Electric Commercial Vehicles Market Report 2024

The electric commercial vehicles market size has grown exponentially in recent years. It will grow from $116.95 billion in 2023 to $154.64 billion in 2024 at a compound annual growth rate (CAGR) of 32.2%. The expansion in the historical period can be ascribed to heightened government investments, a decline in the cost of electric vehicle (EV) batteries, and an escalating demand for electric 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 $447.04 billion in 2028 at a compound annual growth rate (CAGR) of 30.4%. The forecast period's expansion is linked to the increase in fuel rates, the growing preference for overnight home charging for cost efficiency, the rapid growth of e-commerce, and the impact of the COVID-19 pandemic. Key trends in the forecast period encompass the integration of artificial intelligence, the utilization of electric recreational vehicles (RVs) for camping, governmental initiatives within the electric commercial vehicle sector, the incorporation of electric vehicles in logistics, the heightened adoption of lithium-ion batteries, the application of 3D printing for manufacturing lightweight and cost-effective components, and a rise 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.

Anticipated growth in the electric commercial vehicle market is driven by the increasing demand for eco-friendly vehicles. Eco-friendly vehicles are designed to minimize their negative environmental impact, including electric vehicles, hybrid vehicles, hydrogen vehicles, and natural gas vehicles. Notably, data from April 2023, shared by the International Energy Agency (IEA), indicated that electric car sales accounted for 14% of global new car sales in 2022, a notable increase from 9% in 2021. The first quarter of 2023 witnessed sales of over 2.3 million electric cars, marking a substantial 25% rise from the corresponding period in the previous year. Projections indicate that by the end of 2023, approximately 14 million electric cars will be sold, representing a significant 35% year-on-year increase. Consequently, the escalating demand for eco-friendly vehicles is a driving force behind the growth of the electric commercial vehicle market.

Companies in the electric commercial vehicles market are increasingly entering strategic partnerships for the production of electric commercial vehicles. Such strategic collaborations involve the sharing of resources and expertise, enhancing product development and yielding synergistic results. These partnerships not only gain popularity among consumers and stakeholders but also attract increased investments while concurrently reducing costs. A notable example is the strategic partnership between Hyundai Motor Company and Kia Motors Corporation in South Korea. The two companies invested €100 million (approximately $110 million) in the UK-based electric vehicle startup 'Arrival' in 2020. This collaboration focuses on the development of electric commercial vehicles, including eco-friendly vans and logistics vehicles.

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 August 2021, Ideanomics, a US-based company dedicated to driving the adoption of commercial electric vehicles, made an undisclosed acquisition of VIA Motors International. Through this acquisition, Ideanomics aims to leverage the complementary product offerings of VIA Motors International to expand its market reach, fostering opportunities for joint development and marketing. VIA Motors International is a US-based manufacturer specializing in commercial electric vehicles.

Major companies operating in the electric commercial vehicles market report are 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, NIO, Xpeng, Li Auto, WM Motor, Geely, Byton, Enovate, Zhiji Xiaomi, 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, Origem, iPedal, Energica Motor Company, Bozankaya, EVT motor, Car4future, infinity, Schneider, Melex Electrovehicles, GridCars, Mazibuko Motor Company, El Nasr Automotive Manufacturing Company, Eleksa, Jet Motors.

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.

Asia-Pacific was the largest region in the electric commercial vehicles market in 2023. 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.

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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