Electric Commercial Vehicles Market Report 2025

The electric commercial vehicles market size has grown exponentially in recent years. It will grow from $152.87 billion in 2024 to $201.18 billion in 2025 at a compound annual growth rate (CAGR) of 31.6%. The growth in the historic period can be attributed to increasing investments by governments, reducing cost of EV batteries, growing demand for electrical commercial vehicles in emerging markets.

The electric commercial vehicles market size is expected to see exponential growth in the next few years. It will grow to $558.76 billion in 2029 at a compound annual growth rate (CAGR) of 29.1%. The growth in the forecast period can be attributed to growth in the forecast period resulted from rise in fuel rates, rising popularity of charging vehicles overnight at home for lower costs, rapid growth in ecommerce, COVID-19 pandemic. Major trends in the forecast period include adopting artificial intelligence, use of electric R’s for camping, government initiatives in the electric commercial vehicle industry, use of electric vehicles in logistics, rising adoption of lithium-ion batteries, use of 3D printing to manufacture light and inexpensive components, increase in mergers and acquisitions among electric commercial vehicle manufacturers.

In the historical period, government subsidies played a crucial role in fostering the growth of the electric commercial vehicle market. Notably, as outlined in the Government of India Budget 2022-23, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme offered subsidies of up to INR 2908 crores. Similarly, the Manufacturing and Mobility policy 2022 introduced by the Uttar Pradesh government included subsidies for all-electric vehicles, encompassing bikes, scooters, three-wheelers, and cars. Under this policy, the state government pledged subsidies of up to Rs 1 lakh for electric cars over a three-year period. These subsidies were extended to three- and four-wheeled electric vehicles employed for commercial and fleet applications, showcasing the government's supportive stance driving the growth of the electric commercial vehicles market.

The growth of the electric commercial vehicles market is hindered by limited battery power and extended charging times. For electric commercial vehicles, battery performance typically falls short, offering a limited range of about 60-100 miles per charge, which is considered adequate only for short-distance travel. This limited range raises consumer concerns about the possibility of their vehicles running out of charge before reaching their destinations. Additionally, charging duration presents a significant challenge for the market. The insufficient availability of supercharging stations exacerbates issues related to battery use in electric vehicles. For example, in November 2022, the World Economic Forum, a Switzerland-based non-governmental organization, reported that the U.S. had roughly 140,000 public EV chargers at nearly 53,000 charging stations in 2022, which is considerably fewer than the 145,000 gas fueling stations available nationwide. Consequently, these factors pose significant restraints on the electric commercial vehicles market during this period.

Companies in the electric commercial vehicles market are forming strategic partnerships to enhance the production of electric commercial vehicles. These partnerships involve sharing resources and expertise, improving products, and amplifying outcomes. This collaborative approach attracts interest from consumers and stakeholders, facilitating increased investment while lowering costs. For instance, in July 2024, Uber Technologies Inc., a U.S.-based transportation company, partnered with BYD Co. Ltd., a China-based electronics and automobile manufacturer. This partnership aims to incorporate 100,000 new BYD electric vehicles into the Uber platform across major global markets. It is anticipated that drivers will benefit from competitive pricing and financing options for BYD vehicles through Uber, with plans to extend this initiative to regions including the Middle East, Canada, Australia, and New Zealand.

Major players in the electric commercial vehicle market are also introducing innovative products such as the Sierra EV pickup truck to bolster their market profitability. The Sierra EV, built on the Ultium platform, offers exceptional range, power, and Professional-Grade capability. For instance, in October 2022, GMC, a US-based automotive manufacturer, unveiled the Sierra EV pickup truck as part of its all-electric truck lineup. The 2024 Sierra EV Denali Edition 1, leading the electric truck lineup, features a 400-mile range per full charge and exclusive attributes achievable through its specialized EV truck platform. With 754 horsepower, 785 lb-ft of torque, and a maximum towing capacity of up to 9,500 lbs, the Sierra EV Denali Edition 1 can accelerate from 0-60 mph in under 4.5 seconds.

In November 2022, Cummins Inc., a U.S.-based power solutions company, acquired Siemens’ Commercial Vehicles business for $205 million. This acquisition has strengthened Cummins' capabilities in direct drive and transmission-based remote mount electric motors, inverters, software, and related services, all crucial for the development of the next generation of electric powertrains. Additionally, the integration adds nearly 200 new employees, primarily based in Germany, China, and the United States, enabling Cummins to offer a wider range of electrified product solutions to global customers in commercial vehicle applications. Siemens is a Germany-based company specializing in the manufacturing of electric commercial vehicles.

Major companies operating in the electric commercial vehicles market include BYD Company Ltd., Zhengzhou Yutong Bus Co. Ltd, Daimler AG, Proterra, VDL Groep BV, Irizar, ZHONGTONGBUS Bus Holding Co., Ltd, Ebusco B.V., Navistar, Inc., Workhorse Group Incorporated, Mahindra Electric, Tata Motors, Hyundai, Ashok Leyland, Nissan, Honda Motor Co. Ltd., Toyota, SAIC Motor, Geely, Dongfeng Motor, Chang’an Automobile, Guangzhou Automobile, Chery Automobile, FAW Group, Evergrande, BAIC Motor, Volkswagen, Renault, Audi, BMW, Mercedes Benz Motors, MAN Germany, DAF Trucks, Effigear EP Tender, Ze-Watt, Zembo, Ecovelo, Knave, SeaBubbles, Velco, Electra, EasyMile, MEDCOM, PERUN, Triggo, Varsovia Motor Company, Samocat Sharing, AVT & Co, PC Transport Systems, Carbogatto, Nucular, Via Motors, Tesla Inc, Hyliion, Ford, Lucid Motors, Chevrolet Bolt EV, Porsche, General Motors, Kia Motors, Energica Motor Company, Bozankaya, EVT motor, Car4future, infinity, Schneider, Melex Electrovehicles, GridCars, Mazibuko Motor Company, El Nasr Automotive Manufacturing Company, Eleksa, Jet Motors.

Asia-Pacific was the largest region in the electric commercial vehicles market in 2024. North America was the second largest region in the global electric commercial vehicles market share. The regions covered in the electric commercial vehicles market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the electric commercial vehicles market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Electric commercial vehicles are autonomously powered, electrically driven vehicles designed for transportation purposes, contributing to the reduction of greenhouse gas emissions (GHG) and pollution. These vehicles operate through the collaboration of electric motors.

The primary propulsion types in electric commercial vehicles include BEV, PHEV, and FCEV. Battery Electric Vehicles (BEV) solely rely on stored electricity, featuring key components such as a high-voltage battery, one or more electric motors (either alternating current [AC] or direct current [DC]), and a controller responsible for managing power electronics. Electric buses, electric trucks, electric pick-up trucks, and electric vans are among the diverse vehicle types in this category. Lithium-iron-phosphate (LiFePO4), lithium-nickel-manganese-cobalt oxide (NMC), and other battery types are integral to these vehicles. The technologies encompass battery-electric commercial vehicles, plug-in hybrids, hybrids, and fuel cell electric commercial vehicles.

The electric commercial vehicles market research report is one of a series of new reports that provides electric commercial vehicles market statistics, including electric commercial vehicles industry global market size, regional shares, competitors with an electric commercial vehicles market share, detailed electric commercial vehicles market segments, market trends and opportunities, and any further data you may need to thrive in the electric commercial vehicles industry. This electric commercial vehicles market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The electric commercial vehicles market consists of sales of hybrid electric vehicles (HEVs) and extended range electric vehicles (E-REVs). Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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