The Electric Truck Market is poised for a remarkable surge, with a projected valuation of USD 199.81 billion by 2031 from USD 33.31 Billion in 2023. This astronomical growth, pegged at a CAGR of 25.1% from 2024 to 2031, is primarily driven by the rising demand for electric trucks in the logistics sector across top EV markets worldwide. Stringent government regulations and growing environmental concerns are further propelling the market forward.
EU’s Ambitious Green Goals For Trucks Hit Roadblock Despite Early Lead By Volvo And Green Truck Champions
While the European Union aims for net-zero carbon emissions by 2050, the road to decarbonizing road freight transport with electric trucks faces a bumpy start. Strict new EU regulations call for a dramatic cut in CO2 emissions from new trucks and coaches by 2040, with all city buses required to be zero-emission by 2030. These are ambitious goals, but the reality on the ground paints a different picture.
In 2022, sales of electric trucks were a mere 700 units compared to a total of 260,000 heavy-duty trucks sold, representing a tiny 0.3% market share. However, this is a significant increase from 2021. Interestingly, Germany, Sweden, and the Netherlands are leading the way in electric truck sales within the EU, collectively accounting for roughly 65%. This regional dominance extends to manufacturing, with the Volvo Group (Volvo Trucks and Renault Trucks) holding a commanding 55% market share in 2022. The Traton Group (Scania) and Daimler Trucks are also making headway in this growing market.
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Electric Trucks Gain Momentum: Cost Savings, Autonomous Future, and Infrastructure Hurdles
Lower electricity costs compared to traditional fuels are fueling the adoption of electric trucks, particularly evident in the US Postal Service’s order from Workhorse Group.
The future sees electric trucks making inroads in product transport (food and beverage), e-commerce giants like Amazon and Walmart, and state services (postal trucks, fire trucks, and refuse trucks).
The Convergence Of Electric And Autonomous Technology Is Exciting
Leading companies like Tesla, Volvo, and Mercedes Benz are developing self-driving electric trucks, alongside startups like Embark, Einride, and TuSimple. Notably, TuSimple partnered with Navistar Inc. (US) in December 2022 for this purpose. Additionally, companies like Waymo (US) are already using self-driving electric trucks for deliveries, as seen in their collaboration with Wayfair (US).
Widespread adoption hinges on surpassing diesel trucks in terms of economic performance. While research suggests electric trucks can compete with diesel models in Europe by 2030 without additional support, implementing fiscal incentives, road toll exemptions, and carbon pricing can accelerate the shift.
Ensuring a steady supply of electric trucks requires adequate manufacturing capacity. Truck manufacturers are optimistic, projecting a 60% market share for electric trucks by 2030 and complete sector decarbonization by 2040. Achieving these goals necessitates a level playing field through regulation to foster healthy competition.
The Electric Truck Market Can Be Segmented By Propulsion, Range, And Vehicle Type.
By Propulsion:
- Battery-Electric Truck
- Hybrid Electric Truck
- Plug-in Hybrid Electric Truck
- Fuel Cell Electric Truck
Propulsion: Hybrid electric trucks currently hold the top spot in the market. This dominance can be attributed to their superior fuel efficiency and lower operating costs compared to traditional diesel trucks.
By Range:
- 0-150 Miles
- 151-300 Miles
- Above 300 Miles
Range: Electric trucks with a range of 0-150 miles capture the majority of the market share. This preference stems from the cost benefits associated with lower battery and operational expenses, along with the suitability of this range for intra-city operations.
By Vehicle Type:
- Light-duty Truck
- Medium-duty Truck
- Heavy-duty Truck
Vehicle Type: Light-duty electric trucks have emerged as the front runners due to their lower daily mileage requirements and compatibility with existing charging infrastructure.
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Market Key Players
- AB Volvo
- BYD Auto Co. Ltd
- Daimler AG
- Foton Motor Inc.
- Dongfeng Motor Corporation
- FAW Group Co. Ltd.
- Isuzu Motors Ltd
- Navistar Inc.
- PACCAR Inc.
- Scania
- Tevva Motors Limited
Recent Developments in the Electric Truck Market
In November 2022, Tenneco, a leading automotive parts supplier, announced it will provide suspension solutions and anti-vibration materials for Rivian’s electric R1T pickup truck. This collaboration highlights the growing role of established automotive component manufacturers in the electric truck ecosystem.
In October 2022, In response to rising demand for sustainable transportation solutions, Performance Team, a logistics company, announced the deployment of a fleet of Class 8 battery-electric trucks from Volvo Trucks. This signifies the increasing adoption of electric trucks for short-haul warehouse and distribution center operations.
Asia Pacific Takes the Lead
Governments in China, Japan, South Korea, and India are actively promoting electric vehicles (EVs) through policies and incentives. This includes mandates for electric fleet adoption and financial support for EV manufacturing. Major OEMs are establishing production facilities for electric vehicles in Asia Pacific to cater to the growing regional demand. This will lead to increased availability and potentially lower prices for electric trucks. As environmental concerns gain traction, Asian countries are increasingly looking towards electric trucks to reduce emissions and achieve sustainability goals.
A notable example is India’s plan to mandate electric vehicles for a significant portion of ride-hailing fleets operated by companies like Ola and Uber. Additionally, cities like Delhi are implementing policies to promote electric vehicle adoption, including a target of 25% of all new vehicles being electric by 2024.
Key Takeaways from the Electric Truck Market Study
- Gain insights into the projected market size and growth rate of the electric truck market over the next decade.
- Understand the dominant segments within the market based on propulsion, range, and vehicle type.
- Identify the key drivers and challenges that will shape the future of the electric truck market.
- Explore the growth potential of the electric truck market in different regions across the globe.
- Gain valuable information on leading players, recent developments, and upcoming trends in the electric truck market
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