The global electric highway (e-Highway) market size was valued at USD 46.0 billion in 2023 and is projected to reach a value of USD 152.0 billion by 2032, registering a CAGR of 14.2% during the forecast period 2024-2032. Electric Highway industry share is expected to grow significantly as the global transportation sector finds novel ways to decarbonize and improve the efficiency of long-haul freight and commercial vehicle operations. Asia-Pacific's e-Highway industry grows at 14.4% CAGR, led by China's 99% electric bus fleet dominance. Europe anticipates a 14.9% CAGR, with France planning 9,000 km of electrified roads by 2035. North America leads global electric highway market, with US expecting 18% wind and solar power by 2024.
An electric highway, an e-highway, is a cutting-edge transportation infrastructure system designed to assist electric cars (EVs) by providing a consistent and efficient power supply. The major goal of an e-Highway is to allow electric trucks and other heavy-duty vehicles to charge while in motion, minimizing the need for massive battery packs and addressing the range limits of electric transportation.
With trial projects underway in several countries, including Germany and the United States, the market forecasts rapid expansion. Key benefits include lower pollutants, increased vehicle range, and potential cost savings. While constraints such as infrastructure costs remain, the market's trajectory is influenced by continual breakthroughs, collaborations, and supportive government regulations that promote sustainable and energy-efficient transportation options.
Governments and environmental organizations worldwide are working to prevent climate change by establishing ambitious emission reduction targets. The transportation industry contributes significantly to greenhouse gas emissions and has emerged as a key point for implementing sustainable solutions. E-Highways are critical in linking the transportation industry with these emission reduction targets. For example, the European Union's aim to reach a 55% reduction in greenhouse gas emissions by 2030 has pushed member countries such as Germany to invest in e-Highways. These initiatives seek to electrify significant transportation corridors, easing the transition to electric mobility and significantly lowering the carbon footprint of long-haul freight.
Similarly, India's National Development Strategy (NDC) seeks to reduce the emissions intensity of its GDP by 45% by 2030, compared to 2005. The NDC also aims for net-zero emissions by 2070. According to the International Energy Agency (IEA), transport emissions increased at an annual average rate of 1.7% between 1990 and 2022, faster than any other end-use sector except industry (which expanded at roughly 1.7%). To meet the Net Zero Emissions (NZE) by 2050 Scenario, CO2 emissions from the transportation sector must be reduced by more than 3% annually until 2030. Strong rules and fiscal incentives will be required to achieve these emissions reductions, as well as significant investment in infrastructure to enable low- and zero-emission vehicle operations.
As a result, with e-Highways, electric trucks can travel long distances more effectively, contributing to a significant reduction in carbon emissions compared to their traditional diesel-powered counterparts. Integrating e-highway projects with national and global emission reduction initiatives emphasizes their significance in solving climate change concerns in the transportation sector. The Electric Highway (e-highway) Market trend is thus likely to impact the government's rising pollution reduction aims through various efforts.
Adopting e-highways necessitates considerable upfront infrastructure investments to electrify roads and establish charging stations. Retrofitting existing highways or building new electric roadways can be expensive, making widespread adoption difficult. The Swedish "Electric Road" project exemplifies the substantial upfront infrastructure expenditures of adopting e-highways. This project entailed the construction of an electrified route that allowed hybrid trucks to connect to overhead power lines for charging while in motion. As of June 2023, each kilometer of electrified road costs approximately 1 million euros (USD 1.23 million or 971,000 Pounds) to install. The Electric Road project faced significant costs for establishing infrastructure such as overhead power lines, charging devices, and monitoring systems. The considerable financial expenditure necessary to electrify a given section of road highlights the economic issues that come with growing e-highway initiatives.
While e-highways provide long-term benefits in lower emissions and more sustainable mobility, the initial cost load on governments, private investors, and infrastructure operators remains a substantial barrier. For example, large-scale construction of an electric road system (ERS) on 25% of E- and N-roads would cost between 2700 and 7500 million euros in 2016. This estimates an investment cost of between 0.4 and 1.1 million euros per kilometer in 2016.
The worldwide transition to electric vehicles (EVs) offers a substantial prospect for the e-highway industry. With the rising popularity of electric trucks and buses, there is an increasing need for creative charging solutions that specifically address the requirements of heavy-duty and long-distance transportation. E-Highways offer a practical option to increase the distance electric cars travel, enhancing their versatility and appeal to fleet operators. Companies such as Tesla, Daimler, and Volvo are investing significantly in electric truck technology to meet the increasing need for environmentally friendly transportation options. With state-of-the-art electric drivetrain technology, the Tesla Semi truck seeks to transform long-distance freight transportation by providing superior performance and lower operational expenses than conventional diesel trucks.
The International Energy Agency (IEA) predicts that global sales of electric vehicles (EVs) will reach 14 million by the conclusion of 2023, representing a 35% growth compared to 2022. According to the IEA's Global EV Outlook 2023 report, electric vehicles will account for 18% of new automobile sales in 2023. The International Energy Agency (IEA) predicts that worldwide sales of electric vehicles (EVs) for passengers will reach 6.2 million units by 2024, nearly double the number of units sold in 2019. The current increase in the use of electric vehicles highlights the significant market opportunity for e-highways to provide the necessary charging infrastructure for electric fleets.
