The global industrial electric vehicle market size is estimated to rake around USD 72.28 billion by 2033, expanding at a CAGR of 12.01% from 2024 to 2033.
Key Points
- Asia Pacific led the market with the largest market share of 41% in 2023.
- North America is expected to witness the fastest growth rate during the forecast period.
- By vehicle, the forklift segment has contributed the major market share of 36% in 2023.
- By propulsion type, the hybrid electric vehicle segment dominated the market in 2023.
- By application, the manufacturing segment has held the largest market share of 41% in 2023.
The industrial electric vehicle (IEV) market is experiencing robust growth driven by increasing awareness of sustainability, technological advancements in battery technology, and the need for efficient and eco-friendly transportation solutions in industrial sectors. IEVs encompass a wide range of electric vehicles used in manufacturing, logistics, mining, agriculture, and construction, offering benefits such as reduced emissions, lower operating costs, and improved workplace safety. This market is witnessing significant adoption as businesses seek to align with environmental goals and leverage the operational advantages offered by electric vehicles.
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Growth Factors
Several key factors are fueling the growth of the industrial electric vehicle market. First, stringent environmental regulations worldwide are pushing industries to transition from internal combustion engine vehicles to electric alternatives to reduce carbon footprints and comply with emissions standards. Second, advancements in battery technology, including improved energy density and faster charging capabilities, have enhanced the performance and affordability of electric vehicles, making them more attractive for industrial applications. Third, rising fuel costs and the need for operational efficiency are driving businesses to invest in electric vehicles to lower operating expenses and increase productivity.
Region Insights
The adoption of industrial electric vehicles varies across regions due to regulatory landscapes, infrastructure development, and industrial activities. Developed regions like North America and Europe are leading the market due to stringent emission regulations and government incentives promoting electric vehicle adoption. In Asia Pacific, rapid industrialization and urbanization are driving demand for electric vehicles, especially in manufacturing-intensive countries like China and India. Emerging economies in Latin America and Africa are also showing potential for growth as they invest in infrastructure and sustainability initiatives.
Industrial Electric Vehicle Market Scope
| Report Coverage | Details |
| Growth Rate from 2024 to 2033 | CAGR of 12.01% |
| Industrial Electric Vehicle Market Size in 2023 | USD 23.25 Billion |
| Industrial Electric Vehicle Market Size in 2024 | USD 26.04 Billion |
| Industrial Electric Vehicle Market Size by 2033 | USD 72.28 Billion |
| Largest Market | Asia Pacific |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Vehicle, By Propulsion, and By Application |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Industrial Electric Vehicle Market Dynamics
Drivers
Several drivers are propelling the industrial electric vehicle market forward. Environmental concerns and sustainability goals are prompting industries to switch to electric vehicles to reduce greenhouse gas emissions and air pollution. The operational advantages of electric vehicles, such as lower maintenance costs, quieter operation, and improved workplace safety, are attracting businesses looking to optimize their operations. Furthermore, the expansion of charging infrastructure and advancements in battery technology are addressing range limitations and improving the feasibility of electric vehicles for industrial use.
Opportunities
The industrial electric vehicle market presents numerous opportunities for stakeholders. Continued innovation in electric vehicle technology, including the development of specialized vehicles for industrial applications like forklifts, AGVs, and heavy-duty trucks, offers growth prospects. Collaborations between industry players and technology providers to enhance charging infrastructure and battery capabilities can further accelerate market growth. Additionally, integrating IoT and automation technologies into electric vehicles opens up opportunities for enhanced efficiency and productivity in industrial operations.
Challenges
Despite its promising growth trajectory, the industrial electric vehicle market faces challenges. High initial costs of electric vehicles compared to conventional counterparts remain a barrier to widespread adoption, although declining battery costs and government subsidies are helping to mitigate this challenge. Range limitations and the need for robust charging infrastructure in industrial settings pose logistical challenges that need to be addressed to support the adoption of electric vehicles. Furthermore, concerns related to battery recycling and disposal require sustainable solutions to ensure the long-term viability of electric vehicles.
Read Also: Recycling Equipment Market Size to Rake USD 47.87 Bn By 2033
Industrial Electric Vehicle Market Recent Developments
- In March 2024, Hyundai Motor India Limited (HMIL) announced that it is planning to launch solution into the Indian electric vehicle market with the development of five latest manufacturing units across the India by 2030.
- In April 2024, the founder of Tesla, Elon Musk stated that he is planning to launch a range of affordable electric vehicle models by the year 2025. Production will start by the second half of 2025.
- In April 2024, Hyundai Motor Group is announcing the launch of the first hybrid cars in India by 2026. As per the reports, the company is currently assessing the hybrid sport-utility vehicle (SUV) similar in size to the bestselling mid-sized Creta SUV.
- In April 2024, Daimler Truck’s, Rizon, a latest brand is proudly announcing the launch of its battery-electric Class 4-5 trucks in Canada. The brand will showcase in Canada for the first time in Truck World in Toronto from April 18th to 20th and will be in the Canadian market with the preorders starts from June 2024.
- In May 2024, Toyota Motor North America, Inc. (Toyota) and FuelCell Energy, Inc. are celebrating the launch of first-of-its-kind “Tri-gen” system at the Port of Long Beach, California. The latest launch Tri-gen uses biogas to renewable hydrogen, produce renewable electricity, and usable water, and designed to support the vehicle distribution and processing center for Toyota Logistics Services (TLS) at Long Beach.
- In May 2024, BorgWarner, the first to the market for the electric torque Vectoring and Disconnect (eTVD) system for battery electric vehicles (BEVs) introduces the Polestar and an additional major European OEM.
- In April 2024, Daimler India Commercial Vehicles (DICV), the branch of the Daimler Truck AG launched the light duty redesigned eCanter all electric in India. It will used as the light duty commercial truck segment.
- In April 2024, Al Masaood Commercial Vehicles & Equipment (CV&E), the part of the well-known business conglomerate Al Masaood Group, announced that they secure the distributorship rights for Dongfeng Commercial Vehicles with the one of China’s premier automotive manufacturers- Dongfeng Automobile Corporation.
Industrial Electric Vehicle Market Companies
- Toyota Industries Corporation
- Hyster-Yale Materials Handling, Inc.
- Balyo
- John Bean Technologies Corporation (JBT)
- Seegrid Corporation
- Kuka AG
- Jungheinrich AG
- Swisslog Holding AG
- Dematic
- Daifuku Co., Ltd.
- Bastian Solutions, Inc.
- Schaefer Holding International GmbH
Segments Covered in the Report
By Vehicle
- Tow Tractors
- Forklifts
- Container Handlers
- Aisle Trucks
- Others
By Propulsion
- Hybrid Electric Vehicles (HEVs)
- Battery Electric Vehicle (BEVs)
By Application
- Manufacturing
- Warehouses
- Freight and Logistics
- Others
By Geography
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East & Africa
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