The global electric commercial vehicle market is projected to grow at a CAGR of 39.85 percent from 125,212 units in 2017 to reach 1,831,865 units by 2025. This is according to the latest report, “Electric Commercial Vehicle Market by Propulsion (BEV, HEV, PHEV & FCEV), Vehicle Type (Bus, Truck, Pick-Up Truck and Van), Component, Range, Autonomous Vehicle, Charging Infrastructure, and Region – Global Forecast to 2025,” from ResearchAndMarkets.
Policies and mandates to curb urban pollution and the subsequent demand for emissions-free vehicles, as well as electrified vans and trucks from the logistics industry, are the driving factors for this expected growth in the electric commercial vehicle market.
However, the small number of charging stations and high cost involved in the initial development of electric commercial vehicles are restraining factors for the electric commercial vehicle market, according to ResearchAndMarkets.
Government funds and incentive programs to encourage adoption of electric commercial vehicles such as public buses and electric trucks will be creating opportunities in upcoming years. On the other hand, factors such as limited battery power, longer charging duration and more environmentally friendly fuel products are creating challenges for electric commercial vehicle market.
The electric bus is estimated to hold the largest volume share of the global electric commercial vehicle market in 2017. This segment is estimated to grow with a significant CAGR and is expected to remain the largest market, in terms of volume, during the forecast period. The growth of this segment is driven by government regulations and mandates to adopt and implement electric buses in emerging economies like India and China as well as in developed economies such as France, Sweden and The Netherlands.
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