Northbrook, IL 60062 -- (SBWIRE) -- 02/06/2023 -- The global electric commercial vehicle market size is projected to grow from 353 thousand units in 2022 to 3,144 thousand units by 2030, at a CAGR of 31.4%.

The electric commercial vehicle market will be growing due to factors like the growing demand for zero emissions commuting, government subsidies & tax rebates and plans of automakers for adopting to electrification of their vehicles.

Concerns about the changing environment due to excessive pollution by the automotive industry is one of the prime reasons for government bodies to promote zero emission vehicles over Petrol or Diesel ones. OEMs have started developing plans to welcome an all electric future for their upcoming vehicle lineups. This includes development of electric buses, vans, pickups and trucks. To attract and encourage people to buy ECV's, governments around the world are introducing lucrative schemes and incentives that include discounts, lower vehicle acquisition taxes, easier applicability of loans etc. for electric commercial vehicles.

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Market Dynamics:

Driver: Rising prices of fossil fuels will increase demand for ECVs due to lower cost of electricity

According to the US Energy Information Administration (EIA), 97.45 million barrels per day were consumed in 2021. The prices of petrol in the international market have been rising over the years except for exceptional times such as the COVID-19 pandemic. The increase in prices is due to the high demand for petrol. Since it is a non-renewable energy resource, it is expected to be exhausted during the next few decades. Fluctuations in the demand and supply of petrol lead to increasing prices. Even though various treaties have been formed to control petrol prices in the international market, prices have risen over the years. As most of the countries are required to import petrol, its usage contributes to lowering the balance of trade of the economy. The limited petroleum reserves and rising fuel prices have led automakers to consider alternative fuel sources for their vehicles. Petroleum prices have doubled in the past few decades and are expected to grow further due to the Russia-Ukraine war in 2022. This is expected to lead to another push to shift to EVs to reduce daily traveling costs worldwide. The tax rates also affect the price of fossil fuels around the world. The US has the lowest tax on fuel (19%), while India has around 69% tax on fuel. All these factors have pushed fuel prices around the world in the past 2 decades. The cost of operation of ECVs, is much lower than conventional ICE commercial vehicles. This will lead to a growth in demand for electric commercial vehicles due to their lower operation cost compared to the high price of using ICE commercial vehicles.

Opportunity: Development of wireless EV charging technology for on-the-go charging to fuel market

The wireless technology for on-the-go charging has been under development for the past few years. Once this technology matures, people will not need to charge their vehicles as these are expected to be automatically charged while in use. This technology is currently significantly high priced but may be used in the coming decades. It is expected to significantly impact the EV market as the sales are expected to increase at a high rate when this technology is applied. As of 2021, wireless EV charging is available for stationary charging. In Norway, a trial of wireless on-the-go EV charging is undertaken, which is expected to cater to a 25 Oslo-based fleet of Jaguar I-pace taxis and enable charging. The Norwegian capital has launched an initiative called ElectriCity, which aims to make its taxi system emission-free by 2024.

The Asia Pacific market is projected to hold the largest share by 2030

The Asia Pacific market is dominated by China, which has large sales volumes for electric commercial vehicles, especially electric buses. With favorable government regulations and the increasing adoption of electric buses in public transport fleets, India is expected to be a high potential market for electric commercial vehicles in the future. Asia Pacific is home to many OEMs, especially Chinese companies, dominating the global electric commercial vehicle market. Japan also plays a vital role in automotive technology in Asia Pacific. With advancements in technologies such as FCEV and PHEV, the Japanese market is expected to grow. In October 2020, BYD (China) and Hino Motors (Japan) signed a joint venture agreement to set up a new company in China in 2021 to develop commercial battery electric vehicles. As of early 2022, the JV is yet to be established, but the companies have been working together on electric commercial vehicles Such developments are expected to boost the market in the region.

Key Market Players

The electric commercial vehicle market is dominated by established players such as BYD (China), Yutong (China), AB Volvo (Sweden), VDL Groep (Netherland), and CAF (Spain). The market ranking has been derived by considering ECV sales and a certain percentage of segmental revenue for each of the companies mentioned above. These companies also offer extensive products and solutions for the automotive industry. These companies have strong distribution networks at the global level, and they invest heavily in R&D to develop new products.

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