Electric Commercial Vehicle Market Report

Global Electric Commercial Vehicle Market 2024, Size Share And Trends

The global electric commercial vehicle market size reached USD 152.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,298.3 Billion by 2033, exhibiting a growth rate (CAGR) of 25.56% during 2025-2033. Stringent emission regulations, technological advancements, rising environmental concerns, and launch of numerous government initiatives are some of the factors primarily propelling the electric commercial market growth.

Electric Commercial Vehicle Market Analysis:

• Major Market Drivers: The rising consumer awareness towards the low maintenance and operational costs of electric commercial vehicles is driving the market growth. Additionally, the implementation of favorable regulations pertaining to the reduction of fuel-driven vehicles is also inducing the demand for electric commercial vehicles.
• Key Market Trends: The increasing focus on the electrification of public transport fleets coupled with the growing investments in the upgradation of several vehicle charging infrastructures are driving the market growth. Besides this, the rising penetration of smart vehicle technologies, including wireless connectivity, telematics devices, advanced driver-assistance systems (ADAS), GPS, touch sensors, etc., is further catalyzing the global market.
• Competitive Landscape: Some of the prominent companies in the market include AB Volvo, Anhui Ankai Automobile Co. Ltd., BYD Company Ltd., Construcciones y Auxiliar de Ferrocarriles S.A., Daimler AG, Ebusco B.V., King Long United Automotive Industry Co. Ltd, NFI Group Inc., Proterra Inc., VDL Groep B.V., Zhengzhou Yutong Bus Co. Ltd., and Zhongtong Bus Holding Co. Ltd., among many others.
• Geographical Trends: Asia Pacific exhibits a clear dominance in the market. Many countries in the region are implementing stringent emission regulations and policies to curb air pollution and promote sustainable transportation solutions. Governments are offering incentives, subsidies, and tax benefits to encourage the adoption of electric vehicles (EVs), including commercial vehicles.
• Challenges and Opportunities: High initial costs and insufficient charging infrastructures are hindering the market growth. However, governments worldwide are offering incentives, subsidies, tax credits, and grants to promote the adoption of electric commercial vehicles. These supportive policies reduce upfront costs and stimulate market demand.
   

Electric Commercial Vehicle Market Trends:

Rising Fossil Fuel Prices

The increasing prices of fossil fuels are significantly driving the demand for electric commercial vehicles. For instance, according to Statista, in May 2024, one gallon of diesel cost an average of $3.82 in the United States. Diesel prices climbed dramatically in 2022 and 2023 due to supply limits during the Russia-Ukraine war, as well as transportation challenges caused by low water levels on the Mississippi River. Electric vehicles (EVs), including commercial ones, can offer lower operating costs over their lifetime compared to vehicles powered by fossil fuels. This is primarily due to the lower cost of electricity as that of gasoline or diesel and the reduced maintenance requirements of electric drivetrains. For instance, according to data published by State-owned Convergence Energy Services Ltd, a subsidiary of Energy Efficiency Services Ltd (EESL), around 6,465 electric bus tender prices were found to be 29% less expensive than diesel bus operating costs in December 2023. Similarly, according to an article published by Clean Mobility Shift, the operational costs of electric buses are lower due to their fewer moving parts as compared to traditional buses. Besides this, the growing public awareness of environmental issues and the benefits of electric vehicles has also played a role. Consumers and businesses alike are increasingly willing to consider electric vehicles as viable alternatives to traditional fossil fuel-powered vehicles. These factors are further contributing to the electric commercial vehicle market share.

Stringent Emissions Regulations

Governments around the world are implementing strict emission standards for vehicles, especially in densely populated cities. For instance, in the United States, the Safer Affordable Fuel-Efficient (SAFE) car regulation is expected to be adopted between 2021 and 2026, as recommended by the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA). For passenger cars and light trucks, the regulation may establish corporate average fuel economy criteria and greenhouse gas emissions. Moreover, electric commercial vehicles produce zero tailpipe emissions, making them a favorable choice for meeting these regulations. For instance, according to an article published by the U.S. Department of Energy, all-electric vehicles are zero-emission vehicles as they do not produce any direct exhaust or tailpipe emissions. Besides this, various key players are introducing electric trucks and buses in order to support the government's green drive. For instance, in November 2022, VIA Motors partnered with EAVX, JB Poindexter & Co.'s (JBPCO) newest business segment, to manufacture completely electric Class 2-5 electric work trucks. Similarly, in June 2024, GS Global Corp., a general trade firm based in South Korea, unveiled the T4K Refrigerated Truck, a 1-ton electric truck manufactured by BYD firm Ltd. The T4K refrigerated truck can drive 205 km at room temperature and 164 km at cold temperatures owing to its 82-kWh lithium iron phosphate (LFP) blade battery. These factors are further propelling the electric commercial vehicle market growth.

