Sales of plug-in EV (PEV) LCVs are expected to grow from about 238,000 in 2019 to almost 5.5 million in 2030, at a compound annual growth rate (CAGR) of 33.0%.
According to a new report from Navigant Research in the LCV segment, internal combustion engine vehicles continue to be the leading powertrain. However, plug-in hybrid and battery electric vehicles (EVs) are quickly closing the gap and becoming more competitive.
“The cost of electrified LCVs is falling due to improvements in battery technology and market maturity,” says William Drier, research analyst with Navigant Research. “In addition, governments at all levels are supporting an electric transition to meet fuel efficiency and emissions regulations.”
Adoption of electric LCVs is expected to continue to rise as upfront vehicle costs fall, vehicle economics improve, and governments continue to place importance on the reduction of greenhouse gas and other emission pollutants that contribute to poor air quality.
In the near term, government incentives are expected to help bring electric LCV purchase prices toward parity with their ICE counterparts. Fleets and manufacturers can use these LCVs across segments to achieve their sustainability goals as well as emissions and air quality targets, while improving their bottom line via reduced fuel, operations, and maintenance costs.