An electric vehicle has the capability to considerably diminish greenhouse gas releases and pollution. A commercial vehicle is designed, maintained or used for the transportation of property or person. The various types of commercial vehicles are buses, trucks, vans and pick-up trucks. The global electric commercial vehicle market is growing at a significant rate, due to mounting alarm about environmental pollution and government assistance for electric commercial vehicles. The market has witnessed a high demand for the electric bus due to speedy economic growth and promising government guidelines to limit emission.
Insight by Component
On the basis of the component, the electric commercial vehicle market is subdivided into the electric motor, hydrogen fuel cell, and EV battery. Of all components, EV battery segment accounted the largest share in the market, as it is the most important component of an EV and it makes up substantial cost of an EV due to its high cost.
Insight by Range
On the basis of range, the market is subdivided into 0-150 miles, 151-250 miles, 251-500 miles, and 500 miles & above. Of all the range, the 500 miles segment is expected to grow at the fastest rate in the electric commercial vehicle market.
Insight by Propulsion Type
On the basis of propulsion type, the electric commercial vehicle market is subdivided battery electric vehicle (BEV), plug-in hybrid electric vehicle (PHEV), hybrid electric vehicle (HEV) and fuel cell electric vehicle (FCEV). Of all the propulsion type, the BEV accounted the largest share and is expected to grow at the fastest rate in the market due to improvement in battery competence and decline of the EV battery cost.
Insight by Vehicle Type
On the basis of vehicle type, the market is subdivided into bus, van, trucks, and pick-up trucks. Among all vehicle type, the bus accounted the largest share and is expected to grow at the fastest rate in the electric commercial vehicle market due to speedy economic growth, promising government guidelines to limit emission, implementation of extra electric buses, and various government mandates to phase out fossil fuel-based public transportation.
Acceptance of electrification, decreasing battery price, speedy acceptance of electric vehicle such as buses and van, government assistance for electric vehicles and requirement for fuel effectual vehicles are the primary growth drivers for electric commercial vehicle market.
In addition, increase in the requirement of the efficient vehicle with zero carbon emission, government strategies and instructions to control air pollution and mounting alarm about environmental pollution are also driving the growth of the electric commercial vehicle market. For instance, according to the World Health Organization (WHO), globally, exposure to ambient air pollution leads to 4.2 million deaths every year. In addition, 91% of the world’s population lives in the place where air quality exceeds WHO guidelines limits.
Moreover, technological innovation in batteries of the commercial electric vehicle and escalating preference for long-haul trucks are also facilitating the growth of the electric commercial vehicle market. For instance, battery OEMs are carrying out research activities for the improvement of several sorts of battery packs to upsurge their traveling span.
Limited supportive charging stations, in progress IC engine improvements, supplementary environment-friendly fuel products, oil companies promoting contrary to EV and huge development cost are the major challenges for the growth of the electric commercial vehicle market. In addition, inadequate battery power and time-consuming charging durations are also hindering the growth of the market.
Globally industry players are leveraging market growth by launching new products. Different players are investing in the development of new battery technology to lower the cost of electric vehicles to compete against gasoline vehicles in terms of price and performance. In the coming years, industry leaders are anticipated to significantly lower the cost of these vehicles and enhance the performance of these vehicles leading to adoption by masses.
Geographically, Asia-Pacific is the largest electric commercial vehicle market and is observed to witness the fastest growth in the market due to government strategies to limit urban pollution. Implementation of additional electric buses, expansion in charging infrastructure, mounting investment in the development of electric vehicle and assignation of OEMs to progress electric vehicle are also up surging growth of the Asia-Pacific electric commercial vehicle market.
Key players in the electric commercial vehicle industry are catering to the demand by collaborating with small players and investing on technologically advanced EVs across the globe. In July 2018, Daimler introduced Mercedes-Benz eCitaro, with new technological innovations in the public transport network. In addition, in May 2017, BYD introduced class 8 battery-electric refuse truck in the North American market. Tesla, Daimler, Panasonic, Nissan, Proterra, ABB, BYD, LG Chem, Delphi, Samsung SDI, and Continental are the key players offering electric commercial vehicle.