Global Electric Truck Market By Propulsion (BEV, PHEV, and FCEV), By Vehicle Type (Light Duty Trucks, Medium Duty Trucks, and Heavy Duty Trucks), By Range(150 Miles, 151-300 Miles, and Above 300 Miles) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032
- Published date: Oct 2023
- Report ID: 20316
- Number of Pages: 208
The Global Electric Trucks Market size is expected to be worth around USD 11.08 Billion by 2032, From USD 728 Million by 2023, growing at a CAGR of 31.30% during the forecast period from 2023 to 2032.
The key drivers of market growth are the increasing demand for logistics services, lower fuel and maintenance costs, as well as incentives to adopt zero-emission vehicles. Manufacturers will have to invest in electric truck manufacturing due to stringent emission standards for commercial vehicles. Manufacturers are expected to make huge investments to meet the growing demand and contribute to market growth.
There are many uses for electric trucks, including in logistics, municipal, and other areas. The country’s GDP growth is largely dependent on the logistics sector. To grow in the e-commerce industry, logistics providers may be required to deliver to remote areas.
Supply chain and logistics companies actively participate in the replacement of internal combustion engine fleets with electric fleets. CEVA Logistics, a U.K.-based logistics company, began trials with electric trucks in Central London in February 2020.
Two electric trucks from Tevva will be operating daily between Dartford and St Thomas’ NHS Foundation Trust. The main obstacle to the growth of electric trucks is the lack of infrastructure for charging. The charging station could be hindered by high costs due to permitting, building codes,s, and regulatory red tape. Due to the low investment, electric trucks are not as popular in emerging countries as they are in developed countries.
The Rising Awareness About Global Warming, Pollution, Greenhouse Gas, And The Importance Of Electic Vehicles Will Drive The Growth Of The Market.
Electric trucks are the latest vehicle model that runs without gasoline or fuel. Due to the depletion of fuel, electric vehicles have been widely adopted in this market. The global electric truck market will grow owing to some regulations and norms regarding global warming, pollution, and greenhouse gas emissions.
Global electric truck sales are growing due to increasing awareness about electric vehicles. The governments of both developed and developing countries are also encouraging people to adopt electric vehicles. The government also offers tax incentives to people who buy electric vehicles. The government is also working to develop sustainable electric vehicle charging infrastructure. This will allow people to use electric trucks in a more efficient way, these and other government initiatives will help boost the growth of the global electric vehicle market during the forecast period.
The Requirement Of High Initial Investment Than CNG, Petrol, And Diesel Trucks May Restrain The Market Growth.
Producing electric trucks requires a higher initial investment than for CNG, petroleum, or diesel trucks. Production parts and machinery are also very expensive. The high cost of electric vehicles’ batteries is one reason for the high price of production parts and machinery. The price of electric trucks will drop as battery technology improves and prices drop.
These trucks are less complex than other fuel trucks and therefore will be affected by the market prices for EV Batteries. These vehicles are still expensive to produce because they are currently produced on a small scale. The production cost of an electric vehicle is higher than diesel or petrol trucks currently, it will still be half as expensive till the forecast period compared with diesel and petrol versions.
The Trend Of Self-Driving Vehicles Will Have A Good Impact On The Electronic Truck Market Globally.
The recent trend in self-driving vehicles will have a significant impact on the market for electric trucks. There are many top OEMs developing self-driving electric vehicles for the market, including Volvo, Tesla, Daimler, Vera, etc. Self-driving electric vehicles have been developed by other startups, including TuSimple Einride, Ike, etc. In 2021, Tesla is planning to launch its self-driving electric truck.
Waymo began testing self-driving trucks in January 2020. TuSimple will operate autonomous routes between Tucson in Arizona, and Pheonix there are also some in Texas areas. In May 2019, Einride began testing driverless trucks. Daimler announced in January 2019 that it had invested USD 570 million to develop self-driving electric trucks. The many advantages of self-driving electric truck technology, such as ease of use and value-added features, will drive up demand for electric trucks over the long term. This technology will mature in the next 5-6 years.
Price Drop Of The EV Batteries Will Bost The Growth Of The Market Globally.
