Three key trends are driving this growth. First, rising volumes of parcels and e-commerce — the number of parcels shipped globally will treble from 100 billion in 2019 to 300 billion in 2026. Second, a steep rise in international and domestic trade, estimated at 8% for 2021. And third, the need for governments worldwide to make CVs safer and more environmentally friendly. This last trend is particularly important. The number of fatalities caused by CVs, whether due to human error or vehicle malfunction, is high, especially in emerging markets. Moreover, emissions from conventional combustion engine CVs are significant.
These issues are prompting fleet owners to upgrade their existing CVs. On the energy front, they are turning to new energy powertrains, alternatively powered by hydrogen fuel cells for long-distance logistics delivered by heavy-duty trucks (HDT) and medium-duty trucks (MDT), or batteries for urban deliveries by light commercial vehicles (LCVs). By 2030, more than one-third of the LCVs globally will be new-energy vehicles, with HDTs accounting for one-quarter of the global fleet.
In terms of other emerging technologies, CV operators are leveraging autonomous vehicles (AVs) to make the driving experience safer, more for long-haul journeys than for first- and last-mile deliveries.