The global electric commercial vehicle market is estimated to reach $62.4 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 17.3% from 2021-2030 according to a new report by Quince Market Insights. The demand for transportation facilities in the e-commerce sector, logistics, and public transportation is expected to drive the market.
The report states many developing countries are working towards the development of smart cities and the conversion of rural areas to semi-urban areas by adopting sustainable solutions like clean energy, smart buildings, smart vehicles and others, which will also contribute to market growth. For instance, in 2015 the smart city plan was launched in India, where bigger automobile industries are also part in the development of the smart city project which includes electric vehicles.
Technological advancements in batteries will reduce their costs and increase their life span, the report says. This will decrease the cost of electric vehicles and hence drive the market. However, initial high development costs for the battery technology can hamper the market growth. The limited battery capacity can also be a challenge to the market growth.
Market developments mentioned in the report include:
- In May, 2021, Daimler Trucks North America launched line of chargers and consulting services for electric commercial vehicle in support of fleets in deployment of electric trucks.
- In April, 2021, Fiat launched the electric version of its Ducato medium van. The company also stated the two battery size availability with 90KWh of motor, range of 174 miles and the price of e-Ducato is $73,369, twice the diesel vehicle cost.
- In January, 2021, General Motors announced the new commercial electric vehicle brand, Brightdrop. The company also acknowledged that the vehicle has hub motor and is powered with electric pallet which assists in easy movement of goods over short distance.