Electric Vans Market size was valued at USD 15.6 billion in 2022 and is anticipated to register a CAGR of over 13% between 2023 and 2032, driven by the escalating environmental concerns and regulations worldwide. Increasing global awareness of environmental issues, coupled with stricter emissions regulations in many countries, has led to a growing demand for electric vans. Electric vans produce zero tailpipe emissions, helping to reduce air pollution and combat climate change. These benefits have encouraged many governments to offer incentives and subsidies to encourage the adoption of electric vehicles, including vans.
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For instance, under the National Electric Mobility Mission Plan (NEMMP), the Indian government has introduced various initiatives, including FAME India, which offers subsidies for electric vehicle purchases. They have also implemented the Production Linked Incentive for Advanced Chemistry Cell Battery Storage (PLI-ACC Scheme) and initiated a Battery Swapping Policy, among other measures. Also, the government has made efforts to build charging infrastructure for electric vehicles. As of July 15, 2022, 532 charging stations had been established through the FAME India Scheme, with 479 under FAME-I and 53 under FAME-II.
|Electric Vans Market Size in 2022:||USD 15.6 Billion|
|Forecast Period:||2023 to 2032|
|Forecast Period 2023 to 2032 CAGR:||13%|
|2032 Value Projection:||USD 48.6 Billion|
|Historical Data for:||2018 - 2022|
|No. of Pages:||250|
|Tables, Charts & Figures:||312|
|Segments covered:||Propulsion, Range, Battery type, Application|
|Growth Drivers:|| |
|Pitfalls & Challenges:|
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Several companies have also replaced their existing fuel-based fleets with electric mobility to support environmental sustainability, which could be a key factor shaping the electric vans market outlook through 2032. Quoting an example, Amazon has been making substantial progress in its commitment to environmental sustainability by extensively deploying electric delivery vans. During a recent corporate presentation, the e-commerce giant revealed that it currently utilizes more than 10,000 Rivian electric vans for deliveries in the United States and Europe. As part of a partnership established with the electric vehicle manufacturer Rivian in 2022, Amazon has set a goal to expand its electric van fleet to 100,000 units by 2030.
TCO benefits associated with EVs could drive significant impetus to the electric vans market by 2032. Electric vans offer potential cost savings over their internal combustion engine counterparts in the long run. While the upfront purchase price of electric vans may be higher, lower operating and maintenance costs, as well as potential incentives, make them financially attractive. Electric vans have fewer moving parts, reducing maintenance requirements, and electricity tends to be cheaper than gasoline or diesel in many regions. Additionally, electric vans often benefit from lower fuel and maintenance costs, which contribute to a lower TCO.
Ever since the demand for electric vans has taken off owing to these benefits, renowned automakers globally are taking initiatives to boost their electric van production, further stimulating market growth. For example, in May 2023, Mercedes-Benz's van division announced its intentions to develop a new, adaptable platform for electric vans, aiming to cut fixed costs by 20 percent by the mid-2020s.
They have set ambitious targets for the electrification of their van lineup, with the goal of electric models accounting for 50 percent of their van sales by 2030 and reaching 20 percent of sales by 2026. However, the limited availability of charging infrastructure, causing range anxiety, makes it challenging for users to adopt electric vans for their operations, which may impact electric van sales in the coming years.
The COVID-19 pandemic had a significant impact on the electric van market. On one hand, it temporarily disrupted production and supply chains, causing delays and financial challenges for manufacturers. On the other hand, it accelerated the shift towards cleaner transportation solutions as heightened awareness of public health and environmental concerns led to increased interest in electric vans, making them a more attractive choice for businesses looking to adapt to the new normal.
Technological improvements hold the key to strengthening the electric van industry forecast. Continued progress in battery technology will result in electric vans with increased range, faster charging, and longer lifespan, addressing key concerns of consumers and businesses. Additionally, advancements in connectivity, data analytics, and autonomous features will enhance efficiency, reduce operating costs, and provide innovative solutions, making electric vans an even more compelling choice in the evolving transportation landscape.
This apart, an accelerating shift toward electric mobility will further present lucrative growth opportunities to the electric vans market in the long run. Citing an instance, in September 2023, EV supplier Bedeo announced the launch of a service to convert diesel vans into electric hybrids, with the initial focus on France to leverage government incentives for retrofitting fossil-fuel vehicles. In France, retrofitters can benefit from a 9,000-euro (USD 9,509) subsidy, contingent on each converted model passing government vehicle tests.
The basic conversion kit by Badeo is priced at 30,000 euros and includes a 37-kW hour battery. It also includes Protean Electric in-wheel motors, which are independent motors installed in the wheels of an electric vehicle, eliminating the need for traditional axles or powertrains and are fitted to the rear wheels of the converted diesel van with governments and companies across the globe making a hasty transition toward electric vehicles, the demand for electric vans is poised to gain momentum in the coming years.
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Based on propulsion, the HEV segment accounted for 60% of the market share in 2022, due to the ability of hybrid electric vans to offer a transitional solution toward greener transportation. Hybrid vans combine traditional internal combustion engines with electric power, providing improved fuel efficiency and reduced emissions, appealing to businesses seeking to lower their carbon footprint. Also, hybrid vans provide extended driving ranges and reduced operational costs, making them an attractive choice for those not ready for a full transition to all-electric models, this versatility and environmental consciousness are driving the demand for hybrid electric vans in the market.
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Based on application, the commercial segment held over 60% of the electric vans market share in 2022. Electric vans offer cost savings over time, with lower operating and maintenance expenses compared to traditional internal combustion engine vehicles. Additionally, they contribute to environmental sustainability by producing zero tailpipe emissions, aligning with corporate sustainability goals and government regulations. Improved battery technology, extended ranges, and expanding charging infrastructure are making electric vans more viable for businesses, reducing their carbon footprint while enhancing efficiency and long-term cost-effectiveness.
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Asia Pacific electric vans market size dominated around USD 10.2 billion in 2022. There is a growing emphasis on environmental sustainability, with governments implementing policies and incentives to promote electric vehicles. For instance, in June 2023, China unveiled a significant tax incentive package worth USD 72.3 billion spanning four years, aimed at supporting electric vehicles (EVs) and eco-friendly vehicles. Under the extended program, New Energy Vehicles (NEVs) purchased in 2024 and 2025 will be eligible for a complete exemption from the purchase tax, potentially saving buyers up to USD 4,170 per vehicle. However, the exemption will be halved and capped at USD 2,078 from 2026 to 2027.
The dense urban populations and the need for clean, efficient transportation solutions in megacities are driving the demand for electric vans. Additionally, the robust manufacturing capabilities in the region have enabled the production of electric vans at competitive prices, further boosting their popularity in Asia Pacific.
Major companies operating in the electric vans industry are:
Stellantis NV is dominant player in the electric vans market due to their diverse portfolio of automotive brands, including Peugeot, Citroën, and Fiat, provides a range of electric van models tailored to different segments. Stellantis' established presence in the van market, experience in vehicle production, and the conversion of well-known van models to electric powertrains have contributed to its significance.
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Market, By Propulsion
Market, By Range
Market, By Battery Type
Market, By Application
The above information has been provided for the following regions and countries: