CAGR: 42.7%Current Market Size: USD 2.60 billionFastest Growing Region: North America
Largest Market: EuropeProjection Time: 2022-2029Base Year: 2021
The global electric truck market is expected to grow from USD 2.60 billion in 2021 to USD 43.85 billion by 2029, at a CAGR of 42.7% during the Projection period 2022-2029. This growth of the electric trucks market is mainly driven by an upsurge in demand for trucks with low emissions in the logistics sector and the rising need to reduce fuel and maintenance costs of the trucks.
Electric trucks are commercial battery electric vehicles that are powered by batteries and help in carrying the heavy payloads as well as the transportation of cargo. The fully electric-powered electric trucks operate on an electric motor instead of an internal combustion (IC) engine. These vehicles do not require fuel, which is one of the leading advantages. Moreover, in past few years, electric mobility has become the answer to issues about environmental protection, urban air quality and noise, and efforts to decrease global warming. This has led to the rise in popularity of electric trucks owing to their benefits such as cost efficiency, lower maintenance, lower noise disturbance, lower emissions, and better performance.
In the past few years, the demand for electric trucks is growing at a rapid pace as it outperforms conventional trucks. This is attributed to the fact that electric trucks are about 50% more efficient to operate as compared to diesel trucks and decrease greenhouse gas emissions by about 50%.
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Market Dynamics:
Drivers:
Out of the global vehicle stock, large diesel trucks account for about 9%; however, the engines of these trucks represent around 40% of the greenhouse gas emissions from the transport sector. However, electric trucks are environmentally friendly as they do not emit pollutants. In addition, these vehicles are energy efficient and need lower maintenance owing to an efficient electric motor. This has led to a significant rise in demand for zero-emissions trucks; while, leading manufacturers such as Ford, Tesla, GM, Peterbilt, and Volvo are actively investing in all-electric trucks. On the other hand, Hyundai, Daimler, and Toyota are working on fuel-cell-powered vehicles. Hence, demand for trucks with low emissions has boosted the global electric trucks market growth.
Generally, electric vehicles are comparatively more expensive than traditional vehicles which are mainly attributed to the use of expensive batteries. Hence, the unaffordability of electric vehicles (EVs) as compared with the traditional internal combustion (IC) engine vehicles has been one of the major barriers to the transition toward EVs. However, the rising preference for electric vehicles and technological innovations has boosted the production of EV batteries on a mass scale, reducing the cost of batteries. For instance, according to BNEF’s 2020 Battery Price Survey, prices of electric batteries in 2020 were 13% lesser than in 2019 owing to the emergence of new battery pack designs and increasing order sizes. Thus, the declining cost of batteries has further driven the growth of the global electric truck market.
Restraints:
The initial investment needed for the production of electric trucks is comparatively much higher than that of diesel, petroleum, or CNG trucks. For instance, Forbes, presently, the manufacturing cost related to the electric trucks is higher than diesel or petrol trucks; however, it will be 50% cheaper than diesel or petrol trucks due to falling battery prices by 2030. Hence, the high initial investment for manufacture of the electric trucks is projected to hamper the growth of the market.
Moreover, an increasing number of countries are investing in Electric Truck charging infrastructure; however, there is still a very less number of EV charging stations around the globe. For instance, the U.S. government is anticipated to need over 100,000 EV charging stations to support widespread electric vehicle usage. Therefore, inadequate EV charging infrastructure has hampered the growth of the market.
Opportunities:
Electric truck manufacturers are continuously transforming and improving their trucks. For instance, the Volvo VNR Electric is one of the six all-electric heavy truck models by the Volvo Group. In January 2022, the company launched the second generation of the Volvo eVNR tractor-trailer that can recharge to 80% within 90 minutes. The emergence of such technologically advanced electric trucks is expected to create lucrative growth opportunities for the market.
