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Electric Truck Market Size, Share, Growth & Industry Analysis, By Type (Heavy-duty, Light pick-up, Medium-duty), By Propulsion (BEV, PHEV, FCEV), By Range (150 Miles, 151-300 Miles, Above 300 Miles), and Regional Analysis, 2024-2031
pages: 120 | baseYear: 2023 | release: August 2024 | author: Swati J.
The global Electric Truck Market size was valued at USD 30.33 billion in 2023 and is projected to grow from USD 40.95 billion in 2024 to USD 337.87 billion by 2031, exhibiting a CAGR of 35.19% during the forecast period. Growing adoption of zero-emission vehicles and increased government incentives and regulations are propelling the growth of the market.
In the scope of work, the report includes services offered by companies such as Scania, General Motors, MAN TGE, Daimler Truck AG, Mitsubishi Corporation, Ford Motor Company, Eicher, AB Volvo, SANY Group, Tata Motors Limited, and others.
The development of autonomous electric trucks presents a transformative opportunity in the logistics and transportation industries. Autonomous electric trucks combine the benefits of electric powertrains, including zero emissions, lower operational costs, and reduced maintenance, with the efficiencies offered by autonomous driving technology. These trucks are poised to revolutionize the transformation of goods, particularly in long-haul and last-mile delivery operations.
Autonomous electric trucks are capable of operating continuously without the need for human drivers, thereby reducing labor costs and mitigating the risks associated with driver fatigue and human error.
This technology further allows for optimized routing and energy usage, thereby enhancing the efficiency of transportation networks. Moreover, the integration of advanced sensors, AI, and machine learning in these vehicles enables them to navigate complex environments, adapt to varying road conditions, and communicate with other vehicles and infrastructure, thereby contributing to safer and smarter transportation systems.
The potential for reduced congestion, lower emissions, and enhanced safety makes autonomous electric trucks an attractive solution for companies looking to streamline their logistics operations while meeting sustainability goals. However, the widespread adoption of this technology requires significant investment in infrastructure, regulatory frameworks, and public acceptance, making it a critical area of focus for industry stakeholders.
An electric truck is a commercial vehicle that is powered by one or more electric motors and uses electricity stored in onboard batteries as its primary energy source. Unlike conventional trucks that rely on internal combustion engines fueled by diesel or gasoline, electric trucks produce zero tailpipe emissions, making them a cleaner alternative for transporting goods.
Electric trucks come in various types, including light-duty trucks for urban deliveries, medium-duty trucks for regional transport, and heavy-duty trucks designed for long-haul operations.
The propulsion systems in these trucks typically involve battery-electric technology, where large lithium-ion batteries power the electric motors. Some electric trucks are equipped with hybrid systems that combine electric propulsion with a small internal combustion engine or fuel cells, providing additional range and flexibility.
The range of electric trucks varies depending on the battery capacity, vehicle type, and load conditions. Light-duty models offer ranges of 100-150 miles per charge, while heavy-duty models are capable of achieving up to 300 miles or more with advanced battery technologies.
As battery technology continues to evolve, electric trucks are becoming increasingly viable for a wide range of Propulsions, including urban delivery and long-distance freight transport, contributing to the decarbonization of the transportation sector.
In the rapidly evolving electric truck market, companies are adopting multifaceted strategies to secure their positions and foster growth. Key players are investing heavily in research and development to advance battery technologies, improve vehicle range, and enhance the efficiency of electric powertrains.
Furthermore, collaborations and partnerships are emerging as crucial strategies, with manufacturers joining forces with technology firms, battery suppliers, and logistics companies to accelerate innovation and reduce costs. These partnerships are enabling the development of next-generation electric trucks that are both more powerful and efficient. These trucks are equipped with advanced features such as autonomous driving capabilities and real-time telematics.
Additionally, companies are focusing on expanding their global footprint by entering emerging markets, where the demand for sustainable transportation solutions is growing. To maintain a competitive edge, leading firms are prioritizing the establishment of comprehensive charging infrastructure networks, ensuring that fleet operators have access to reliable and convenient charging solutions.
