Electric Commercial Vehicle Components Market – Global Industry Size, Share, Trends Opportunity, and Forecast, Segmented By Vehicle Type (LCV, M&HCV), By Demand Category (OEM, Aftermarket), By Component Type (Battery Packs, DC-DC Converter, Controller & Inverter, Motor, On-Board Chargers, and Other Component Types), By Region and By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 99.34 Billion
CAGR (2026-2031)	7.41%
Fastest Growing Segment	LCV
Largest Market	Europe
Market Size (2031)	USD 152.54 Billion

Market Overview

The Global Electric Commercial Vehicle Components Market will grow from USD 99.34 Billion in 2025 to USD 152.54 Billion by 2031 at a 7.41% CAGR. Electric commercial vehicle components consist of the critical hardware necessary for the propulsion of battery and fuel cell transport, including high voltage battery packs, traction motors, and inverters. The market is increasingly supported by stringent government emission mandates aiming for fleet decarbonization and the reduced total cost of ownership offering long term economic benefits over internal combustion engines. These drivers are fundamental in encouraging logistics providers to transition toward sustainable electric mobility solutions.

However, widespread expansion is significantly impeded by the scarcity of high power charging infrastructure suitable for heavy commercial operations. This lack of accessible charging points creates operational uncertainty that has stalled adoption rates in established markets. According to the European Automobile Manufacturers' Association, in 2024, registrations of electrically chargeable trucks in the European Union decreased by 4.6 percent.

Key Market Drivers

Stringent government emission regulations and environmental mandates are forcing the transition toward electric commercial vehicle components by imposing compliance targets and offering financial incentives. Regulatory bodies are establishing goals that compel logistics providers to integrate zero-emission vehicles, ensuring sustained demand for electric powertrains. While the broader European market faced headwinds due to infrastructure challenges, targeted national policies have proved decisive in sustaining momentum in specific territories by bridging the initial investment gap. According to the European Automobile Manufacturers' Association, January 2025, in the 'Commercial vehicle registration' report, registrations of electrically chargeable trucks in Germany surged by 57.4 percent in 2024, a growth trajectory directly supported by favorable national incentives that counteracted the wider regional downturn.

Simultaneously, declining battery costs and improvements in energy density are removing the primary economic barrier for commercial operators. As battery packs represent the largest portion of the bill of materials, sustained price reductions are critical for achieving cost parity with diesel engines, while higher density allows for the longer ranges required by heavy transport. This improved economic feasibility is encouraging major manufacturers to scale their electric portfolios. According to the International Energy Agency, May 2025, in the 'Global EV Outlook 2025', battery prices for commercial vehicles have declined by 30 percent since 2020, enabling the deployment of larger capacity packs. This technological progress is translating into tangible sales growth, as according to Daimler Truck, March 2025, in the 'Annual Results 2024', the company's sales of battery-electric vehicles increased by 17 percent to 4,035 units in 2024.

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Key Market Challenges

The scarcity of high-power charging infrastructure suitable for heavy-duty commercial operations significantly hampers the growth of the Global Electric Commercial Vehicle Components Market. Logistics operators are hesitant to invest in electric fleets when route planning becomes unreliable due to a lack of compatible charging stations along major transport corridors. This operational insecurity directly reduces the volume of vehicle orders for original equipment manufacturers, which in turn dampens the demand for essential powertrain components such as high-voltage battery packs and traction inverters. Consequently, suppliers of these critical parts face slower revenue realization as the expected surge in mass adoption is delayed by the inability of the grid network to support long-haul logistics.

Recent industry data highlights the severity of this infrastructure gap in key markets. According to the Society of Motor Manufacturers and Traders, in August 2024, the United Kingdom possessed only one dedicated public charging location specifically designed for electric trucks, despite a notable increase in zero-emission heavy goods vehicle registrations. This stark disparity between vehicle availability and supporting infrastructure forces fleet managers to postpone electrification plans, creating a bottleneck that prevents component manufacturers from achieving economies of scale.

Key Market Trends

The Development of Megawatt Charging System (MCS) Components is transforming the market by introducing high-amperage hardware capable of minimizing downtime during statutory driver breaks. This trend focuses on the engineering of advanced liquid-cooled connectors and inlets that can sustain charging currents far exceeding current CCS standards, directly addressing the operational efficiency required for long-haul logistics. The deployment of this technology is moving from validation to reality, as component suppliers and OEMs collaborate to standardize these ultra-fast charging interfaces. According to MAN Truck & Bus, July 2024, in the 'Megawatt charging for electric trucks' press release, the company successfully demonstrated the practicality of this system by publicly charging an electric truck with over 1,000 kilowatts of power, validating the component's readiness for heavy-duty applications.

