Electric Commercial Vehicle Market

Market Definition

The market includes battery-powered vans, trucks, and buses used for goods transportation and passenger services. It covers vehicle design, battery integration, powertrain engineering, and charging infrastructure. Key applications include logistics, municipal fleets, and urban mobility solutions. 

The market also supports innovations in fleet management and route optimization. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Electric Commercial Vehicle Market Overview

The global electric commercial vehicle market size was valued at USD 62.09 billion in 2024 and is projected to grow from USD 70.05 billion in 2025 to USD 177.01 billion by 2032, exhibiting a CAGR of 14.16% during the forecast period. 

Rising fuel prices and the increasing operating costs of internal combustion engine (ICE) vehicles are prompting fleet operators to adopt electric commercial vehicles. Additionally, the rapid expansion of e-commerce and rising demand for efficient last-mile delivery solutions are accelerating fleet electrification, fostering market growth.

Major companies operating in the electric commercial vehicle industry are BYD, Tesla, Daimler Truck AG, AB Volvo, Ford Motor Company, Workhorse, Rivian, PACCAR Inc., Orange EV, Nikola Corporation, General Motors, Yutong Bus Co., Ltd., TRATON GROUP, Volta Trucks, and Tata Motors Limited.

Market growth is influenced by government incentives, tax rebates, and regulatory mandates aimed at reducing vehicle emissions. Countries across Europe, North America, and Asia have introduced subsidies, purchase grants, and low-emission zones to support EV adoption. These measures help reduce upfront costs and create a favorable environment for fleet operators to transition to electric vehicles. propelling the expansion of the market globally.

• In March 2025, Singapore's Land Transport Authority introduced the Heavy Vehicle Zero Emissions Scheme (HVZES) and Electric Heavy Vehicle Charger Grant (EHVCG). These initiatives aim to support the decarbonization of heavy vehicles by reducing the cost gap between electric and conventional heavy vehicles.

Key Highlights

1. The electric commercial vehicle industry size was valued at USD 62.09 billion in 2024.
2. The market is projected to grow at a CAGR of 14.16% from 2025 to 2032.
3. Asia Pacific held a market share of 46.09% in 2024, with a valuation of USD 28.62 billion.
4. The buses & coaches segment garnered USD 23.90 billion in revenue in 2024.
5. The BEV (Battery Electric Vehicle) segment is expected to reach USD 132.26 billion by 2032.
6. The 151–300 miles segment secured the largest revenue share of 41.50% in 2024.
7. The solid-state is set to witness a robust CAGR of 17.13% through the forecast period.
8. The 60–120 kWh segment is expected to secure the largest revenue share of 28.87% in 2032 .
9. The public transport segment accounted for the largest revenue share of 37.27% in 2024.
10. North America is anticipated to grow at a CAGR of 14.12% over the forecast period.

Market Driver

Rising Fuel Prices and Operating Costs of ICE Vehicles

The electric commercial vehicle market is experiencing notable growth, mainly attributed to increasing fuel prices and high maintenance costs associated with internal combustion engine (ICE) vehicles. Electric trucks and vans offer lower running costs due to fewer moving parts and improved energy efficiency. 

Over time, their total cost of ownership is more favorable, particularly for high-usage applications such as urban delivery or freight. This financial advantage is promptong businesses to invest in electrified commercial fleets.

• In January 2025, EKA Mobility launched the EKA 7T, a 7-ton electric light commercial vehicle (LCV), at the Bharat Mobility Expo 2025. The EKA 7T features a range of up to 200 km, a peak torque of 1800 Nm, and fast charging capabilities, making it suitable for modern logistics needs. This zero-emission truck is designed to offer lower operational costs and align with sustainable transportation goals, providing an alternative to ICE vehicles with high fuel and maintenance expenses.

Market Challenge

Limited Charging Infrastructure for Commercial Fleets

A key challenge limiting the expansion of the electric commercial vehicle market is the insufficient charging infrastructure tailored to commercial fleet operations. Unlike passenger EVs, commercial vehicles require high-capacity, fast-charging stations to meet tight delivery schedules and long routes. The scarcity of such infrastructure facilities, particularly near logistics hubs and highways, hampers large-scale adoption.

To overcome this challenge, manufacturers and logistics firms are partnering with energy providers to build private depot charging stations. Some companies are also exploring mobile charging units and integrating charging network planning into fleet management systems to ensure operational continuity and efficient vehicle turnaround.

Market Trend

Expansion of E-Commerce

The rapid expansion of e-commerce is increasing demand for efficient last-mile delivery solutions. Electric vans and light-duty trucks are increasingly preferred due to their low operating cost, quiet operation, and suitability for dense urban routes. 

The rise in same-day delivery services and urban fulfillment centers is boosting the growth of the electric commercial vehicle market. This structural shift in retail logistics is fueling the adoption the electric commercial vehicles across urban and suburban regions.