On the other hand, vehicle manufacturers are seeing continuous investment in the production of electric trucks. For instance, in December 2019, Rivian, an electric truck start-up received a $1.3 billion investment led by T. Rowe Price Group, Inc., an American publicly owned global investment management firm. Such investments are further opportunistic for the growth of the global market.
Challenges
A number of countries is planning to increase the number of EV fast-charging stations; however, the need for high initial investment has become a major challenge to the market. Also, an estimated installation cost of a fast-charging station is comparatively higher than an A/C charging station. According to McKinsey’s survey in the U.S., it is estimated that the country will need a cumulative 13 million chargers as well as about $11 billion of investment by 2030 for the installation of EV charging infrastructure. Thus, high initial investments to install EV charging infrastructure is a major challenge in the global electric truck market.
Segmentation Analysis:
The global Electric Trucks market has been segmented based on propulsion type, type, end-user, battery capacity, payload capacity, level of automation, battery type, and regions.
By Propulsion Type
The propulsion type segment includes BEV, PHEV, and FCEV. The BEV segment led the Electric Trucks market with a market share of around 32.80% in 2021. Battery-powered Electric vehicles (BEVs) is mainly powered by rechargeable battery packs without any secondary sources of power. Such vehicles can run much farther on a single charge than hybrid vehicles. The growth of this segment is mainly driven by increased investments from governments as well as private companies for the development of EV charging infrastructures. Also, the rising production trend of all-battery electric trucks in the electric vehicle industry is opportunistic for the growth of this segment. For instance, in March 2022, Nikola Corp. announced that it has started production of electric semi-trucks. The company has planned to deliver about 300 to 500 BEV semi-trucks by the end of the year.
By Vehicle Type
The Vehicle type segment includes light-duty trucks, medium-duty trucks, and heavy-duty trucks. The heavy-duty trucks segment led the Electric Trucks market with a market share of around 52.07% in 2021. This is attributed to the increasing number of regulations on vehicle emissions, the rapid growth of the retail, logistics, and e-commerce sectors, and significant advancements in vehicle safety. In addition, the need for powerful trucks with high payload capacity to handle weights and the rising need for fuel-efficient trucks have further boosted the growth of this segment. For instance, in June 2022, Scania, the Swedish commercial vehicle manufacturer launched a new line of battery-electric heavy-duty trucks designed for regional operations. These heavy-duty trucks are equipped with 624kWh battery packs with a range of about 350 kilometers.
By Level of Automation
The level of automation segment includes semi-autonomous and autonomous. The semi-autonomous segment led the electric trucks market with a market share of around 66.02% in 2021. The semi-autonomous trucks require the intervention of human to control the vehicle while using advanced technologies such as Adaptive Cruise Control, Blind Spot Detection, Intelligent Park Assist, and Lane Assist among others. In October 2020, Tesla, Inc. an American automotive and clean energy company announced that the company will produce Tesla Semi, the safe and comfortable truck alongside Cyber truck, Model 3, and Model Y. This focus of leading manufacturers on semi-autonomous electric trucks has primarily boosted the growth of this segment.
Global Electric Trucks Market- By Regional Analysis:
The regions analyzed for the Electric Trucks market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North American region dominated the Electric Trucks market and held the 34.02% share of the market revenue in 2021.
Global Electric Trucks Market- Country Analysis:
Germany Electric Trucks' market size was valued at USD 0.29 billion in 2021 and is expected to reach USD 4.69 billion by 2029, at a CAGR of 42.2% from 2022 to 2029.
Germany is one of the leading nations in the mechanical engineering, manufacturing, automotive, and electrical industries. In May 2019, Germany has launched the first electric highway to recharge hybrid trucks. This e-highway is about 6 miles long and is located on the A5 motorway south of Frankfurt, a central German city. Such innovations in this country are primarily fueling the growth of the electric truck market.
In addition, the government in this country has announced plans to double the number of purchase incentives already in place for battery Electric trucks (BEVs) as part of its EUR 130 billion stimulus package intended to shore up the country’s post-coronavirus economy. Hence, the promotion of the electric vehicle industry in this country is anticipated to create lucrative growth opportunities for the market.