Integration of Modular e-Axle Powertrain Systems is emerging as a critical architectural shift, replacing central motor layouts with compact units that combine the motor, transmission, and axle. This consolidation significantly reduces the powertrain's physical footprint, allowing manufacturers to utilize the freed chassis space for additional high-voltage battery packs, which is essential for extending vehicle range. By optimizing the component packaging, this design directly enhances the value proposition of electric trucks for interregional transport. According to Volvo Trucks, September 2024, in the 'Breakthrough: Volvo to launch electric truck with 600 km range' press release, the implementation of this new e-axle driveline technology was the primary enabler allowing their next-generation heavy-duty model to achieve a driving range of up to 600 kilometers on a single charge.

Segmental Insights

The Light Commercial Vehicle segment is identified as the fastest-growing category within the Global Electric Commercial Vehicle Components Market. This accelerated growth is primarily attributed to the expanding e-commerce sector, which necessitates efficient and sustainable last-mile delivery solutions. Fleet operators are aggressively adopting electric vans to align with rigorous environmental standards and reduce long-term operational costs. Furthermore, regulatory frameworks established by authorities such as the European Commission regarding zero-emission urban zones are actively forcing a transition in logistics strategies, thereby stimulating substantial demand for electric drivetrain components in this specific vehicle class.

Regional Insights

Europe currently leads the Global Electric Commercial Vehicle Components Market, driven by the European Union's comprehensive legislative framework for zero-emission logistics. The enforcement of strict CO2 emission performance standards for heavy-duty vehicles compels manufacturers to replace internal combustion engines with electric powertrains, creating sustained demand for battery packs and traction motors. Concurrently, the Alternative Fuels Infrastructure Regulation (AFIR) mandates the deployment of high-capacity charging infrastructure along major transport corridors, ensuring operational viability for fleet operators. This synchronized approach of regulatory pressure and infrastructure support secures Europe’s position as the primary region for market expansion.

Recent Developments

• In September 2024, BorgWarner debuted its new Lithium Iron Phosphate (LFP) battery packs specifically designed for commercial vehicles at the IAA Transportation event in Germany. This product launch followed a strategic agreement with a battery cell partner to utilize blade cell technology, which improved the energy density and charging efficiency of the packs. The company stated that these battery systems were engineered to meet the rigorous demands of electric trucks and buses, offering a cost-effective and durable energy storage solution. Alongside the batteries, the company also introduced a new DC fast-charging station capable of delivering scalable power outputs to support public and fleet charging infrastructure.
• In May 2024, Eaton announced an expanded collaboration with BAE Systems to deliver comprehensive electric drivetrain solutions for the heavy-duty commercial truck market. This partnership aimed to integrate BAE Systems’ efficient electric motor technology and advanced power electronics with Eaton’s specialized heavy-duty four-speed electric vehicle transmission. The combined system was designed to offer greater reliability and performance for commercial vehicles exceeding 19 tons, including regional haul trucks and transit buses. By bundling these critical components into a unified offering, the companies sought to simplify the electrification process for original equipment manufacturers and enhance the range and acceleration capabilities of zero-emission fleets.
• In April 2024, ZF Group announced its strategic plan to accelerate the production of its next-generation electric mobility suite for medium- and heavy-duty commercial vehicles. The company confirmed that it would ramp up the manufacturing of its modular e-mobility kit, which includes the CeTrax 2 central drive and the AxTrax 2 axle drive systems, starting in 2025. This development was designed to address the diverse decarbonization needs of the global truck and bus market by providing flexible technology platforms that can accommodate both battery-electric and fuel-cell applications, thereby supporting the industry's transition to zero-emission transport.
• In April 2024, Dana Incorporated highlighted the advanced capabilities of its electro-mechanical infinitely variable transmission (EMIVT) system, which received significant industry recognition for its innovation. This multi-mode driveline technology was engineered to support vocational commercial vehicles, such as fire trucks and emergency response units, by allowing them to switch automatically between engine-only, hybrid, and battery-only modes. The system featured an integrated high-voltage motor and a proprietary controller designed to improve fuel efficiency and reduce emissions. This solution demonstrated the company's focus on providing versatile powertrain components that bridge the gap between traditional combustion and full electrification for specialized commercial fleets.

Key Market Players

• BYD Motors Inc.
• Daimler Truck AG
• AB Volvo
• Traton SE
• Ford Motor Company
• Tesla Inc.
• Paccar Inc.
• Zhengzhou Yutong Bus Co. Ltd
• Rivian Automotive Inc.
• Tata Motors Limited

By Vehicle Type	By Demand Category	By Component Type	By Region
LCV M&HCV	OEM Aftermarket	Battery Packs DC-DC Converter Controller & Inverter Motor On-Board Chargers Other Component Types	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electric Commercial Vehicle Components Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Electric Commercial Vehicle Components Market, By Vehicle Type:

• LCV
• M&HCV

• Electric Commercial Vehicle Components Market, By Demand Category:

• OEM
• Aftermarket

• Electric Commercial Vehicle Components Market, By Component Type:

• Battery Packs
• DC-DC Converter
• Controller & Inverter
• Motor
• On-Board Chargers
• Other Component Types

• Electric Commercial Vehicle Components Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE