Commercial Vehicle Electrification Market
Published Date : Jul 2024 | Forecast Year : 2019UP TO 30 % OFF
Single User License
10% OFF
Team License
15% OFF
Corporate License
30% OFF
Book before: 31st Mar 2024
Commercial Vehicle Electrification Market Size, Analysis, By Product Type (Starter Motor, Electric Oil Pump, Electric Fuel Pump, Alternator, Electric Water Pump, Actuators) By Vehicle Type (Internal Combustion Engine Vehicle, Plug-in Hybrid Electric Vehicle, Micro & Full Hybrid Vehicle) Trends Regional Outlook, and Forecast 2024-2032
| REPORT ATTRIBUTE | DETAILS |
|---|---|
| MARKET SIZE (2032) | USD 213.9 Billion |
| MARKET SIZE (2023) | USD 83.5 Billion |
| CAGR (2023-2029) | % |
| HISTORIC YEAR | 2019 |
| BASE YEAR | 2023 |
| FORECAST YEAR | 2032 |
| BY TYPE | Starter Motor Electric Oil Pump Electric Fuel Pump Alternator Electric Car Motors Electric Vacuum Pump Electric Water Pump Actuators Electric Power Steering and Start/Stop System |
| BY APPLICATION | Internal Combustion Engine Vehicle Plug-in Hybrid Electric Vehicle (PHEV) Micro & Full Hybrid Vehicle and Battery Electric Vehicle (BEV) |
| GEOGRAPHIC ANALYSIS | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| KEY PLAYERS | AISIN SEIKI Co., Ltd., CONTINENTAL AG, Delphi Technologies, Hitachi Automotive Systems, Ltd, Robert Bosch GmbH, FRIEDRICHSHAFEN AG, Denso Corporation, BorgWarner Inc, Magna International Inc, Johnson Electric Holdings Limited. |
The Global Commercial Vehicle Electrification Market size was estimated to be valued at USD 83.5 Billion in 2023 and is expected to reach at USD 213.9 Billion by 2032, exhibiting at a CAGR of 9.7 % during the forecast period. This report provides a deep insight into the Commercial Vehicle Electrification Market covering all its essential aspects. This ranges from a macro-overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc.
Commercial Vehicle Electrification Market Trends: Accelerating EV Adoption: Innovations, Infrastructure, and Policies Drive Growth in Electric Commercial Vehicles
- Major manufacturers are increasing the offer of electric cars in different weight classes, from light vehicles to heavy trucks, to meet different transport needs.
- Continued improvements in battery technology, including increased energy density and reduced cost, will increase the range, performance and affordability of electric commercial vehicles.
- Rapid expansion of charging infrastructure networks, including fast charging stations, along major transport routes and in urban areas to support the widespread adoption of electric commercial vehicles.
- Government policies and incentives aimed at reducing emissions and promoting adoption of electric vehicles, such as tax credits, subsidies and zero-emission mandates, are driving market growth.
- Fleet operators are increasingly adopting electric vehicles to lower operating costs, improve durability and meet emissions regulations.
- Integrating telematics systems and connectivity solutions into electric commercial vehicles to optimize fleet management, monitor vehicles and improve operational efficiency.
- Collaboration between car manufacturers, technology companies and energy providers to develop integrated solutions for electric vehicle, energy management and fleet electrification.
- Growing demand for electric commercial vehicles in urban areas for last mile delivery services due to trends in e-commerce and urbanization.
- Greater focus on total cost of ownership, including initial costs, maintenance costs and fuel economy, to justify investment in electric vehicles.
Market Growth Factors: Regulations and Incentives Propel Electric Commercial Vehicle Growth Amid Battery Advancements and Cost Benefits
- Strict emissions regulations worldwide force fleet managers and manufacturers to use electric cars to reduce their carbon footprint and comply with regulations.
- Continued improvements in battery technology, such as increased energy density, lower costs and longer life, make electric commercial vehicles more viable and attractive.
- Electric vehicles offer lower operating costs compared to conventional internal combustion engine vehicles, mainly due to lower costs of fuel and fleet maintenance and electrification.
- Various government incentives, subsidies, tax credits and subsidies aimed at promoting the adoption of electric vehicles are boosting the growth of the market.
- The rapid expansion of charging infrastructure, including fast charging stations and depot charging solutions, will alleviate range anxiety and support the adoption of electric commercial vehicles.
Restraints Factors: Cost, Infrastructure, and Technology Hurdles Impacting Fleet Electrification
- Electric vehicles, including commercial vehicles, usually have higher initial costs compared to conventional internal combustion engine vehicles, which can be a barrier for operators.
- Cabot range anxiety and charging infrastructure availability, especially for long-haul and heavy-duty vehicles, may prevent use in certain applications and regions.
- Ongoing challenges in battery technology, such as energy density limitations, charging times and durability, can affect the performance and reliability of EVs.
