Electric Truck Market Latest Report Highlights Market Growth

Electric Truck Market Synopsis

Electric Truck Market Size Was Valued at USD 3.19 Billion in 2023 and is Projected to Reach USD 14.39 Billion by 2032, Growing at a CAGR of 18.22% From 2024-2032.

Electric trucks often referred to as e-trucks, are commercial vehicles equipped with electric propulsion systems that replace traditional internal combustion engines. These trucks utilize electrically operated motors powered by batteries to drive, offering a cleaner and more environmentally friendly alternative to conventional diesel or gasoline-powered trucks.

• Electric vehicles are now becoming a piece within the larger transformation of transport toward sustainability. With battery technology and charging infrastructure continuing to chip away at obstacles related to electric mobility, these cars just keep getting better by leaps and bounds as more of us come online with mobile connections. They can be used for many different things, such as delivering goods and hauling freight or in commercial shipping. Also, they bring an environmentally friendly substitute for those dusky diesel trucks of old.

Electric Truck Market Trend Analysis

Growing Demand from the Logistics Industry

• The electric truck market is expected to have stable growth opportunities over the forecast period, as strong demand from logistics companies around the world pushes this market forward. The rise in global awareness about environmentally friendly modes of transportation has become very important since air shipping and other freight transport activities represent over 80 percent of overall emissions.
• Vehicle exhaust keeps getting cleaner as well; by next year standards will have been progressively tightened to a point where all new automobiles cannot exceed this standard for no more than one calendar year. At the same time, more and more manufacturers are replacing commercial diesel buses with electric vehicles. Its contribution to carbon emissions is substantial, yet the growth of electric vehicles in logistics accounts for a large share of demand. Therefore, this will require market expansion.
• This is because new advances in battery technologies will provide many attractive opportunities for global electric truck markets over the coming years. The battery is the core of an electric truck, and also its weak link. Thus every market participant now small to large has created a program for investing resources into advancing the development of that technology to improve their charging capabilities and driving range. It seeks to increase the effectiveness of electric trucks running on long-haul routes. This has led to the rapid development of prospects for electric trucks worldwide over the forecast period.

Advancement of Autonomous Truck Technology for Commercial Use

• Global electric truck industry: Self-driving technology is in a phase of rapid development, and much attention has been paid to its effect on the global markets over the period studied. Automobile giants such as Volvo, Tesla, Daimler, and Vera are already gearing up to develop solutions for taking autonomous trucks on the road so they can sell them. Several organizations at the take-off stage are also dedicated to its development. Participation in the theory of autonomous transportation will improve market efficiency. Therefore, such is likely to be the course happening in what has become known as a way of growth for electric trucks.
• In the face of deteriorating global environmental conditions, agencies concerned with statewide policing and national governments have promulgated a series of strict regulations and laws governing emissions. Most of these air regulations seek to limit emissions of carbon dioxide and nitrogen oxides. For example, as a way of combating the massive amounts of greenhouse gases released by automobiles in the U.S., both levels especially are taking action to develop healthier transportation systems - the federal government with its programs and on the state level within their individual states' jurisdictions.

Electric Truck Market Segment Analysis:

Electric Truck Market Segmented on the basis of Propulsion, Vehicle Type, and Range.

By Type, Battery Electric Vehicles Segment is expected to dominate the market during the forecast period

• The battery Electric Vehicles (BEV) segment is poised to exert a dominant influence over the market. This anticipation stems from several factors that collectively underscore the advantages and appeal of BEVs within the electric truck landscape.
• BEV dominance is their inherent environmental friendliness, marked by zero tailpipe emissions that align with stringent global emissions regulations. This attribute not only positions BEVs favorably in terms of sustainability but also resonates strongly with the growing societal emphasis on reducing carbon footprints and combating climate change.
• Advancements in battery technology have significantly improved the range and performance of BEVs, alleviating concerns regarding their operational capabilities and making them a viable alternative to traditional diesel trucks.
• The cost-effectiveness of BEVs is increasingly becoming a compelling factor in their favor. As the prices of battery packs continue to decline and economies of scale come into play with increased production volumes, the upfront costs associated with BEVs are becoming more competitive with conventional diesel trucks.

By Vehicle Type, Heavy-duty electric truck segment held the largest share of 39.4% in 2023

• The electric truck market, the Heavy-duty electric truck segment has emerged as the frontrunner, commanding the largest share for several compelling reasons. Firstly, heavy-duty electric trucks address a critical need in industries that rely heavily on robust transportation capabilities for hauling goods over long distances. Their ability to deliver substantial payloads while maintaining environmental sustainability through zero-emission operations makes them highly attractive to businesses navigating increasingly stringent emissions regulations globally.
• Advancements in battery technology and charging infrastructure have significantly bolstered the feasibility and practicality of Heavy-duty electric trucks. With improved range capabilities, these trucks can now cover long-haul routes without compromising on performance or efficiency. Moreover, the expanding network of charging stations, coupled with fast-charging technologies, mitigates concerns about downtime and ensures seamless operations for fleet operators.

Electric Truck Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• North America is forecasted to experience significant development during the foreseeable period due to the substantial presence of key market players and the expansion of research and development activities. Additionally, the increasing prices of petroleum and the growing demand for low-carbon commercial vehicles are expected to drive market growth in the region.
• North America has a strong infrastructure to support the growth of electric trucks. The region boasts an extensive network of charging stations, which is crucial for encouraging consumers to adopt electric vehicles. Additionally, government initiatives and incentives, such as tax credits and rebates, further promote the adoption of electric trucks among businesses and consumers.

Active Key Players in the Electric Truck Market

• PACCAR Inc. (United States)
• Navistar International (United States)
• Tesla (United States)
• Rivian (United States)
• Nikola Corporation (United States)
• Bollinger Motors (United States)
• Xos Trucks (United States)
• Workhorse Group (United States)
• Motiv Power Systems (United States)
• Lightning eMotors (United States)
• Daimler AG (Germany)
• Volvo Group (Sweden)
• Traton SE (Germany)
• Einride (Sweden)
• Arrival (United Kingdom)
• Tevva Motors (United Kingdom)
• BYD Auto Co. Ltd (China)
• Dongfeng Motor Corporation (China)
• FAW Group (China)
• Hino Motors (Japan)
• SEA Electric (Australia), and Other Active Players.

Key Industry Developments in the Electric Truck Market:

• In April 2023, BYD Company Ltd. and Hino Motors, Ltd. entered into a strategic business alliance for the joint development of commercial battery electric vehicles (trucks, carriages) and buses among other types of commercial vehicles.
• In March 2023, Daimler began customer testing in North America of the new heavy-duty Freightliner Cascadia electric vehicle and medium-duty Freightliner eM2 106.