Electric Truck Market Statistics 2030
The global electric truck market was valued at $392.3 million in 2020, and is projected to reach $3,861.8 million by 2030, registering a CAGR of 26.4% from 2021 to 2030. Factors such as increase in government initiatives for promotion of e-mobility, stringent emission norms imposed on fossil-fuel powered commercial vehicles, and reducing cost of electric vehicle batteries are driving growth of the market.
Electric trucks can be defined as commercial vehicles that are powered by pack of batteries and are used for transportation of cargos. In addition, in electric trucks, motors inside have fewer parts moving as compared to diesel truck and do not need multi-speed transmissions, which, in turn, reduces maintenance cost of vehicles and improves reliability with almost zero noise pollution. Further, electric trucks are becoming the preferred choice over diesel trucks, owing to government initiatives to promote adoption of electric truck and its remarkable advantages such as gobs of torque, no noise pollution, and lower maintenance cost.
Lack of charging infrastructure and high cost of electric trucks are expected to hinder growth of the market during the forecast period. Further, rise in demand for electric trucks from the logistics sector and development of self-driving electric truck technology is anticipated to provide remarkable growth opportunity for companies operating in the electric truck market.
The electric truck market is segmented on the basis of propulsion, vehicle type, range, and region. By propulsion, the market is classified into battery electric truck, hybrid electric truck segment, plug-in hybrid electric truck, and fuel-cell electric truck. By vehicle type, it is categorized into light duty electric truck, medium duty electric truck, and heavy-duty electric truck. By range, it is divided into upto 150 miles, 151 to 300 miles, and above 300 miles. By region, the market is analyzed across North America, Europe, Asia-Pacific, Latin America & Middle East (LAME) and Africa.
Key Market Players
The companies profiled in the global electric trucks industry report are AB Volvo, BYD Compay Ltd., Daimler AG, Dongfeng Motor Company, Geely Automobiles Holdings Limited, Man SE, Paccar Inc., Scania, Tata Motors and Workhorse.
By Propulsion
Fuel cell electric truck is projected as the most lucrative segments
Increase in Government Initiatives for Promotion of E-Mobility
Governments across the world are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle the greenhouse gas emissions, in turn, pushing them to invest in developing electric trucks. For that, Governments are providing incentives with programs and schemes for manufacturing of battery electric vehicles bev, which in turn is anticipated to propel the growth of the market. In addition, governments around the world are supporting for the purchase of electric mobility, in terms of tax credits and incentives. Moreover, the central governments of few countries are providing exemption from the highway toll tax for electric vehicles.
For instance, for faster adoption of electric vehicles, the Indian government plans to lower the Goods & Service Tax (GST) on e-vehicles from 12% to 5%. Moreover, around $2,101.5 tax exemptions will be given on loan taken for the purchase of an e-mobility. In addition, the South Korean government has announced that it will be providing the $900 million tax exemptions and subsidies for development and purchase of electric and fuel cell vehicle. Thus, increase in government support for the development and purchase of electric mobility, in terms of tax credits, subsidies and incentives, is one of the major factors propelling the demand for electric truck. Moreover, various countries are planning to switch completely to electric trucks from conventional trucks owing to stringent emission norms.
For instance, on September 2019, Nitin Gadkari (Union Minister of Road Transport and highways in India) said that all the buses in India will switch to electric propulsion type in following two years to cut down the pollution levels across the country. Such initiatives are expected to drive the growth of the global e-truck market.
Stringent Emission Norms Imposed on Fossil-Fuel Powered Commercial Vehicles
With the growing environmental concerns, governments and environmental agencies across the world are enacting stringent emission norms and laws to reduce vehicle emission. Major regulatory measures are stringent emissions targets for the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) in air. Due to the high amounts of greenhouse gases being emitted from vehicles, the federal and state governments in the U.S. are stepping up efforts to make transportation cleaner.
For instance, the U.S. Environmental Protection Agency (EPA) announced that they are working on new rules to decrease emissions of nitrogen oxide (NOx) and other pollutants from heavy-duty trucks. In addition, the California Air Resources Board (CARB) is adopting heavy-duty Low NOx Omnibus Regulation, aims to achieve a 90% reduction from current NOx emissions limits by 2027. Moreover, in Europe, European Union (EU) committed within the Paris agreement (COP21) to achieve its 20% greenhouse gas reduction target in 2020 for the second phase of the Kyoto Protocol.
The EU has also set the target to achieve 40% greenhouse gas reduction by 2040 and net-zero by 2050. Therefore, with the enactment of the emission regulations for fossil fuel-powered vehicle, the burden on vehicle manufacturers, especially on commercial vehicle manufacturers, has further increased. This, in turn, is expected to drive the demand for electric trucks. Thus, stringent emission norms imposed on fossil-fuel powered commercial vehicles significantly driving the growth of electric truck market.
By Vehicle Type
Heavy duty electric truck is projected as the most lucrative segments
Lack of Charging Infrastructure
Government of various countries are promoting adoption of electric vehicles for commercial purpose to reduce the emission of greenhouse into environment. However, lack of charging infrastructure for electric trucks acts as an obstacle for the electric truck market. For instance, the Government of India is aiming to have only electric vehicle on roads by 2030. However, creation of robust electric vehicle infrastructure is one of the key requirements to ensure the adoption of electric vehicles. Unfortunately, EV charging infrastructure in India is inadequate at present and yet to catch up to meet the requirement, which in turn is hampering the growth of the market.
