Diving Deep into the Global Electric Commercial Vehicle Market; A Brilliant Study Report by MRFR for 2020-2023
The electric commercial vehicle market is increasing gradually, mainly due to the rising demand for environment-friendly vehicles. Spreading awareness towards the impact of fossil fuels on the environment has led to the development of emission-free electric vehicles. Commercial electric vehicles are garnering huge popularity, becoming an attractive option for reduced maintenance cost.
Countries, across the world, are striving to reduce vehicular carbon emission by promoting electric vehicle and creating the necessary infrastructure. According to Market Research Future (MRFR), the global electric commercial vehicle market is expected to garner colossal traction by 2023. In its recently published analysis, MRFR also asserts that the market would register a healthy CAGR throughout the review period (2018 – 2023).
Continuous development in technology and basic infrastructure requirements, to make these vehicles cost-effective and easily available, fosters the growth of the market. Rising government efforts, such as subsidy plans and incentive programs to encourage adoption of electric commercial vehicles, are impacting the regional market growth, positively.
Manufacturers of commercial electric vehicles are continuously working on developing low-cost, fast-charging battery technologies that support long-range and yield promising results. Changing consumer preference to adapt electric commercial vehicle in recent years is a major factor pushing the market for commercial electric vehicles ahead.
On the other hand, intense lobbying of oil companies against EV, limited battery power, and longer charging duration are some of the key factors expected to hamper the growth of the market.
Nevertheless, increasing demand from the logistics industry to minimize the additional liability of fuel expense would support the growth of the market. Also, increasing research activities for developing battery packs for EVs, which have high power storage capacity and require less charging time are expected to propel the growth of the electric commercial vehicle market.
Global Electric Commercial Vehicle Market - Segmentation
The report is segmented into five key market dynamics to widen the scope of understanding,
By Vehicle Type : Bus and Truck, among others.
By Component : Electric Motor, Electric Vehicle Battery, and Hydrogen Fuel Cell, among others.
By Propulsion : Hybrid Electric Vehicle (HEV), Battery Electric Vehicle (BEV), Plug-in-Hybrid (PHEV) Electric Vehicle, and Fuel Cell Electric Vehicle (FCEV), among others.
By Range : 0-150 miles, 151-250 miles, 251-500 miles, and above 500 miles.
By Regions : North America, Europe, Asia Pacific,and the Rest-of-the-World.
Global Electric Commercial Vehicle Market - Regional Analysis
The Asia Pacific region is expected to retain its dominance over the global electric commercial vehicle market. Growing demand for electric trucks with low operating cost and the development of sustainable, electric commercial vehicles in the region. A strong push for New Energy Vehicles (NEVs), especially in China, would impact the market growth positively, cutting down on pollution levels in urban areas. To earn international attention, further, some Chinese electric commercial vehicle companies have been exporting their automotive to developed regions, especially to the US.
High tax on batteries used in the commercial electric vehicle under the services tax practice might prove as a significant obstacle to the government’s drive to push e-truck. The government needs to invest in electric vehicle technology to help bring down the cost of batteries, encouraging the adoption of green mobility solutions.
The electric commercial vehicle market in the European region is growing at a substantial CAGR. Strict government regulations to control vehicular CO2 emissions alongside favorable incentives policies to buy commercial electric vehicles would propel the market growth in the region. Increasing focus on the development of the infrastructure required for electric commercial vehicles, such as charging stations, is expected to drive the regional market growth.
Moreover, the lesser operating cost of electric mobility attracts users while increased discounts program and additional features or packages from manufacturers are boosting the sales of the electric commercial vehicles. Incentive policies to encourage sales in the market and stringent government policies to control vehicle emissions are major driving forces behind the market growth.
The North America electric commercial vehicle market is growing considerably. The stringent regulations enforced by the government for vehicular emission control is a key factor driving the regional market growth. Constantly rising fuel prices and increasing transport activities would further foster the market demand in the region. Simultaneously, steadily dropping prices of batteries required in the electric commercial vehicles would increase the size of the regional market, drawing consumer’s attraction towards electric mobility.
Global Electric Commercial Vehicle Market - Competitive Analysis
The electric commercial vehicle market looks fragmented but well-established, due to the presence of many large and small players. To gain a competitive advantage in the market, these players incorporate strategic initiatives such as acquisition, collaboration, partnership, product launch, and expansion.
Players leading the global electric commercial vehicle market include Nissan (Japan), Tesla (US), BYD (China), Proterra (US), Daimler (Germany), LG Chem (South Korea), Panasonic (Japan), Zhongtong Bus Holding Co., Ltd (China), ABB (Switzerland), Delphi (US), Continental (Germany), Mitsubishi Electric (Japan), Siemens (Germany), Toshiba (Japan), and Ballard Power Systems (Canada), among others.
Industry/ Innovation/ Related News
June 21, 2019 ----- ABB (Switzerland), a multinational engineering corporation announced the development of an electric commercial vehicle in collaboration with its pilot truck manufacturer partner E-Force Engineering Pte Ltd. (Singapore).
ABB operates mainly in robotics, power, heavy electrical equipment and automation technology areas and aims to have an all-electric ABB delivery fleet in Switzerland by the end of 2022. The new power-train for trucks is a significant example of e-mobility technology for heavy vehicles. It is ABB’s advancement in developing technologies that are more energy efficient with a lower-carbon output.