Friday, April 12, 2024

The Worldwide Electric Commercial Vehicle Industry is Expected to Grow at a CAGR of 41.1% Between 2020 and 2028

BusinessThe Worldwide Electric Commercial Vehicle Industry is Expected to Grow at a...

The global electric commercial vehicle market is projected to grow from 129 thousand units in 2020 to reach 2,026 thousand units by 2028, at a CAGR of 41.1%.

The advancements in battery pack technologies and electric powertrains are some of the major factors driving the growth of the electric commercial vehicle industry. Many countries are focusing on the electrification of their public transportation fleets. Factors such as a rise in pollution and environmental hazards, stringent government regulations, and stiff competition have compelled automotive OEMs to make fuel-efficient and environment-friendly vehicles. Increasing demand for fuel efficient and zero emission vehicles in the logistics sector is also driving the market.

The growth of e-commerce and logistics is likely to propel the growth of the electric van segment during the forecast period

The electric van segment is expected to grow at a faster rate as there is a high demand for these vans from the logistics sector, especially in the North American region. The growth of the logistics and e-commerce sectors are expected to drive the market for electric vans during the forecast period.

The usage of electric vans in the logistics sector would minimize the cost of transportation. Many leading logistics companies in North America and Europe have started using electric vans for shipping and delivery purposes. For instance, DHL, one of the leading logistics companies in the world, is using electric vans while Amazon announced plans to use electric delivery vans to be built by Rivian from 2021 onwards.

Asia-Pacific is expected to be the largest market during the forecast period

The Asia-Pacific region is the largest electric commercial vehicle market in the world. It comprises some of the fastest developing and developed economies in the world, such as China, India, and Japan. The market growth in the region can be attributed to the dominance of Chinese market in the electric bus segment and the presence of market leading OEMs in the country as well, resulting in the exponential growth of electric commercial vehicle industry in Asia-Pacific. The large volumes of electric bus, favorable regulations for electric commercial vehicles, and rapidly growing logistics sector are projected to boost the electric commercial vehicle market in the region.

North American market is expected to register the fastest growth during the forecast period

The North American region is projected to be the fastest-growing market during the forecast period. The region is a hub to major players such as Proterra (California, U.S), Tesla (California, U.S), Workhorse Group (Ohio, U.S), Nikola Motor Company (Arizona, U.S) and Rivian (Michigan, U.S). North America is a key region for innovations; significant R&D; and technological advancements in electric vehicles, battery technologies, and charging solutions.

U.S is the largest market in North America, followed by Canada. Also, U.S, is home to many established OEMs providing electric vehicles and also has a higher adoption rate for electric commercial vehicles.

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