The global Electric Van market size was estimated at USD 6.4 billion in 2023 and is projected to reach USD 41.70 billion in 2030 at a CAGR of 26.40% during the forecast period 2023-2030.
Electric vans run on electricity and use an electric motor instead of an internal combustion engine. Electricity is produced by the batteries installed in the electric van. The traction battery powers the electric motor and the vans are charged by connecting to a charging station or wall socket. In addition, an electric van is often used for commercial purposes such as cargo transportation, package delivery, last mile deliveries and more. In addition, electric vans have several advantages such as environmental friendliness, lower operating costs, low maintenance costs and others.
The growth of the global electric van market is fueled by government initiatives to promote electric mobility, reduced costs of electric vehicle batteries and increase demand for emission-free and efficient electric vans. However, the lack of charging infrastructure and the limited range of electric vans are factors restraining the growth of the market. Further, technological advancements are expected to provide growth opportunities during the forecast period.
COVID-19 impacted the electric van market in a negative manner owing to the lockdown imposed in the majority of the countries across the globe. Several automobile manufacturers faced shortage of automobile components due to disruption in supply chain. However, post-pandemic, increase in the sales of electric vehicles has been observed which is supplementing the growth of the electric van market.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. Since gasoline is a fossil fuel, it is not a sustainable energy source and will eventually run out. To enable sustainable growth, alternative fuel sources must be created and used. Electric van is employed, which are more cost-effective than traditional vans and do not require gasoline. As a result, many governments throughout the world have started initiatives to deploy electric van to improve the sustainability of their urban transportation system. In the following years, it's anticipated that the introduction of electric van would transform mass transit systems all over the world. As a result, the market is expected to rise at a faster rate during the forecast period due to rising demand for emission-free, high-performance electric vans. Thus, this factor is driving the market CAGR.
North America to Dominate the Market