28 nov 23

EV market for US commercial fleets far from mature

Of the roughly 8.4 million light commercial vehicles (LCVs) in the United States, less than 1% are electric vehicles (EVs), considerably less than their counterparts across the Atlantic Ocean.  

Some 43,000 of the country’s LCVs are EVs, according to market research company Markets and Markets, a stark difference from countries in Europe where EV adoption is several times over. For instance, more than 30% of the commercial fleet market in the UK is electrified. 

North America, however, should be the fastest growing eLCV market in the world between 2023-2030, according to the research company, and this is due to the increasing awareness of environmental sustainability, and government initiatives aimed at supporting the trend.

Compared to the world average of 36.1%, a growth rate of 46.1% CAGR is expected in North America throughout the eight-year period, reaching approximately 623,000 eLCVs by 2030.

Besides EV battery price reductions, advancements in connected vehicles and battery management systems as well as wireless on the go charging are the trends and technologies seen having a major impact on the future of eLCVs. 

In addition to US-based automakers Ford Motor Company and General Motors seen dominating the local electrified commercial fleet market, among the main players to keep an eye on in the coming years are BYD (China), Mercedes-Benz (Germany) and Nissan Motor Co. (Japan). 

Amid the latest developments is the 2023 launch of the Zevo eLCV vans by BrightDrop, the electric commercial vehicle division of General Motors. 

While the Zevo 600 is a 600-cubic-foot vehicle which has an estimated range of 250 miles on a single charge, the newer Zevo 400 is a 400-cubic-foot version of the electric-powered step van. Among the company’s customers are Walmart, Merchants Fleet, Hertz, and FedEx.

2023 Brightdrop Zevo 600 (courtesy of Brightdrop)

Meanwhile, the E-Transit Van by Ford was the best-selling electric van in 2022 with some 6,000 units sold. Coming in three different roof heights, it has customers such as Walmart, Penske, and others. 

Overall Market

Of the overall market of 291mn light vehicles currently on US roads, less than 1% (just over 2mn) are EVs. There is a growing trend, however, as approximately 9% (some 1.28mn vehicles) of the 14mn or so in annual registrations in the country are electrified. More than half (approx. 800,000) are battery electric vehicles (BEV).

To get the answers to pivotal concerns of global and regional fleet managers, make sure to attend the 2023 Global Fleet Summit (virtual) on 5 December. A total of 12 Fleet Managers and Experts will zero in on 12 pivotal concerns, covering Safety, Sustainability, Sourcing, and LCV topics across all regions.


Image: copyright: Shutterstock 1974506222

Authored by: Daniel Bland