Global Electric Truck Market size USD 8514 Million by 2032 | CAGR of 26%

Electric trucks are characterized as cargo-hauling commercial vehicles that are powered by a battery pack. In addition, electric truck motors have fewer moving parts than diesel truck motors and do not require multiple-speed gearboxes, which reduces maintenance costs, improves vehicle dependability, and produces nearly no noise pollution. Further, electric trucks are becoming the preferred choice over diesel trucks because of the government initiative to promote the adoption of electric trucks and its remarkable advantages, such as gobs of torque, no noise pollution, lower maintenance cost, and others. Increasing government attempts to promote e-mobility and tough emission regulations placed on vehicles fueled by fossil fuels are driving the expansion of the electric truck market.  Market Dynamics Increasing Government Initiatives for Promotion of E-Mobility to Drive the Global Electric Truck Market Governments from over the globe are placing pressure on vehicle manufacturers to minimize carbon emissions caused by diesel fuel combustion and combat greenhouse gas emissions, thereby encouraging them to invest in the development of electric vehicles. Governments are offering incentives in the form of programs and plans for producing battery-powered electric trucks, which are expected to stimulate market growth. In addition, governments worldwide provide tax advantages and incentives for the purchase of electric mobility. In addition, the central governments of just a few nations exempt electric vehicles from highway toll taxes. For instance, the Indian government proposes to reduce the Goods & Services Tax (GST) on e-vehicles from 12% to 5% to accelerate their adoption. In addition, about $2,101.50 in tax exemptions will be provided for loans taken out to purchase an e-mobility. In addition, the government of South Korea has declared that it will offer tax exemptions and subsidies totaling $900 million for the development and purchase of electric and fuel cell vehicles. Consequently, the increase in government support for the development and procurement of electric mobility, in the form of tax credits, subsidies, and incentives, is one of the primary factors driving the demand for electric trucks. Rising Demand for Electric Trucks from the Logistics Sector to Provide Opportunities for the Global Electric Truck Market As the global demand for green transportation increases, vehicle emissions of hazardous gases are decreasing, particularly in the freight transportation business, which significantly contributes to carbon dioxide emissions. In addition, replacing commercial diesel vehicles with electric vehicles and government programs encouraging the adoption of electric trucks are expected to boost the market for electric trucks. Due to the growing demand for logistics services caused by the expansion of e-commerce, retail, and manufacturing industries, supply chains, and logistics businesses are actively replacing their fleet with more environmentally friendly vehicles. For instance, logistics companies in the United Kingdom have initiated plans to increase their fleet size with commercial electric vehicles in the following years. United Parcel Service (UPS), an American international package delivery and supply chain management corporation, and ARRIVAL, a British technology company, announced in 2016 that they would construct a pilot fleet of 35 commercial electric delivery vehicles for testing in London and Paris. In addition, Yamato Transport Co., Ltd. (Yamato Transport) stated in March 2019 that it has collaborated with StreetScooter GmbH (Aachen, Germany), a Post DHL Group firm, to develop a tiny commercial electric truck for house delivery. Yamato Transport aims to introduce 500 electric trucks in 2019 and utilize them in Tokyo, Saitama, Chiba, and Kanagawa beginning in October. Key Highlights The global electric truck market size was valued at USD 1064 Million in 2023 and is estimated to reach an expected value from USD 1340 Million in 2024 to USD 8514 Million by 2032, registering a CAGR of 26% during the forecast period (2024– 2032). By propulsion, the global electric truck market is classified into battery electric trucks, hybrid electric trucks, plug-in hybrid electric trucks, and fuel-cell electric trucks. The hybrid electric truck segment was the highest contributor to the market and is estimated to grow at a CAGR of 24% during the forecast period.  By vehicle type, the global electric truck market is categorized into light-duty electric trucks, medium-duty electric trucks, and heavy-duty electric trucks. The light-duty electric truck segment was the highest contributor to the market and is estimated to grow at a CAGR of 25.2% during the forecast period.  By range, the global electric truck market is divided into 0-150 miles, 151-300 Miles, and above 300 miles. The 0-150 miles segment was the highest contributor to the market, with $198.3 million in 2019, and is estimated to grow at a CAGR of 24.2% during the forecast period.  Regional Insights By region, the global electric truck market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest contributor and is anticipated to grow at a CAGR of 22.2%. The expansion of the electric truck market in this region is propelled by China's rising vehicle output and India's increased investment in the automobile industry. Increasing investment in battery technology development programs and environmental concerns will drive market growth. Moreover, the high need for freight transportation from emerging economies such as India, Thailand, and Indonesia would substantially impact the development of the electric trucks market in this area. Europe is the second largest region. It is estimated to reach an expected USD 180 million by 2030, registering a CAGR of 29.9% during the forecast period. Europe consists of the United Kingdom, Germany, France, Russia, and the rest of Europe. The remainder of Europe consists of Sweden, Norway, Italy, the Netherlands, and others. In response to escalating environmental concerns, European governments and environmental agencies are passing stringent emission standards and rules, increasing the market for commercial electric vehicles in Europe. Stringent emissions objectives for reducing nitrogen oxides (NOx) and carbon monoxide (CO2) in the atmosphere; and projected diesel bans in Europe, with cities such as Paris and Madrid already proposing diesel bans, are significant regulatory measures. Approximately 200 towns have entry restrictions and low-emission zones, led by the United Kingdom, Germany, and Italy. The diesel bans and other environmental rules are compelling European truck manufacturers to incorporate electric trucks in their product lines, consequently boosting the expansion of the electric truck market in the region. North America is the third largest region. North America consists of the United States, Canada, and Mexico. In North America, the electric truck market is anticipated to be driven by many market participants and extensive R&D efforts. For instance, Ford is investing over $6 billion in a plant in Michigan, United States, to produce the F-150 hybrid electric vehicle. In 2020, the firm anticipated releasing an all-new F-150 and an F-150 hybrid electric truck. Increasing fuel costs and strict government laws regarding carbon emissions are driving the adoption of electric and hybrid electric vehicles in this area. In addition, significant investment in electric trucks due to increased demand for zero-emission commercial vehicles is anticipated to boost the growth of the North American electric truck market. Competitive Landscape Key players profiled in the global electric truck market include AB Volvo, BYD Company Ltd., Daimler AG, Dongfeng Motor Group Co., Ltd., MAN SE, Rivian, Scania AB, Tata Motors, Tesla, Workhorse, and others. Market News August 2022- To meet the growing demand for battery electric heavy-duty vehicles and machines, the Volvo Group has established a large-scale production plant for battery cells in Sweden. May 2022- The previously mentioned joint venture for charging infrastructure in Europe has now been formed by the Volvo Group, Daimler Truck, and TRATON GROUP. Anja van Nielsen has been named CEO of the new joint venture, which is anticipated to play an essential part in advancing the European Union's Green Deal for carbon-free freight transportation by 2050. Global Electric Truck Market: Segmentation By Propulsion Battery electric vehicle Hybrid electric vehicle Plug-in hybrid electric vehicle Fuel cell electric vehicle By Vehicle type Light-duty electric truck Medium-duty electric truck Heavy-duty electric truck By Range 0-150 miles 151-300 miles 300 miles above By Region North America Europe  Asia Pacific LAMEA