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Electric Commercial Vehicle Market Growth – CAGR of 34.8% | Industry trends – Growing adoption of technologically advanced electric vehicles

By Biswas Debanjan

Posted on January 5, 2022

Electric Commercial Vehicle Market Growth

The evolution of green power generation technologies for EV batteries and the surging applications of emission control systems are the key drivers for the market growth

The global electric commercial vehicle market is expected to be valued at USD 339.78 Billion in 2027 from USD 31.05 Billion in 2019, registering a CAGR of 34.8% through the forecast period. Revenue from the global electric commercial vehicle market is projected to register a substantially high growth rate over the forecast timeframe. The market growth is mainly accredited to the rising demand for electric commercial vehicles, the growing focus of the government on electrification of public transport, the increasing demand for electric powertrains, and the surging need for zero-emission vehicles. The flourishing e-commerce industry, increasing adoption of electric trucks and vans in the transportation & logistics sector, growing need for CO₂ emission control, reduced prices of electric vehicle (EV) batteries, and rising focus of automotive OEMs on manufacturing eco-friendly, fuel-efficient vehicles are the other indispensable factors contributing to the growth of the electric commercial vehicle market.

Increasing technological advancements in electric vehicles and their growing usage in the commercial transportation sector have significantly bolstered the demand for electric commercial vehicles. Increasing risks of global warming and climate change have called for the higher adoption of electric commercial vehicles across the globe. These are much more cost-effective and energy-efficient than conventional ICE (internal combustion engine) vehicles and are increasingly being adopted worldwide due to their relatively lower carbon footprint and higher environmental sustainability. For instance, in August 2020, Mahindra & Mahindra, a leading Indian automotive manufacturer, entered into a partnership deal with REE Automotive, an Israel-based car manufacturer, for the large-scale production of electric commercial vehicles. As per the agreement, the vehicles would be manufactured leveraging REE’s electric vehicle corner module technology and expertise in powertrain and steering components.

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Key Highlights of the Report:

Based on the component type, the electric vehicle battery sub-segment has evolved as the largest segment in the global electric commercial vehicle market. This segment’s growth is attributed to the rising demand for EV battery systems, increasing adoption of automotive emission control systems, and rise in EV production due to rising concerns about environmental pollution and climate change.
The battery electric vehicle (BEV) sub-segment retains the highest revenue share in the global electric commercial vehicle market. Unlike conventional gasoline-powered vehicles, BEVs do not cause any harmful emissions and are charged by electricity from external sources.
North America is touted as the largest regional market for electric commercial vehicles, owing to the rising focus on curbing CO₂ emissions released by the conventional ICE-powered vehicles, increasing adoption of EVs, and the booming e-commerce and logistics sectors of the region.
The well-established companies operating across the global electric commercial vehicle market include Tesla Inc., AB Volvo, Daimler AG, Yutong, Proterra, VDL Groep, NFI Group, BYD Company Limited, King Long, Ankai, and Ebusco B.V.
In August 2020, Etrio, an India-based electric vehicle start-up, introduced the all-new retrofitted eLCV (electric light commercial vehicle). The new vehicle launch is the company’s first initiative to revolutionize intra-city logistics.

For the purpose of this study, Emergen Research has segmented the global electric commercial vehicle market on the basis of component, propulsion type, vehicle type, battery type, range, end-use, and region:

By Component (Revenue, USD Billion; 2017-2027)