Luton, Bedfordshire, United Kingdom, Dec. 07, 2022 (GLOBE NEWSWIRE) -- The global Electric Vehicles Market is expected to grow at 16.4% CAGR from 2022 to 2029. It is expected to reach above USD 628 billion by 2029 from USD 160 billion in 2020.
Electric Vehicle Market Overview:
Modern life cannot function without transportation, but the conventional combustion engine is quickly aging. Vehicles powered by gasoline or diesel are very polluting, and fully electric vehicles are quickly replacing them. Fully Electric Vehicles (EVs) are much better for the environment and produce no tailpipe emissions.
EVs are seen by supply chain organizations as more cost-effective options for last-mile logistics. EVs' straightforward design makes it easier to integrate modern technology for fleet tracking and optimization. Logistics expenditures for last-minute deliveries are reduced with proper tracking and optimization. For fleet operations, it is simple to keep track of important information regarding EVs and their batteries. The software and sensors in the electric car logistics can track information about the lifetime, battery health, charging, and discharging.
The exemption from the issuance and renewal of registration fees is a significant incentive for OEMs and potential EV purchasers. Everything comes down to a variety of practical electrified transportation options at the city level, including subsidies for purchases, exemptions from road tax and registration fees, and low-interest rates on loans.
The TCO (Total Cost of Ownership) of EVs is decreasing significantly as a result of the government's introduction of new legislation and the use of new technologies in the electric vehicle industry. The new battery-swapping method treats the batteries as a separate entity, allowing energy operators to own them. This approach adds to the upfront expense of EV use, especially for the intra-city logistics sector.
The efficiency and sustainability that EVs bring have sparked a lot of interest among supply chain businesses. Delivery fleets can be used with ease by all kinds of delivery companies for last-mile deliveries. It is assisting in accurately planning delivery routes and dispatches with fewer miles driven as it gradually gains popularity. The advantages for businesses also include minimal fuel use, low cost, and simple maintenance.
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Types of Electric Vehicles:
There are four types of Electric vehicles which are available in the market:
- Battery Electric Vehicles (BEVs)
- Hybrid Electric Vehicle (HEV)
- Plug-in Hybrid Electric Vehicle (PHEV)
- Fuel Cell Electric Vehicle (FCEV)
Benefits of Electric Vehicles:
- Lower running costs
- Lower Maintenance costs
- Zero Tailpipe Emissions
- Tax and financial benefits
- Convenience of charging
- No noise pollution
Types of electric vehicle batteries:
- Lithium-Ion (Li-On)
- Nickel-Metal Hybrid (NiMH)
- Solid State Batteries (SSB)
- Lead Acid
- Aluminum–Ion (AI-Ion)
- Ultracapacitors
Impact of Covid-19 on Electric Vehicles:
During the pandemic, the supply chain was hampered, as were logistics activities. However, due to the relaxation of restrictions, the electric vehicle market is expected to pick up speed in the post-pandemic scenario.
The pandemic's mild effect on the EV charging industry in early 2020 was a result of lockdowns. The need for EV charging stations increased in 2021 as a result of the increasing demand for the EV market during the pandemic due to incentives from governments around the world. However, the extraction of materials like steel, copper, and aluminum had been impacted by the COVID-19 pandemic. The cost of raw materials like copper continued to rise, reaching its highest level over the previous ten years.
Top EV producers, on the other hand, have sharply expanded their EV sales during the previous two years. For instance, Tesla fired staff in October 2020 as a result of declining sales. However, because of its earlier development into China, its overall revenue increased. The corporation did well in 2021 and COVID-19 had little of an effect on it. Due to Chinese lockdowns, its sales started to decline again in early 2022. This EV market was less affected by the pandemic due to the worldwide push by governments to phase out ICE vehicles.
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Regional Analysis:
- Asia Pacific:
The Asia-Pacific Electric Vehicle Market is expected to grow at a CAGR of 35% from 2022 to 2029.
The Asia Pacific market is dominated by China, with a CAGR of 56% Chinese commercial electric vehicle market is dominated by light and heavy commercial vehicles and Electric buses.
Indian Electric commercial vehicle market value stood at USD 5 billion in 2020, and it is predicted to reach USD 133.12 billion by 2029. This is a CAGR of more than 44% during 2021-2029.
The commercial vehicle segment accounted for the largest share of around 57% of the overall market in 2021. The growth of the segment can be attributed to the continued introduction of electric light-duty commercial trucks and electric buses in the country.
- Europe:
Europe’s electric commercial vehicle market stood at USD6,071.31 million in 2021 and is anticipated to grow at a CAGR of 25.12% in terms of value during the forecast period, owing to the increased rate of EV adoption by commercial fleet management companies and growing government focus on the implementation of electric buses.
As of 2021, 17 nations had made plans to phase out internal combustion engine vehicles by 2050 or set 100% zero-emission vehicle targets, according to the International Energy Agency. The first nation to enact this desire into law with a 2040 deadline was France in December 2019. The "Fit for 55" program, which aims to harmonize climate, energy, land use, transportation, and tax policies to cut net greenhouse gas emissions by at least 55% by 2030, was recently proposed by the European Union. Such incentive programs that are already in place and regulations that encourage consumers to purchase green vehicles are projected to propel the market at a quicker growth pace in the foreseeable future.
- North America:
The North American electric vehicles market size is to be valued at USD 218.01 billion by 2029 and is expected to grow at a CAGR of 37.2% during the forecast period.
From 2021 to 2029, it is predicted that the market for light trucks would grow at a CAGR of more than 35%. Additionally, several well-known manufacturers are concentrating on introducing electric cars in the light truck segment. Over the forecast period, the commercial vehicle market is anticipated to grow with a CAGR of more than 45% in terms of revenue. Some of the factors influencing the segment's growth include rising demand in the logistics industry, financial incentives to adopt zero-emission vehicles, and falling fuel and maintenance costs. Additionally, the strict pollution standards put in place for commercial vehicles are anticipated to encourage manufacturers to invest in the production of electric trucks.
Over 70% of global sales in 2020 came from the U.S., and it is predicted that this dominance will persist throughout the prediction period. From 2021 to 2029, Canada is expected to experience the largest CAGR in terms of revenue growth, reaching 40%.
- Middle East and Africa:
The Middle East and Africa electric vehicle market size is expected to grow at a CAGR of 28.9% during 2020-2029.
- South America:
The South America Electric Vehicles market was valued at USD 2.56 billion in 2021 and is anticipated to reach USD 19.16 billion by 2029, at a CAGR of 19.45% during the forecast period.
Sales of hybrid and electric cars rose in Brazil in 2021. Nearly 35,000 units were sold in the South American country that year, an increase of 77 percent from the previous year. The demand for low-emission vehicles, such as battery electric cars and hybrid electric vehicles, is constantly rising in Argentina.
Drivers: Reducing the cost of Electric Vehicles battery will help the market to flourish:
Due to technological breakthroughs and the mass production of EV batteries in vast quantities, the cost of EV batteries has been declining over the past ten years. As EV batteries are one of the most expensive parts of the car, this has resulted in a fall in the price of EVs. In China's electric vehicle industry, the cost of these batteries is as low as USD 100 per kWh. This is brought on by the lower cost of making these batteries, the lower cost of cathode materials, increased production, etc. By 2030, the cost of EV batteries is anticipated to drop to around USD 60 per kWh, which would result in a huge decrease in the cost of EVs, making them more affordable than traditional ICE vehicles.
Growing environmental concerns and rising government support to fuel the market growth:
Governments and environmental organizations all around the world are passing strict emission standards and legislation to minimize car emissions in response to growing environmental concerns. Strict emission objectives for the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) in the air are major regulatory actions. The United States is speeding up efforts to make transportation cleaner due to high levels of greenhouse gas emissions from vehicles.
Restraints: Charging time and Battery life of heavy commercial electric vehicles is slowing the logistical process:
Public refueling stations are becoming more and more in demand as EVs join the market. These days, there are two options when an EV's batteries run out; recharge them or replace them. There are two types of charging stations; rapid charging and slow charging. An EV can be quickly recharged in less than five minutes at a fast-refueling station, although the batteries' lifespan may be severely shortened by this kind of charging. A slow refueling station, on the other hand, requires more time to recharge an EV.
Vehicles must wait from 2 to 8 hours at slow Level 1 or Level 2 (110-240 V) charging stations before their batteries are fully charged. It takes 20 to 40 minutes to fully charge a battery at Level 3 (480 V) recharge stations. Therefore, a key issue impacting the public's acceptance of EVs has been the recharging time.
Opportunities: The market will be fueled by the development of wireless EV charging technology for on-the-go charging:
Over the past few years, wireless on-the-go charging technology has been developed. When this technology is more advanced, people won't need to charge their EVs because EVs should do it for themselves. Although this technology is now quite expensive, it might be used in the ensuing decades. As sales are anticipated to rise quickly when this technology is used, it is anticipated to have a substantial impact on the EV market.
Challenges:
The Logistics and Transportation issues that have been addressed thus far for conventional vehicles must be rethought and reformulated to take into account the new features of EVs because EVs differ from traditional ICEVs in a variety of ways. Unlike conventional vehicles, EVs require frequent refueling since their batteries have a limited range.
To select the appropriate size and mix of vehicles to utilize, businesses must also evaluate the impact of adding EVs to their fleet. As a result, the fleet's size and composition are also crucial to consider. Reviewing and describing how some of these factors have affected the L&T industry is the focus of the subsections that follow.
Key Competitors:
For corporate expansion, these key leaders are implementing strategic formulations such as new product development and commercialization, commercial expansion, and distribution agreements. Moreover, these participants are substantially spending on product development, which is fueling revenue generation.
Proterra, Inc., Zhengzhou Yutong Group Co., Ltd., BYD Co Ltd., VDL Group, B.V. NFI Group, Volvo Group, Nikola Corporation, Rivian Automotive, Inc., Workhorse Group Incorporated, Ebusco B.V., King Long United Automotive Industry Co., Ltd., Tesla, Nissan, BYD, Daimler, Proterra, LG Chem, Zhongtong Bus Holding Co Ltd, Panasonic, Delphi, ABB, Continental, Siemens, Mitsubishi Electric, Toshiba, Ballard Power Systems, BYD, Yutong, AB Volvo, VDL Group, CAF, Daimler Trucks, Chanje, Rivian, Workhorse.
Recent Developments:
-In November 2022, Cummins Inc and Tata Motors collaborate to offer solutions in hydrogen-powered commercial vehicle space.
-In October 2022, Uber back in the robotaxi game, inks a 10-year deal with Motional.
-In May 2022, Tata Motors doubles down on its plan to electrify commercial vehicles
-In March 2022, Tesla announced the opening of its Tesla Gigafactory in Texas. Gigafactory Texas is located near Austin and will manufacture Tesla Cybertruck, Tesla Semi, Model 3, and Model Y for the eastern United State market. The factory is the second-largest factory in terms of size in the U.S. and the second-largest in terms of volume
-In February 2022, Tesla plans to build a second electric vehicle (EV) facility in China to help it keep up with increasing demand both locally and in export markets. In the short-term, Tesla plans to increase capacity in China to at least 1 million cars per year, with a second plant planned near its present production in Shanghai's Lingang free trade zone.
-In June 2022, Volkswagen AG announced the operation of its North American Battery engineering laboratory in Chattanooga. The company invested USD 22 million in developing and constructing the new flagship facility and its main purpose is to test EV batteries and high-voltage engineering activities
-In January 2022, AB Volvo launched the enhanced version of Volvo VNR Electric with up to 85% increased range and faster charging.
-In December 2021, BYD launched an electric truck model, ETM 6. It is a 7.5-ton truck that offers a payload of 3,990 kilograms. The ETM 6 is 5.95 meters long, 2.10 meters wide, and 2.94 meters high.
-In December 2021, Yutong launched 90 new 5G-enabled Smart buses in Panjin, Liaoning Province, China, starting an era of 5G-enabled smart buses. This launch has helped improve road transport usage, eliminating environmental pollution and traffic congestion, and paving the way for the 5G smart rapid bus system.
-In September 2021, AB Volvo launched Volvo BZL Electric Chassis for sustainable and efficient public transport in cities worldwide and reliable and profitable operations for customers.
Key Questions Answered:
- What is the current size of the global electric commercial vehicle market?
- What is the growth rate of the electric commercial vehicle market during the forecast period?
- What is the Covid-19 impact on electric commercial vehicle manufacturers?
- What are the new market trends impacting the growth of the electric commercial vehicle market?
- What are the recent trends in the electric commercial vehicle market
- What are the major Drivers and Restraints of the electric commercial vehicle market?
- Which region dominates the electric commercial vehicle market?
- Which are the key competitors of the electric commercial vehicle market?
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