The global electric commercial vehicle market generated revenue of USD 68.9 billion in 2022, and it is projected to grow at a robust CAGR of 36.2%, reaching USD 814.8 billion by 2030. This growth is primarily driven by the declining cost and enhanced efficiency of batteries, along with the long-term cost advantages of electric vehicles (EVs).
Additionally, rising concerns over greenhouse gas (GHG) emissions and increasing government support, including subsidies and grants, are further fueling the market expansion.
Battery Electric Vehicles (BEVs) led the market in 2022, accounting for over 60% of the total revenue, owing to substantial government incentives, subsidies, and financial benefits aimed at promoting eco-friendly transportation.
China plays a pivotal role in the BEV segment, supported by favorable policies such as the third phase of the Chinese subsidy program, which offers higher subsidies for BEV bus operators compared to Plug-In Hybrid Electric Vehicles (PHEVs). Furthermore, major manufacturers are actively expanding their BEV product portfolios, bolstering market growth in the country.
Since batteries constitute a significant portion of an EV’s cost, any reduction in battery prices enables manufacturers to lower vehicle prices, thereby boosting sales. Increased battery production, particularly in China, is expected to achieve economies of scale, further reducing costs in the coming years.
The Asia-Pacific (APAC) region dominated the electric commercial vehicle market in 2022, holding over 80% of the share, largely driven by sales in China. The Chinese government’s commitment to integrating more electric buses into the nation’s transportation system, coupled with declining battery costs and improving performance efficiency, are key contributors to this dominance.
India is also making significant strides by adopting strategies to incorporate electric buses into both private and government fleets.
In Europe, stringent carbon emission regulations, the growing number of electric vehicle manufacturers, and the entry of traditional diesel-based vehicle producers into the electric market are driving steady growth. The region is expected to expand at a rate of around 25% in the coming years. Several regional and international companies have recently launched new products in anticipation of rising demand for commercial EVs.
As the cost of electric commercial vehicles continues to decline, demand is expected to grow substantially, paving the way for broader adoption worldwide.
Source: P&S Intelligence