However, the imperatives for success in this market include scaling up production to meet increasing demand, navigating complex regulatory environments, and managing the high initial costs associated with electric truck adoption. As the market continues to mature, companies that effectively address these challenges while capitalizing on growth opportunities are expected to be well-positioned to lead the electric truck industry.
The expansion of charging infrastructure is augmenting the growth of electric truck market. As governments and private entities increasingly invest in building comprehensive charging networks, electric truck operators are finding it easier to integrate these vehicles into their fleets. The availability of fast-charging stations along major transportation routes reduces the downtime required for recharging, making electric trucks more competitive with their diesel counterparts.
Moreover, the development of ultra-fast charging technologies, capable of recharging large truck batteries within a short period, significantly enhances the practicality of electric trucks for commercial use. This expansion is further supported by smart grid technologies, which ensure the efficient distribution of electricity and optimize the use of renewable energy sources for charging.
Additionally, the proliferation of charging infrastructure in urban areas is facilitating last-mile deliveries using electric trucks, thereby reducing emissions in densely populated regions. As the charging network expands, it is anticipated to support the adoption of electric trucks and foster innovation in battery technology and energy management systems, thereby accelerating the transition to sustainable transportation.
The high initial purchase cost of electric trucks poses a significant challenge, particularly for fleet operators who are accustomed to the lower upfront expenses associated with traditional diesel vehicles. Electric trucks require substantial investments due to the high costs related to battery technology, advanced electronics, and specialized manufacturing processes.
For numerous small and medium-sized enterprises (SMEs), the financial burden of purchasing electric trucks serves as a major barrier to adoption, thereby limiting their ability to transition to more sustainable transportation options. This challenge is further exacerbated by the pressing need for additional infrastructure, such as charging stations, which increases the overall cost of ownership.
However, industry players are addressing this challenge by implementing various strategies, such as leveraging government incentives, tax credits, and subsidies that reduce the financial burden on businesses.
Additionally, companies are exploring financing options, such as leasing or pay-per-use models, to distribute the cost over time. Another approach involves collaborating with manufacturers to secure bulk purchase discounts or participating in joint ventures that lower the cost of procurement.
By strategically navigating these financial challenges, businesses are overcoming the high initial purchase costs and benefit from the long-term savings and environmental advantages associated with electric trucks.
The growing adoption of zero-emission vehicles (ZEVs), including electric trucks, is a prominent trend fueled by increasing environmental concerns and stringent government regulations aimed at reducing greenhouse gas emissions. As awareness of climate change increases, both public and private sectors are prioritizing the transition to cleaner transportation options.
Electric trucks, as significant contributors to the ZEV category, are gaining immense traction due to their ability to operate without emitting pollutants, leading to improved air quality and reduced carbon footprints. This trend is particularly evident in urban areas, where governments are implementing low-emission zones and offering incentives to companies that adopt ZEVs for their fleets.
Moreover, large corporations are incorporating electric trucks into their sustainability strategies, supported by both regulatory compliance and corporate social responsibility commitments.
Additionally, the growing adoption of ZEVs is fueled by advancements in electric vehicle technology, which are enhancing the range, efficiency, and overall performance of electric trucks. The market is witnessing a significant shift toward zero-emission transportation solutions, which is fostering a more sustainable future for electric truck market.
The global market is segmented based on type, propulsion, range, and geography.
Based on type, the market is categorized into heavy-duty, light pick-up, and medium-duty. The light pick-up segment captured the largest electric truck market share of 62.75% in 2023, primarily due to its widespread utility and versatility across various commercial and personal applications.
Light pick-up trucks are highly favored for their ability to handle diverse tasks, including urban deliveries, service operations, and recreational use, making them a popular choice among a diverse group of consumers. Their compact size, as compared to heavy-duty trucks, allows for easier maneuverability in urban environments where space and access can be limited.
Additionally, the proliferation of e-commerce and last-mile delivery services has significantly boosted the demand for light pick-ups, as businesses seek efficient and cost-effective solutions for transporting goods in congested city areas.
