According to a recent report published by Allied Market Research, titled, “Electric Truck Market by Propulsion, Vehicle Type, and Range: Opportunity Analysis and Industry Forecast, 2020-2027,” the global electric truck market size was valued at $422.5 million in 2019, and is projected to reach $1,893.1 million by 2027, registering a CAGR of 25.8% from 2020 to 2027.
By region, Asia-Pacific dominates the market presently, followed by Europe, North America, and LAMEA. China dominated the electric truck market share in 2019 and the Mexico is anticipated to exhibit a remarkable growth during the forecast period.
Leading electric truck manufacturers are starting electrification with a partnership with other leading companies in various industry applications. For instance, Scania, one of the leading manufacturers of commercial vehicle has entered into an agreement with food wholesaler ASKO, according to which ASKO intends to order around 75 trucks within three years (2020-2022), which in turn is anticipated to propel the market for battery electric truck. In addition, leading automobile companies are introducing new charging infrastructure for electric truck to charge the truck while driving. For instance, on May 9, 2020, Siemens, an industrial manufacturing company has developed eHighway, which is specially designed for custom Scania hybrid trucks developed by the Volkswagen Group. Further, electric truck manufacturers are introducing new fuel cell electric trucks and are planning to mass produce these trucks in coming years, which in turn will propel the growth of the fuel cell electric truck market. For instance, in July 2020, Hyundai Motor Company introduced world’s first fuel cell heavy-duty truck for commercial use.
Automobile manufacturers of electric vehicles are introducing new range of light duty electric trucks with remarkable towing capacity, which in turn is anticipated to propel the market for light duty electric truck. For instance, on June 25, 2020, Lordstown Motors, an American automobile manufacturer unveiled its first light duty electric truck with a towing capacity of 6000 pounds, and around 250 miles of range. In addition, medium-duty truck manufacturers are launching new range of electric medium duty trucks with added features such as fast charging time and significant range. For instance, on January 8, 2019, an American-based truck manufacturer unveiled its new all-electric medium-duty truck, adding a third truck to its existing electric vehicle lineup. In addition, this new electric truck is specifically designed for local pickup and delivery operations with a range of around 100 miles. Moreover, governments of various countries are forming joint ventures to promote the adoption of electric vehicles for commercial use to reduce the emission of greenhouse gases. For instance, on July 14, 2020, 15 states and District of Columbia have signed a memorandum to work in collaboration to accelerate and advance the market for electric medium and heavy duty trucks. The goal is to ensure that all the new heavy and medium duty trucks sales composed of zero emission vehicles by the year 2050, with interim target of 30% zero emission vehicles sale by 2030.
Startup operating in the electric truck market is launching new range of zero-emission heavy vehicles with a goal to reduce impact of freight deliveries in cities where pollution is increasing. For instance, Volta Trucks, launched an electric truck which is 9.46 meters long, 2.55 m wide, 3.4 m high, and with battery pack of 160-200 KWh battery pack. In addition, it offers a loading capacity of 8.6 tons and provides a range between 93-124 miles. In addition, various startups operating in the electric truck market are introducing new range of electric vehicles with different variants in battery packs and thus miles range. For instance, Rivian, a U.S.-based startup has unveiled its first pickup truck named R1T in three different battery pack variants. In addition, the smallest version of this truck is equipped with 105 kWh pack, which provides around 230 miles of range. Also, electric truck manufacturers are introducing new range of electric trucks with mile range of more than 300 miles, which in turn is anticipated to propel the growth of electric truck with range more than 300 miles. For instance, on February 10, 2020, Nikola Corporation, an Arizona-based startup introduced fuel cell electric pickup truck called Badger with 300 miles of range on battery power alone and 600 miles of range with full tank of hydrogen.
Increasing costs of fuel coupled with stringent governmental regulations about carbon dioxide emissions are pushing the adoption of electric and hybrid electric vehicles. In addition, high investment in electric trucks, owing to higher demand for zero-emission commercial vehicles is expected to fuel the growth of the electric truck market. Major regulatory measures are stringent emissions targets for the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) in air; and anticipated diesel bans in Europe, with cities such as Paris and Madrid having already started announcing diesel bans. At present, there are around 200 cities in Europe with access regulations and low-emission zones, led by the U.K., Germany, and Italy. The diesel bans and other emission regulations are forcing the truck manufacturers to include electric trucks in their product offerings in Europe, thereby driving the growth of the electric truck market in Europe.
Factors such as increasing government initiatives for promotion of e-mobility and stringent emission norms imposed on fossil-fuel powered vehicles are driving the growth of electric truck market. However, lack of charging infrastructure and high cost of electric trucks are hindering the growth of market during the forecast period. Further, rising demand for electric trucks from the logistics sector is anticipated to provide remarkable growth opportunity for the companies operating in the electric truck market.
COVID-19 impact analysis:
Original equipment manufacturers shut down their production owing to just-in-time production strategy and limited supply of automobile parts. This shutdown is implemented to secure liquidity and avoid overproduction owing to decrease in sales of automobiles due to spread of this disease, which in turn has significantly impacted the electric truck market.
Key Findings Of The Study
- On the basis of propulsion, the fuel cell electric truck segment is anticipated to exhibit a remarkable growth during the forecast period.
- On the basis of vehicle type, the light-duty electric truck segment is the highest contributor to the global market in terms of revenue.
- On the basis of region, LAMEA is the fastest growing region, followed by North America, Europe, and Asia-Pacific.
The key players analyzed in this report are AB VOLVO, BYD Company Ltd., DAIMLER AG, Dongfeng Motor Group Co., Ltd., MAN SE, Rivian, SCANIA AB, Tata Motors, Tesla, Workhorse, and others.