Electric Light Commercial Vehicle Market

[53 Pages Report] The global electric light commercial vehicle market size is projected to grow from 333.6 thousand units in 2022 to 3,919.3 thousand units by 2030, at a CAGR of 36.1%. Factors such as rising demand for low-emission commuting and government subsidies and tax breaks for zero-emission commercial vehicles such as pickup trucks, and vans have driven manufacturers to produce ELCVs for the global market. Also, The growth of e-commerce is also driving the demand for eLCVs, as more and more businesses are using them to deliver goods to customers. For instance, Amazon is using eLCVs to deliver packages to customers in major cities around the world. The development of new charging technologies, such as fast charging and ultra-fast charging, is also increasing the range of eLCVs. This is making eLCVs more suitable for a wider range of applications, such as long-haul delivery. Additionally, Due to the growing demand for electric public transportation and logistics services, the Asia Pacific market is expected to rise steadily. Meanwhile, electric van sales will dominate the European ELCVs market, with major countries expecting to go all-electric by 2030-2035. Furthermore, the North American ELCVs market will expand in tandem with the region's electric pickup sales.

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Market Dynamics:

Driver: Reducing prices of ELCVs batteries will increase demand for ELCVs by making them cost effective

The cost of ELCVs batteries has decreased over the last decade as a result of technology improvements and mass production of ELCVs batteries on a huge scale. This has resulted in lower electric light commercial vehicle prices, as EV batteries are one of the most expensive components of an electric vehicle. Prices for ELCVs batteries have dropped dramatically over the previous decade, from USD 1,200/kWh in 2010 to USD 160/kWh in 2023, and are likely to fall further in the future years. Meanwhile, in China, the price per kWh might be as low as USD 100. This is due to lower manufacturing costs for these batteries, lower cathode material prices, increased output, and so on. The prices of ELCVs batteries are predicted to decline to in the upcoming years, considerably lowering the prices of ELCVs and making them cheaper than conventional ICE vehicles.

Restraint: Limited EV charging infrastructure

There are few electric vehicle charging facilities in various countries throughout the world. As a result, the availability of public EV charging for electric vehicles decreases, lowering demand. Although several countries are in the process of establishing EV charging infrastructure, most countries have not been able to install the needed number of EV charging stations, with the exception of a few states. Demand for ELCVs is likely to rise once the world has a well-developed EV charging network. The majority of countries have yet set up such charging networks. The Netherlands has the highest density of EV chargers per 100 km. China comes in second, with approximately 3- 4 charging stations every 100 kilometers. The UK has approximately 3 charge outlets per 100 km, however the government is rapidly expanding its charging stations as part of its 2030 ambitions to phase out ICE vehicle sales. Other countries, like Germany, the United Arab Emirates, Japan, Singapore, South Korea, Sweden, France, the United States, and Russia, have accelerated the transition to EVs by installing a high number of EV charging stations.

Opportunity: Development of wireless EV charging technology for on-the-go charging to fuel market

Wireless charging technology for on-the-go charging has been in development for several years. When this technology matures, individuals will no longer need to charge their vehicles because they will charge themselves while in use. This technology is now prohibitively expensive, but it has the potential to be useful in the next decades. It is projected to have a big impact on the EV market because sales are expected to expand rapidly when this technology is used. Wireless EV charging will be available for stationary charging in 2022. In Norway, a trial of wireless on-the-go EV charging is underway, with the goal of catering to a 25-strong fleet of Jaguar I-pace taxis in Oslo and enabling charging. Further, Siemens and MAHLE announced in August 2022 that they would build a wireless inductive charging system that would wirelessly transfer electricity from an on-ground transmitter to a receiver installed under an EV.

