Commercial Vehicle Depot Charging Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Commercial Vehicle Depot Charging Market Data

CV Depot Charging Market Trends & Drivers

Enhancement in Charging Speed Is Key Trend

• Fast charging enables the use of electric vehicles for longer distances and durations because it decreases their downtime.
• The use of high-speed chargers for commercial EVs helps decrease operational costs by reducing the charging time. This increases the efficiency of electric vehicles and also increases their usage time. 
• By availing high-speed charging capabilities, commercial vehicles can spend more time on the road. This increases the overall efficiency of the fleet, a key factor for large companies that depend on transportation facilities.
• The increasing demand for EVs increases the demand for high-speed charging. This demand is fulfilled by the DC chargers, which are capable of replenishing vehicle batteries much faster as compared to the conventional AC chargers.

Increase in Use of Electric Vehicles Is Key Driver

• The sale of EVs increased by 30-40% in 2023 because more people want cleaner transportation and governments are providing subsidies and other benefits to promote their usage.
• Norway, Germany, the U.S., India, China, and many other countries are trying to replace their public buses from gas and diesel-based ones to electric alternatives. The goal is to reduce carbon emissions and improve air quality.
• Businesses that own commercial vehicle fleets are now focusing on using electric vehicles instead of those driven by fossil fuels, to reduce pollution and carbon emissions. This means the need for depots where electric commercial vehicles charge will increase.
• To fulfill the growing demand for fast charging stations, original equipment manufacturers (OEMs), such as Ford, Tesla, and Toyota, have partnered with providers of charging infrastructure solutions. This partnership's goal is to enhance the efficiency and ease of use of electric vehicle (EV) charging networks. To improve the charging speed of electric vehicles, ultra-fast chargers have been introduced in the market.
• The lack of charging stations, particularly in rural regions, creates an opportunity for companies to expand their vehicle fleets in those areas. They can expand their company in certain places without delay since they don't have to worry as much about competition from other electric automobiles.

Presence of AC Chargers and Low Pace of Automotive Electrification Are Main Challenges

• AC chargers are generally cheaper than DC chargers, but they take more time to charge the battery of an EV. This is because AC chargers have to convert the alternating current into direct current to charge the vehicle's battery. The process of converting the AC into DC and delivering it to the battery is slower, due to which the charging time of the battery increases.
• Another main challenge with electric commercial vehicles is the limited distance provided by current battery technologies. Many such automobiles have a shorter range compared to their traditional diesel and gasoline counterparts. This limitation decreases the use of electric vehicles for long transportation.
• The market for CV depot charging is facing challenging problems due to the existence of complex controlling frameworks and the frequency of permission delays. For those interested in setting up charging infrastructure, navigating complex legal systems and waiting for required approvals present significant challenges. These difficulties make it more difficult for the market to efficiently satisfy the growing demand for charging services by delaying the quick installation of charging stations.

Commercial Vehicle Depot Charging Industry Outlook

Vehicle Type Analysis

• eLCVs are the largest category, holding a market share of around 40% in 2023. This is mainly because the manufacturing cost of their batteries is lower and the output is high.
• As the demand for fast deliveries in urban areas increases, the demand for electric commercial vehicles also rises, because they offer lower operational costs and decreased carbon emissions.
• The use of electric buses for public transportation is increasing day by day, due to the growing focus of governments on improving the environmental condition.
• Additionally, many businesses are locating charging stations at depots, due to which the use of electric vehicles more convenient, particularly for the use of commercial purposes. For instance, Delhi Transport Corporation (DTC) is in the process of acquiring electric buses and has started installing charging stations at many bus depots across the city. DTC installed charging stations at well-known places such as Sarai Kale Khan ISBT and Kashmere Gate Inter-State Bus Terminal (ISBT). These spots are necessary for Delhi's bus network, so setting up charging points there helps make electric buses more practical and widely used.

Below are the types of vehicles studied in this report:

• eLCVs (Largest and Fastest-Growing Category)
• eMCVs
• eHCVs
• eBuses

Charger Type Insights

• AC chargers held the larger market share, of around 75%, in 2023. The charging speed of the AC charger is slow as compared to the DC charger, but a good choice for overnight charging. 
• Small businesses, delivery services, or organizations with less-urgent transportation needs use AC chargers because they are 7-10 times less costly as compared to DC chargers.
• In addition, businesses with urgent transportation needs for important applications, where decreasing the vehicle downtime is vital, use high-power DC charging infrastructure.
• The depot charging setup can be a combination of both AC and DC chargers, to fulfill the diverse needs of EV fleet owners. The slowness of AC chargers makes them suitable for overnight charging. On the contrary, DC variants provide faster charging; thus, those who need to travel long distances use these alternatives.

Below are the types of chargers that were studied in this report

• AC (Larger Category)
• DC (Faster-Growing Category)

Charging Infrastructure Analysis

• The public bifurcation held the larger market share, of around 65%, in 2023. This is because public chargers are used by government transportation companies, as well as private fleet operators for transportation and delivery purposes. Hence, as they replace their conventional automobiles with EVs, the demand for public charging depots will rise too.
• The public category is also expected to advance at a higher CAGR, of around 29.3%, during 2024–2030. Public charging infrastructure allows EV owners to charge their vehicles while they are away from home or when they are on long journeys.
• These services are more affordable compared to private charging due to governments and local authorities providing financial support and other benefits to boost the installation of public charging infrastructure.

Below are the types of chargers that were studied in this report

• Public (Larger and Faster-Growing Category)
• Private

Geographical Overview

• Geographically, Asia-Pacific held the largest share in the CV Depot Charging market in 2023 due to the continuously growing demand for electric commercial vehicles. China is the top country in this field, with the highest number of electric vehicle sales and charging infrastructure manufacturing companies.
• Europe is expected to be the fastest-growing market, at a CAGR of 30.2%, during 2024–2030. The demand for commercial vehicle depot charging systems is increasing in Europe due to the growing concern about the environment and the benefits provided to increase the adoption of electric vehicles.
• In North America too, the government has continuously tried to increase the use of electric vehicles, due to which the demand for these solutions is rising.

The regions and countries analyzed for this report include:

• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India
  • South Korea (Fastest-Growing Country Market)
  • Australia
  • Rest of APAC
• Europe (Fastest-Growing Regional Market)
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • U.A.E. (Largest and Fastest-Growing Country Market)
  • Rest of MEA

Competitive Analysis

• Companies such as Blink Charging, Bosch, and Heliox are focusing on the development of electric vehicle charging infrastructure to provide a balanced supply chain. 
• To satisfy consumers’ needs, companies are providing a wide range of DC and AC chargers with different connectors and power ratings. Direct current chargers provide fast charging, which is why they are preferred for quick charging. On the other hand, alternate current variants provide slow charging and are preferred for overnight charging.

CV Depot Charging Industry News

• In December 2023, Ford Pro and XCel Energy entered into a partnership to install 30,000 charging ports for electric vehicles by 2030.
• In November 2023, the in-depot electric truck charging service was launched by TotalEnergies at the SOLUTRANS road and urban transportation trade show to support the transition to electric mobility.
• Heliox was acquired by Siemens AG in January 2024, to extend its market reach, mainly in Europe and North America, and also to improve capabilities in electrical power systems
• In September 2022, Tritium secured USD 150 million in Series D funding. The fund is being utilized to expand the company’s international presence and develop new products for the depot charging market.