Zero Emission Commercial Vehicles Market Size, Share, Growth, Trends, and Global Industry Analysis: By Vehicle Type (Medium and Heavy-Duty Electric Trucks, Electric Pick-up Trucks, Electric Vans, Electric Buses, and Yard Tractors), By Propulsion Type (Battery Electric Vehicles, Plug-in Hybrid Electric Vehicles, and Fuel Cell Electric Vehicles) By Battery Type (Lithium-iron-phosphate, Lithium-Ion, Lithium-Nickel-Manganese-Cobalt Oxide, and Others) and Region Forecast 2024-2030

The zero-emission commercial vehicles market was valued at US$ 205.4 billion in 2023 and is anticipated to grow at a CAGR of 12.3% from 2024-2030. The market for zero-emission commercial cars is being pushed by rising awareness of climate change and stricter government rules to lower greenhouse gas emissions. Market expansion is also aided by notable developments in electric vehicle (EV) technology, such as quicker charging and longer battery life.

However, obstacles to wider adoption include expensive upfront prices and a lack of adequate charging infrastructure. There are opportunities to advance fleet electrification in logistics and public transportation through collaborations, EV infrastructure expansion, and battery recycling. Increased spending on hydrogen fuel cell technology, the growth of electric fleets in cities, and collaborations between public and private sectors to advance greener, more sustainable commercial transportation options are some of the major themes.

Key Players

The zero-emission commercial vehicles market size includes several companies such as Proterra, Inc., Workhorse Group Inc., BYD, AB Volvo, Tesla, Arrival, Chanje, Rivian, Daimler AG, MAN, Chevrolet, VIA Motors, Nissan Motor Corp., BMW, and Chariot Motors.

Key Developments

• In December 2022, BMW declared that the range of their next-generation lithium-ion cell will increase by 30%.
• In September 2023, as part of their commitment to achieving zero emissions, Alfa Laval and Scan Global Logistics announced the introduction of their first electric Scania truck. The zero-emission truck is being produced closely with Scania, which will run a dedicated route between Alfa Laval's Swedish and Danish production facilities.

Zero Emission Commercial Vehicles Market Segmentation

By Vehicle Type: Electric buses are becoming more popular all around the world, especially in cities looking to cut down on pollution and greenhouse gas emissions. Electric buses are a favored choice for public transportation systems that prioritize sustainability since they emit no tailpipe emissions, in contrast to conventional diesel-powered buses. Because they don't require gasoline and have less engine wear, these buses have cheaper operating and maintenance expenses. With subsidies, incentives, and regulations targeted at decarbonizing public transportation, governments throughout the world are encouraging the transition to electric buses. Longer journeys with fewer disruptions are made possible by leading manufacturers' improvements to battery capacity and charging infrastructure, which is accelerating acceptance.

By Propulsion Type: The most common kind of zero-emission business vehicles are battery electric vehicles (BEVs), which are completely battery-powered and devoid of internal combustion engines. BEVs are preferred because of their excellent energy efficiency and lack of tailpipe emissions, which makes them perfect for lowering pollution in cities. The range and usefulness of batteries for commercial applications are being improved by technological advancements including quicker charging and higher energy density. Because there is easier access to charging infrastructure, BEVs are especially well-liked for last-mile deliveries and urban transport fleets. To achieve sustainability goals, governments are encouraging the use of BEVs through subsidies, tax breaks, and the expansion of EV infrastructure.

By Battery Type: The most popular battery type in zero-emission commercial cars is lithium-ion because of its high energy density, extended lifespan, and comparatively fast charging speed. For commercial applications in logistics and public transportation, these batteries supply the power required for vehicles to travel long distances on a single charge. Advances in lithium-ion technology have increased battery longevity and safety by lowering the possibility of overheating. Costs are steadily falling as manufacturing increases, increasing the accessibility of these batteries. Lithium-ion infrastructure is being invested in by businesses and governments, making it the go-to option for environmentally friendly commercial fleets.