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Commercial Electric Vehicle Market Demand, Size, Share and Trends Analysis

Commercial Electric Vehicle Market Size

by PramodKr
Commercial Electric Vehicle Market

Commercial Electric Vehicle Market Overview

The global commercial electric vehicle market is predicted to reach a value of $362.7 billion by 2025, rising from $144.5 billion in 2017, progressing at a 13.3% CAGR during 2018–2025, according to P&S Intelligence. A major factor leading to the growth of the market is the long-term cost benefits of commercial electric vehicles. Although the initial cost of commercial electric vehicles is high, they have significantly low operating costs.

This, along with the environmental benefits offered by these vehicles. Is leading to their increasing adoption by the transit companies, majorly those in emerging economies. The latest establishment of satellite cities and new cities in such countries is also expected to open up wide opportunities for the companies operating in the market. As the need for developing supporting infrastructure for commercial electric vehicles will rise. Other advantages of commercial electric vehicles are they need less maintenance and are less noisy as compared to conventional vehicles.

Commercial Electric Vehicle Market Size

In terms of propulsion, the commercial electric vehicle market is divided into hybrid electric vehicles, battery electric vehicle (BEV). Fuel-cell electric vehicle, and plug-in hybrid electric vehicle, out of which. The BEV division is predicted to register the fastest growth. Based on vehicle type, the market is categorized into electric truck and electric bus, between which. The electric truck category held the major share of the market.

When battery is taken into consideration, the commercial electric vehicle market is classified into lithium-nickel-manganese-cobalt oxide (NMC). Lithium-iron phosphate (LFP), and others. Out of these, the LFP battery is predicted to lead the domain in the years to come. As these batteries are safer than the other batteries that are available in the market. The NMC classification is projected to grow at the fastest pace in the years to come.

Commercial Electric Vehicle Market Share

Geographically, the commercial electric vehicle market is being dominated by the Asia-Pacific (APAC) region. And it is further expected to witness the highest CAGR in the near future. Within the region, China has been leading the market due to government support for enhancing the adoption of commercial electric vehicles. Moreover, countries such as India are also adopting stringent policies for encouraging the adoption of electric buses in private and government fleets. These factors are predicted to drive the growth of the regional market.

The key players operating in the commercial electric vehicle market are AB Volvo, Alstom–NTL, Alexander Dennis Ltd. Proterra Inc., Ashok Leyland Ltd., Anhui Ankai Automobile Co. Ltd., Bluebus SAS. Caetanobus – Fabrico De Autocarros E Carrocarias S.A., Bozankaya A.S., Chariot Motors, BYD Co. Ltd.  Dongfeng Motor Corp., Nanjing Golden Dragon Bus Co. Ltd., Ebusco B.V., and Tata Motors Ltd., Cummins Inc., Hino Motors Ltd. E-Force One AG, Iveco S.p.A., Scania AB, Isuzu Motors Ltd., Nissan Motor Co. Ltd., Nikola Corp., and Workhorse Group Inc.

Commercial Electric Vehicle Market Trends

In recent years, more electric vehicles have been on the road, and this trend will only continue as global demand rises. Furthermore, as the average daily driving length is usually lower in metropolitan areas. More efficient vehicles are typically more common there. By 2030, it’s anticipated that more than 50% of the world’s population will reside in urban areas, increasing the need for electric vehicles.

 

The number of ports available is growing yearly as many communities attempt to fulfill the rising demand for charging stations. Electric automobiles are becoming more widely available as there are more charging stations in airports, supermarkets, and other public places.

Commercial Electric Vehicle Market Growth

 

Thus, the global commercial electric vehicle market is expected to grow at a significant CAGR in the coming years. The growing concern over GHG emissions is mostly to blame for the market’s expansion.

 

The largest and fastest-growing region was APAC. In the years to come, this growth is anticipated to continue. This is mostly due to the Chinese government’s commitment to increasing the proportion of electric buses in the nation’s transportation system. Lowering costs, and enhancing battery performance.

