ELECTRIC TRUCK MARKET ANALYSIS

The global electric truck market size was valued at US$ 2.73 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 18.1% from 2023 to 2030. The increasing awareness of the effects of climate change and rising concern about pollution is driving demand for green transport worldwide. Moreover, governments of various countries are encouraging the adoption of electric vehicles to reduce greenhouse gas emissions. These factors are expected to drive growth of the global electric truck market over the forecast period. The introduction of self-driving electric vehicles is also expected to further fuel the market growth.

Global Electric Truck Market: Regional Insights

North America is expected to show significant growth in the global electric truck market over the forecast period. This is owing to robust presence of major market players in the region, and increasing R&D activities in the region. Companies are increasingly investing in electric truck market. For instance, Ford invested more than U$ 6 billion in the U.S. Michigan plant for F-150 hybrid electric truck manufacturing. Along with this, rise in demand for zero-emission commercial vehicles, and growing cost of fuel in the region is also expected to boost growth of the market in the region.

Moreover, Europe is also expected to gain strong growth in the global electric truck market over the forecast period due to rise in environmental concerns, implementation of stringent regulations around emissions by governments of countries in the region. Most of these regulatory measure focus on reducing carbon dioxide and nitrogen oxides in air. Due to such laws and regulations, market players are including electric trucks in their products portfolios in the region. These factors are further driving growth of the market across the region.

Figure 1: Global Electric Truck Market Share (%), By Region, 2022

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Global Electric Truck Market Drivers:

Rise in government initiatives promoting e-mobility to boost the market growth

With growing government regulations, vehicle manufacturers are under pressure to cut down carbon emission caused by diesel fuel combustion. To address the issue of GHG emissions, manufacturers are investing in development of electric trucks. Governments around the world are offering incentives for this, with schemes and programs to support electric truck manufacturing. Moreover, several governments are also offering incentives and subsidies on purchase of electric vehicles. Such initiatives from governments of countries across the world are promoting e-mobility. This in turn is anticipated to fuel growth of the global electric truck market over the forecast period.

Stringent regulations around emissions from fossil-fuel powered vehicles to augment the market growth

Environmental concerns are growing all over the world due to which, several environmental agencies and governments of countries are imposing stringent regulations and laws around emissions in order to cut down vehicular emissions. Most of these regulations target reducing nitrogen oxides and carbon dioxide in air. For instance, the federal and state governments in the U.S. are taking initiatives toward cleaner transportation owing to the high amounts of GHS emission from vehicles. The California Air Resources Board announced to adopt heavy-duty Low NOx Omnibus Regulations, which aim at achieving 90% reduction in current emissions of nitrogen oxide by 2027. Such regulations are likely to drive adoption of electric trucks, which is further expected to boost the market growth in the coming future.

Global Electric Truck Market Opportunities:

Growing demand from logistics sector is projected to create promising growth opportunities in the global electric truck market over the forecast period. Due to growing demand for green transport around the world, specifically in the freight transportation industry responsible for higher carbon emissions, the reduction in vehicular emission is increasing with time. Along with this, several manufacturers are replacing commercial diesel vehicles with electric vehicles. The demand for electric trucks in logistics industry is growing significantly, as the industry is major contributor to the carbon emissions. Thus, this in turn is likely to create growth opportunities in the market.

Increasing technological advancements in batteries is anticipated to offer lucrative opportunities in the global electric truck market during the forecast period. To improve charging capabilities and driving range in electric trucks market players are increasingly investing in advancement of battery technology in order to increase efficiency of electric trucks in long-haul operations. This is further creating lucrative environment for growth opportunities in the global electric truck market over the forecast period.

Global Electric Truck Market Trends:

Rise in adoption of autonomous driving technology is a major trend in the market

The trend of self-driving technology is growing rapidly, and this is expected to boost growth of the global electric truck market during the forecast period. Major manufacturers in this field such as Volvo, Tesla, Daimler, and Vera among others are involved in development of self-driving technology in trucks for the market. Several startup companies are also focusing on development of this technology. Autonomous trucking will offer greater efficiency in the market. Thus, this trend is likely to continue in the global electric truck market over the forecast period.

Battery electric trucks segment is gaining traction in the market

The demand for battery electric trucks is increasing due to rise in life and energy density of batteries and declining cost of these batteries. Along with this, government regulations for mandating zero-emission vehicles are also increasing all over the world. For instance, the European Union imposed enactment for reducing emissions by 2030 by at least 40%. Due to such regulations, demand for battery electric trucks is increasing. This trend is expected to support growth of the global electric truck market over the forecast period.

Global Electric Truck Market Restraints:

Lack of charging infrastructures to limit growth of the market

With increasing environmental concerns, governments of several countries are promoting adoption of EVs for commercial applications. However, many regions lack infrastructure for charging electric trucks. For instance, countries such as India are imposing initiatives to increase electric vehicles on road, however, due to inadequate EV charging infrastructure in the country, the adoption of electric vehicles is restricted. This factor in turn is expected to hamper growth of the global electric truck market over the forecast period.