• In February 2025, leading Indian truck manufacturers, including Tata Motors, Ashok Leyland, and Eicher Motors, along with startups such as EKA Mobility and Omega Seiki, announced collaborations with companies such as Amazon, Bisleri, and Amul to develop electric small commercial vehicles (e-SCVs). These partnerships target the growing demand for sustainable and cost-efficient solutions, particularly in the e-commerce and FMCG sectors.
• In January 2025, Montra Electric, the EV division of the Murugappa Group, launched two new electric commercial vehicles at the Bharat Mobility Global Expo 2025: the EVIATOR, an electric small commercial vehicle (e-SCV) with a certified range of 245 km, and the Super Cargo, an electric three-wheeler designed for urban cargo solutions.

Electric Commercial Vehicle Market Report Snapshot

Segmentation	Details
By Vehicle Type	Buses & Coaches, Vans, Pickup Trucks, Heavy-Duty Trucks, Medium-Duty Trucks
By Propulsion Type	BEV (Battery Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), HEV (Hybrid Electric Vehicle), FCEV (Fuel Cell Electric Vehicle)
By Range	151–300 Miles, >300 Miles, <150 Miles
By Battery Type	LFP (Lithium Iron Phosphate), NMC (Nickel Manganese Cobalt), Solid-State, Others
By Battery Capacity	60–120 kWh,  121–200 kWh, <60 kWh, 201–300 kWh,  301–1,000 kWh
By End User	Public Transport, Last-Mile Delivery, Long-Haul Transport, Distribution, and Field Services
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Vehicle Type (Buses & Coaches, Vans, Pickup Trucks, Heavy-Duty Trucks, and Medium-Duty Trucks): The buses & coaches segment earned USD 23.90 billion in 2024, due to high adoption in public transit systems, driven by government mandates, urban air quality targets, and consistent route patterns that support fleet electrification.
• By Propulsion Type (BEV (Battery Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), HEV (Hybrid Electric Vehicle), and FCEV (Fuel Cell Electric Vehicle)): The BEV (Battery Electric Vehicle) segment held a share of 74.90% in 2024, due to its lower operating costs, simpler powertrain design, and growing availability of models across key logistics and transit applications.
• By Range (151–300 Miles, >300 Miles, and <150 Miles): The 151–300 miles segment is projected to reach USD 74.88 billion by 2032, owing to its optimal balance between battery capacity and operational efficiency.
• By Battery Type (LFP (Lithium Iron Phosphate), NMC (Nickel Manganese Cobalt), Solid-State, and Others): The solid-state segment is set to grow at a robust CAGR of 17.13% through the forecast period, attributed to its higher energy density, improved safety, and longer lifecycle.
• By Battery Capacity (60–120 kWh, 121–200 kWh, <60 kWh, and 201–300 kWh): The 60–120 kWh segment is projected to reach USD 51.11 billion by 2032, owing to its optimal balance of cost, vehicle range, and payload capacity for urban and regional commercial applications.
• By End User (Public Transport, Last-Mile Delivery, Long-Haul Transport, Distribution, and Field Services): The public transport segment held a share of 37.27% in 2024, due to large-scale fleet electrification initiatives aimed at reducing urban emissions and improving operational efficiency in densely populated areas.

Electric Commercial Vehicle Market Regional Analysis

Based on region, the global electric commercial vehicle market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Asia-Pacific electric commercial vehicle market share stood at around 46.09% in 2024, valued at USD 28.62 billion. Governments across Asia Pacific are heavily supporting local manufacturing of electric commercial vehicles through incentives, subsidies, and localization targets. 

Programs that promote domestic battery production and electric drivetrain assembly are reducing costs and strengthening supply chains. This focus on regional production is enabling faster scaling and making EVs more accessible to logistics and transport businesses.

• In February 2024, Thailand approved a comprehensive incentive package to accelerate the adoption of electric commercial vehicles and bolster local manufacturing. The policy offers significant tax deductions for companies transitioning their fleets to battery electric vehicles, with deductions up to twice the vehicle's actual price for domestically produced EVs and 1.5 times for imported ones. Additionally, cash grants are provided to EV battery cell manufacturers, reinforcing Thailand's goal to become a regional EV manufacturing hub. These incentives, valid until December 2025, aim to convert 30% of  annual vehicle production to EVs by 2030.

Moreover, the rapid rise of e-commerce and food delivery platforms in the region is increasing demand for light electric commercial vehicles. Two-wheeler and three-wheeler EVs are being widely adopted for last-mile deliveries due to their lower costs and ease of use in dense urban traffic. Logistics companies are investing in dedicated electric fleets for city operations, which is bolstering regional market expansion.

• In May 2025, Komaki introduced the CAT 2.0 Eco electric scooter, targeting the commercial segment for last-mile delivery and utility purposes. Priced at ₹69,999, this scooter offers an economical and environmentally friendly transportation solution for businesses, addressing the increasing demand for efficient urban delivery vehicles.

The North America electric commercial vehicle industry is estimated to grow at a robust CAGR of 14.12% over the forecast period. This dominance is reinforced by increased investment in high-capacity charging stations designed for fleet depots, freight corridors, and industrial hubs. 

These commercial-grade charging systems support multiple vehicle classes, including medium- and heavy-duty trucks. Utilities and private players are collaborating to build grid-ready infrastructure tailored for logistics operations. This targeted investment in commercial charging networks is fostering regional market expansion.

