Electric Van Market Size, Share & Industry Analysis, By Propulsion Type (Battery Electric Vehicle (BEV) and Hybrid Vehicle (HEV)), By Range (Up to 100 Miles, 100-200 Miles, and Above 200 Miles), By Battery Capacity (Up to 50 kWh and Above 50 kWh), By Component (Traction Battery Pack, Powertrain, and Others (Thermal System, Body & Chassis, Braking, Wheels & Suspension System)) and Regional Forecast, 2024– 2032

The global electric van market size was valued at USD 29.65 billion in 2023. The market is projected to grow from USD 52.62 billion in 2024 to USD 140.77 billion by 2032, exhibiting a CAGR of 13.1% during the forecast period.

The battery electric van runs on electric energy powered by the motor; the vehicle does not emit exhaust gas. The e-van consists of a large lithium-ion battery pack and a high-capacity motor for driving. The output from the lithium-ion battery is DC, but the drive motor of electric vehicles is an AC motor. Therefore, an inverter that converts the DC into three-phase AC must also be installed. Some electric vans have petrol engines and are referred to as hybrid vehicles. In a hybrid vehicle, the engine can be used to drive the vehicle when the battery charge is depleted, or the battery can be saved for town and city driving.

This market is driven by increasing demand and adoption of E-van for commercial purposes. These electric vehicles are extensively used in various industries such as logistics, e-commerce, and public transportation; thus, increasing logistics and e-commerce activities will drive the market during the forecast period 2024-2032.

Registration and sales of electric vans increased in 2020 compared to 2019, owing to a rise in home deliveries during the COVID-19 pandemic, fostering the market growth. Furthermore, the pandemic accelerated the rise of e-commerce, with traditional automakers and startups racing to produce electric delivery vehicles with increased mileage and features.

Electric Van Market Trends

Rising Demand for Electric Vans for Delivery Application is the Ongoing Trend of the Market

Over the last few years, the electric vehicle industry has seen growth in the commercial vehicle segment, including heavy-duty trucks, semi-trucks, delivery vans, and other commercial vehicles. E-van are used across various industries, such as automobiles, food, and beverages, agriculture, and healthcare. These vans have a virtual role in sustainably distributing supplies and parcels to their final delivery addresses, transporting large items and heavier payloads. Due to the lower running cost of electric vehicles, many organizations are focusing on adopting electric vehicles, which will help grow the transportation business. This adoption of such vans will boost the market growth. For instance, in October 2022, Amazon announced it would spend USD 1.07 billion to electrify its delivery fleet in Europe over the next few years. The company has around 3,000 electric last-mile delivery vans in Europe. This investment will allow the company to grow to 10,000 vans across Europe by 2025. Moreover, this development will drive the market growth during the forecast period. Similarly, in December 2022, Ford Pro signed a Memorandum of Understanding (MOU) with Germany to accelerate the development of evans used for logistics operations worldwide. According to the MOU, Ford Pro will be equipped with 2,000 electric delivery vans worldwide by the end of 2023.

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Electric Van Market Growth Factors

Rising Adoption of Electric Van Owing to Better Performance & Emission Free Benefits Will Drive Market Growth

The growth of electric vans is increasing due to their low cost of transportation, environmental friendliness, and lower maintenance costs compared to ICE vehicles. These vans, which include various propulsion types, such as Battery Electric Vehicles (BEVs) and Hybrid Electric Vehicles (HEVs), are gradually penetrating the global market. There has been continuous growth in the sales of new electric vans annually, from 1,600 in 2010 to about 185,900 units in 2021. Also, advancement in electric vehicles technologies, such as monitoring systems and improved vehicle connectivity systems, are driving the market.

Further, companies focus on delivering better and more efficient propulsion systems for improved vans to contribute significantly market growth. For instance, in October 2023, Hon Hai Technology Group (“Foxconn”) introduced its exceptional, practical, and cutting-edge electric cargo van, which is part of an unprecedented line-up of technologies showcasing the contract design and manufacturing service (CDMS). The company displayed a remarkable range of high-end sedans, passenger crossovers, SUVs, compact pick-ups, commercial buses, and commercial vans. Such developments are anticipated to drive the market growth.