In addition, though China is one of the biggest markets for electric vehicles, the country is struggling to support the sufficient electric vehicle charging infrastructure to recharge electric fleets, which is anticipated to hindering the market. Thus, lack of charging infrastructure is restraining the growth of electric truck market. Therefore, lack of charging infrastructure in most of the countries across the world hindering the growth of market.
Rise in Demand for Electric Trucks from the Logistics Sector
Reduction in emission of harmful gases from the vehicles is observed as demand for green transport is increasing worldwide, especially in the freight transportation industry, which contributes highly to carbon dioxide emissions. In addition, replacement of commercial diesel vehicles by electric vehicle and supportive government initiatives for adoption of electric trucks are anticipated to boost the electric truck market.
By Range
Above 300 Miles is projected as the most lucrative segments
Attributed to the rising demand for logistics services on account of expanding e-commerce, retail and manufacturing industries, the supply chain and logistics companies are actively participating in replacing their fleet with greener vehicles. For instance, in the UK, logistics companies have started plans to deploy more electric commercial vehicle in its fleet size in the coming years. In 2016, United Parcel Service (UPS), an American multinational package delivery and supply chain management company, and ARRIVAL, a UK-based technology firm, announced to develop a state-of-the-art pilot fleet of 35 commercial electric delivery vehicles to be trialed in London and Paris.
In addition, in March 2019, Yamato Transport Co., Ltd. (Yamato Transport) announced that it has jointly developed a compact commercial electric truck for home delivery with StreetScooter GmbH (Aachen, Germany), a Post DHL Group company. Yamato Transport plans to introduce 500 electric trucks in 2019, and start using them from autumn successively in Tokyo, Saitama, Chiba, and Kanagawa. Therefore, rising the demand for electric trucks from the logistics sector offering the lucrative opportunities for market growth.
Covid-19 Scenario Analysis on Electric Truck Industry
The overall automobile market suffered losses in the initial months of the pandemic when sales of vehicles reduced drastically due to lockdowns. Closing down the factories resulting in the expulsion of the workers and the terror of stagnation due to coronavirus are leading to a significant decline in the sales of the electric trucks in first and second quarter of the 2020. Nevertheless, the demand for electric trucks is expected to gain traction after the lockdown restrictions are relaxed. However, during the second half of 2020, the sales increased and, in most cases, reduced the losses for those past months. The sales of electric vehicles increased in 2020 and 2021 due to the growing trend of vehicle electrification around the world. This sector was thus, less affected by the pandemic.
By Region
Africa would exhibit the highest CAGR of 37.8% during 2021-2030.
Key Benefits for Stakeholders
- This study presents analytical depiction of the global electric truck market analysis along with current trends and future estimations to depict imminent investment pockets.
- The overall market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the global market with a detailed impact analysis.
- The current E-truck market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Electric Truck Market Report Highlights
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Analyst Review
The global electric truck market is expected to grow at a remarkable rate in the future, owing to advantages of electric trucks such as lower maintenance cost, zero emission of greenhouse gases, and noise free & efficient operation.
According to Randall Miller, EY Global Advanced Manufacturing & Mobility Leader, a mix of changing consumer attitudes, ambitious climate-focused regulations and technology evolution is about to change the landscape of vehicle buying forever. While the automotive industry has begun to more fully embrace the move toward electrification, the impact of this seismic shift is arriving sooner than many expected. This new outlook also has implications for governments and energy industries in terms of infrastructure and electricity generation and storage, and forward-looking organizations are already using this data to help ensure a smooth transition to this new EV-dominated market, which will be here much sooner than expected. Further, a senior executive at Ashok Leyland said, it has invested around $136 million electric light commercial vehicle (e-LCV), expects the new entity to raise its own capital in the future.
Factors such as increasing government initiatives for promotion of e-mobility, stringent emission norms imposed on fossil-fuel powered commercial vehicles and reducing cost of electric vehicle batteries are driving the growth of electric truck market. However, lack of charging infrastructure and high cost of electric trucks are expected to hinder the growth of the market during the forecast period. Further, rising demand for electric trucks from the logistics sector and development of self-driving electric truck technology is anticipated to provide remarkable growth opportunity for the companies operating in the electric truck market.
Among the analyzed regions, Asia-Pacific is expected to account for the highest revenue in the global market throughout the forecast period, followed by Europe, North America, LAME, and Africa. Moreover, LAMEA (Latin America, Middle East and Africa) is expected to witness the highest growth rate, owing to government regulations related to emission.
The global electric truck market was valued at $392.29 million in 2020, and is projected to reach $3,861.81 million by 2030, registering a CAGR of 26.4% from 2021 to 2030.
Being a newly growing segment of the EV market, the demand of these vehicles has been increasing in the past months in countries like China, US, Germany, France, UK among others. Moreover, the governments across several economies have imposed targets for emission reductions, which will surge the demand post-COVID-19.
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AB Volvo, BYD Compay Ltd., Daimler AG, Dongfeng Motor Company, Geely Automobiles Holdings Limited, Man SE, Paccar Inc., Scania, Tata Motors and Workhorse are the leading players in electric truck market
The company profiles of the top market players of electric truck service industry can be obtained from the company profile section mentioned in the report
Currently Asia-Pacific leading the electric truck market, whereas africa is expected to provide more business opportunities for E-Truck in future
Tesla, ABB, Delta Electronics, Fortum, Volvo, Nikola Corporation among others are the leading service providers of electric truck in the industry
Product launch, product development, business expansion, partnership, collaboration, agreement are the key growth strategies of electric truck industry players
There are several new competetive developments in electric truck in the market in recent years incluing development in battery technologies, autonomous electric trucks, launch of various advanced electric trucks among others.
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