High cost of electric trucks to hinder the market growth

Electric vehicles offer various benefits over traditional vehicles. However, these vehicles are expensive when compared to conventional vehicles. The cost battery used in electric vehicle determines the overall cost of an electric vehicle. Moreover, requirement of expensive manufacturing process and use of high cost raw materials also add into the cost of electric vehicles. This factor further creates uncertainty in adoption of EVs. Thus, the high cost of electric trucks is expected to hamper growth of the global electric truck market over the forecast period. However, increasing research and development activities to reduce the high cost of these vehicles is likely to aid in the market growth.

Figure 2: Global Electric Truck Market Share (%), By Propulsion Segment, 2022

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Global Electric Truck Market Segmentation:

The global electric truck market report is segmented into Propulsion, Vehicle Type, and Range.

Based on Propulsion, the market is segmented into Battery electric vehicle, Hybrid electric vehicle, Plug-in hybrid electric vehicle, and Fuel cell electric vehicle. Out of which, Battery Electric Truck is expected to dominate the global market over the forecast period and this is attributed to the increasing number of e-truck manufacturers adopting strategic partnerships with other companies in different industry applications for electrification. For instance, Scania, a leading commercial vehicle manufacturer announced an agreement with ASKO, a food wholesaler for 75 trucks during 2020 to 2022. Such efforts by market players are driving growth of this segment.

Hybrid Electric Truck segment is also expected to witness significant growth in the near future and this is owing to the launch of novel charging infrastructure by major automobile companies for electric trucks to charge while driving. Hybrid electric trucks are powered by an electric motor. The battery used in these trucks cannot be plugged in to get charged, instead it has to be charged using internal combustion engine. In May 2020, Siemens announced development of eHighway designed particularly for custom Scania hybrid trucks developed by Volkswagen.

Based on Vehicle Type, the market is segmented into Light-duty electric truck, Medium-duty electric truck, and Heavy-duty electric truck. Out of which, Light-duty electric truck is expected to dominate the global market over the forecast period and this is attributed to the launch of new electric vehicles intended for light duty by major automobile manufacturers. These light-duty electric truck are commercial vehicle used primarily for transporting cargo. They are mainly used in e-commerce industry for delivery or in fast-moving consumer goods businesses. In June 2020, Lordstown Motors, introduced its light-duty electric truck having 6000 pounds of towing capacity and range of nearly 250 miles.

Medium-duty Electric Truck segment is also expected to witness significant growth in the near future and this is owing to the increasing demand for medium-duty electric truck across various applications. These trucks are used in various lighter duty applications such as small utility bodies, pickup and delivery, service bodies, and more. Market players are launching new medium-duty electric trucks to cater the growing demand. This in turn is expected to support growth of the segment in the coming future.

Based on Range, the market is segmented into 0-150 miles, 151-300 miles, and 300 miles above. Out of which, 0-150 miles is expected to dominate the global market over the forecast period and this is attributed to the need for electric trucks with this range across various short range applications. Such electric trucks with less than 150 miles range offer reduced cost of operation and enhanced efficiency. With growing need in short range applications of these trucks, market players are introducing advanced trucks, which higher efficiency within the range of 0-150 miles.

151-300 miles segment is also expected to witness significant growth in the near future and this is owing to the increasing government initiatives toward adoption of electric commercial vehicles, leading to demand for electric trucks with range between 151 to 300 miles. New range of electric vehicles with various battery packs are being introduced in the market with this range. This in turn is expected to support growth of this segment in the market.

Global Electric Truck Market: Key Developments

In February 2020, Volvo Trucks introduced a novel Class 8 battery-electric heavy duty trucks intended for regional transport and construction operations. The company unveiled its new vehicle at the TEC Equipment dealership event in California.

In April 2020, BYD Company Ltd. and Hino Motors, Ltd. entered into a strategic business alliance agreement for focusing on commercial battery electric vehicles development which comprises coaches, buses, and trucks among other commercial vehicles.

In March 2020, Daimler announced the launch of a novel medium-duty Freightliner eM2 106 and a heavy-duty Freightliner eCascadias electric trucks for customer testing in North America.

In March 2020, BYD Company Ltd. and Transcarsell, a transport service provider signed a contract for supplying 20 heavy-duty electric trucks in Ecuador.

Global Electric Truck Market: Key Companies Insights

The global electric truck market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global electric truck market are AB Volvo, Workhorse, BYD Company Ltd., Tesla, Daimler AG, Scania AB, Tata Motors, Rivian, Dongfeng Motor Group Co., Ltd., Man SE.

*Definition: Electric trucks are commercial vehicles that run on electricity instead of traditional fossil fuels. They are becoming increasingly popular as freight transportation companies are seeking to reduce their carbon footprint and costs.