Electric Trucks Market

Report Overview

The Global Electric Trucks Market size is expected to be worth around USD 13.7 Billion by 2033, from USD 0.9 Billion in 2023, growing at a CAGR of 31.3% during the forecast period from 2024 to 2033.

Electric trucks are vehicles powered by electric motors instead of traditional internal combustion engines. These trucks use batteries to store energy, which reduces emissions and improves energy efficiency. They range from light-duty delivery vehicles to heavy-duty trucks used for long-haul transport.

The electric trucks market includes the production, sales, and distribution of electric trucks across various segments, such as light, medium, and heavy-duty vehicles. The market is expanding as more companies and fleet operators adopt electric trucks to meet environmental standards and reduce operating costs.

The electric trucks market is experiencing rapid growth, driven by regulatory mandates, rising environmental awareness, and substantial investments in EV infrastructure. According to the International Energy Agency (IEA), sales of electric trucks rose by 35% in 2023 compared to 2022, totaling 54,000 units. Notably, electric truck sales have now surpassed those of electric buses for the first time.

China remains the largest market, representing 70% of global sales, though its share has declined from 85% in 2022. In Europe, sales nearly tripled in 2023, exceeding 10,000 units and making up over 1.5% of the market. This data suggests strong growth potential across different regions, particularly as markets like Europe and North America continue to expand.

Growth factors for electric trucks include stricter emissions regulations and increased investments in EV technology. The U.S. Environmental Protection Agency (EPA) has introduced new regulations requiring that by 2032, 60% of new urban delivery trucks and 25% of long-haul trucks must be electric.

Similarly, the European Union aims to cut CO2 emissions from heavy-duty vehicles by 45% by 2030 and 90% by 2040. These policies are set to accelerate the shift to zero-emission vehicles (ZEVs) and create significant demand for electric trucks globally.

The electric truck market is currently in its early stages of growth, showing low to moderate saturation levels. Major players such as Tesla, BYD, and Daimler dominate the market, but new entrants and startups are increasingly entering, especially in niche segments like urban delivery and light-duty trucks. Competition is expected to intensify as more manufacturers scale up production capabilities and battery technology advances.

On a global scale, the electric truck market is pivotal for achieving emission reduction targets. Heavy-duty vehicles account for over 80% of the growth in CO2 emissions from road transport since 2000. Electric trucks provide a solution, but their effectiveness depends on battery technology improvements and EV charging infrastructure expansion.

Significant investments are being made in this space, especially in the U.S., where US$ 188 billion in private investments have been announced over the past nine years, largely driven by the Inflation Reduction Act (IRA) of 2022. These funds support the establishment of battery manufacturing facilities and EV assembly plants, aiming to power up to 12.3 million electric vehicles annually by 2027.

Key Takeaways

• The Electric Trucks Market was valued at USD 0.9 billion in 2023, and is expected to reach USD 13.7 billion by 2033, with a CAGR of 31.3%.
• In 2023, Battery Electric Vehicles (BEV) dominated the propulsion segment with 76.3%, attributed to zero-emission policies.
• In 2023, Plug-in Hybrid Electric Vehicles (PHEV) held the second-largest market share, offering versatility and range.
• In 2023, Light Duty Trucks led the vehicle type segment, reflecting growing urban delivery demand.
• In 2023, Medium Duty Trucks secured the second-largest share, utilized in commercial and construction sectors.
• In 2023, APAC led with 45.2% share and USD 0.41 billion, driven by government initiatives and industrial growth.

Propulsion Analysis

Battery Electric Vehicles (BEV) dominate with 76.3% market share in 2023 due to advancements in battery technology and increasing environmental regulations.

This dominance is driven by significant advancements in battery technology, which have improved both the efficiency and range of BEVs, making them increasingly viable for both urban and long-haul transportation. Environmental regulations pushing for reduced emissions in commercial transportation have also favored the adoption of BEVs.

The BEV segment benefits from lower operating costs compared to traditional internal combustion engine vehicles, due to fewer moving parts and lower fuel costs. Government incentives for electric vehicles, such as tax rebates and grants for electric fleet operators, further boost the attractiveness of BEVs in the commercial sector.

While BEVs lead the market, Plug-in Hybrid Electric Vehicles (PHEV) hold the second largest market share. PHEVs offer flexibility by combining electric propulsion with a traditional engine, which can extend range and alleviate range anxiety issues. This makes PHEVs an attractive option for operators who may face unpredictable routes that could extend beyond the range of current BEV technology.

