According to a new report from IDTechEx, over the next decade, the largest global electric vehicle (EV) value sector will be industrial and commercial for land, water and air – accounting for nearly 50 percent of the total hybrid and pure electric vehicle business. “Industrial and Commercial Hybrid & Pure Electric Vehicles 2013-2023: Forecasts, Opportunities, Players,” finds that the EV industry is expected to grow five-fold to over $300 billion in 2024.

The report find that those EVs not bought primarily on up-front price, such as buses and military vehicles and the heavy lifting or pushing vehicles such as forklifts and earthmovers, will continue to dominate. These customers are companies and governments primarily concerned about the total cost of ownership and performance. Less important are private individuals with concerns about up-front price when they buy smaller or lighter duty EV vehicles or electric bikes.

In addition, the EV market will grow with consumers also buying leisure boats, light aircraft with this category to dominate about 35 percent of the EV business to 2024. Military e-vehicles, land, water and airborne will be most of the remaining value market in 2024 and, as with industrial and commercial ones, they are not bought primarily on up-front price.

Dr. Peter Harrop, Chairman of IDTechEx said, “Manufacturers of industrial and commercial electric vehicles and their parts/services tend to be profitable whereas those making personal electric bikes and cars report most losses and bankruptcies. That said there are far too many manufacturers of light industrial and commercial e-vehicles. Their profitability can be improved even further by mergers and a shakeout of those that are neither niche nor volume players, as happened in the heavy lifting, pulling or pushing industrial and commercial sector with electric forklifts, ten years ago.”

The report shows that within the on-road types, buses are particularly important vehicles primarily due to the massive program of the Chinese government followed by electric vans and delivery trucks, conventional electric cars and special designs used as taxis and converted golf cars converted as people movers in airports, theme parks and hotel grounds. Finally, the report finds that indoor forklifts will continue to be the main subsector of industrial and commercial vehicles but with largest growth from relatively new applications such as agriculture, mining, utility and construction vehicles and outdoor forklifts.