• In April 2025, Greenlane, a joint venture of Daimler Truck North America, NextEra Energy Resources, and BlackRock, inaugurated its first high-capacity electric truck charging station in Colton, California. This facility, equipped with 41 chargers, is designed to accommodate medium- and heavy-duty electric trucks, marking a significant step toward establishing a nationwide charging network for commercial vehicles.

Regulatory Frameworks

• The United States regulates electric commercial vehicles through the Environmental Protection Agency’s (EPA) Greenhouse Gas Emissions Standards for heavy-duty vehicles, specifically Phase 3 for model years 2027–2032. California's Innovative Clean Transit rule mandates a full shift to zero-emission buses by 2040. Additionally, the National Highway Traffic Safety Administration (NHTSA) enforces Federal Motor Vehicle Safety Standards (FMVSS) to ensure performance and safety compliance across all commercial electric vehicle classes.
• The European Union enforces strict CO₂ Emission Standards for new heavy-duty vehicles, requiring a 15% reduction by 2025 and a 30% cut by 2030 compared to 2019 levels. The Alternative Fuels Infrastructure Regulation (AFIR) mandates EU-wide commercial EV charging deployment. Manufacturers must report emissions data under the Vehicle Energy Consumption Calculation Tool (VECTO). These coordinated regulations support cross-border adoption of electric commercial vehicles with unified safety and emissions benchmarks.
• China’s New Energy Vehicle (NEV) policy promotes electric commercial vehicles through purchase subsidies, registration privileges, and license plate exemptions. It enforces production quotas via a credit-based system. The Ministry of Industry and Information Technology enforces the GB/T standard to standardize EV charging protocols nationwide.
• Japan’s Green Growth Strategy targets full electrification of new commercial vehicle sales by the mid-2030s. The Ministry of Economy, Trade and Industry (METI) provides incentives for electric truck development, battery technology, and charging infrastructure. Vehicles must meet safety and efficiency benchmarks outlined in the Road Transport Vehicle Act. The policy also supports public-private partnerships for pilot projects involving electric logistics fleets in urban and industrial regions.

Competitive Landscape

Major players in the electric commercial vehicle industry are adopting strategies such as targeted product launches, platform diversification, and technology integration to meet the evolving demands of fleet operators and logistics providers. Companies are focusing on expanding their electric commercial vehicle portfolios across multiple categories such as heavy-duty trucks, city buses, and last-mile delivery vehicles. 

Moreover, they are increasing investments in research and development to improve battery efficiency, driving range, and vehicle performance. Expansion into new geographic markets and partnerships with fleet operators are being prioritized, accelerating the shift to clean transportation.

• In January 2025, Tata Motors unveiled six new electric commercial vehicles at the Auto Expo 2025, including the Prima E.55S heavy-duty truck, Ultra E.12 intermediate truck, Ultra EV 9 city bus, Intercity EV 2.0 intercity bus, Intra EV pickup, and Ace Pro EV mini truck. These vehicles cater to various segments such as urban logistics, intercity transport, and last-mile delivery, featuring ranges up to 400 km and advanced driver assistance systems.

List of Key Companies in Electric Commercial Vehicle Market:

• BYD
• Tesla
• Daimler Truck AG
• AB Volvo
• Ford Motor Company
• Workhorse
• Rivian
• PACCAR Inc.
• Orange EV
• Nikola Corporation
• General Motors
• Yutong Bus Co., Ltd.
• TRATON GROUP
• Volta Trucks
• Tata Motors Limited.

Recent Developments (Product Launches)

• In February 2025, BYD introduced four electric commercial vehicles in the UAE: the ETM6 and T5 light trucks, the ETH8 medium-duty truck, and the B12 electric bus. These vehicles are designed for urban logistics and public transportation, equipped with BYD's Blade Battery technology for enhanced safety and efficiency.
• In February 2025, Rivian expanded sales of its delivery vans to fleets of all sizes across the United States, expanding beyond its previous exclusive agreement with Amazon. This initiative addresses the growing demand for sustainable last-mile delivery solutions.
• In February 2025, Kia unveiled the PV5, a battery electric van based on its dedicated E-GMP.S platform, during the 2025 Kia EV Day in Spain. The PV5, intended for various applications, including passenger transport and cargo delivery, is slated for pre-orders in South Korea and Europe in the first half of 2025.
• In September 2024, Volvo Trucks announced the upcoming launch of its new long-range FH Aero Electric truck, capable of traveling up to 600 km on a single charge. Its innovative electric axle design enhances battery capacity and range, targeting long-haul freight operations.
• In September 2024, BYD unveiled the E-VALI, a pure-electric light commercial vehicle, at the IAA Transportation event in Hannover, Germany. Designed for the European market, the E-VALI features substantial cargo capacity and is equipped with BYD's Blade Battery technology for efficient last-mile delivery.
• In September 2023, Nikola Corporation commercially launched its hydrogen fuel cell electric truck at its manufacturing facility in Coolidge, Arizona. This launch marks Nikola's entry into the zero-emissions heavy-duty trucking sector, offering an alternative to battery-electric solutions.