Electric Trucks Market Size, Share & Growth | Forecast 2031

Report Description

The global electric trucks market size was USD 2.4 Bn in 2022 and is expected to reach USD 20 Bn by 2031, expanding at a CAGR of 26.39 % during 2023–2031. The market growth is attributed to the ­stringent enactment and enforcement of laws by policymakers to reduce the carbon footprint from vehicle emissions and tax rebates or credits offered by the governments to promote electric vehicle (EV) adoption.

Electric truck adoption is imperative for fleet operators to avail the incentives provided by the governments and achieve carbon neutrality. The policymakers are pushing for the electrification of transportation systems by providing tax rebates and credits to electric truck buyers to curtail sales of internal combustion engines. The rise in electric truck adoption is characterized by a shift in consumer preference, enforcement of strict laws to curb emissions, and original equipment manufacturers (OEM) policies to bring in technological innovations to provide safe and efficient modes of transportation to users. 

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The evolution of transportation systems has gone through tremendous transformations by leveraging technology and innovations to reduce the complexities and challenges involved in the manufacturing and development of electric trucks. OEMs are investing heavily in factory redesign and R&D initiatives to support the EV transition and deliver high-tech and futuristic electric trucks with enhanced entertainment and safety features.

The geopolitical uncertainty and its impact on the supply chain dynamics of fossil fuels are driving the adoption of EV and by extension, EV charging systems. Major economies are giving preference to using renewable energy sources due to the depletion of fossil fuel sources or geopolitical unrest in the oil-rich countries and associated disruptions in the supply chain dynamics of fossil fuels.

The driving range is a concern for the fleet operators as the trucks cruised across the boundaries of provinces and states. Fleet owners have started to consider the EVs as a realistic option due to technological advancements in battery manufacturing and charging infrastructure.

Conventional EV batteries are heavy and bulky. EV manufacturers are putting up efforts to develop lightweight, compact, and efficient batteries with high energy densities that could extend the driving range of electric trucks significantly.

Carbon nanotube electrodes are used to increase the energy storage and lifecycles of a battery by a factor of three and five respectively. The charging time of the batteries reduces substantially with the help of carbon nanotube electrodes. The cobalt-free batteries provide a driving range of up to an estimated 500 miles on a single charge.

Vehicle safety is a key aspect of transportation systems. Safety features such as a following distance indicator, high beam assist, lane assist system, and collision avoidance systems assist drivers in avoiding fatalities and casualties. A collision avoidance system comprises sensors and data to sense oncoming objects. As soon as the objects are identified by the system it warns the driver to avoid the collision. In most systems, the emergency brakes are automatically activated. Some of these systems use artificial intelligence, machine vision, and big data technology to refine safety functions.

Electric Trucks Market Dynamics

Drivers

Growing adoption of electric trucks by fleet operators to avail the incentives offered by governments and stringent laws to curb vehicle emissions are anticipated to drive the market. Fleet management companies are adopting electric trucks owing to the growing concern for reducing carbon footprint.

Reduction in prices and subsequent technological improvements decrease the cost of ownership of EVs, which are expected to drive the market. OEMs are rolling out new models with enhanced energy efficiency and features with the help of manufacturing cost reductions and technological improvements.

Restraints

Inadequate charging infrastructure and concerns about driving range are likely to hinder the market. However, public and private companies are building convenient and fast-charging networks to support EV transition worldwide. A policy push by governments toward building comprehensive and robust charging networks is needed to support the growing EV adoption. Technological advancements in EV battery manufacturing to provide compact, lightweight, and efficient batteries that enhance the driving range of electric vehicles are likely to fuel the market.  

Opportunities

Government fundings to accelerate the EV transition are expected to boost EV penetration and OEM are partnering with governments to gradually build charging infrastructure is likely to create significant opportunities in the market. The EV transition needs comprehensive and robust infrastructural support. The public-private partnership for building charging infrastructure with innovative capabilities creates lucrative opportunities in the market.

Scope of the Electric Trucks Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Electric Trucks Market Segment Insights

Based on type, the electric trucks market is divided into heavy duty trucks, medium duty trucks, light duty trucks, and others. The medium duty trucks segment is expected to expand at a significant pace during the projection period owing to utility, energy efficiency, and reasonable cost of ownership of the medium duty trucks. Medium duty trucks are deployed in fleets to perform a vast amounts of transportation tasks, thus rising urbanization and globalization is likely to fuel the market.

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On the basis of propulsion type, the global market is segregated into FCEV, PHEV, HEV, and BEV. The BEV segment is projected to register a considerable CAGR during the forecast period owing to growing consumer preference for battery electric vehicles due to the low cost of ownership and reduced maintenance costs. Battery electric vehicles have fewer moving parts and thus, requiring low maintenance cost. 

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On the basis of battery capacity, the electric trucks market is segmented into less than 50 kwh, 50-250 kwh, and above 250 kwh. The above 250 kwh segment is expected to register a robust pace during the forecast period owing to proportionate power consumed by electric trucks to carry loads for longer distances. The electric trucks travel across provinces and states and require a substantial amount of electrical power to power the drive train.

In terms of range, the market is bifurcated into above 200 miles and up to 200 miles. The above 200 miles segment is expected to register a robust growth rate during the forecast period owing to the large distances covered by the electric trucks to transport products and goods. The fleet operators provide long-distance transportation services for maximizing profit margins.

Based on region, the global electric trucks market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period owing to rising industrialization and the high need for sustainable modes of transportation in the region. Growing concerns about tailpipe pollution caused by conventional vehicles and robust charging infrastructure to support the electrification of transportation systems are boosting the sale of electric trucks.

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