Electric Van Market Size

Electric Van Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

ELECTRIC VANS The market for electric vans is growing at a rate of nearly 30 per cent a year, and by 2030 the value of the market is estimated to reach $US30.8 billion. The remarkable growth rate is a compound annual growth rate (CAGR) of 21.1 per cent. This is because of the growth in sustainable transport, which is being driven by the high cost of fuel, increased government regulation and the demand from consumers for eco-friendly vehicles. The improved range of electric vans and the reduction in charging times have also increased their appeal to businesses and logistics companies. The leading companies in the electric van market, including Mercedes-Benz, Ford and Tesla, are all investing heavily in research and development to improve their electric vans. Strategic initiatives, such as a partnership with a technology company to develop new batteries and a joint venture with a logistics company to integrate electric vans into their fleets, are becoming more common. Ford’s commitment to electrify its commercial vehicles and the ongoing development of the ‘Solar Truck’ and other electric models by Tesla are examples of this trend. The continued expansion of the electric van market is expected to be driven by both the demand from consumers and the regulatory support from governments.

Regional Market Size

Regional Deep Dive

The Electric Van Market is expected to grow significantly in the coming years, mainly driven by the increasing concern for the environment, the development of battery technology and supportive government policies. In North America, the market is characterized by a strong push for electrification in urban logistics and public transport, while Europe is leading in terms of regulations promoting zero-emission vehicles. The Asia-Pacific region is experiencing rapid growth due to urbanization and the growing focus on sustainable transport solutions. Each region has its own unique characteristics, which are influenced by local regulations, economic conditions and cultural attitudes towards the environment.

North America

• The Biden administration's commitment to the electrification of the federal fleet and the development of charging stations will inevitably boost the electric van market. Ford and GM will step up the production of electric commercial vehicles.
• The “advanced clean trucks” law of California, which requires that a certain percentage of trucks sold in the state be zero-emission vehicles, is pushing forward the adoption of electric trucks in the logistics industry.
• The battery of the electric car, like the one used by the Rivian and the Tesla, is improving, and the range and efficiency of the electric car are improving. The electric car is becoming more and more attractive to companies that want to reduce their operating costs.

Europe

• In Europe, the Green Deal is intended to make Europe the first climate-neutral continent by 2050. It includes a major investment in the charging network for electric vehicles and an incentive to take up electric vans.
• Germany and the Netherlands have a strict policy towards exhaust gas emissions. In these countries, Daimler and Volkswagen are at the forefront of the development of electric commercial vehicles.
• In the United Kingdom, the Electric Van Experience program is giving businesses the opportunity to test the electric vans and to test the range and performance.

Asia-Pacific

• The electric vehicle market is also growing rapidly in China, mainly driven by subsidies and the strong support for the use of electric vehicles in cities. Companies such as BYD and Nio are dominating the market.
• Under the FAME II scheme, the Indian government is promoting the use of electric vehicles, including electric vans. The Indian government hopes to promote the transition to electric mobility.
• The e-commerce boom in the Asia-Pacific region is boosting demand for electric vans, as companies such as Alibaba and Amazon.com are establishing electric delivery fleets to meet their green goals.

MEA

• A number of initiatives to promote electric vehicles in the transport and logistics industries have been developed as part of the Dubai Clean Energy Strategy 2050.
• The re-entry of the armed forces into the field, the re-organization of the military establishment and the re-organization of the public security establishment, the setting up of the Ministry of National Guard, the re-organization of the public security department, the re-organization of the security forces and the re-organization of the security
• Hence, the authorities are beginning to think of introducing regulations which would favour electric vans over those with internal combustion engines.

Latin America

• In Brazil, the use of electric vans is growing, supported by the government’s support and a growing network of charging stations. Moreover, manufacturers such as Volkswagen and Renault have introduced a number of models especially adapted to the local market.
• Among the measures adopted to combat climate change, the reduction of the emissions of greenhouse gases, has led to the introduction of public transport by electric vehicles, which are part of a wider strategy to combat climate change.
• Latin America is becoming more and more urbanized, and the demand for sustainable transport is growing. It is precisely in the final stages of the distribution chain that electric vehicles have an opportunity to establish themselves.

Did You Know?

“In 2022, electric vans accounted for approximately 10 percent of all commercial vehicle sales in Europe. This was a considerable increase from the two percent of 2019. This reflected the rapid development of electrification in the commercial vehicle sector.” — European Automobile Manufacturers Association (ACEA)

Segmental Market Size

The electric van market is experiencing significant growth, driven by an ever-increasing demand for sustainable transport solutions. The electric van segment plays a vital role in the overall electric vehicle market, especially in the commercial vehicle sector, where the goal is to reduce CO2 emissions and comply with stricter emissions regulations. The shift towards eco-friendly logistics and the resulting government incentives to promote the uptake of electric vehicles, such as tax credits and subsidies in Europe and North America, are the key drivers.

At the moment, the market is in a state of scaled-up implementation, with the leaders being Mercedes-Benz and Ford with their eSprinter and eTransit electric vans. The most important application is in the field of urban deliveries, where electric vans are used in the last-mile logistics of companies such as Amazon and DHL. These applications are supported by the introduction of zero-emission zones in cities, the development of battery technology and the growing importance of telematics and fleet management in the use of electric vans.

Future Outlook

The electric van market is expected to grow significantly from 2022 to 2030. The market value is expected to rise from $ 8.1 billion to $ 30.8 billion, at a CAGR of 21.0%. The increase in demand for sustainable transportation is driven by both consumer preferences and increasingly stringent government regulations aimed at reducing carbon emissions. By 2030, the share of electric vans in the total commercial vehicle market is expected to be 15–20%, which reflects a substantial shift towards electrification in the logistics and transportation industry.

There are some important technological developments that will play a key role in the growth of the market. These developments include the improvement of battery efficiency and the expansion of the charging network. As batteries become cheaper and more energy-dense, the range of electric vans will increase and fleet operators will be more inclined to adopt them. In addition, the favourable tax regimes and incentives offered to the purchase of electric vehicles will encourage the uptake of electric vans. Also, the integration of telematics and driverless technology will increase the operational efficiency of electric vans, thereby increasing their competitiveness.