 

The commercial electric vehicle sector is experiencing significant growth due to the falling cost and rising operational efficiency of batteries. Industry experts claim that the average cost of Li-ion battery packs for large sales has dropped from about $642/kWh in recent years to about $209/kWh.

Commercial Electric Vehicle Market Outlook

 

Any decrease in the price of batteries would help manufacturers lower the selling price of these cars. Which would increase sales as the battery makes up around 40% of the cost of making commercial electric vehicles.

 

Additionally, the expansion of battery production, notably in China, would contribute to achieving economies of scale and decreasing battery costs in the upcoming years.

 

Commercial electric vehicle usage is increasing, opening up an attractive market potential for participants. Urban populations have increased significantly during the past few decades in many emerging economies, including India and Brazil.

 

According to data published by the World Bank, the proportion of urban residents in India and Brazil’s total populations was 34% and 86%, respectively.

Commercial Electric Vehicle Market Demand

As a result, the large concentration of urban residents in these nations has increased the demand for commercial cars. Further contributing to increasing air pollution levels. The emerging nations’ thriving e-commerce and retail sectors, as well as rising freight transit. Are some macroeconomic drivers driving up demand for commercial vehicles.

 

In terms of volume and value, battery electric vehicles (BEV) are anticipated to command the greatest market share based on propulsion in the commercial electric vehicle market. This is because governments are increasingly supporting the use of environmentally friendly commercial electric cars by providing incentives, subsidies, and other financial benefits.

Commercial Electric Vehicle Market Drivers

 

In the past, electric trucks had the largest market share regarding vehicle type. Due to the globally expanding freight demand and the major economic growth in emerging nations like China, it is anticipated that the sales volume of electric vehicles falling under the HDT category will increase at the quickest rate.

The research offers the global market size of commercial electric vehicle for the period 2013–2025.

COMMERCIAL ELECTRIC VEHICLE MARKET

  • By Propulsion – Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicle (PHEV), and Fuel Cell Electric Vehicle (FCEV)
  • By Vehicle Type – Electric Bus [>10 m, <10 m], Electric Truck [Light-duty truck (LDT), Medium-duty truck (MDT), and Heavy-duty truck (HDT)]
  • By Battery – Lithium-iron-phosphate (LFP), Lithium-nickel-manganese–cobalt oxide (NMC), and Others
  • By Cell Format – Pouch, Prismatic, and Round
  • By Region – North America, Europe, Asia-Pacific (APAC), and Rest of the World (RoW)

COMMERCIAL ELECTRIC VEHICLE MARKET, BY GEOGRAPHY

North America Market

  • By propulsion
  • By vehicle type
  • By battery
  • By country – U.S. and Canada

Europe Market

  • By propulsion
  • By vehicle type
  • By battery
  • By country – Germany, U.K., France, Italy, Spain, Netherlands, Norway, and Rest of Europe

APAC Market

  • By propulsion
  • By vehicle type
  • By battery
  • By country – China, Japan, South Korea, Rest of APAC

RoW Market

  • By propulsion
  • By vehicle type
  • By battery
  • By country – Brazil, U.A.E., Others

Browse detailed report on Commercial Electric Vehicle Market Business Strategies, and Regional Outlook

This study covers

  1. Major factors driving the market and their impact during the short, medium, and long terms
  2. Market restraints and their impact during the short, medium, and long terms
  3. Recent trends and evolving opportunities for the market participants
  4. Historical and the present size of the market segments and understand their comparative future potential
  5. Potential of on-demand logistics services, so the market players make informed decisions on the sales of their offerings
  6. Competitive scenario of various market segments across key countries in several regions for uncovering market opportunities for the stakeholders
  7. Major players operating in the market and their service offerings

 

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Therefore,as a result,
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Above all,most importantly,
certainly,That is to say,
in other words,to clarify,
Therefore,as a result,
so,consequently,
In conclusion,to sum up,
in short

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