- lack of standardized charging protocols and infrastructure interoperability can complicate fleet management and increase the complexity of EV deployment.
- Uncertainty about future emissions regulations and policies can affect investment decisions and long-term planning for fleet electrification initiatives.
- The costs of installing and maintaining charging infrastructure, including upgrading power grids and facilities, can be significant, especially for large fleets and fleet operators with distributed operations.
- Concerns about the resale value and total life cycle costs of EVs compared to conventional vehicles can influence fleet purchase decisions.
Market Insights:
- The market for electrification of commercial vehicles is experiencing significant growth due to increasing regulatory pressure to reduce emissions, increasing fuel costs and advances in electric vehicle (EV) technology.
- Commercial vehicles, including trucks, buses and vans, are increasingly electrified to reduce operating costs and meet strict environmental regulations.
- The market is characterized by a compound annual growth rate (CAGR) that reflects strong growth as companies and governments around the world embrace electrification as a sustainable transportation solution.
- This change is supported by improvements in battery technology, expansion of charging infrastructure and government incentives to encourage the adoption of electric commercial vehicles. In addition, fleet operators are attracted by the lower maintenance costs and operational efficiency offered by electric motors, further boosting market growth.
Electronic Power Steering (EPS) Accounts for the Majority of the Market Share:
- The report includes detailed market segmentation and analysis based on product type. This includes starter motor, alternator, electric car motors, electric water pump, electric oil pump, electric vacuum pump, electric fuel pump, electric power steering, drives and start/stop system. According to the report, electric power steering (EPS) represented the largest segment.
- The electric power steering segment is driven by the growing demand for fuel-efficient and environmentally friendly vehicles, as electric power steering offers better energy efficiency than traditional hydraulic systems. In addition, advances in vehicle electrification and autonomous driving technology are driving the adoption of electric power steering as these systems seamlessly integrate with electrified and autonomous vehicle platforms to improve handling and maneuverability.
Competitive Landscape
Manufacturers are providing consumers with a diverse range of electric vehicles, including electric buses, light trucks, and passenger cars. Companies are diligently striving to launch innovative and technologically sophisticated products. Additionally, they are exploring strategic approaches such as mergers and acquisitions, partnerships, and collaborations to enhance their market presence.
Key Players:
- Aisin Seiki Co., Ltd. - Japan
- Tesla, Inc. - United States
- Continental AG - Germany
- BYD Auto Co., Ltd. - China
- Delphi Technologies - United Kingdom
- Hitachi Automotive Systems, Ltd. - Japan
- VDL Groep - Netherlands
- Rivian Automotive LLC - United States
- Chanje Energy Inc. - United States
- Robert Bosch GmbH - Germany
- ZF Friedrichshafen AG - Germany
- Cummins Inc. - United States
- Proterra Inc. - United States
- Denso Corporation - Japan
- BorgWarner Inc. - United States
- Daimler AG - Germany
- Magna International Inc. - Canada
- Wrightspeed Inc. - United States
- Foton Motor Group - China
- Lion Electric Company - Canada
- Mahindra & Mahindra Ltd. - India
- Johnson Electric Holdings Limited - Hong Kong
- Hino Motors Ltd. - Japan
- Scania AB - Sweden
- Navistar International Corporation - United States
- Nikola Motor Company - United States
- Tata Motors Limited - India
- Arrival Ltd. - United Kingdom
- Xpeng Inc. - China
- NFI Group Inc. – Canada
Key Development Factors:
- In June 2024, Tata Motors is planning to split its automotive business into two separate entities, one for commercial vehicles and another for passenger vehicles. Girish Wagh, Executive Director of Tata Motors, believes this move will make their commercial vehicle vertical more adaptable and allow them to seize opportunities worldwide.
- In April 2024, Rizon, a brand of Daimler Truck AG, introduced class 4-5 electric trucks in Canada. The company will offer four variants of its battery-electric trucks, including the e16L, e16M, e18L, and the e18M, with GVW ratings ranging from 7.25 tons to 8.55 tons.
- In April 2024, Daimler India's eCanter, a CO2-neutral all-electric truck, targets global markets by 2050, with an Indian launch in 6-12 months.
- In March 2024, China’s Clean-Truck Surprise Defies the EV Slowdown Narrative.
- In January 2024, Tesla, Inc. announced its plan to set up a factory in India and may invest USD 30 billion over the next 5 years.
- In January 2024, Dongfeng Motor Corporation (Dongfeng) and Huawei Technologies Co., Ltd. (Huawei) entered into a partnership to collaborate on Dongfeng’s Voyah brand of “new energy” vehicles. Through this partnership, Dongfeng will include various Huawei technologies in its vehicles, such as autonomous driving and infotainment software.
Market Segmentation Analysis
The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.
