ID: MRFR/AM/9352-HCR | 100 Pages | Published By Swapnil Palwe on April 2023
Electric Van Market Size was valued at USD 6.7 billion in 2021. The electric van market industry is projected to grow from USD 8.1 billion in 2022 to USD 30.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 21.00% during the forecast period (2022 - 2030). Increased government measures to promote e-mobility, falling prices for electric vehicle batteries, and rising demand for emission-free, high-performance electric van are the main market drivers for growth worldwide.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Growing demand for high-performance and emission-free electric vans to propel the market growth
Since gasoline is a fossil fuel, it is not a sustainable energy source and will eventually run out. To enable sustainable growth, alternative fuel sources must be created and used. Electric van is employed, which are more cost-effective than traditional vans and do not require gasoline. While gas-powered vans can only convert roughly 17–21% of the energy stored in gasoline, electric van can convert more than 50% of the electrical energy from the grid into electricity at the wheels. Due to growing gas and diesel oil prices in recent years, there has been a surge in demand for emission-free electric vans. Additionally, the transport industry is responsible for around a quarter of all greenhouse gas (GHG) emissions, according to the United Nations Environment Program (UNEP). As a result, many governments throughout the world have started initiatives to deploy electric van to improve the sustainability of their urban transportation system. In the following years, it's anticipated that the introduction of electric van would transform mass transit systems all over the world. As a result, the market is expected to rise at a faster rate during the forecast period due to rising demand for emission-free, high-performance electric vans. Thus, this factor is driving the market CAGR.
Furthermore, over the past ten years, the price of electric vehicle batteries has decreased as a result of technological improvements and widespread battery manufacture. Due to the fact that batteries account for nearly 30% to 40% of the overall cost of electric vans, this has caused the price of electric van to decrease. For example, the cost of an electric vehicle battery in 2010 was approximately $1,100 per kWh. A research claims that by 2020, the cost of an electric vehicle battery will have dropped to about $137 per kWh, while in China, the cost is only $100 per kWh. This is attributable to improvements in battery technology as well as lower battery manufacturing costs, cheaper cathode material prices, and higher production volumes. By 2030, the cost of electric vehicle batteries is anticipated to drop to about $40–60 per kWh, which will significantly lower its price and bring their cost closer to that of standard gasoline-powered vans. In the not-too-distant future, this will result in widespread use of electric vehicles due to the rising need for low-pollution transportation.
Additionally, globally, governments are putting pressure on automakers to invest in the development of electric van and reduce CO2 emissions from the use of diesel fuel. The creation of electric battery vehicles has been encouraged by the government through various programmes and plans, which is anticipated to fuel market expansion. Thus, governments worldwide offer tax breaks and other incentives to encourage the purchase of electric vehicles. Some national governments have made electric vehicles free from paying tolls on the highways. For instance, the Indian government intends to lower the Goods and Services Tax (GST) on electric vehicles from 12% to 5% in order to hasten the adoption of electric vehicles. The governments are contemplating a complete transition from conventional vans to electric van due to strict emission rules. For instance, the UK government declared in November 2020 that all brand-new gasoline and diesel cars and vans will be phased out by 2030 and that the entire fleet of government cars and vans would be 100% zero emission vehicles by 2027. Thusff, it is anticipated that this aspect will accelerate electric van market revenue globally.
The electric van market segmentation has been segmented by propulsion type into Battery Electric Vehicles, Hybrid Electric Vehicles, Fuel Cell Electric Vehicles and Plug-in Hybrid Electric Vehicles. The battery electric vehicles segment dominated the electric van market data in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Due to its advantages, such as zero emissions and no pollution, the battery electric van is in high demand, and as a result, this market is anticipated to develop at the greatest CAGR throughout the forecast period. During the projection period, this will be the primary driver of market expansion for battery worldwide.
The electric van market segmentation, based on vehicle type, Short And Mid-range Electric Vans and Long-range Electric Vans. The short and mid-range electric vans segment dominated the electric van market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030 due to rising usage of limited range electric vans by end-users, notably in last-mile deliveries. Small-size vans are included in this segment; they are crucial for intercity or intracity freight transportation. Because these vehicles are reasonably priced and economical, this market segment is anticipated to rise in terms of revenue throughout the forecast period.
Figure 2: Electric Van Market by Vehicle Type, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on charging type, the electric van market data, based on charging type, Normal Charging and Fast Charging. The normal charging segment dominated the electric van market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. These chargers are the most widely used ones on the market. The power output ranges from 3 kW to 6 kW, and the vehicle will charge in between 8 and 12 hours. The electric van needs to be charged fully over night.
