Electric Truck Market Size, Share & Trends Analysis Report 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) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Electric Truck Market Size

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).

Electric trucks are characterized as commercial vehicles used for cargo transportation that is powered by a battery pack. Additionally, compared to diesel trucks, electric vehicles' internal motors have fewer moving parts and don't require multi-speed gearboxes, which lowers maintenance costs and improves reliability while producing nearly no noise. Furthermore, due to government initiatives to encourage the use of electric vehicles and their amazing benefits like massive amounts of torque, zero noise pollution, minimal maintenance costs, and others, electric trucks are increasingly becoming the preferred option over diesel trucks. The market for electric trucks is expanding due to growing government initiatives to promote e-mobility and strict emission standards for fossil fuel-powered vehicles.

Electric Truck Market Growth Factors

Growing Government Programs to Promote E-Mobility

To reduce carbon emissions caused by burning diesel fuel and battle greenhouse gas emissions, governments worldwide are putting pressure on automakers to invest in the development of electric trucks. Governments are offering incentives through programs and plan to encourage the production of battery electric trucks, which is expected to fuel the market's expansion. Governments worldwide are also providing tax breaks and other incentives to promote the purchase of electric vehicles. Additionally, the central governments of a select few nations exempt electric vehicles from paying the highway toll levy.

• For instance, the Indian government intends to reduce the Goods & Service Tax (GST) on e-vehicles from 12% to 5% to hasten the adoption of electric vehicles.

Additionally, tax exemptions of about $2,101.5 will be provided on loans made to buy an e-mobility. The South Korean government has also said it will offer tax breaks and subsidies totaling $900 million to create and purchase electric and fuel cell vehicles. Thus, one of the key factors driving the demand for electric trucks is a growth in government support for creating and purchasing electric mobility through tax credits, subsidies, and incentives.

Stringent Emission Norms Imposed on Fossil-Fuel Powered Vehicles

In response to rising environmental concerns, governments and environmental organizations worldwide are implementing stringent emission limits and legislation to reduce automobile emissions. Major regulatory initiatives include strict emission objectives for lowering nitrogen oxide (NOx) levels and atmospheric carbon dioxide (CO2). The federal and state governments in the United States are intensifying efforts to make transportation cleaner due to the enormous amounts of greenhouse gases emitted from cars.

• For instance, the U.S. Environmental Protection Agency (EPA) declared that it was developing new regulations to reduce nitrogen oxide (NOx) and other pollution emissions from heavy-duty trucks. Additionally, the heavy-duty Low NOx Omnibus Regulation, which the California Air Resources Board (CARB) is implementing, seeks to achieve a 90% decrease from current NOx emission limits by 2027. In addition, the European Union (EU) pledged to meet its 2020 greenhouse gas reduction goal of 20% under the Kyoto Protocol as part of the Paris Agreement (COP21). The EU has also set the goal of reaching net-zero emissions by 2050 and a 40% decrease in greenhouse gas emissions by 2040.

Therefore, the burden on vehicle manufacturers, particularly those of commercial vehicles, has increased with the implementation of emission restrictions for fossil fuel-powered vehicles. The demand for electric trucks is then anticipated to grow as a result.

Electric Truck Market Restraint

Lack of Charging Infrastructure

The adoption of electric vehicles for business usage is encouraged by governments from several nations to minimize greenhouse gas emissions. Nevertheless, a lack of charging infrastructure hinders the market for electric trucks. For instance, the Indian government wants to have only electric vehicles on the road by 2030. But one of the essential conditions for ensuring the adoption of electric vehicles is the development of a robust electric vehicle infrastructure. Unfortunately, India's EV charging infrastructure is now insufficient and is still lagging what is needed, impeding the expansion of the electric truck sector. In addition, despite being one of the largest markets for electric vehicles, China is having difficulty supporting an adequate infrastructure for recharging electric fleets. This is expected to have a negative impact on the market. As a result, the demand for electric trucks isn't expanding because of a lack of charging infrastructure.

Electric Truck Market Opportunity

Rising Demand for Electric Trucks from the Logistics Sector

As the demand for environmentally friendly transportation rises globally, especially in the freight transportation sector, which is a significant contributor to carbon dioxide emissions, there is a reduction in the emissions of dangerous gases from automobiles. The market for electric trucks is also expected to grow due to government programs encouraging the adoption of electric trucks and replacing commercial diesel vehicles with electric vehicles. Due to the growing need for logistics services brought on by the e-commerce, retail, and industrial industries, supply chains, and logistics companies are actively replacing their fleet of vehicles with greener vehicles. For instance, logistics organizations in the UK have begun planning to increase the number of commercial electric vehicles in their fleet over the next few years. The development of a cutting-edge pilot fleet of 35 commercial electric delivery trucks to be tested in London and Paris was announced in 2016 by United Parcel Service (UPS), an international American package delivery and supply chain management corporation. Additionally, in March 2019, Yamato Transport Co., Ltd. (Yamato Transport) disclosed that it had collaborated with StreetScooter GmbH (Aachen, Germany), a Post DHL Group firm, to develop a small commercial electric truck for house delivery. Yamato Transport intends to introduce 500 electric trucks in 2019 and utilize them in Tokyo, Saitama, Chiba, and Kanagawa starting in the fall.

