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.
Commercial Electric Vehicle Market
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.
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.
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.