CV Depot Charging Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global CV depot charging market size was worth around USD 4.80 billion in 2023 and is predicted to grow to around USD 44.58 billion by 2032, with a compound annual growth rate (CAGR) of roughly 28.1% between 2024 and 2032.

Market Overview

CV depot charging involves charging e-vehicles at a charging station or a labeled depot specially designed for CVs (commercial vehicles). These depots are furnished with fast-charging infrastructure to charge the larger vehicles like buses, trucks, and vans belonging to the commercial fleets.

The global CV depot charging market is projected to witness sizeable growth over the coming years, owing to increasing fuel prices, constant modernizations in battery technology, and the rise of e-commerce and urbanization. The cost of diesel and fossil fuels is continuously rising, aiding companies to discover more sustainable and cost-effective options.

EVs and depot charging services offer savings and assist companies in complying with sustainability goals, thus increasing their appeal. Constant improvements in charging infrastructures and battery technology enhance electric vehicles' charging speed and performance.

Moreover, as metro cities are witnessing developments, the demand for EVs in urban settings is also burgeoning. Delivery vans, electric buses, and trucks are gaining prominence in the cities, thus fueling the need for depot charging solutions to back fleet operations.

Nevertheless, the global market is unfavorably impacted by high initial infrastructural prices and concerns regarding charging speed and range. The upfront cost of launching a depot station may be high, including installing grid upgrades and fast chargers. This burden may prevent most fleet operators from shifting to EVs, mainly small businesses with low budgets.

While EVs enhance range, they still encounter barriers compared to diesel equivalents, especially over-the-road trucking. Still, the market is opportune to utilize ultra-fast charging stations, energy management systems, and smart charging.

The emergence of ultra-fast charging for commercial automobiles is an opportunity to decrease charging downtime. This will be a key attraction for commercial fleet operators and logistic companies who need swift vehicle turnaround times.

Also, the incorporation of EMS and smart charging enhances electricity usage, lowers fleet operators' prices, and decreases grid strain. These systems highlight charging depending on vehicle schedules, offer V2G or vehicle-to-grid abilities, and decrease peak demand charges, turning electric vehicles into energy storage assets.

Key Insights:

• As per the analysis shared by our research analyst, the global CV depot charging market is estimated to grow annually at a CAGR of around 28.1% over the forecast period (2024-2032)
• In terms of revenue, the global CV depot charging market size was valued at around USD 4.80 billion in 2023 and is projected to reach USD 44.58 billion by 2032.
• The CV depot charging market is projected to grow significantly, owing to supporting government regulations to reduce carbon emissions, increasing fuel costs, and increasing corporate sustainability initiatives.
• Based on charger type, the DC chargers segment is expected to lead the market, while the AC chargers segment is expected to grow considerably.
• Based on vehicle type, the electric light commercial vehicles (eLCVs) segment dominates, while the electric heavy commercial vehicles (eHCVs) segment is projected to witness sizeable revenue over the forecast period.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Europe.

Growth Drivers

• Modernizations in charging technology propel the CV depot charging market growth

Technological improvements are overcoming the key challenges to the adoption of EVs, especially in infrastructure restrictions and charging time. Fast-charging solutions like high-power and ultra-fast chargers are being integrated to allow commercial fleets to charge efficiently and speedily.

In 2024, a prominent company, ChargePoint, introduced its MCS or Megawatt Charging System, which can charge heavy-duty trucks at greater speeds of more than 1,000 miles /hour. This modernization is projected to enhance the viability of the electric commercial vehicle group.

In Europe, ABB is launching high-speed charging technology at depots dedicated to the electric truck industry. The charging technology decreases the time spent off the road and promises smooth, continuous fleet operations.

• Environmental sustainability goals fuel the market growth

Ecological concerns and corporate sustainability fuel the inclination toward electric commercial fleets. Businesses actively highlight their carbon footprint and spend on zero-emission and sustainable vehicles.

As per the International Transport Forum, the transportation industry is accountable for approximately 23% of worldwide CO2 releases. Electrification of commercial fleets is a vital strategy to decrease this percentage of emissions.

Furthermore, UPS is devoted to achieving zero carbon emissions by 2050, and this initiative also includes the adoption of EVs for its fleet. The company's aim to electrify its fleet is fueling noteworthy development in the CV depot charging market.

Restraints

• Lack of appropriate charging infrastructure negatively impacts the progress of the CV depot charging market

While there is growing support for EVs, the lack of an exhaustive charging ecosystem for commercial vehicles is a key challenge, mainly in less populated and rural areas. With no broad and reliable charging point ecosystem, the fleet operators may refrain from shifting to electric vehicles.

Tesla's latest struggles to widen its system of supercharging stations in North America and Europe are aiding in resolving the shortage of charging infrastructure. Nonetheless, the challenges still prevail, mainly in regions outside key urban centers.

Despite the Biden administration's initiative for the electric vehicle infrastructure comprising major investments, the target of launching 5,00,000 charging points by 2030 is under development. Experts also argue that the present speed is too slow to satisfy the needs of commercial vehicles.

Opportunities

• Growth of EV fleets and last-mile delivery contribute to the CV depot charging market growth

The rising demand for EVs, particularly for urban logistics and last-mile delivery, offers a vital opportunity for the global CV depot charging market. The use of LCVs or electric light commercial vehicles is remarkably surging, mainly in the urban regions, which are ideal for e-delivery vehicles owing to operational costs and low emissions.

UPS plans to electrify its vehicles and has promised to buy 10,000 e-delivery automobiles by 2030. As a part of this initiative, the business is spending on depot charging infrastructure, mainly in large cities, to back its delivery ecosystem's electrification.

