The commercial electric vehicle market is experiencing significant growth. The success of the industry is majorly credited to the snowballing apprehensions about greenhouse gas emissions, decreasing cost and increasing operational efficiency of batteries, and also the numerous long-term benefits of commercial electric vehicles for the people all over the world.
APAC was the fastest and largest growing industry in the recent past and projected to continue its dominance in the coming years also. This is mainly due to the Chinese government’s initiative to increase their overall share of electric buses in the transportation system of the country, improving the operational efficiency of batteries, and reducing their prices.
The decreasing cost and better operational efficiency of batteries is the major contributor to the industrial growth in the region.
According to industry experts, the average price of Li-ion battery packs for large orders decreased from about $642/kWh in 2012 to about $209/kWh in 2017. As the battery costs over 40% of the electric vehicle manufacturing expanse, if the cost of the battery is low, then the manufacturers can decrease the cost of manufacturing which would increase their sales.
Electric trucks had a larger share in the past. The sales volume of electric trucks under the HDT category is projected to grow at the fastest rate in the coming years. Due to the snowballing freight demand throughout the world and significant financial development in China.
The commercial electric vehicle market in other parts is still in its emerging phase and majorly dependent on government policies.
The manufacturers of electric buses are few and, these buses are comparatively more expensive than gasoline or diesel-based engine buses, which in turn, has limited the sales of such vehicles in other regions.
Though, the manufacturers in other regions are doing heavy investments for the expansion of commercial EV industry, which indeed will contribute to the growth of the industry in the years to come.
Therefore, the decreasing cost and better operational efficiency of batteries and the increasing acceptance of commercial EVs in developing countries, and also supportive government norms will drive the demand for commercial electric vehicles in the future.