Fuel Cell Electric Vehicles (FCEV) represent a smaller segment of the market but are gaining traction due to their quick refueling times and potential for longer ranges compared to BEVs. However, the lack of hydrogen fueling station remains a significant barrier to widespread adoption.

Vehicle Type Analysis

Light Duty Trucks dominate with the largest market share in 2023 due to their versatility and ease of integration into existing fleets.

This dominance is largely due to their versatility and ease of integration into existing commercial fleets. Light Duty Electric Trucks are increasingly used in urban settings for deliveries and services where their reduced noise and zero emissions are of great benefit.

The adoption of light duty vehicles is further supported by their lower total cost of ownership compared to medium and heavy-duty trucks, making them an economical choice for businesses focusing on cost efficiency. Additionally, the continuous improvement in battery technology has enhanced their range and load-carrying capacity, increasing their appeal to a broader market.

Medium Duty Trucks hold the second largest share and are essential for tasks that require more robust capabilities than light-duty trucks but do not necessitate the extensive power and range of heavy-duty trucks. This segment is growing as technology advances allow for larger batteries and more powerful electric motors, which can handle heavier loads and longer distances.

Heavy Duty Trucks, though currently a smaller segment of the market, are critical for long-haul transportation and are expected to grow as battery technologies advance and charging infrastructure expands. These trucks are essential for the sustainability targets of large-scale logistics operations, providing a cleaner alternative to traditional heavy-duty vehicles.

Range Analysis

Trucks with a range of 151-300 miles hold the largest market share in 2023 due to a balance between range and operational efficiency.

The range segments within the electric trucks market significantly influence buyer preferences, with the 151-300 miles category leading in market share in 2023. This range is particularly appealing as it provides a balance between operational range and battery cost, making these trucks suitable for a broad spectrum of distribution and transportation tasks.

Trucks in this range segment meet the needs of most regional hauls and are capable of completing a full day’s work on a single charge, which aligns well with the operational patterns of many fleet operators. As battery technology continues to improve, the cost-effectiveness of owning and operating electric trucks in this range category is expected to increase, further driving market growth.

The 150 miles or less category holds the second largest market share and is ideal for urban and local deliveries. These trucks are optimized for short-range, frequent stop-and-go operations, which are common in city logistics. The growing trend towards urbanization and city-based logistics operations supports the demand for this range category.

Trucks with a range above 300 miles, while still in a nascent stage, are being developed for longer haul applications. This segment is anticipated to grow as technology advances allow for increased battery capacities and as the charging infrastructure becomes more robust, facilitating longer-distance electric truck operations.

Key Market Segments

By Propulsion

• BEV
• PHEV
• FCEV

By Vehicle Type

• Light Duty Trucks
• Medium Duty Trucks
• Heavy Duty Trucks

By Range

• 150 Miles
• 151-300 Miles
• Above 300 Miles

Drivers

Technological Advancements and Sustainability Initiatives Drive Market Growth

The electric trucks market is expanding rapidly, driven by technological advancements, sustainability initiatives, government regulations, and rising fuel costs.

Technological innovations in battery technology and electric powertrains are enhancing the efficiency, range, and performance of electric trucks. This makes them more appealing for commercial use, as businesses aim to reduce operating costs and emissions.

Furthermore, global sustainability targets are pushing companies and governments to transition to cleaner transportation solutions, encouraging investments in electric trucks. Governments worldwide are implementing incentives, tax rebates, and stringent emission regulations that favor electric vehicle adoption, boosting market growth.

In addition, rising fuel prices are making traditional fuel trucks less economical, pushing fleet operators to explore electric alternatives for long-term cost savings. This economic incentive is significant as companies seek to reduce their total cost of ownership while maintaining efficiency.

Restraints

High Costs and Limited Infrastructure Restrain Market Growth

The high upfront cost of electric trucks remains a significant barrier. Compared to traditional diesel trucks, electric models require substantial investment due to expensive battery technology and advanced components.

Moreover, the limited availability of charging infrastructure poses a logistical issue. Although investments are increasing, many regions still lack sufficient public and private charging stations to support widespread electric truck use.

