Global Electric Commercial Vehicle Market was valued at US $ 43.5 billion in 2023 and is expected to reach US $ 558.4 billion by 2032 growing at a CAGR of 29.9% during the forecast period 2024 – 2032.

There are various policies and subsidies being passed by international governments to spur use of electric commercial vehicles. The measures are of three kinds: tax credits, grants and exemption from certain charges or fees. The electric commercial market is set to take off as they become more popular. OEMs will have the opportunity to expand their reach and revenue by selling electric commercial vehicles. This requires increased focus on building hydrogen fueling stations as well as charging points for electric cars, in addition to consumer subsidies.

For the time being, however, electric van sales will monopolize Europe's ECV market. Many major countries hope to make their entire fleet all-electric by somewhere between 2030 and 2035. Furthermore, electric pickup sales in North America will also help spur ECV market growth there. Moreover, by the end of this decade electric trucks will see huge growth.

Price reductions in EV batteries to encourage demand for ECVs

That is because technological progress and large-scale production in bulk have caused the price of electric vehicle (EV) batteries to fall. Because this is the most expensive part of an electric vehicle it has meant that prices have fallen for such vehicles. In 2010, the cost per kilowatt-hour for an electric vehicle (EV) battery was US $ 1. According to a report by Bloomberg, this year the price dropped even further: USD 138 per kWh.. For one thing, manufacturing cost of EV batteries is dropping; cathode materials are also cheaper and production has increased. By 2030, the price of EV battery should be close to USD60 per kWh. This cut in price will substantially impact ECVs, making them cheaper than traditional ICE commercial vehicles. Seeking to maintain the cost competitiveness of its electric vehicle (EV) batteries, in April 2022 Samsung SDI declared that it would continue developing cobalt-free chemicals. The greater the capacity of batteries, the higher their price. Large-capacity batteries started out at a premium but their prices have declined over time, and they are now within reach of the end users. Thanks to many policies and economies of scale, the per-kilowatt­hour price for batteries has fallen. Moreover, with the progress of technology now makes it possible to charge while in motion; and dynamic charging can help lighten vehicles' bodies in order to further optimize energy consumption.

The Electric Commercial Vehicle Market Trend Analysis

Tight emissions standards are fuelling the market's expansion.

In line with growing environmental concerns, governments and environmental agencies are increasingly implementing stricter emission regulations, laws etc., which in the future could raise fuel-efficient diesel engines' or electric drivetrains',' production costs.

In fact, some 25 % of carbon dioxide (CO2) emitted from road transport in the European Union comes from heavy-duty vehicles. Since 2014, emissions in this sector have soared annually. It will not be until after the COVID-19 pandemic that we appear to see a drop off. Rising demand for freight transport is the biggest factor driving this truck trend. Partly this is offset by the higher energy efficiency of road transport for freight. For the ultimate goal of a climate-neutral European Union, changes can include quickening energy efficiency improvements; replacing vehicles with reduced emissions or changing behaviour to use more efficient forms of transportation.

In order to curb the impact of climate change Europe has set itself highly audacious targets for reducing emissions. The broader goals of such tightened regulations, especially in urban areas, are to reduce pollution and promote mass production of electric cars (EVs). With the implementation of strict emission standards and low-emission zones, fleet managers are being encouraged to make a switchover from diesel commercial vehicles to electric ones. European governments employ a variety of incentives in hopes that they can motivate electric vehicles to come into vogue. These incentives include purchase subsidies, tax incentives and construction charge infrastructure. This helped to ease the high initial costs of electric vans, making them more attractive economically for fleet operators.

Segmentation Analysis of the Electric Commercial Vehicle Market

This period is likely to see BEVs become the largest segment.

BEVs are those running entirely on batteries. A battery-powered permanent magnet motor is used to drive the vehicle. On average, a BEV can travel 150 to 200 miles. However the range depends on what kind of battery is installed. With the development of battery technology and a consistent downward trend in batter costs, we predict BEV total cost will fall over time. Besides, electric motors have far fewer moving parts and are considerably more efficient than traditional ones--they require much less in the way of maintenance. At present the average range for battery electric vehicles (BEVs) is between 150 and 250 miles, as of a result of differences in weather conditions. BEV electric vehicles are available from Scania AB, Nikola Corporation and the Mercedes Benz Group AG. The battery capacity for the heavy-duty electric vehicle eActros comes from Mercedes, at 420 kWh. The R1T is a battery-powered semi-autonomous electric pickup from Rivian with 135 kWh capacity. Tesla, Inc., says that its electric pickup vehicle Cybertruck has an approximate range of 500 miles and battery capacity up to 200 kWh.

Regional Analysis of the Electric Commercial Vehicle Market 

By 2030, it is expected that the market share in Asia-Pacific will remain largest.

The need to reduce pollution and the decrease in reliance on petrol or diesel will result in increased demand for electric commercial vehicles across Asia-Pacific. This market will expand in the developing economies including China, as disposable income grows. In January 2021, Dongfeng Motor Corporation announced plans to build a new electric off-road vehicle manufacturer in Wuhan. This is expected to go into production in 2023 at a capacity of 10,0o vehicles. In March of last year, BYD said it will introduce an electric pickup truck under a new brand. Also, German Volkswagen has moved its factories to the emerging economies as have American General Motors and Germany's Mercedes Benz Group AG.

Top Key Players

BYD (China), Mercedes Benz Group AG (Germany), AB Volvo (Sweden), Tesla, Inc (US), and PACCAR Inc (US).

Key Industry Developments in the Electric Commercial Vehicle Market 

• The main players that control the electric commercial vehicle market are Traton SE, BYD Auto Co. Ltd., AB Volvo, Daimler AG and Zhongtong Bus Holding. Manufacturers produce commercial electric vehicles through joint ventures, collaborative enterprises, and retrofitting of their current fleets using internal combustion engines to become powered by electricity.
• In addition, in the direction of promoting electric vehicle adoption governments around the world offer many incentives. Therefore, incentives for charging infrastructure construction; purchase subsidies and tax incentives are all included. This feature helps fleet operators avoid the high costs of purchasing electric vans, making them more economically attractive to purchase. In particular,
• In June 2023, the Bavarian State Government approved four of MAN Truck & Bus' five funding proposals. This funding helps promote the development of electric vehicle and bus high-voltage batteries. The government allocates 25 million euros to the Nuremberg operation.