It is anticipated that South Korea and Japan will invest heavily in the creation of the infrastructure required, such as charging stations, to support market growth
The global Electric Commercial Vehicle market size is projected to reach $1,78,560 million by 2026, from $1,10,540 Million in 2020, at a CAGR of 8.3 per cent during 2021-2026. Major factors driving the growth of the Electric Commercial Vehicle Market size are increasing electrification of public transport fleets, stringent government regulations, and advancements in battery pack technologies and electric power trains.
“Asia-Pacific is expected to witness the highest growth during the forecast period. This rapid growth of the region is attributed to the growing need to reduce the level of pollution. Moreover, it is anticipated that South Korea and Japan will invest heavily in the creation of the infrastructure required, such as charging stations, to support market growth,” read a latest research by Valuates Reports.
What’s driving the commercial EV trend
Increasing demand for emission-free commercial vehicles and the rising adoption of electric vehicles in the logistics industry is expected to drive the growth of the electric commercial vehicle market size. Several governments around the globe have initiated programs, such as the use of electric buses and vans, to make their urban public transit system more sustainable and fuel-efficient. The introduction of electric buses is expected to transform public transit by improving air quality, lowering noise levels, and rising fuel efficiency. The growing stringency of emission standards in many countries has forced manufacturers to implement electrical technology.
Factors such as an increase in emissions and environmental risks, strict government legislation, and tough competition have driven automotive OEMs to make cars fuel-efficient and environmentally sustainable. In this pursuit, automotive OEMs and component manufacturers are finding ways to build and design commercial vehicles that can meet both fuel efficiency and vehicle emissions requirements. This in turn is expected to drive the growth of the Electric Commercial Vehicle Market size.
North America is expected to hold the largest Electric Commercial Vehicle market share during the forecast period. North America is a fast-growing market for electric commercial vehicles. Europe is also expected to see significant growth during the forecast period due to government incentives and the presence of supporting infrastructures, such as free charging stations.