Electric Truck Market Regional Analysis

Asia-Pacific: Dominant Region with a CAGR of 22.2%

Asia-Pacific was the highest contributor and is anticipated to grow at a CAGR of 22.2%. Increased vehicle production from China and increased investment in the Indian automobile industry are driving the growth of the market in this region. Rising investment in battery technology development programs and environmental pollution concerns will drive the market. In addition, the rising demand for freight transportation from emerging markets such as India, Thailand, and Indonesia will significantly influence this region's market growth.

Europe: Growing Region

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 includes the UK, Germany, France, Russia, and the Rest of Europe. The rest of Europe includes Sweden, Norway, Italy, the Netherlands, and others. With the growing environmental concerns, European governments and environmental agencies are enacting stringent emission norms and laws that increases the demand for commercial electric vehicle in Europe.

• For instance, the European Union (EU) is committed to achieving its 20% greenhouse gas reduction target in 2020 for the second phase of the Kyoto Protocol. The EU wants to reach its goal of zero greenhouse gas emissions by 2050. Based on the NEDC (New European Driving Cycle) test technique, the regulation EU 253/2014 establishes the objective of 147 mg of CO2 emission per kilometer for commercial cars for 2020 and 2021.

Additionally, by 2030, the European Union wants to reduce CO2 emissions from Light Commercial Vehicles (LCVs) by 31%. Strict emission objectives for reducing nitrogen oxides (NOx) and carbon dioxide (CO2) in the air and predicted diesel bans in Europe—cities like Paris and Madrid have already started announcing diesel bans—are primary regulatory measures. Currently, 200 European cities have access restrictions and low-emission zones, with the U.K., Germany, and Italy leading the way. The European market for electric trucks is expanding due to diesel bans and other environmental laws requiring truck manufacturers to incorporate electric trucks in their product lines.

North America is the third largest region. North America includes countries such as the U.S., Canada, and Mexico. Many market players and extensive R&D activities are expected to drive the electric truck market in North America. For instance, Ford is investing more than USD 6 billion in the US Michigan plant for manufacturing the F-150 hybrid electric truck. The company is expected to introduce an all-new F-150 and an F-150 hybrid electric truck version in 2020. Increasing fuel costs and stringent governmental regulations about carbon dioxide emissions are pushing the adoption of electric and hybrid electric vehicles in this region. In addition, high investment in electric trucks, owing to higher demand for zero-emission commercial vehicles, is expected to fuel the growth of the electric truck market in North America.

Electric Truck Market Segmental Analysis

By propulsion

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. The hybrid electric truck is powered by an electric motor and internal combustion to propel the vehicle. In addition, the battery of a hybrid electric vehicle cannot be plugged in for charging. Instead, the batteries are charged through an internal combustion engine and regenerative braking. Leading automobile companies are introducing new charging infrastructure for the electric truck to charge the truck while driving.

• For instance, on 9 May 2020, Siemens, an industrial manufacturing company, developed eHighway, specially designed for custom Scania hybrid trucks developed by Volkswagen Group. Such instances drive segment growth.

By vehicle type

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. A light-duty electric truck is a commercial vehicle primarily used to transport cargo, with a gross vehicle weight rating (GVWR) less than or equal to 14,000 pounds. Due to their quick turnaround times, these trucks are used primarily in the eCommerce industry for delivery purposes or in Fishery & Fast-moving consumer goods (FMCG) businesses. Automobile manufacturers of electric vehicles are introducing a new range of light-duty electric trucks with remarkable towing capacity, which is anticipated to propel the market for the light-duty electric truck.

• For instance, on June 25, 2020, Lordstown Motors, an American automobile manufacturer, unveiled its first light-duty electric truck with a towing capacity of 6000 pounds and around 250 miles of range. Such factors drive segment growth.

By range

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. Electric trucks with fewer than 150 miles of range are considered under this segment. These trucks are used for short-range applications as electric trucks offer enhanced efficiency and reduce operational costs. Startups operating in the electric truck market are launching a new range of zero-emission heavy vehicles intending to minimize the impact of freight deliveries in cities where pollution is increasing.

• For instance, Volta Trucks launched an electric truck that is 9.46 meters long, 2.55 m wide, 3.4 m high, and has a battery pack of 160-200 KWh. In addition, it offers a loading capacity of 8.6 tons and ranges between 93-124 miles. 

Recent Developments

• 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.