Bulktransporter 5596 Isuzu Electric Truck
Bulktransporter 5596 Isuzu Electric Truck
Bulktransporter 5596 Isuzu Electric Truck
Bulktransporter 5596 Isuzu Electric Truck
Bulktransporter 5596 Isuzu Electric Truck

ACT: New study shows CEV market share increasing

Aug. 15, 2018
The number of commercial electric vehicles (CEVs) in service is growing and will represent a much larger share of the Classes 4-8 market by 2035.

The number of commercial electric vehicles (CEVs) in service is growing and will represent a much larger share of the Classes 4-8 market by 2035, according to the recent ACT Research study "Commercial Vehicle Electrification: To Charge or Not To Charge."

ACT released the “landmark” analysis to charter subscribers earlier this summer and now is making the report available to the public.

The increase in CEVs is driven by a combination of advances in battery technology, environmental considerations and government policy, and the potential for significant operational cost savings, the study shows.

“We believe that electrification will offer a competitive solution for an increasing number of commercial vehicle segments as we look to the decade ahead and beyond,” said Jim Meil, industry analysis principal for ACT.

“Initial adoption will likely be in shorter-range hauls with frequent stops and starts, regular and predictable routes, and daily return-to-base for overnight charging types of operations. Early adopters will tend to be in medium duty and highly specialized Class 8 applications that make the current limitations of battery storage technology more manageable.”

Regarding more distant time horizons, Meil said, “As battery technology advances with chemistry and design upgrades, performance will improve, costs will drop, and a wider range of applications and duty cycles will open.

“We see shares reaching about 20 percent for medium duty and double digits for Class 8 as a ‘most likely’ case by 2035. In favorable case circumstances – such as oil and diesel prices escalating as they did in 2005, 2009 and 2011 – market take rates for CEVs could get to one-third or higher, depending on the segment.”

The Commercial Vehicle Electrification: To Charge or Not To Charge study addresses client questions such as:

  • What is the most likely trajectory for battery costs in the years ahead?
  • Will the availability of key materials for battery manufacture, like cobalt and lithium, hinder the development of CEVs through higher cost or limited supply?
  • Which market segments will see the fastest migration to electrification? Which will be the slowest? Why?
  • How sensitive is the CEV market growth curve to changes in fuel prices? Electricity costs? Battery costs?
  • What role will governments (federal, state/provincial, local) play in CEV sales through subsidies of electric vehicle purchases or limitations on internal combustion engines?
  • What will be required in terms of utility infrastructure to make wider adoption of electric vehicles possible?
  • What do customers and operators see as competitive advantages and drawbacks for CEVs?

Click here for details or to purchase the report.

About the Author

Informa Commercial Vehicle Staff