China Electric Trucks' market size was valued at USD 0.56 billion in 2021 and is expected to reach USD 8.96 billion by 2029, at a CAGR of 41.8% from 2022 to 2029. China is the world’s largest light-vehicle manufacturer. This country is a leading automotive producer, consumer, and exporter. The key players including Dongfeng Motor Corporation, Daimler AG, BYD Auto Co. Ltd., and FAW Group Co., Ltd. in the China electric trucks market are seeing huge growth in production. This is mainly attributed to the zero-emissions vehicle mandate imposed by the Chinese government for each vehicle manufacturer and importer in the country which requires them to make or import at least 10% electric vehicles. Such initiatives are anticipated to create lucrative growth opportunities for China's electric truck market.
India Electric Trucks' market size was valued at USD 0.18 billion in 2021 and is expected to reach USD 3.14 billion by 2029, at a CAGR of 43.1% from 2022 to 2029. India is one of the strongest growing economies in Asia. The transportation sector is accountable for over 14% of total greenhouse gas emissions in India. Hence, need to reduce greenhouse gas emissions is mainly fueling growth of the electric trucks in the country.
In addition, the emerging popularity and expansion of the electric trucks sector is expected to create lucrative growth opportunities for the market. For instance, Olectra Greentech Ltd, a leader in electric bus manufacturing in India, has begun trials of a 6x4 heavy-duty electric tipper under its strategy to expand into the electric truck sector.
Key Industry Players Analysis:
To increase their market position in the global Electric Trucks business, top companies are focusing on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, and partnerships, joint ventures, etc.
Latest Development:
Scope of the Report
Global Electric Trucks Market by Propulsion Type:
Global Electric Trucks Market by Type:
Global Electric Trucks Market by End User:
Global Electric Trucks Market by Battery Capacity:
Global Electric Trucks Market by Payload Capacity:
Global Electric Trucks Market by Level of Automation:
Global Electric Trucks Market by Battery Type:
Global Electric Trucks Market by Region:
Global Electric Trucks Market size is USD 2.60 billion in 2021 and it will grow to USD 43.85 billion by 2029, at a CAGR of 42.7% from 2022 to 2029.
China is the world’s largest light-vehicle manufacturer. This country is a leading automotive producer, consumer, and exporter. The key players including Dongfeng Motor Corporation, Daimler AG, BYD Auto Co. Ltd., and FAW Group Co., Ltd. in the China electric trucks market are seeing huge growth in production. This is mainly attributed to the zero-emissions vehicle mandate imposed by the Chinese government for each vehicle manufacturer and importer in the country which requires them to make or import at least 10% electric vehicles. Such initiatives are anticipated to create lucrative growth opportunities for China's electric truck market
North American region dominate the Electric Trucks market and held the 34.02% share of the market revenue in 2021
Leading market players active in the global electric trucks market are AB Volvo, BYD Auto Co. Ltd., Daimler AG, Dongfeng Motor Corporation, FAW Group Co., Ltd., Foton Motor Inc., Isuzu Motors Ltd., Navistar, Inc., PACCAR Inc., and Scania among others.
Electric truck manufacturers are continuously transforming and improving their trucks. For instance, the Volvo VNR Electric is one of the six all-electric heavy truck models by the Volvo Group. In January 2022, the company launched the second generation of the Volvo eVNR tractor-trailer that can recharge to 80% within 90 minutes. The emergence of such technologically advanced electric trucks is expected to create lucrative growth opportunities for the market.
The Vehicle type segment includes light-duty trucks, medium-duty trucks, and heavy-duty trucks.