The price of electric trucks has fallen because EV batteries are one of the most expensive components. An EV battery cost USD 1,100 per kWh in 2010. EV batteries in China were relatively inexpensive at USD 100/kWh. However, the cost of an EV battery has dropped to USD 137/kWh by 2020. The cost of EV batteries will drop to USD 40-60 per kWh by 2030. This will make EV trucks more affordable and their prices closer to traditional ICE trucks. Another factor that is driving electric truck market revenues is the growing EV battery industry.
Government incentives and programs are expected to drive growth in the electric truck market. Governments around the world are implementing innovative policies and incentive programs to encourage electric vehicles in all market segments (autos, bikes, and commercial vehicles). The FAME II amendment was introduced by the Indian government and the PLI (production-linked incentive) program for the auto industry.
These programs are intended to convert 30% of private vehicles and 70% of commercial vehicles to electric and to make it possible to switch 80% of two-wheelers and three-wheelers to electric by 2030. In recent years, the global market CAGR has been increasing due to the government’s growing policies.
Battery Electric Vehicles (BEV) Segment Dominates The Market Growth Globally.
This market can be divided into three segments by propulsion: Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEV), or Fuel Cell Electric Vehicles (FCEV). BEVs held the largest market share due to their adoption in many countries such as China, the U.S., and Europe. In 2022, nearly 90% of all electric truck registrations were in China. BEV sales and the latest developments will drive significant growth in the electric truck market.
The PHEV segment occupied the second-largest market share. This segment provides better comfort and overall performance. Research and development of plug-in hybrid trucks are the focus of key companies. These factors will positively impact the segment’s growth. The market’s third-largest share was held by the FCEV segment. This segment’s growth can be attributed to its advantages and the development of key trucking companies.
Vehicle Type Analysis
The Light Duty Trucks Segment Dominates The Market Growth Globally.
This market can be divided by application into light-duty trucks, medium-duty trucks, and heavy-duty trucks. In 2022, the largest market share was held by the light-duty trucks segment. Light-duty truck sales have increased. China was the largest market for light-duty trucks in 2022. This growth can be attributed to the key players and OEMs within the country.
Europe accounted for the second-largest market share in 2022, due to its increasing response to carbon dioxide performance standards. In 2022, the medium-duty trucks segment accounted for the second largest market share. The U.S. and Europe have a greater demand for medium-duty trucks than China. Services and features are less important than security and dependability. Due to the rising demand for electric vehicles in constrictions of transport, the segment held the third-largest market share in 2022.
The 151-300 Mile Segment Dominates The Market Growth Globally.
The target market can be divided into three segments based on its range: 150, 151-300, and over 300 miles. In 2022, the 151-300 mile segment held the largest market share. The growth of this segment can be attributed to the registration and increase in electric truck sales (151-300 range), in Asia Pacific.
In 2022, the 150-mile segment held the second-largest market share. The market’s key players have been making significant developments that have fueled this segment’s growth. With the most recent developments by giant players, the segment above 300 miles held the third largest market share.
Key Market Segments
Based on Propulsion
Based on Vehicle Type
- Light Duty Trucks
- Medium Duty Trucks
- Heavy Duty Trucks
Based on Range
- 150 Miles
- 151-300 Miles
- Above 300 Miles
COVID-19 Impact Analysis
The Electric Truck Sector Has Been Less Affected Due To The Increase In Sales After the Second Quarter Of 2020.
In the first months of the pandemic, the overall automotive market was hit hard by the drop in sales due to lockdowns. The expulsion of workers and terror of stagnation caused by coronavirus have led to a substantial drop in sales of electric trucks in the first and second quarters of 2020. However, electric trucks continued growing in demand after the lockdown restrictions were lifted.
The second half of 2020 saw increased sales and in many cases reduced losses from the previous months. Due to the increasing trend in vehicle electrification worldwide, electric vehicles saw an increase in sales between 2020 and 2021. This sector was therefore less affected by the pandemic.
North America Dominates The Market Globally
North America’s electric truck market is dominating the global market. It is expected to grow at a significant rate during the forecast period. Many industry competitors and extensive R&D are expected to drive the North American electric truck market.