Challenge: Lower availability of lithium for use in ELCVs batteries

Lithium and lithium-ion batteries are experiencing major shortages with the growth in ELCVs demand. The shortfall could lead to higher prices for lithium-ion batteries, which could make ELCVs and other lithium-ion battery-powered devices more expensive. It could also lead to shortages of lithium-ion batteries, which could delay the transition to a clean energy future. While top ELCVs manufacturers are planning to find other alternatives, and reduce usage of lithium, a viable similar cost option is yet to be found. This will lead to lithium prices rising in the coming decade. OEMs are also developing solid state battery technology, which will use less lithium for use and provide longer range per EV charge. This is a major challenge to the fast growth in ELCVs demand, especially in countries which do not have lithium deposits.

Market Ecosystem

The BEV segment to be the largest segment during the forecast period

A BEV is an electric vehicle that runs entirely on batteries. The vehicle is propelled by a permanent magnet motor that is powered by a battery mounted in the vehicle. BEVS have an average range of 150 to 200 miles, which varies depending on battery type and installation. The overall costs of BEVS are likely to reduce in the near future as battery technology advances and battery prices continue to fall by 2030. Furthermore, because electric motors have significantly fewer moving parts than conventional motors and are far more efficient, their maintenance costs are much lower. As of 2023, the typical range of BEVS is 150 to 250 miles and varies depending on battery type installation. BYD, Ford Motor Company, General Motors, Renault have variants in the BEV electric light commercial vehicle segment. In June 2022, Renault launched Master E-Tech Electric, equipped with a lithium-ionbattery of 52 kWh and motor capacity of 92 kW. Such development will drive the BEV segment in the forecast period.

Europe is the prominent market for electric light commercial vehicle during the forecast period.

Europe has stringent emission regulation standards, and governments of these countries are providing huge incentives to promote electric vehicles. As a result, the demand for electric vans has increased tremendously in the region. The region is home to major manufacturers of electric vans, such as Renault, Iveco, LEVC, and Fiat. Europe has set a goal of reducing 80% of CO2 emissions by 2050, as announced by the European Union, and has created a roadmap. In April 2021, DHL Express purchased 100 E-Ducato electric vans from Fiat to electrify its last mile deliveries in Europe. Moreover, the growing charging infrastructure due to the rising demand for EV fast-charging infrastructure and the increasing prevalence of range anxiety among EV users drive the electric light commercial vehicle market.

Key Market Players

The electric light commercial vehicle market is dominated by established players such as BYD (China), Ford Motor Company (US), General Motors (US) Mercedes-Benz (Germany), and Nissan Motor Co. Ltd. (Japan) and among others. These companies manufacture trains and develop new technologies. These companies have set up R&D facilities and offer best-in-class products to their customers.

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Scope of the Report

This research report categorizes the electric light commercial vehicle market based on vehicle Type, Propulsion Type, and Region.

Based on Vehicle Type:

• E-Pickup Trucks
• E-Vans

Based on Propulsion Type:

• BEV
• FCEV
• Diesel/Gasoline

Based on the region:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• North America
  • Canada
  • US
• Europe
  • Austria
  • France
  • Germany
  • The Netherlands
  • Norway
  • Sweden
  • Italy
  • Spain
  • UK
  • Others

Recent Developments

• In May 2022, General Motors announced the sale of Zevo 400 by 2023. It is a mid-sized electric van designed for short and frequent trips and has ADAS features. It also offers a range of 250 miles.
• In July 2022, Toyota Motor Corporation announced a partnership with Suzuki Motor Corporation, Daihatsu Motor Co., and Commercial Japan Partnership Technologies (CJPT) to build mini commercial electric vans.
• In June 2022, Renualt launched Master E-Tech Electric, equipped with a lithium-ion battery of 52 kWh and a motor capacity of 92 kW. It also offers a range of 126 miles.
• In June 2022, General Motors announced the supply of 150 Zevo 600 electric vans to FedEx out of 2,500 ordered Zevo 600 electric vans for delivery purposes.
• In March 2022, BYD and Shell announced the improvement of charging infrastructure for BEV and plug-in hybrid electric vehicle (PHEV) owners in China and Europe. The agreement will allow members access to 275,000 charging points through the Shell network.

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