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific electric van market accounted for USD 2.8 billion in 2021 and is expected to exhibit a 42.30% CAGR during the study period. Governments in the Asia Pacific area have adopted a variety of actions to entice major OEMs to enter their domestic markets as a result of their recognition of the automobile sector's growth potential. A number of European and American automakers, including Volkswagen (Germany), Mercedes-Benz (Germany), and General Motors (US), have relocated their manufacturing facilities to developing nations. Thus, the market will expand.
Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: ELECTRIC VAN MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe electric van market is expected to grow at a significant CAGR from 2022 to 2030 because they have been widely adopted in nations including Norway, Sweden, the Netherlands, Germany, France, and the UK. During the projected period, market expansion in this region is anticipated to be fueled by increasing demand for high-performance and low-emission automobiles as well as supportive government policies and regulations regulating vehicle emissions. Moreover, Germany electric van market held the largest market share, and the UK electric van market was the fastest-growing market in this region.
North America electric van market accounts for the second-fastest growing market share because of the U.S.'s growing demand for electric vans. Additionally, a non-profit organisation called Electrify America, which promotes the use of electric vehicles, declared plans to invest $200,000 in California in 2018. As a result, it is anticipated that over the projection period, demand for electric vans in North America will increase. Further, the US electric van market held the largest market share, and the Canada electric van market was the fastest-growing market in the region
Major market players are spending a lot on R&D to increase their product lines, which will help the electric van industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.
One of the primary business strategies manufacturers adopt in the electric van industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, electric van industry has provided medicine with some of the most significant benefits. The electric van market major player such as Tesla Inc, Mercedes-Benz Group AG, BYD Company Ltd, General Motors, Toyota Motor Corporation, Hyundai Motor Company, Honda Motor Company Ltd., Nissan Motor Co. ltd, Volkswagen AG and Stellantis N.V.
The vehicle division of the publicly traded Chinese multinational manufacturer BYD Company, with its headquarters in Xi'an, Shaanxi Province, China, is known as BYD Auto Co., Ltd. In October 2021, with a load capacity of 780 kg and a driving range of 275 km, BYD introduced the ETP3 Panel Van. It also has a 44.9 kWh battery, an electric motor rated at 35 kW, and a top speed of 100 km/h.
Toyota Motor Corporation is a Japanese automaker with its main offices in Toyota City, Aichi, Japan. Kiichiro Toyoda established it, and it became a corporation on August 28, 1937. One of the biggest automakers in the world, Toyota produces around 10 million automobiles annually. In April 2021, the Proace Electric van, which has a battery capacity of 75 kWh and a range of 175 km, was introduced by Toyota Motor Corporation.
February 2022: The MG 4, an electric vehicle that MG Motors intends to introduce in India later in 2022, was on show. The EV will have a 61.1 kWh battery pack and should have a range of roughly 400 km.
October 2020: To establish a new company dedicated to the development of commercial BEVs, Hino Motors, Ltd. (Hino) and BYD Firm Ltd. inked a joint venture agreement.
|Market Size 2021||USD 6.7 Billion|
|Market Size 2022||USD 8.1 Billion|
|Market Size 2030||USD 30.8 Billion|
|Compound Annual Growth Rate (CAGR)||21.00% (2022-2030)|
|Historical Data||2018 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Propulsion Type, Vehicle Type, Charging Type and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Tesla Inc, Mercedes-Benz Group AG, BYD Company Ltd, General Motors, Toyota Motor Corporation, Hyundai Motor Company, Honda Motor Company Ltd., Nissan Motor Co. ltd, Volkswagen AG and Stellantis N.V.|
|Key Market Opportunities||Decreased price of electric vehicle batteries as a result of technological improvements|
|Key Market Dynamics||Rising demand for emission-free, high-performance electric vans Governments initiatives to reduce CO2 emissions|
The electric van market size was expected to be USD 6.7 billion in 2021.
The market is expected to register a CAGR of ~21.00 % over the next ten years.
Asia Pacific held the largest market share in the electric van market.
Tesla Inc, Mercedes-Benz Group AG, BYD Company Ltd, General Motors, Toyota Motor Corporation, Hyundai Motor Company, Honda Motor Company Ltd., Nissan Motor Co. ltd, Volkswagen AG and Stellantis N.V. are the key players in the electric van market.
The battery electric vehicle category led the segment in the electric van market.
The short and mid range electric van category had the largest market share in the market.