Moreover, the potential offered by the increasing use of electric vehicles goes beyond the mere reduction of emissions and operational expenses for fleet operators. E-highways are essential for facilitating the extensive deployment of electric trucks and buses by solving the constraints in their range and issues related to charging infrastructure. E-Highways are seen as a critical investment to expedite the shift towards sustainable transportation solutions, as governments and businesses pledge to decarbonize transportation and decrease reliance on fossil fuels. By taking advantage of the increasing popularity of electric vehicles, participants in the e-highway industry may benefit from the rising need for advanced charging infrastructure and help progress electrified transportation systems worldwide.
| Study Period | 2020-2032 | CAGR | 14.2%% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 46.0 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 152.0 billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | Europe |
Asia-Pacific's electric highway (e-Highway) industry share is estimated to grow at a CAGR of 14.4% over the forecast period. The Asia-Pacific area has great potential for implementing electric highways due to its expected high demand for electric vehicles. China now has the dominant position as the world's largest market for electric buses, accounting for over 25% of the global market share as of September 2023. Approximately 66,000 electric buses were globally sold in 2022, accounting for about 4.5% of total bus sales. China's electric bus fleet surpassed 421,000 in March 2021, accounting for approximately 99% of the global fleet. By the conclusion of 2023, it is anticipated that South Korea will own 726 electric buses operating on its roadways. Since 2018, the Seoul Metropolitan Government has been implementing the usage of electric buses as a means to enhance the air quality within the city. By 2025, the city intends to expand its fleet of electric buses to 3,000.
In addition, In 2023, the Road and Transport Minister of India, Nitin Gadkari, announced intentions to build an electric highway that will link Delhi and Mumbai. These situations will undoubtedly increase the need for related infrastructure, reducing greenhouse gas emissions and improving fleet operations, making the Asia-Pacific region an up-and-coming market for electric highways.
Europe is anticipated to exhibit a CAGR of 14.9% over the forecast period. Europe's strong consumption of electric vehicles is primarily due to the advantageous policies and tax benefits provided by regulatory bodies in exchange for adopting electric vehicles. Schmidt Automotive Research predicts that electric vehicle (EV) sales in Western Europe will increase from less than 2 million in 2024 to 9.2 million, accounting for 65% of total sales, by 2030. A study undertaken by the French Transportation Ministry has indicated that the implementation of electrified roads or electric road systems has the potential to reduce carbon emissions from road and freight transit by 86%. According to the same report, a proposal is to install electric road systems on 9,000 kilometers of French highways by 2035.
Additionally, Sweden unveiled its intention in 2023 to establish the world's inaugural permanent electric road by 2025. The road will employ an under-road charging infrastructure to replenish vehicles' energy as they traverse it. The conventional asphalt road has a centrally implanted electric rail in one lane. Sweden's initiative aims to extend its network of electrified highways by an additional 3,000 kilometers by 2035. Furthermore, the National Platform for the Future of Mobility, a project led by the German Ministry of Transport, proposes installing overhead line technology on 4,000 km of motorways by 2030.
North America is projected to dominate the worldwide electric highway market. The region's nations have already been experimenting with wirelessly powered roadways, considered an industrial invention that will showcase the region's market supremacy. Promoting research and development investments in public and private sectors can result in advancements in electrified road systems. The US Energy Information Administration (EIA) predicts that wind and solar power will contribute 18% of the nation's electricity generation in 2024, a rise from 16% in 2023. The EIA forecasts a decline of 17% in coal generation, decreasing from 20% in 2022 to 2024.
Furthermore, the National Electric Vehicle Infrastructure (NEVI) is a USD 5 billion initiative established by the Biden-Harris administration. Its primary objective is to establish a comprehensive network of electric vehicle chargers along major routes. The aim is to assist in journeys covering great distances. Siemens recently showcased the inaugural eHighway system in the United States. The catenary system provides electric power to trucks, similar to how streetcars or trolleys are powered. The solution also enables trucks to function beyond electric infrastructure.
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The market is further segmented by technology into Overhead Lines, Rail, and Inductive.
Overhead Lines account for the largest share of the market. Overhead lines are a technology used in e-highway systems, where electrified power lines are placed above the road to supply uninterrupted electrical power to electric vehicles. This method usually entails using pantographs or comparable systems installed on the trucks, enabling them to make a tangible link with the overhead lines to transfer power. Overhead lines resemble conventional railway electrification systems but are modified for highway use. Although this technology allows for adequate and uninterrupted electric vehicles and bus charging, it requires significant infrastructure investment to install the necessary overhead lines and related components.
Rail-based e-highway systems consist of electrified rails integrated into the road surface, providing a constant power supply for electric vehicles fitted with suitable conductive systems. Electric trucks or buses equipped with this technology use conductive components, such as a retractable arm or a sliding shoe, which establish a direct connection with the electrified rail. This approach is similar to conventional electrifying trams or trains but has been modified for road transportation. Using rail-based e-highways provides the benefit of meticulous alignment, guaranteeing precise vehicle location to facilitate efficient power transfer. Nevertheless, achieving widespread application necessitates substantial alterations to current road infrastructure and presents difficulties regarding adaptability and expandability. The Inductive e-highway technology utilizes wireless charging principles, enabling electric vehicles to recharge without needing a physical connection to the road. Inductive charging systems employ electromagnetic fields to transmit energy from a charging station integrated into the road to a receiver affixed to the electric vehicle. This technology provides enhanced flexibility and eliminates physical connection requirements, offering a smoother, more adaptable roadway solution. Inductive systems provide advantages in reducing visual clutter and infrastructure expenses compared to overhead wires or rails. However, they may exhibit lower charging efficiency and necessitate exact alignment between the vehicle's charging pad and receiver. Inductive e-highways accommodate various electric cars and provide opportunities for progress in urban and adaptable transportation situations.
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