Growing Adoption of Electric Buses

The increasing adoption of electric buses is driving the electric commercial vehicle market. The development of electric buses pushes advancements in battery technology, electric drivetrains, and charging infrastructures. Advances in battery technology have significantly improved the range and efficiency of electric buses. Modern lithium-ion batteries can now power buses for a full day on a single charge, making them practical for regular transit routes without frequent recharging. For instance, in June 2024, Volkswagen Truck & Bus unveiled a prototype electric bus in Brazil. It enables ultra-fast charging, allowing the car to achieve its maximum range in just ten minutes. In this case, the prototype built on an 18-ton chassis has an estimated range of 60 kilometers and charges in 10 minutes using a 300-kW pantograph. The electric bus is outfitted with four lithium battery packs with a niobium anode, each with a useful capacity of up to 30 kWh. Besides this, governments of various economies are also taking various initiatives to launch electric buses. For instance, in February 2024, the Government of Delhi launched 350 electric buses. The number of electric buses in the DTC fleet reached around 1,650 in total. Apart from this, governments and private entities are investing in charging infrastructure for electric buses. This infrastructure expansion includes fast-charging stations and depot charging facilities, addressing the range limitations and operational needs of electric bus fleets. For instance, in April 2024, Mapna Group launched Iran's first-ever charging station for e-buses in the northern city of Karaj in Alborz Province. The buses would be fully charged in two hours and a half so that they could travel as long as 250 kilometers with their coolers on. These factors are driving the adoption of electric commercial vehicles.

Global Electric Commercial Vehicle Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global electric commercial vehicle market report, along with forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on vehicle type, propulsion type, application, battery type, and battery capacity.

Breakup by Vehicle Type:

• Electric Bus
• Electric Pickup Truck
• Electric Truck
• Electric Van

Electric bus represented the largest segment

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes electric bus, electric pickup truck, electric truck, and electric van. According to the report, electric bus represented the largest market segmentation.

Electric buses are a type of public transportation vehicle that runs entirely on electricity, rather than traditional fuels like diesel or gasoline. Electric buses produce zero tailpipe emissions, which helps to improve urban air quality and reduce greenhouse gas emissions. This makes them an environmentally friendly alternative to diesel or gasoline-powered buses, particularly important in densely populated areas where air pollution is a concern. Moreover, many governments and local authorities are implementing stringent emission regulations and targets for reducing greenhouse gas emissions. Policies such as low-emission zones and mandates for zero-emission buses in public fleets are driving the adoption of electric buses. For instance, in January 2024, the Assam Chief Minister launched around 200 EV buses for the people of Guwahati.

Breakup by Propulsion Type:

• BEV
• HEV
• FCEV
• PHEV

Currently, BEV exhibits a clear dominance in the market

The report has provided a detailed breakup and analysis of the market based on the propulsion type. This includes BEV, HEV, FCEV, and PHEV. According to the electric commercial vehicle market report, BEV exhibits a clear dominance in the market.

Stringent emission regulations around the world are pushing businesses and governments to adopt zero-emission vehicles. BEVs, which produce zero tailpipe emissions, are a direct solution to meeting these regulatory requirements. This is particularly crucial in urban areas where air quality concerns are high. Moreover, BEVs generally have lower operating costs compared to traditional internal combustion engine vehicles. They have fewer moving parts, which reduces maintenance expenses. In addition, electricity tends to be cheaper than gasoline or diesel in many regions, leading to lower fueling costs over the vehicle's lifetime. For instance, in April 2024, RIZON, the newest electric vehicle brand from Daimler Truck, unveiled its battery-electric Class 4-5 trucks in Canada at the Truck World event in Toronto.