Ford, for example, is investing more than USD 6B to construct the F-150 hybrid electric car at a Michigan plant. The firm launched a new F-150 hybrid electric vehicle and an F-150 hybrid electric truck in 2020. Due to the increased demand for zero-emission commercial vehicles, North America’s electric truck market is expected to grow.
The second largest market share for electric trucks is in Europe. In response to growing environmental concerns, European governments and environmental organizations are enforcing strict emission rules and laws. This is driving up the demand for electric cars on the continent.
The European Union (EU), for instance, is committed to achieving its 20 percent greenhouse gas reduction target for the Kyoto Protocol’s 2nd phase. The EU hopes to eliminate all greenhouse gas emissions by 2050. The largest market share was held by the German electric truck industry, while the UK’s electric truck market was the fastest growing in Europe.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
This electric trucks market is highly competitive and has both large and small players. The market is dominated by BYD Auto Company. Ltd., Dongfeng Motor Corporation, PACCAR Inc., Daimler AG, and Scania. These companies offer an extensive range of electric trucks and can cater to the transportation, logistics, and municipal sectors. These market players also focus on making fuel-cell electric trucks that have a longer range and better performance.
These players have continued to focus on new product launches and upgrading existing trucks. Daimler Trucks, for instance, presented Freightliner eM2 106 in June 2018 at the Capital Market & Technology Day held at Portland International Raceway. Daimler Trucks introduced the Electric Freightliner Customer experience Fleet in North America in March 2020. The fleet includes six heavy-duty Freightliner Freightliners and two Freightliner medium-duty Freightliner EM2 106.
Top Key Players in Electric Trucks Market
Listed below are some of the most prominent Electric Truck industry players.
- 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.
- Tevva Motors Limited
- Other Key Players
- Scania’s first two electric trucks were launched in February 2020 as part of a partnership with Norwegian wholesaler ASKO. These city distribution trucks come with 165 kWh batteries and a range of 75 miles.
- Hino Motors Ltd and Toyota Motor Corporation signed a contract in March 2020 to work together on the development of a heavy-duty fuel cell truck and to continue with testing and preparations for its practical use.
- Dongfeng Motor Corporation announced the launch of the Dongfeng Rich 6 electric vehicle, an electric pickup truck that was developed in partnership with Nissan. It is powered by an electric motor that produces 160 horsepower and 420 Nm torque.
Report Features Description Market Value (2022) USD 728 Million Forecast Revenue (2032) USD 11.08 billion CAGR (2023-2032) 31.3% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Propulsion: BEV, PHEV, and FCEV; By Vehicle Type: Light Duty Trucks, Medium Duty Trucks, and Heavy Duty Trucks; By Range: 150 Miles, 151-300 Miles, and Above 300 Miles. Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape 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. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)
Frequently Asked Questions (FAQ)List the segments encompassed in this report on the electric trucks market?
Market.US has segmented the global electric trucks market by Region (North America, Europe, APAC, South America, and the Middle East and Africa). By Vehicle Type, this market has been segmented into Battery Electric Trucks and Hybrid Electric Trucks. By Application, this market has been further divided into Logistics, Municipal, and Other Applications.List the key industry players in the electric trucks market?
AB Volvo, BYD Auto Co. Ltd, Foton Motor Inc., Isuzu Motors Ltd, Navistar Inc., PACCAR Inc., Tevva Motors Limited, Daimler AG, Dongfeng Motor Corporation, FAW Group Co. Ltd., and Other Key Players.Which region is more appealing for vendors employed in the electric trucks market?
APAC accounted for the highest revenue share of 47.8%. Therefore, the electric trucks industry in APAC is expected to garner significant business opportunities over the forecast period.Name the key areas of business for electric trucks?
China, India, The U.S., U.K., Germany, Brazil, and Canada are key areas of operation for the electric trucks market.Which segment accounts for the highest market share in the electric trucks industry?
With respect to the electric trucks industry, vendors can expect to leverage greater prospective business opportunities through the ‘battery electric trucks’ sub-segment, as this area of interest accounts for the majority market share.
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