

Electric Commercial Vehicle Market Concentration
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Electric Commercial Vehicle Market News

  • June 2023: Volkswagen Commercial Vehicles is expected to conduct autonomous driving testing using the self-driving all-electric Volkswagen ID. The testing program has already been launched in Texas, United States, at Volkswagen Group of America (VWGoA) alongside European centers. The company's aim is to expand commercially available transport services and the Volkswagen Group's mobility options.
  • December 2022: Mercedes-Benz announced that a memorandum of understanding (MoU) was signed by Mercedes-Benz Vans with the Polish government and other partners to build a new van production plant at the Jaworlocation. The first entirely electric facility will be Mercedes-Benz vans.
  • December 2022: Mercedes-Benz and Rivian signed an MOU for a strategic partnership and joint production of electric vans. Starting in a few years, the companies intend to establish a new joint venture manufacturing company with the goal of investing in and operating an existing Mercedes-Benz site in Central/Eastern Europe to produce large electric vans for both Mercedes-Benz Vans and Rivian.
  • October 2022: GMC unveiled the first-ever Sierra EV pickup truck as part of its all-electric truck lineup. The electric truck line, led by the 2024 Sierra EV Denali Edition 1, offers 400 miles of range on a full charge and unique features made possible only by its dedicated EV truck platform.

Electric Commercial Vehicle Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Stringent Emission Regulations are Fueling the Market Growth

    2. 4.2 Market Restraints

      1. 4.2.1 High Cost of Electric Commercial Vehicle May Hamper the Growth

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Value in USD Billion)

    1. 5.1 By Vehicle Type

      1. 5.1.1 Bus

      2. 5.1.2 Trucks

      3. 5.1.3 Pick-up Trucks

      4. 5.1.4 Vans

    2. 5.2 By Propulsion

      1. 5.2.1 Battery Electric Vehicles

      2. 5.2.2 Plug-in Hybrid Electric Vehicles

      3. 5.2.3 Fuel Cell Electric Vehicles

    3. 5.3 By Power Output

      1. 5.3.1 Less than 150 Kw

      2. 5.3.2 150-250 Kw

      3. 5.3.3 Above 250 Kw

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

        4. 5.4.1.4 Rest of North America

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Russia

        5. 5.4.2.5 Spain

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 India

        2. 5.4.3.2 China

        3. 5.4.3.3 Japan

        4. 5.4.3.4 South Korea

        5. 5.4.3.5 Rest of Asia-Pacific

      4. 5.4.4 South America

        1. 5.4.4.1 Brazil

        2. 5.4.4.2 Argentina

        3. 5.4.4.3 Rest of South America

      5. 5.4.5 Middle-East and Africa

        1. 5.4.5.1 United Arab Emirates

        2. 5.4.5.2 Saudi Arabia

        3. 5.4.5.3 South Africa

        4. 5.4.5.4 Rest of the Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 BYD Auto Co. Ltd

      2. 6.2.2 AB Volvo

      3. 6.2.3 Traton SE

      4. 6.2.4 Daimler AG

      5. 6.2.5 Zhengzhou Yutong Bus Co., Ltd.

      6. 6.2.6 Ford Motor Company

      7. 6.2.7 Tesla Inc.

      8. 6.2.8 Proterra Inc.

      9. 6.2.9 Rivian

      10. 6.2.10 Tata Motor Limited

      11. 6.2.11 Olectra Greentech Limited

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Electric Commercial Vehicle Industry Segmentation

A commercial vehicle is one that has been licensed to transport goods or materials rather than passengers.

The electric commercial vehicle market is segmented by vehicle types such as buses, trucks, pick-up trucks, and vans. Moreover, the market is divided by propulsion system, encompassing battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. The power output aspect is also considered, with classifications for vehicles producing less than 150 kW, those generating 150 kW to 250 kW, and those exceeding 250 kW. The market's geographical scope covers regions such as North America, Europe, Asia-Pacific, South America, and the Middle-East and Africa.

The report offers market size and forecasts for the Electric Commercial Vehicle Market in value (USD) for all the above segments.

By Vehicle Type
Bus
Trucks
Pick-up Trucks
Vans
By Propulsion
Battery Electric Vehicles
Plug-in Hybrid Electric Vehicles
Fuel Cell Electric Vehicles
By Power Output
Less than 150 Kw
150-250 Kw
Above 250 Kw
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
France
Russia
Spain
Rest of Europe
Asia-Pacific
India
China
Japan
South Korea
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
United Arab Emirates
Saudi Arabia
South Africa
Rest of the Middle-East and Africa
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Electric Commercial Vehicle Market Research FAQs

The Electric Commercial Vehicle Market is projected to register a CAGR of 25.10% during the forecast period (2024-2029)

BYD Auto Co., Ltd, AB Volvo, Traton SE, Daimler AG and Zhengzhou Yutong Bus Co., Ltd. are the major companies operating in the Electric Commercial Vehicle Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the Asia Pacific accounts for the largest market share in Electric Commercial Vehicle Market.

The report covers the Electric Commercial Vehicle Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Electric Commercial Vehicle Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The key challenges of the Electric Commercial Vehicle Market are: a) High initial cost of electric vehicles b) Range anxiety among users c) Need for more extensive charging infrastructure

Electric Commercial Vehicle Industry Report

The Global Commercial Electric Vehicle Market is witnessing remarkable growth, fueled by stringent emission regulations and advancements in battery technology. This growth is supported by the decreasing costs of EV components, government subsidies, and a shift towards sustainable transportation, making commercial EVs increasingly financially viable. The market, driven by consumer demand for eco-friendly solutions, sees electric heavy-duty trucks and vans leading the charge, with innovations like wireless EV charging enhancing fleet operational efficiency. The Asia-Pacific region, with strong support from China, India, and Japan, is at the forefront of this shift. Commercial EV companies are navigating challenges such as high development costs and component scarcity to drive the industry towards a sustainable future. For detailed insights, Mordor Intelligence™ offers comprehensive analysis and forecasts on market share, size, and revenue growth in the Electric Commercial Vehicle sector, available for download as a free report PDF.

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Electric Commercial Vehicle Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)