Breakup by Application:

• Cargo
• Passenger

The report has provided a detailed breakup and analysis of the market based on the application. This includes cargo and passenger.

Cargo vehicles include trucks, vans, and specialized vehicles designed primarily for transporting goods, materials, or equipment. These vehicles are essential for logistics, distribution, and freight transportation across various industries, such as retail, construction, manufacturing, and logistics. While passenger vehicles in the commercial sector include buses, shuttles, and minibuses designed to transport people. These vehicles are used for public transit, employee transportation, tourism, and other passenger transport services.

Breakup by Battery Type:

• Lithium-Nickel-Manganese-Cobalt Oxide Batteries
• Lithium-Iron-Phosphate Batteries
• Others

The report has provided a detailed breakup and analysis of the market based on the battery type. This includes lithium-nickel-manganese-cobalt oxide batteries, lithium-iron-phosphate batteries, and others.

NMC batteries typically use a combination of lithium, nickel, manganese, and cobalt in their cathode material. These batteries generally have higher energy densities compared to other lithium-ion chemistries, which allows them to store more energy per unit volume or weight. While lithium-iron-phosphate batteries use lithium iron phosphate as the cathode material. These batteries are known for their excellent thermal and chemical stability, reducing the risk of thermal runaway and improving overall safety.

Breakup by Battery Capacity:

• Less Than 50 kWh
• 50-250 kWh
• Above 250 kWh

The report has provided a detailed breakup and analysis of the market based on the battery capacity. This includes less than 50 kWh, 50-250 kWh, and above 250 kWh.

50 kWh size of battery is commonly found in smaller electric vehicles, such as compact cars or entry-level EV models. It is suitable for daily commuting and city driving where shorter ranges are sufficient, as well as for some residential or small-scale energy storage applications. The 50-250 kWh range covers a broad spectrum of applications, including mid-size electric vehicles, larger consumer EVs, and smaller-scale energy storage systems. Above 250 kWh batteries are primarily found in electric vehicles designed for long-range driving, commercial trucks, buses, and larger-scale energy storage systems.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
  • Turkey
  • Saudi Arabia
  • Others

Asia Pacific currently dominates the global market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa (Turkey, Saudi Arabia, and others). According to the report, Asia Pacific dominates the global market.

Many countries in the Asia Pacific, including China, Japan, South Korea, and India, have implemented strong government policies and incentives to promote electric vehicles. These policies include subsidies, tax incentives, and regulations favoring the adoption of electric vehicles in commercial fleets. For example, in November 2022, Japan's Ministry of Land, Infrastructure, Transport, and Tourism strengthened its support for commercial cars with green number plates. The Ministry added JPY 2.12 billion in the second supplementary budget for the fiscal year ending March 2023. Moreover, the region is home to some of the world's largest and fastest-growing economies, driving significant demand for commercial vehicles of all types. As these economies urbanize and expand, there is increasing pressure to address air pollution and reduce dependence on fossil fuels, making electric vehicles an attractive solution.

Competitive Landscape:

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include: 

• AB Volvo
• Anhui Ankai Automobile Co. Ltd.
• BYD Company Ltd.
• Construcciones y Auxiliar de Ferrocarriles S.A.
• Daimler AG
• Ebusco B.V.
• King Long United Automotive Industry Co. Ltd
• NFI Group Inc.
• Proterra Inc.
• VDL Groep B.V.
• Zhengzhou Yutong Bus Co. Ltd.
• Zhongtong Bus Holding Co. Ltd.

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Electric Commercial Vehicle Market Recent Developments:

• June 2024: Volkswagen Truck & Bus unveiled a prototype electric bus in Brazil. It enables ultra-fast charging, allowing the vehicle to achieve its maximum range in just 10 minutes.
• April 2024: RIZON, the newest electric vehicle brand from Daimler Truck, unveiled its battery-electric Class 4-5 trucks in Canada at the Truck World event in Toronto.
• April 2024: Mapna Group launched Iran's first-ever charging station for e-buses in the northern city of Karaj in Alborz Province.

Electric Commercial Vehicle Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the electric commercial vehicle market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global electric commercial vehicle market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the electric commercial vehicle industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.