Commercial Electric Vehicle Market Development, Growth, and Demand Forecast, 2025

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Commercial Electric Vehicle Market Analysis,
Competitive Share and Growth Forecast to 2025
The decreasing costs and improving operational
efficiency of Lithium-ion batteries are some of
the biggest factors causing the increasing
adoption of commercial electric vehicles across
the world. As per the industry experts, the
average cost of lithium-ion battery packs for
bulk orders decreased from approximately
642/kWh in 2012 to almost 209/kWh in 2017. As
batteries account for nearly 40 of the total
manufacturing cost of a commercial electric
vehicle, their declining prices will
significantly boost the manufacturing and sales
of the commercial electric vehicles. The other
major factor responsible for the ballooning sales
of commercial electric vehicles is the lower
operational costs of these vehicles as compared
to the conventionally used fossil fuels-powered
vehicles. In addition to this, their numerous
environmental benefits are increasing their
popularity in several countries, especially the
developing nations which are dealing with
soaring pollution levels and environmental
hazards. According to the Indian Infrastructure
Publishing, an electric bus saves 365,000 of
diesel fuel during its entire life cycle and
225,000 of compressed natural gas (CNG). Driven
by the above-mentioned factors, the revenue
generated from the worldwide sales of
commercial electric vehicles is expected to
rise from 144.5 billion in 2017 to 362.7
billion by 2025. The global commercial electric
vehicle market is predicted to advance at a CAGR
of 13.3 during the forecast period (20182025).
There are two types of commercial
electric vehicles available in the market
electric buses and electric trucks. Of these,
the electric trucks recorded higher sales in
2017. This is owing to the banning diesel trucks
in many countries and the burgeoning demand for
the transportation of goods around the
world. Request to Get the Sample Report_at_
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ommercial-electric- vehicle-market/report-sample
On the basis of batteries, the commercial
electric vehicles are classified into
lithiumnickelmanganesecobalt oxide
(NMC)-battery-powered vehicles and the vehicles
running on lithiumiron phosphate (LFP)
batteries. Between
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the two types of batteries, LFP batteries are
predicted to register higher sales in the market
during the forecast period. This is mainly
ascribed to the fact that the LFP batters are
safer than the others and are therefore
preferred more by both manufacturers and
consumers than the NMC batteries. Geographically
, the Asia-Pacific (APAC) region is expected to
observe the highest and fastest growth in the
adoption of commercial electric vehicles during
the forecast period. In this region, China is
currently witnessing the highest sales of
commercial electric vehicles, owing to the
presence of favorable government policies for
commercial electric vehicles in the country. The
commercial electric vehicle market is also
observing huge progress in other APAC countries
such as India, on account of the existence of
several government policies and measures
promoting the deployment of electric buses in
private and government fleets, in the
country. Hence, it can be said with full
confidence that the demand for commercial
electric vehicles will rise considerably
throughout the world, in the coming years,
because of the declining prices of the
Lithium-ion batteries, increasing pollution
levels, lower operating costs of these vehicles
than the fossil fuels- powered vehicles, and the
presence of favorable government policies
regarding the deployment of commercial vehicles
in several countries.