United States Electric Commercial Vehicles Market

United States Electric Commercial Vehicles Market, By Vehicle Type (Electric Bus, Electric Truck (Medium and Heavy-Duty Trucks), Electric Pick-up Truck, Electric Van), By Power Output (Less Than 150 Kw, 150 - 250 Kw, Above 250 Kw), By Propulsion Type (Battery, Hybrid, Plug-in Hybrid, Fuel Cell), By Region (Northeast, Southwest, West, Southeast, Midwest) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: September 2021
  • Report ID: BWC1830
  • Available Format: PDF
  • Page: 119

Report Overview

United States (US) electric commercial vehicles market is characterized by the growing environmental sustainability movement, government subsidies for electric vehicle adoption, and the growing concern for carbon emissions caused by gasoline vehicles.

United States (US) Electric Commercial Vehicles Market- Industry Trends & Forecast Report 2027

United States electric commercial vehicles market is eyeing phenomenal growth. The market is likely to grow at a CAGR of 42.1% during the forecast period. The market for electric commercial vehicles in the United States is expected to rise as consumers become more aware of environmental concerns and carbon emissions from fuel vehicles. Additionally, government policies encouraging the use of electric vehicles via subsidies is also powering the growth of the United States electric commercial vehiclesmarket.Also contributing to the market growth are the increasing launches of electric commercial vehicles by leading EV manufacturers.

United States Electric Commercial Vehicles Market- Overview

Vehicles that run on electric power rather than gasoline or diesel are classified as electric commercial vehicles. The most common electric commercial vehicles operating on the roadways of the United States are buses, vans, trucks, agricultural vehicles such as combine harvesters or tractors, and construction machinery such as excavators. Electric commercial vehicles prove both cost-effective and environmentally friendly as they emit almost no carbon dioxide. Thus, manufacturing and production industries and other industries are increasingly moving towards electric commercial vehicles because of their low carbon emissions.

United States Electric Commercial Vehicles Market Forecast and Trends

Growth Drivers

Expanding Electric Commercial Vehicles Manufacturing and Production Activities

The US government is committed to cutting carbon emissions in the country, primarily through the use of fossil fuels in vehicles. Thus, it is taking adequate measures for expanding and promoting the production and manufacturing of commercial electric vehicles to increase its share in the commercial market. Additionally, manufacturers of EVs are also releasing newer models with improved battery life and technology. For instance, Electric Last Mile Solutions, Inc. (a Michigan-basedpurely commercialElectric Vehicle company) announced the completion of structural confirmation impact tests for its Urban Delivery, commercial Class 1 battery-electric vans in March 2021.

Technological Advancements in Electric Commercial Vehicles

Electric commercial vehicle manufacturers invest significantly in R&D activities to innovate their products and expand their product lines. Their primary focus is on improving the vehicles’ battery life, which is the leading cause of concern in the commercial application of EVs. Such innovations play a crucial role in increasing the EV penetration in the industry, propelling the market growth. For instance, Ballard, a global leader in fuel cell technology, and Quantron AG recently partnered to develop hydrogen fuel cell electric trucks.

Restraints

High Initial Cost and Investment

The manufacturing of commercial electricvehicles involves heavy investment because of the expensive components and technologies such as lithium-ion batteries, monitoring systems, etc. This high capital investment acts as a major restraining factor for the growth of the United States electric commercial vehicles market. In addition, the high cost of infrastructure restricts the manufacture of commercial electric vehicles, so operations are concentrated among leading EV manufacturers only. Small manufacturers either have to depend on government subsidies or private funding.

Impact of COVID-19 on the United States (US) Electric Commercial Vehicles Market

The USA was adversely affected by the sudden outbreak of the COVID-19 virus and the global pandemic. With the surging COVID-19 cases, the government had to impose a lockdown to curb the spread of the deadly virus. The lockdown caused restrictions on mobility as well as production and manufacturing activities. Due to this, the demand for electric commercial vehicles dropped significantly in the United States market. However, the United States electric commercial vehicles market is likely to recover soon and flourish in the post-COVID-19 period.

United States (US) Electric Commercial Vehicles Market - By Vehicle Type

Based on vehicle types, the United States electric commercial vehicles market is segmented into electric buses, electric trucks (medium and heavy-duty trucks), electric pick-up trucks, and electric vans. Due to its widespread use in the logistics sector, electric vans account for the largest market share. As more and more manufacturing and production companies demand electric vans to operate inside their facilities, they prove to be a cost-effective option. Additionally, electric vans are widely used for shipping and delivery, which further propels its market growth.

United States (US) Electric Commercial Vehicles Market - By Power Output

Based on power output, the United States electric commercial vehicles market is segmented into less than 150 kW, 150 - 250 kW, above 250 kW. Among these, the less than 150 kW segment accounts for the largest market share because of the prominence of level 1, 2, and 3 charging stations. The level 3 charging station offers fast charging and might deliver up to 50 kW. Such power output is doable for heavy-duty electric commercial vehicles such as buses, and trucks.

United States (US) Electric Commercial Vehicles Market - By Propulsion Type

The United States electric commercial vehicles market is segmented into the battery, hybrid, plug-in hybrid, and fuel cell-based on propulsion types. The demand for battery-powered electric commercial vehicles accounts for the largest market share and is likely to maintain its dominance even during the forecast period. Among the reasons for this segment's growth is that battery-powered vehicles run exclusively on electricity. Therefore, their carbon emissions are almost nil. Furthermore, the battery types also prove cost-effective as they do not consume fossil fuels such as petrol and diesel, allowing vehicle owners to save money.

United States Electric Commercial Vehicles Market - Regional Insights

Geographically, the United States electric commercial vehicles market is segmented into Northeast, Southwest, West, Southeast, and Midwest. Among these. the Southwest region dominates the United States electric commercial vehicles market, with Oklahoma and California having the highest demand for electric commercial vehicles in the United States market. The market is driven by an increased number of electric charging stations and low electricity rates. The demand for electric commercial vehicles is also flourishing in other cities like Washington, South Dakota, Colorado, etc., propelling the overall market growth.

Competitive Landscape

The leading players in the United States electric commercial vehicles market are Tesla, BYD Company Ltd., Volkswagen AG, Daimler AG, Nissan Motor Company, Ford Motor Company, Toyota Motor Corporation, Lucid, Mitsubishi Motors Corporation, General Motors Company, and other prominent players.

The United States electric commercial vehicles market is highly consolidated and concentrated with leading players such as Tesla, Toyota Motor Corporation, etc. The companies offer a wide range of commercial vehicles to grab a larger share in the market. In addition, they are investing heavily in research and development to develop improved battery technology for electric vehicles. Furthermore, the adoption of competitive strategies like mergers, collaborations, partnerships, acquisitions, etc., is also very prominent in this market.

Recent Developments

  1. In September 2021, Southern California Gas Co., and Hyzon Motors Inc., a hydrogen fuel cell-powered commercial vehicles manufacturer, announced their partnership to support SoCalGas’s NetZero 2045 climate commitment, where the Hyzon will deliver a Class 3 commercial service body utility truck to SoCalGas.
  2. In August 2021, the Siemens Corporation announced plans to expand its EV infrastructure manufacturing operations with its VersiCharge Level 2 AC charger line for commercial and residential use.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Market Coverage

Northeast, Southwest, West, Southeast, Midwest

Product Service/Segmentation

By Vehicle Type, By Power Output, By Propulsion Type, By Region

Key Players

Tesla, BYD Company Ltd., Volkswagen AG, Daimler AG, Nissan Motor Company, Ford Motor Company, Toyota Motor Corporation, Lucid, Mitsubishi Motors Corporation, General Motors Company, and other prominent players

 

By Vehicle Type

  • Electric Bus
  • Electric Truck (Medium and Heavy-Duty Trucks)
  • Electric Pick-up Truck
  • Electric Van

By Power Output

  • Less Than 150 Kw
  • 150 - 250 Kw
  • Above 250 Kw

By Propulsion Type

  • Battery
  • Hybrid
  • Plug-in Hybrid
  • Fuel Cell

By Region

  • Northeast
  • Southwest
  • West
  • Southeast
  • Midwest

Frequently Asked Questions:

Ans: United States electric commercial vehicles market is growing at the CAGR of 42.1%.
Ans: The major factors driving the growth of the United States electric commercial vehicles market are; expanding electric commercial vehicles manufacturing and production activities and technological advancements in electric commercial vehicles.
Ans: The key players in the United States electric commercial vehicles market are: Tesla, BYD Company Ltd., Volkswagen AG, Daimler AG, Nissan Motor Company, Ford Motor Company, Toyota Motor Corporation, Lucid, Mitsubishi Motors Corporation, General Motors Company, and other prominent players.
Ans: The electric van segment accounted for the largest share in the United States electric commercial vehicles market in 2020.
Ans: Southwest region has the largest share in the United States electric commercial vehicles market.