Moreover, advancements in electric vehicle technology have made light pick-up trucks more affordable and practical, with improved battery life and range that cater to daily usage needs. The increasing focus on reducing carbon emissions and the introduction of government incentives for electric vehicles have further led to the widespread adoption of light pick-up trucks, thereby solidifying their dominance.
Based on propulsion, the market is classified into BEV, PHEV, and FCEV. The battery electric vehicle (BEV) segment is poised to record a staggering CAGR of 36.11% through the forecast period. BEVs are becoming increasingly attractive to both consumers and businesses due to their zero-emission capabilities, aligning with global efforts to combat climate change and reduce air pollution.
Governments worldwide are implementing stringent emissions regulations and offering substantial incentives for the adoption of BEVs, thereby aiding segmental growth. Additionally, rapid advancements in battery technology are significantly extending the range and reducing the charging times of BEVs, making them more competitive with traditional internal combustion engine vehicles.
The expansion of charging infrastructure, particularly in urban areas, is further facilitating the widespread adoption of BEVs. Moreover, the cost of producing batteries is steadily declining, which is expected to lower the overall cost of BEVs, thereby making them more accessible to a broader range of consumers.
As automakers continue to invest heavily in BEV development, the segment is set to witness exponential growth, propelled by both technological innovations and supportive policy frameworks.
Based on range, the electric truck market is divided into 150 miles, 151-300 miles, and above 300 miles. The 151-300 miles range segment garnered the highest revenue of USD 17.17 billion in 2023, mainly due to its ideal balance between range and affordability, rendering it a preferred choice for a wide range of commercial and personal uses.
Vehicles within this range category are particularly well-suited for regional and urban delivery services, as a full charge supports a full day’s operation without the need for frequent recharging. Furthermore, this range meets the needs of individual consumers who require a vehicle for daily commuting and occasional longer trips, offering enough flexibility without the higher costs associated with longer-range batteries.
Furthermore, the 151-300 miles range considered optimal for fleet operators, as it provides sufficient range to cover most delivery routes while maintaining vehicle costs lower compared to higher-range models.
The expanding charging infrastructure, especially in urban and suburban areas, further supports the practicality of this range by ensuring that vehicles can be recharged conveniently. Additionally, advancements in battery technology are enhancing the efficiency and performance of vehicles within this range, thereby augmenting the expansion of the segment.
Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.
Asia-Pacific electric truck market accounted for a substantial share of 40.16% and was valued at USD 12.18 billion in 2023. This dominance is further reinforced by the rapid industrialization and urbanization across key countries such as China, Japan, and South Korea.
India, in particular, has emerged as a global leader in electric vehicle production and adoption, supported by strong government support, extensive manufacturing capabilities, and significant investments in electric vehicle technology.
The Indian government’s proactive policies, which include subsidies, tax incentives, and strict emission regulations, have resulted in the widespread adoption of electric trucks across various sectors, particularly in logistics and transportation.
Additionally, the region's well-established supply chain infrastructure and the presence of leading battery manufacturers have bolstered regional market growth. Other countries in the region are also witnessing a surge in demand for electric trucks, prompted by increasing environmental awareness, rising fuel prices, and the need for sustainable transportation solutions.
North America is poised to grow at a robust CAGR of 35.39% in the forthcoming years, largely due to several factors such as continual technological advancements, supportive regulatory frameworks, and increasing consumer demand for sustainable transportation solutions.
This growth is largely attributed to the notable shift toward reducing carbon emissions, with both federal and state governments implementing stringent emission standards and offering substantial incentives for the adoption of electric vehicles, including trucks.
The U.S., in particular, is witnessing a significant surge in investment from both public and private sectors aimed at developing and deploying electric trucks across various industries. Major automotive manufacturers and startups in North America are heavily investing in R&D to enhance electric truck technologies, focusing on improving battery efficiency, range, and overall vehicle performance.
Additionally, the expansion of charging infrastructure, particularly in urban centers and along key transportation corridors, is making it increasingly feasible for fleet operators to transition to electric trucks. The growing awareness of climate change, coupled with the economic benefits of reduced fuel and maintenance costs, is bolstering the adoption of electric trucks in North America.
The global electric truck market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.
Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.
Key Industry Developments
By Type
By Propulsion
By Range
By Region