RESTRAINING FACTORS

High Costs, Lower Speed, and Battery Range Hamper the Market Growth

Vans are considered electric commercial vehicle categories with higher costs than ICE vehicles. The cost is heavily affected by battery and transmission units. The cost of components is also affected by the driving range of electric type of vans. The average range of these vehicles is between 100 and 300 miles due to lower battery density. This factor may hamper the growth of the market. The manufacturer focuses on the development of vans, which will help reduce manufacturing and purchase costs and increase the driving range of battery powered vans. For instance, in 2021, General Motors introduced a new business, BrightDrop, which will deliver an ecosystem of electric first-to-last-mile products, services, and software to empower delivery and logistics organizations to move goods more efficiently. The BrightDrop van is lightweight and purpose-built for the efficient delivery of goods and services, with a payload capacity of 2,200 pounds. The cost of raw materials for electric vehicles increased during the COVID-19 pandemic. The OEMs such as General Motors and Tesla and startups, such as Lucid and Rivian, significantly raise prices on new vehicles. EV-specific costs have increased to USD 4,500 from roughly USD 2,000 in the past two years.

Electric Van Market Segmentation Analysis

By Propulsion Type Analysis

Battery Electric Vehicle (BEV) to Hold Larger Share Backed by its Advantages

Based on propulsion type, the market is divided into Battery Electric Vehicle (BEV) and Hybrid Vehicle (HV). The battery electric vehicle segment is expected to hold a larger market share and continue to grow further due to the vast advantages of an electric vehicle. The major benefits of an electric vehicle include zero pollution emissions, low maintenance, and low cost of running. Major countries are focusing on developing infrastructure to charge electric vehicles. In January 2023, Mercedes-Benz planned to invest billions of euros to build 10,000 fast-charging points in North America, Europe, and China by 2030; this development of charging infrastructure will boost segmental growth during the forecast period.

Hybrid vehicles act as a preferred alternative to pure electric vehicles. These offer numerous benefits, such as zero-emission when driving on batteries, fuel efficiency in traffic, ease of driving, cheap to run if doing regular 10-15 mile commutes, and tax efficiency. These factors are expected to boost the hybrid vehicle segment growth during the forecast period.

By Range Analysis

100-200 Miles Segment to Grow Significantly by Rising Number of Transportation

Based on range, the market is categorized into up to 100 miles, 100-200 miles, and above 200 miles. Generally, logistics & transportation companies, such as MAERSK, Pitney Bowes, XPO, FedEx Express, DHL Supply Chain, and others, are increasingly focusing on switching to electric vehicles for delivery purposes to reduce their carbon emissions. Thus, the 100-200 miles segment held a larger market share.

The above 200 miles segment is projected to grow fastest during the forecast period. Kay players announced that they are in the process of improving the technology and range of vehicles, and the use of battery powered vans in the logistics industry is expected to grow in the forecast years. The up to 100 miles segment holds the third largest share in the market.

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By Battery Capacity Analysis

Above 50 kWh Dominates Market Due to Increasing Development in Electric Van

Based on battery capacity, the market is segmented into up to 50 kWh and above 50 kWh. As different types of vehicles provide a longer driving range, which is an important consideration for many consumers, the above 50kWh segment holds the largest share. E-vans with battery capacities of 50 kWh can typically travel farther on a single charge than smaller ones, making them more convenient for long-distance driving. The battery's size and weight are important factors in determining an electric vehicle's overall performance; larger battery capacities are generally associated with better performance and acceleration. During the forecast period, such a benefit from larger capacity batteries drives segmental growth.

The up to 50 kWh segment holds the second largest market share. The segment offers a well-balanced cost, a good driving range, and better performance. These vehicles are more affordable than those with larger battery capacities, which drives segmental growth during the forecast period.

By Component Analysis

Traction Battery Pack Dominates Market Due to Increased Demand and Sale of Pure Electric Vehicles Worldwide

Based on component, the market is divided into traction battery pack, powertrain, and others (thermal system, body & chassis, braking, wheels & suspension system). The traction battery pack segment holds the largest share due to its cost and application in battery powered vans. While the cost of the traction battery pack has come down significantly in recent years, they are still more expensive than others. The key manufacturers are focused on the development of traction batteries which help to increase performance as well as reduce the cost of the traction battery pack. This development drives the market growth during the forecast period. The powertrain segment holds the second largest share due to its adoption in electric vehicles. Powertrain consists of an EV motor, transmission system, and power units (inverter, controller). The growth of powertrain is due to increased demand for EVs by major countries and rising technological advancement by OEMs, which will boost the market growth.

