Electric Vans Market Size

Electric Vans Market Size

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.

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.

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.