The total revenue generated by the electric commercial vehicle market was USD 68.9 billion in 2022, and it will power at a rate of 36.2% in the years to come, to touch USD 814.8 billion by 2030.

The decreasing cost and improving working efficiency of batteries and the lasting cost benefits of EVs are the key factors powering the growth of the industry.

In consort with these, the increasing concerns over GHG emissions and increasing support of the government, in the form of subsidies and grants, for these kinds of vehicles will benefit the industry in the years to come.

BEVs dominated the industry, with a share of over 60%, in 2022,  with regards to value, as a result of the strong support from the government, in the form of incentives, subsidies and other monetary benefits, for promoting the use of eco-friendly vehicles.

China is a key market for commercial BEVs. As per the to the third phase of the Chinese subsidy policy , the subsidies were higher for bus operators on BEVs as opposed to PHEVs.

Also, key manufacturers are concentrating on the addition of BEVs to their product portfolios, further boosting the growth of the market in China.

With battery accounting for a considerable share of the cost of the EV, any sort of drop in the price of the battery price would allow the manufactures to decrease the cost of the electric vehicles, therefore advancing their sales.

Furthermore, the growth in the production of batteries, chiefly in China, would help attain economies of scale, thus further lowering the battery prices in the years to come.

APAC electric commercial vehicle market had over 80% share in 2022. It is due to the sales in China. The Chinese government is committed to increase the share of these kinds of buses in the country’s transportation system, decreasing prices of batteries, and improving functioning efficiency are major factors powering the sales of these automobiles in the country.

India is also accepting concrete strategies to include e- buses in the private and government fleets.

Due to the stringent regulations of the governments across Europe regarding carbon emissions, increasing count of electric vehicle manufacturers in the region, and entry of conservative diesel-based vehicle manufacturers in the market.

 Europe will grow steadily, with around 25%, in the years to come. Many foreign and regional companies have introduced their offerings in recently in the anticipation of the increasing requirement for commercial EVs in the region.

It is because of the declining cost of the electric commercial vehicles, the demand for these vehicles will continue to grow in the years to come.

Source: P&S Intelligence