• Strategic partnerships and private sector investment to impel the market growth

The rising emphasis on adopting electric vehicles has resulted in strategic alliances among charging infrastructure providers and electric vehicle manufacturers. Associations between large fleet operators, governments, and charging network providers offer opportunities to develop exhaustive charging technologies for commercial vehicles.

Global investment in electric vehicle charging infrastructure touched $ 3.4 billion in 2023 and is anticipated to grow progressively with improved participation of the private sector, particularly for charging commercial vehicles.

Challenges

• Lacking grid capacity to upkeep high-power charging limits the growth of the CV depot charging market

Grid capacity restrictions are a key barrier to the CV depot charging industry. With the growing number of commercial electric vehicles, the power demand will also rise. The present power grids, mainly in the urban regions, may not be furnished to handle the high-power needs of multiple fast-charging settings.

California has witnessed the maximum adoption of EVs and high pressure on the electrical grid, mainly in areas with large groups of EVs. The Public Utilities Commission of California predicts an extra 1,500 MW of electricity will be required by 2030 to satisfy the EV charging demand.

In the European Union, ENTSO-E reports warn that there is a possible mismatch between the grid capacity and the adoption of electric vehicles. Hence, the European Union is making efforts to promise that charging infrastructure can maintain the demand, mainly in areas that lack grid innovation.

Report Scope

Segmentation Analysis

The global CV depot charging market is segmented based on charger type, vehicle type, and region.

Based on charger type, the global CV depot charging industry is divided into AC Chargers and DC Chargers. The DC chargers segment is leading, among others, because of the ability to charge fleets faster than AC chargers. This is vital for the commercial fleet that needs better turnaround times to reduce downtime. The DC fast chargers, usually rated up to 350 kW, are suitable for depot stations where bigger trucks need quick charging during off-hours, promising better vehicle efficiency.

Due to the expanding demand for fast-charging solutions, the DC charging segment is projected to lead the market. The worldwide DC fast-charging industry will progress notably at a 39% CAGR by 2030.

Based on vehicle type, the global CV depot charging industry is segmented as electric light commercial vehicles (eLCVs), electric medium commercial vehicles (eMCVs), electric heavy commercial vehicles (eHCVs), and electric buses (eBuses). The electric light commercial vehicles (eLCVs) segment is anticipated to dominate the market. The speedy growth of last-mile delivery and urban logistics fuels this.

E-commerce businesses like FedEx and Amazon are adopting electric light commercial vehicles for more flexible and smaller delivery needs, mainly in areas with stringent emission protocols. Sustainability targets and government initiatives also aid the use of small trucks and electric vans.

The European electric light commercial vehicles industry is projected to witness remarkable growth, with e-vans predicted to hold 60% of the industry share in urban delivery by 2030.

Amazon has promised to hire 1,00,000 e-delivery vans by 2030, thus highlighting the significance of eLCVs as a key portion of their sustainability and logistics strategies.

Regional Analysis

• North America to witness significant growth over the forecast period

North America registered a considerable share of the CV Depot Charging Market in 2023 and will continue its dominance over the forecast period. The region's global CV depot charging market is anticipated to grow substantially due to factors like growing government initiatives and support, rising adoption of electric vehicles, and technological improvements. The United States government has promised USD 5 billion for EV charging infrastructure, belonging to the Infrastructure Investment and Jobs Act. This comprises funding for depot stations nurturing development in adopting electric commercial vehicles.

Furthermore, the adoption of commercial EVs, mainly for last-mile delivery, is surging. The United States electric truck industry is predicted to progress notably, reaching $ 10.3 billion by 2030, impacted by vehicles transitioning to electric cars. Also, the region is leading in charging technology and modernizations like high-speed charging technology offered by companies like ABB and Tesla. This allows faster turnaround times for the vehicles.

Europe is the second-leading region in the global CV depot charging industry, with key propellers like strong regulatory support, supportive government incentives, and growing investment by the public sector. The EU's Fit for 55 and Green Deal legislation is pushing major transformations in CO2 emissions, fueling the use of electric commercial vehicles and aiding charging infrastructure.

The European Union targets 1 million charging points for commercial fleets for the public by 2025. The leading nations offer significant tax breaks and subsidies for the electrification of vehicles. For instance, Germany invested above Euro 1 billion in incentives for EV buyers and EV charging infrastructure.

Also, prominent companies like Iveco, Daimler, and Volvo are heavily spending on charging infrastructure and EV technology, with associations like the European Charging Alliance and Daimler and Shell's charging ecosystem.

Competitive Analysis

The global CV depot charging market is led by players like:

• Tesla
• ABB
• Siemens
• Shell Recharge
• Enel X
• BP Pulse
• Volta Charging
• ChargePoint
• Iveco
• Daimler Truck AG
• Traton Group
• ENGIE
• Fastned
• EDF Energy
• Schneider Electric

Key Market Trends

• Shift towards high-power DC fast charging:

The rising inclination toward high-power DC fast charging (up to 350 kW) is being witnessed to meet the growing demand for heavy electric buses and trucks, reducing downtime and allowing quick vehicle charging. Leading companies like ABB and Tesla are expanding their networks for high-power charging to aid OTR (over-the-road) EVs.

• Integration of renewable energy:

The rising adoption of renewable energy sources, such as wind and solar, at depot stations to increase the sustainability and cost-effectiveness of the charging process is among the top trends. Amazon and FedEx are integrating solar-powered depot charging stations to aid their EVs.

The global CV depot charging market is segmented as follows:

By Charger Type Segment Analysis

• AC Chargers
• DC Chargers

By Vehicle Type Segment Analysis

• Electric Light Commercial Vehicles (eLCVs)
• Electric Medium Commercial Vehicles (eMCVs)
• Electric Heavy Commercial Vehicles (eHCVs)
• Electric Buses (eBuses)

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America