REGIONAL ANALYSIS

The global market is analyzed across North America, Europe, Asia Pacific, and the rest of the world.

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Asia Pacific currently dominates the global electric van market share. The growth is attributed to the high demand for electric vehicles in China, Japan, and South Korea. These countries have huge populations and are experiencing rapid urbanization, increasing the demand for last-mile delivery vehicles such as electric vans. Additionally, government policies and subsidiaries in these countries are supporting the adoption of EVs, which is further driving the market growth. Another reason for the dominance of Asia Pacific is the presence of many manufacturers in the region. China, in particular, is a major producer of these vans and has a significant number of companies that are focused on developing and producing these vehicles, which is helping to drive down the cost of electric vans. During the forecast period, India is the fastest-growing country in the Asia Pacific region. Overall, a combination of high demand, government support, and a large number of manufacturers in the Asia Pacific region is driving the growth of the market globally.

Europe holds the second largest market share due to increased focus on sustainability and reducing carbon emissions in the European Region (EU). The EU has set an ambitious target for reducing emissions and increasing the number of EVs on the road; thus, the rising adoption of electric vans drives market growth in the region. Governments in many European countries also provide financial encouragement, such as tax breaks and grants, to encourage the purchase of these vans, further driving the market growth. Leading manufacturers, such as Mercedes- Benz, Volkswagen, and Renault, are investing heavily in developing and producing these vans, which provides a wide range of options, leading to a large fleet of commercial electric vehicles.

North America is also expected to witness promising growth in the market. The growth is attributed to increasing government incentives and regulations, which raised the adoption of electric van in the region; for instance, the U.S. government offers federal tax credits for purchasing an electric vehicle, which drives the market growth. The availability of charging infrastructure is a key factor driving the market in North America.

List of Key Companies in Electric Van Market

Companies Focus on Development, Acquisitions, and Partnerships to Gain Competitive Edge

Key players in this market include General Motors, BYD Company Ltd, and Mercedes-Benz Group AG are some of the top players in the market. Van manufacturers focus on product development, acquisitions, and partnerships.

Mercedes-Benz Group (formerly known as Daimler) is a global manufacturer of premium cars and commercial vehicles. The players invest in R&D and commercialize their products on a large scale, making accessing electric vans easier. For instance, in May 2023, Mercedes van unit shared plans for a new, scalable platform for its electric vans. This would help reduce fixed costs by 20% by the middle of the decade and that electric models should make up 50% of its van sales by 2030.

List of Key Companies Profiled:

• Mercedes-Benz Group AG (Germany)


• BYD Company Ltd. (China)


• General Motors (U.S.)


• Renault (France)


• Volkswagen Group (Germany)


• Toyota Motor Corporation (Japan)


• Hyundai Motor Company (South Korea)


• Honda Motor Company Ltd. (Japan)


• Nissan Motor Co. Ltd. (Japan)


• Stellantis N.V. (Netherlands)


• Ford Motor Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• In May 2023- Suzuki Motor Corporation (Suzuki), Toyota Motor Corporation (Toyota), and Daihatsu Motor Co., Ltd. announced that they will reveal prototype electric mini-commercial vans (BEVs) equipped with a jointly developed BEV system.


• In November 2023, Rivian Automotive, Inc. announced that the company would enable other companies to purchase its custom-designed Rivian Commercial Van. This move delivers companies all around the world more opportunity to electrify their delivery fleets with state-of-the-art vehicles, which will help to reduce CO2 emissions further.


• In December 2022 – General Motors and DHL signed a contract for EV delivery vans. The electric delivery van is used for last-mile delivery worldwide, including the delivery of more than 2,000 electric delivery vans worldwide by the end of 2023. The agreement will also permit potential access to innovative products and the exploration of Ford Pro digital and charging solutions.


• In July 2022 – Amazon announced that it plans to spend USD 972 million on electric vehicles for its European fleet. The investment will increase the fleet of at least 10,000 electric delivery vans by 2025. The company also expects to deliver more packages via e-cargo bikes and on foot using centrally-located delivery stations known as "micro-mobility hubs."


• In October 2022 – Zeeba signed an agreement with Canoo to purchase 5,450 American-made electric vehicles, with an initial binding commitment of 3,000 units through 2024. Zeeba will add Canoo Lifestyle Delivery Vehicles (LDV) and Lifestyle Vehicles (LV) to its long-term fleet leasing portfolio.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects such as leading market players, vehicle type, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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Report Scope & Segmentation