Electric Truck Market Worth Over USD 11.08 Billion by 2032, At CAGR 31.3%
Market.Us
Updated 10 min read
Market.Us
According to Market.us, the global electric truck market size is anticipated to reach USD 11.08 Billion by 2032, expanding at a CAGR of 31.3% between 2023 and 2032.
New York, March 09, 2023 (GLOBE NEWSWIRE) -- The global electric truck market was valued at USD 728 million in 2022. Between 2023 and 2032, this market is estimated to register the highest CAGR of 31.3 %. It is expected to reach USD 11.08 billion in the forecast period. These commercial vehicles run on battery packs and provide power for cargo hauling. Furthermore, electric trucks require fewer moving parts than diesel trucks do and don't need multi-speed transmissions. This leads to lower vehicle maintenance expenses and improved dependability.
By propulsion, in 2022, the battery electric vehicles (BEV) segment holds the largest share due to factors like the expanding logistics industry and strict emission regulations by the government.
By type, The Light Duty Trucks Segment Dominates the Market Growth Globally.
By range, the 151-300 mile segment has dominated the market with the largest market share in 2022.
Asia-Pacific dominated the market with the highest revenue share in 2022.
North America will grow at a considerable rate during the forecast period.
Electric trucks have become more common than diesel trucks due to government initiatives that promote adoption. The market growth is being spurred on by rising demand for logistics services, lower fuel costs, and maintenance expenses. Moreover, there are rising incentives to use zero-emission vehicles. There are strict emission standards for commercial vehicles. Thus manufacturers will need to invest heavily in electric truck manufacturing to keep up with growing market demand. To meet this growing demand, manufacturers will need to spend substantial sums of money.
Factors affecting the growth of the electric truck market industry?
There are several factors that can affect the growth of the electric truck industry. Some of these factors include:
Government initiatives to promote e-mobility: Global governments are pushing vehicle manufacturers to reduce carbon emissions from diesel fuel combustion and to address greenhouse gas emissions. In turn, they will push them to develop electric trucks.
Logistics sector: Due to the growing demand for logistics services, supply chains and logistic companies are actively involved in replacing their fleets with greener vehicles.
Low maintenance: Electric trucks are much more cost-effective than conventional trucks. They don't require oil changes, spark plug replacements, or fuel filters. This allows for substantial savings on overall component costs. These vehicles require less maintenance than their traditional counterparts.
COVID-19 Impact: Due to the increasing trend in vehicle electrification worldwide, electric vehicles saw an increase in sales between 2020 and 2021.
Self-driving electric trucks are a key trend in the electric truck sector. To enhance their ability to develop cutting-edge self-driving models, companies in this space have joined forces with technology-based firms.
We have observed that electric models are far more cost-effective than their conventional counterparts. Conventional trucks require more upkeep, such as oil changes, spark plug replacements, or fuel filters compared to their electric counterparts. This results in significant savings on component costs. Furthermore, EV trucks require much less upkeep than their traditional counterparts do.
According to the report, the global electric truck market is expected to experience growth due to government programs and incentives. Governments around the world have implemented progressive policies and incentivizing initiatives. This is done in order to promote electric cars across all market segments (autos/bikes as well as commercial vehicles). Recently, global market CAGRs have been increasing due to these expanding policies.
Market Growth
Due to a decreasing fuel supply, electric vehicles have become increasingly popular on the market. Regulations and norms related to global warming, pollution, and greenhouse gas emissions will continue to support the global electric truck market's growth. Electric trucks have seen an uptick in sales worldwide due to greater awareness about electric vehicles. Both developed and developing countries are encouraging people to purchase electric vehicles, offering tax incentives as an added incentive. Furthermore, the government is working hard to establish sustainable electric vehicle charging infrastructure. These initiatives will make it simpler for users of electric trucks to do their work more efficiently. This is contributing to the global electric car market growth over the forecast period.
Regional Analysis
The electric truck market was dominated by Asia-Pacific, In 2022. China is the dominant market for electric trucks in Asia-Pacific. The market for electric trucks is expanding rapidly due to industrialization, advances in the automotive industry, and urbanization. Other factors include strict regulations and norms against pollution, global warming, high investment by key market players and the government, as well as increased awareness. These are all driving the Asia-Pacific electric truck market growth.
The forecast period predicts North America to grow at the fastest pace. Technological advancements and the adoption of new technologies are driving the market growth for electric trucks in this region. Emissions from fuel-based vehicles are high, which can lead to an increase in pollution.
Competitive Landscape
This market is highly competitive and has both large and small players. 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. Partnership and collaboration are the most widely adopted strategies by major key players.
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Scope of the Report
Report Attribute
Details
Market Value (2022)
USD 728 million
Market Size (2032)
USD 11.08 billion
CAGR (from 2023 to 2032)
3.0%
North America Revenue Share
43%
Historic Period
2016 to 2022
Base Year
2022
Forecast Year
2023 to 2032
Market Drivers
The demand for electric trucks has increased in top EV markets around the world. Due to the lower cost of electric charging, medium- and heavy-duty trucks will see growth. Other industries will see a rise in demand for electric trucks such as product transport for the food and beverages industry. Moreover e-commerce companies like Amazon, and Walmart, and state services like postal trucks, fire trucks and refuse trucks.
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.
Market Restrictions
Electric trucks require a greater initial investment than CNG, petroleum, or diesel trucks due to the high cost of production parts and machinery. Furthermore, batteries for electric vehicles remain expensive due to their inefficiency. However, as battery technology improves and prices fall, electric truck ownership will become more accessible.
Market Opportunities
Governments from both developed and developing countries are encouraging people to adopt electric vehicles. Tax incentives are offered for those who purchase these vehicles. Along with that efforts are being made to build sustainable charging infrastructure that will allow people to use electric trucks more efficiently. All these initiatives are expected to contribute significantly towards the growth of the global electric vehicle market over the forecast period.
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). Battery Electric Vehicles (BEV) Segment Dominates the Market Growth Globally). 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.
Vehicle Type Insight
The market can be divided into three segments: light-duty trucks, medium-duty trucks, and heavy-duty trucks. The light-duty trucks segment held the largest market share in 2022. The sales of light-duty trucks have increased globally. China was the biggest market for light-duty trucks by 2022. The medium-duty truck segment was second in market share in 2022. China has a lower demand for medium-duty trucks in the U.S. than Europe and China.
Range Insight
The 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.
Recent Development of the Electric Truck Market
Hino Motors Ltd and Toyota Motor Corporation have 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.
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