Battery limitations also affect the market. Current battery technology often restricts the range and payload capacity of electric trucks, making them less competitive for heavy-duty applications. This limitation hinders the adoption of electric trucks in industries that require long-distance and high-capacity transportation solutions, as many fleet operators find traditional trucks more reliable and efficient.

Finally, regulatory inconsistencies across regions create uncertainty. While some countries and states offer strong support for electric vehicles, others lack clear policies or incentives. This disparity makes it difficult for manufacturers and logistics companies to plan large-scale investments in electric truck fleets, as they must navigate varied regulatory environments.

Opportunity

Government Incentives and Urbanization Provide Opportunities

The electric trucks market offers significant opportunities for growth, supported by government incentives, urbanization trends, expanding charging infrastructure, and increasing awareness of environmental sustainability.

Governments across various regions are introducing subsidies, tax benefits, and grants to encourage the adoption of electric vehicles. These financial incentives lower the initial cost for businesses, making electric trucks an attractive option for fleet expansion. This support provides an avenue for manufacturers to increase production and tap into new markets with lower entry barriers.

Urbanization is another major opportunity. As cities grow and prioritize reducing air pollution, electric trucks become an ideal solution for urban logistics and last-mile delivery services. This trend is driving demand for smaller, zero-emission trucks that can navigate congested city environments efficiently.

Moreover, the development of charging infrastructure is expanding rapidly. Investments in public and private charging stations are enhancing the convenience and feasibility of operating electric truck fleets.

Challenges

Battery Technology and Supply Chain Challenges Market Growth

Battery technology remains a critical issue, as current options struggle to balance weight, efficiency, and range. The heavy weight of batteries reduces payload capacity, while limited range restricts long-distance transportation.

Supply chain disruptions also pose a significant challenge. The production of electric trucks relies heavily on raw materials like lithium, cobalt, and other rare earth metals for batteries. Recent global supply chain disruptions have made it challenging for manufacturers to secure these resources, causing delays in production and increasing costs.

Charging time remains another barrier. Unlike traditional trucks that can refuel in minutes, electric trucks require significantly longer charging times. This issue affects fleet operation efficiency, as it limits the availability of trucks for continuous use. Businesses operating on tight schedules or with high logistics demands may hesitate to adopt electric trucks due to this challenge.

Additionally, the electric truck industry faces a shortage of skilled labor, particularly in servicing and maintaining these advanced vehicles. Electric trucks require specialized knowledge that differs from traditional vehicle maintenance. The lack of trained technicians and service centers affects the reliability and support available for fleet operators, adding another layer of complexity to market adoption.

Growth Factors

Government Support and Technological Advancements Are Growth Factors

Government support is a key growth factor. Many countries are offering subsidies, tax incentives, and grants to encourage the adoption of electric vehicles, including trucks. These financial incentives reduce the initial investment burden on businesses, making electric trucks more accessible.

Advancements in charging infrastructure are also driving the market. The expansion of fast-charging networks in urban and highway locations is improving the convenience and efficiency of electric truck operations.

Decreasing battery costs play a crucial role in market growth. Improvements in battery technology and economies of scale have significantly lowered the cost of electric truck batteries, making the vehicles more affordable.

The rising demand for sustainable transportation is another important growth factor. Consumers and businesses are increasingly prioritizing eco-friendly practices, and electric trucks align with this shift. Companies looking to improve their environmental impact and meet corporate social responsibility goals are adopting electric trucks, which further propels market growth.

Emerging Trends

Government Regulations and Urban Logistics Are Latest Trending Factor

Stringent government regulations aimed at reducing carbon emissions are a major influence on the market. Many governments are implementing policies that mandate lower emissions for commercial fleets, providing incentives like tax rebates and grants for electric truck adoption.

The rise of urban logistics is another significant trend. As cities expand and the demand for last-mile delivery services grows, electric trucks offer a practical solution for navigating congested urban areas while minimizing emissions.

Advancements in battery technology are also driving the market forward. New developments in solid-state batteries and fast-charging systems are making electric trucks more efficient and practical for long-haul operations.

Corporate sustainability initiatives are further boosting the market. Companies are under pressure to reduce their carbon footprint and are increasingly investing in electric fleets as part of their environmental, social, and governance (ESG) strategies. Large corporations are setting targets for zero-emission fleets, driving the demand for electric trucks and encouraging manufacturers to innovate and scale production.