Commercial Vehicle Electrification Market Segments
By Product Type-
- Starter Motor
- Electric Oil Pump
- Electric Fuel Pump
- Alternator
- Electric Car Motors
- Electric Vacuum Pump
- Electric Water Pump
- Actuators
- Electric Power Steering
- Start/Stop System
By Application
- Transportation & Logistics
- Construction
- Mining
- Municipal Services
By Propulsion Type
- Battery Electric Vehicles (BEV)
- Hybrid Electric Vehicles (HEV)
- Plug-in Hybrid Electric Vehicles (PHEV)
- Fuel Cell Electric Vehicles (FCEV)
- Internal Combustion Engine Vehicle
- Micro & Full Hybrid Vehicle
By Vehicle Type
- Light Commercial Vehicles (LCVs)
- Vans
- Pick-up Trucks
- Vans
- Medium Commercial Vehicles (MCVs)
- Medium-duty Trucks
- Buses
- Medium-duty Trucks
- Heavy Commercial Vehicles (HCVs)
- Heavy-duty Trucks
- Coaches
- Heavy-duty Trucks
By Component
- Electric Motors
- Batteries
- Power Electronics
- Thermal Management Systems
- Charging Equipment
By Voltage
- 24V
- 48V
- 200-400V
- Above 400V
By Technology
- Regenerative Braking Systems
- E-drive Systems
- Battery Management Systems
- On-board Chargers
By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
Regional Analysis
- North America: Large economies like the United States and Canada are covered in this region.
- Europe: The European market includes countries such as Germany, UK, France, Italy, Russia, and others.
- Asia-Pacific: This region includes major economies like China, Japan, India, South Korea, Australia, and others.
- Latin America: Countries like Brazil, Argentina, Mexico and others are part of this region.
- Middle East and Africa: This region comprises economies from North Africa, GCC countries, South Africa and others.
- Eastern Europe: This region includes countries such as Poland, Russia, Ukraine and others.
The commercial vehicle electrification market is rapidly evolving, driven by the need for cleaner transportation solutions and advancements in electric vehicle (EV) technology. North America holds a significant market share, with the United States leading the charge due to strong regulatory support, substantial investments in EV infrastructure, and increasing adoption of electric trucks and vans by major logistics and transportation companies. Europe is also a key player, with countries like Germany, the UK, and France implementing stringent emissions regulations and offering incentives to accelerate the adoption of electric commercial vehicles. The Asia-Pacific region is experiencing notable growth, particularly in China, where government policies and subsidies are boosting the development and deployment of electric commercial vehicles. Technological innovations, such as advancements in battery technology and charging infrastructure, along with the growing emphasis on sustainability and reduced operating costs, are driving the expansion of the commercial vehicle electrification market. The sector is expected to continue its growth trajectory as manufacturers and fleet operators increasingly transition to electric solutions to meet regulatory requirements and environmental goals.
These geographic markets are analyzed in terms of the current scenario, growth outlook, and potential opportunities. The research is conducted by considering various aspects such as economic conditions, government policies, industrial development, competitive landscape, and consumer behavior in these regions.
FAQS:
1.How big is the Commercial Vehicle Electrification Market?
Ans: The Commercial Vehicle Electrification Market size valued at USD 213.9 Billion in and grow at a CAGR of 9.7 %
2.What is the current Commercial Vehicle Electrification Market size?
ANS: The Commercial Vehicle Electrification Market size is expected to be USD 83.5 Billion
3.Who are the key players in Commercial Vehicle Electrification Market?
Ans: AISIN SEIKI Co., Ltd., CONTINENTAL AG, Delphi Technologies, Hitachi Automotive Systems, Ltd, Robert Bosch gmbh, FRIEDRICHSHAFEN AG, Denso Corporation, borgwarner Inc, Magna International Inc, Johnson Electric Holdings Limited
4.Which is the fastest growing region in Commercial Vehicle Electrification Market?
Ans: Europe is estimated to grow at the highest CAGR over the forecast.
Commercial Vehicle Electrification Market - Global Outlook & Forecast -
License Type
SPEAK WITH OUR ANALYST
Want to know more about the report or any specific requirement?
WANT TO CUSTOMIZE THE REPORT?
Our Clients Speak
We asked them to research ‘ Equipment market’ all over the world, and their whole arrangement was helpful to us. Analytica.global insightful analysis and reports contributed to our current analysis and in creating a future strategy. Besides, the te
Yosuke Mitsui
Senior Associate Construction Equipment Sales & Marketing
We asked them to research ‘Equipment market’ all over the world, and their whole arrangement was helpful to us. Analytica.global insightful analysis and reports contributed to our current analysis and in creating a future strategy. Besides, the te
Yosuke Mitsui
Senior Associate Construction Equipment Sales & Marketing
Why choose us
Proactive
We manage our resources 24/7 to identify issues and address them before they become problems
Quality & Reliability
We are committed to providing reliable and highly accurate data with an excellent quality control system
Global Outreach
6 Major regions and 40+ countries level analysis accomplished
Competitive Pricing
Our pricing strategy is highly competitive in the market, without compensating on the quality and the timeline of project delivery
