June 19, 2024

Industrial Electric Vehicle Market Size, Trends, Report by 2033

The global industrial electric vehicle market size is expected to increase USD 72.28 billion by 2033 from USD 23.25 billion in 2023 with a CAGR of 12.01% between 2024 and 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.

Industrial Electric Vehicle Market Size 2024 to 2033

The industrial electric vehicle market is experiencing rapid growth driven by a combination of factors including environmental regulations, technological advancements, and the need for operational efficiency in industrial settings. Industrial electric vehicles (IEVs) encompass a diverse range of vehicles such as forklifts, trucks, tractors, and automated guided vehicles (AGVs) that are powered by electricity instead of traditional fossil fuels. This shift towards electrification is motivated by the desire to reduce carbon emissions, lower operational costs, and improve workplace safety across various industrial sectors.

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Growth Factors

The growth of the industrial electric vehicle market is propelled by several key factors. First, stringent environmental regulations aimed at reducing greenhouse gas emissions are pushing industries to adopt cleaner transportation solutions. Electric vehicles offer a sustainable alternative with zero tailpipe emissions, making them attractive for businesses committed to environmental stewardship. Second, advancements in battery technology, including improvements in energy density and charging infrastructure, have extended the range and performance of electric vehicles, enhancing their viability for industrial applications. Third, the rising operational efficiency of electric vehicles, including lower maintenance costs and quieter operation, is driving adoption among industrial enterprises seeking to optimize their logistics and material handling processes.

Region Insights

The adoption of industrial electric vehicles varies by region, influenced by regulatory frameworks, infrastructure development, and market demand. Developed regions like North America and Europe have witnessed significant uptake of electric vehicles due to stringent emissions standards and government incentives promoting electric vehicle adoption. In Asia Pacific, rapid industrialization and government initiatives to promote clean energy technologies are accelerating market growth, particularly in countries like China and India where manufacturing activities are expanding. Emerging markets in Latin America and the Middle East are also showing increasing interest in industrial electric vehicles driven by a combination of economic development and environmental awareness.

Industrial Electric Vehicle Market Scope

Report CoverageDetails
Growth Rate from 2024 to 2033CAGR of 12.01%
Industrial Electric Vehicle Market Size in 2023USD 23.25 Billion
Industrial Electric Vehicle Market Size in 2024USD 26.04 Billion
Industrial Electric Vehicle Market Size by 2033USD 72.28 Billion
Largest MarketAsia Pacific
Base Year2023
Forecast Period2024 to 2033
Segments CoveredBy Vehicle, By Propulsion, and By Application
Regions CoveredNorth America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Industrial Electric Vehicle Market Dynamics

Drivers

Several drivers are fueling the growth of the industrial electric vehicle market. Environmental concerns and sustainability goals are compelling industries to transition towards cleaner transportation solutions. Electric vehicles offer operational cost savings over time due to lower fuel and maintenance expenses compared to internal combustion engine vehicles. Moreover, technological innovations such as telematics, automation, and connectivity are enhancing the efficiency and performance of industrial electric vehicles, making them more appealing to businesses looking to optimize their supply chain operations and improve workplace safety.

Opportunities

The industrial electric vehicle market presents abundant opportunities for innovation and collaboration across the value chain. Manufacturers and suppliers have the opportunity to develop specialized electric vehicles tailored for specific industrial applications, such as heavy-duty trucks for mining or AGVs for warehouse automation. Collaboration with energy providers and infrastructure developers to expand charging networks and deploy renewable energy solutions can further enhance the sustainability and scalability of electric vehicle adoption in industrial settings. Additionally, advancements in battery technology, including research into alternative materials and recycling processes, represent significant opportunities for improving the lifecycle sustainability of electric vehicles.

Challenges

Despite its growth potential, the industrial electric vehicle market faces several challenges. High upfront costs associated with electric vehicles remain a barrier to widespread adoption, although declining battery prices and government incentives are helping to mitigate this challenge. Range anxiety and the need for robust charging infrastructure, especially in large industrial facilities, pose logistical challenges that require strategic planning and investment. Furthermore, concerns related to battery recycling and disposal need to be addressed to ensure the environmental sustainability of electric vehicles throughout their lifecycle.

Read Also: Recycling Equipment Market Size to Worth 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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