Regional Analysis

Asia Pacific Dominates with 45.2% Market Share

Asia Pacific (APAC) leads the global electric trucks market with a 45.2% share, valued at USD 0.41 Billion. This dominance is driven by strong government policies promoting green transportation, high investment in EV infrastructure, and significant demand for electric trucks in countries like China and Japan. The region’s focus on reducing emissions and reliance on fossil fuels further supports this growth.

APAC benefits from rapid urbanization, which increases the need for efficient logistics solutions. Governments actively invest in charging infrastructure and offer subsidies, making electric trucks a practical choice for companies. Local manufacturers also play a key role, providing affordable electric truck models that meet market demand, further strengthening APAC’s leadership.

APAC’s market presence is expected to remain influential as governments continue to tighten emission regulations and expand urban transportation projects. Increased investments in battery technology and advancements in charging speed will further enhance the market’s growth prospects, solidifying the region’s position as a leader in electric truck adoption.

Regional Mentions:

• North America: North America shows strong potential in the electric trucks market, supported by high investment in infrastructure and government incentives. The region focuses on long-haul solutions and innovation, driven by leading manufacturers and logistics companies.
• Europe: Europe’s electric truck market is growing, influenced by stringent emission laws and a shift toward sustainable logistics. Major investments in EV technology and a focus on urban delivery solutions support its steady expansion.
• Middle East & Africa: The Middle East & Africa region is gradually adopting electric trucks, driven by investments in smart city projects and the development of EV infrastructure. The focus is on enhancing urban transportation and reducing reliance on traditional fuel sources.
• Latin America: Latin America is slowly entering the electric truck market, with government support and growing awareness of sustainable logistics. The region’s progress is tied to expanding charging networks and subsidies that make electric trucks more accessible.

Key Regions and Countries covered іn the rероrt

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The electric trucks market is competitive, with major players such as AB Volvo, BYD Auto Co. Ltd, Daimler AG, and Dongfeng Motor Corporation leading the sector. These companies drive market growth through strong brands, extensive R&D, and diverse product lines.

Key players provide a range of electric trucks, including light, medium, and heavy-duty models. They focus on solutions for urban deliveries, long-haul transportation, and specialized commercial uses. Charging infrastructure and fleet management services are also offered.

Companies like Daimler AG and AB Volvo emphasize high-performance and advanced technology, appealing to premium customers. BYD Auto Co. Ltd focuses on affordability and mass production, while Dongfeng targets regional markets with competitive pricing and localized features. Partnerships with tech firms and logistics companies are common to enhance capabilities.

These companies have a strong global reach, with operations in North America, Europe, and Asia. They benefit from well-established distribution networks and government support in key regions like China and Europe.

Innovation is crucial, with a focus on improving battery technology, increasing vehicle range, and integrating autonomous driving features. Efforts to create eco-friendly manufacturing processes and establish robust charging infrastructure are also ongoing.

The competitive edge for these companies lies in their technological capabilities, strategic partnerships, and global distribution networks. Continuous innovation and strong government support further strengthen their market positions.

Top Key Players in the Market

• 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.
• Scania
• Tevva Motors Limited
• Other Key Players

Recent Developments

• Ashok Leyland Electric Truck Delivery Summary: On October 2024, Ashok Leyland delivered its first batch of electric trucks, including the AVTR 55T Electric and BOSS models, to Billion Electric Mobility. The collaboration, aimed at promoting sustainable transportation, includes 180 trucks designed for mid-mile logistics with fast-charging capabilities and up to 230 km range.
• AMTA Innovation Expo Summary: On September 2024, at the inaugural AMTA Innovation Expo, the AZETEC Class 8 hydrogen fuel cell truck was launched. Developed with 15 partners, this CA$22 million project aims to provide a zero-emission, heavy-duty vehicle capable of meeting Canadian weight standards and long-distance requirements, supported by Emissions Reduction Alberta.
• MAN Electric Truck Support Summary: On October 2024, MAN offers a digital package for its eTGX and eTGS electric trucks, including services like eManager for charging management and SmartRoute for optimized route planning. These features, available free for five years, aim to enhance efficiency and provide real-time updates on battery and vehicle status.
• Yulu’s Financial Milestone Summary: On October 2024, Yulu became EBITDA positive, achieving $30 million in annual recurring revenue, driven by growth in quick-commerce demand. The company plans to deploy 100,000 electric vehicles by 2025 and is preparing for a $100 million Series C funding round to support its expansion.

Report Scope