Electric Commercial Vehicle Market: Opportunities & Prominent Trends

electric commercial vehicle market

The Global Electric Commercial Vehicle Market size is expected to grow from approximately 261 thousand units in 2020 to reach 1,890 thousand units by 2027, at a CAGR of 32.7%. Factors such as a rise in pollution and environmental hazards, stringent government regulations, and stiff competition have compelled automotive OEMs to make fuel-efficient and environment-friendly vehicles.

Opportunities:

• Government support for electric commercial vehicles
• New revenue pockets in the Asia Pacific & Northern Europe

OEMs worldwide are investing heavily in research & testing applications leading to continuous advancements in electric commercial vehicles. For instance, Volvo Group is working with Samsung SDI to develop advanced battery packs for Volvo Group’s electric trucks. The alliance will cover the joint development of battery packs specifically developed for Volvo Group’s truck applications. The intention is that Volvo Group will utilize Samsung SDI’s battery pack technology for assembly in Volvo Group’s manufacturing operations.

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In the electric commercial vehicle market, by vehicle type, the electric bus segment is projected to be the largest in 2020, by volume. Increasing demand for emission-free public transport options in developed as well as developing countries is expected to boost the electric bus segment rapidly in the near future. Also, there is a high demand for electric vans from the logistics sector. The growth of the logistics and e-commerce sectors is expected to drive the market for electric vans during the forecast period.

The market-leading players are focusing on expanding their businesses in new markets across the world. North America is one of the potential markets for electric commercial vehicles. In October 2017, BYD expanded its battery-electric bus manufacturing facility in California, US. The 450,000 square-foot expansion will help the company to manufacture 1,500 electric buses annually. Also, Proterra, one of the leading American OEMs, has officially inaugurated its new Los Angeles manufacturing facility in June 2017. OEMs are exploring other potential markets also. For instance, in April 2019, 20 units of Yutong E12 full electric buses were delivered to Denmark. This batch of vehicles became the first fully electric buses purchased by Denmark. Yutong has also become the first full-electric bus brand presented in Denmark and is also the first Chinese bus brand with sizable volume in Denmark.

The European region is projected to be the fastest-growing market during the forecast period. The region is a hub to major players such as AB Volvo (Sweden), VDL Bus and Coach (Netherlands), Daimler (Germany), CAF (Spain), EBUSCO (Netherlands), Scania (Sweden), and Emoss Mobile Systems (Netherlands). Europe is a key region for innovations, significant R&D, and technological advancements in electric vehicles, battery technologies, and charging solutions.

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France is the largest market in Europe, followed by Germany. France, which is one of the automotive hubs in the European region, is home to many established OEMs providing electric vehicles and also has a higher adoption rate for electric commercial vehicles. The increasing demand for electric vans in the logistics sector and focus on the electrification of public transport fleet are driving the electric commercial vehicle market in Europe.

The Asia Pacific region is the largest electric commercial vehicle market in the world. It comprises some of the fastest developing and developed economies in the world, such as China, India, and Japan. The market growth in the region can be attributed to the dominance of the Chinese market in the electric bus segment and the presence of market-leading OEMs in the country, resulting in the exponential growth of the electric commercial vehicle market in the Asia Pacific. The large electric bus volumes, favorable regulations for electric commercial vehicles, and the rapidly growing logistics sector are expected to boost the electric commercial vehicle market in the region.

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