Out of the global vehicle stock, large diesel trucks account for about 9%; however, the engines of these trucks represent around 40% of the greenhouse gas emissions from the transport sector. However, electric trucks are environmentally friendly as they do not emit pollutants. In addition, these vehicles are energy efficient and need lower maintenance owing to an efficient electric motor. This has led to a significant rise in demand for zero-emissions trucks; while, leading manufacturers such as Ford, Tesla, GM, Peterbilt, and Volvo are actively investing in all-electric trucks. On the other hand, Hyundai, Daimler, and Toyota are working on fuel-cell-powered vehicles. Hence, demand for trucks with low emissions has boosted the global electric trucks market growth.
Political Factors- An increasing number of countries are investing in Electric Truck charging infrastructure; however, there is still a very less number of EV charging stations around the globe. For instance, the U.S. government is anticipated to need over 100,000 EV charging stations to support widespread electric vehicle usage. Therefore, inadequate EV charging infrastructure has hampered the growth of the market. the U.S. Department of Energy (DOE) and the Department of Telecommunications (DOT) signed a memorandum of understanding (MoU) to create a Joint Office of Energy and Transportation to support the deployment of a national electric vehicle charging network with an investment of $7.5 billion.
Economical Factors- The initial investment needed for the production of electric trucks is comparatively much higher than that of diesel, petroleum, or CNG trucks. For instance, Forbes, presently, the manufacturing cost related to the electric trucks is higher than diesel or petrol trucks; however, it will be 50% cheaper than diesel or petrol trucks due to falling battery prices by 2030. Hence, the high initial investment in the manufacture of electric trucks is projected to hamper the growth of the market. For instance, in December 2019, Rivian, an electric truck start-up received a $1.3 billion investment led by T. Rowe Price Group, Inc., an American publicly owned global investment management firm. Such investments are further opportunistic for the growth of the global market.
Social Factor- Growth in the North American of this region is mainly driven by the presence of key market players such as Rivian, Tesla Inc., and Nikola Motors; easy availability of convenient financing options; and the significant emphasis by the governments to ensure in-house automotive production. The significant focus of the government in this region on reducing air pollution is opportunistic for the growth of the market. For instance, the California Governor introduced an order to the sales of new gasoline cars by 2035 in the state previously the government of California also planned to phase out sales of new diesel trucks by 2045.
Technological Factors- Electric truck manufacturers are continuously transforming and improving their trucks. For instance, the Volvo VNR Electric is one of the six all-electric heavy truck models by the Volvo Group. In January 2022, the company launched the second generation of the Volvo eVNR tractor-trailer that can recharge to 80% within 90 minutes. The emergence of such technologically advanced electric trucks is expected to create lucrative growth opportunities for the market. Semi-autonomous trucks require the intervention of humans to control the vehicle while using advanced technologies such as Adaptive Cruise Control, Blind Spot Detection, Intelligent Park Assist, and Lane Assist among others. In October 2020, Tesla, Inc. an American automotive and clean energy company announced that the company will produce Tesla Semi, the safe and comfortable truck alongside Cybertruck, Model 3, and Model Y.
Environmental Factors- Out of the global vehicle stock, large diesel trucks account for about 9%; however, the engines of these trucks represent around 40% of the greenhouse gas emissions from the transport sector. However, electric trucks are environmentally friendly as they do not emit pollutants. In addition, these vehicles are energy efficient and need lower maintenance owing to an efficient electric motor. This has led to a significant rise in demand for zero-emissions trucks; while, leading manufacturers such as Ford, Tesla, GM, Peterbilt, and Volvo are actively investing in all-electric trucks. On the other hand, Hyundai, Daimler, and Toyota are working on fuel-cell-powered vehicles. Hence, demand for trucks with low emissions has boosted the global electric trucks market growth.
Legal Factors- In May 2022, Scania and Einride, the Swedish freight technology company signed an agreement for accelerating the electrification of road freight with 110 electric trucks. Through this agreement, The Einride is further planning to drive innovation as well as product development in the worldwide transport industry in collaboration with Scania. In January 2022, Volvo Trucks launched Active Grip Control, a new safety feature for electric trucks. This feature is projected to improve acceleration, stability, and braking in slippery conditions.
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