As per the report published by Kings Research, the global Zero Emission Trucks Market was valued at USD 6.61 billion in 2023. The market is projected to reach USD 27.99 billion by 2031, growing at a CAGR of 20.05% from 2024 to 2031.
The global zero emission trucks market is growing rapidly due to rising environmental concerns. Companies from diverse sectors are realizing the importance of reducing carbon footprints and investing in cleaner transportation technologies. This notable shift toward zero-emission options, including electric and hydrogen-powered trucks, contributes significantly to the reduction of greenhouse gas emissions and air pollutants. Moreover, government regulations and incentives are promoting this transition, thus creating a favorable market environment for sustainable and environmentally friendly transportation solutions.
Key Insights
- Based on end-use industry, the logistics and transportation segment accounted for the largest market share of 40.45% in 2023
- Based on vehicle type, the medium-duty trucks segment is estimated to register a CAGR of 23.70% between 2024 and 2031
- Based on technology, the battery electric trucks segment garnered the highest revenue of USD 4.05 billion in 2023
- On the basis of region, Asia-Pacific led the market in 2023 with a valuation of USD 2.33 billion
PACCAR Extends Collaboration with Toyota to Commercialize Hydrogen Fuel Cell Trucks
May 2023: PACCAR and Toyota expanded their collaboration to accelerate the commercialization of hydrogen fuel cell trucks. The partnership aimed to capitalize on Toyota's expertise in fuel cell technology and PACCAR's experience in heavy-duty truck manufacturing to develop zero-emission trucks for commercial use. This collaboration highlighted a significant step toward sustainable transportation solutions, addressing environmental concerns and regulatory requirements.
By leveraging their strengths, both companies were strategically positioned to propel the adoption of hydrogen fuel cell technology in the commercial trucking industry. The joint efforts focused on developing reliable and efficient fuel cell systems tailored for heavy-duty applications, thereby contributing to a cleaner and greener future for freight transportation.
Cost Savings Bolster Adoption of Zero-Emission Trucks Among Fleet Operators
The cost savings associated with zero-emission trucks are driving their adoption among fleet operators and logistics companies. These trucks offer lower operating costs compared to their traditional diesel counterparts, due to reduced fuel and maintenance expenses. Electric trucks benefit from lower electricity costs per mile, leading to substantial savings for high-mileage operations.
Additionally, zero-emission trucks entail fewer moving parts, thereby resulting in reduced maintenance and repair costs. With sustainability and cost efficiency emerging as paramount concerns, fleet operators are increasingly adopting zero-emission trucks to streamline operations and reduce long-term expenses.
Strategic Partnerships to Drive Innovation and Cost Reduction to Aid Market Progress
Collaborations between automotive manufacturers, technology companies, and energy providers present a significant opportunity for market growth. By joining forces, companies are combining their expertise, resources, and technologies to accelerate innovation and reduce costs associated with the development and commercialization of zero-emission trucks.
Automotive manufacturers leverage their experience in vehicle design and manufacturing processes, technology companies contribute advancements in battery technology, electric drivetrains, and connectivity solutions, and energy providers focus on developing sustainable energy sources such as hydrogen fuel cells and renewable electricity for vehicle charging. These partnerships enable faster development cycles, improved economies of scale, and shared investments in infrastructure such as charging stations and hydrogen refueling stations. Such collaborations are likely to facilitate the introduction of competitive zero-emission truck models while contributing to a more sustainable and efficient transportation ecosystem.
Asia-Pacific to Exhibit Fastest Growth at a CAGR of 21.79% Between 2024 and 2031
Based on region, the global zero emission trucks market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. Asia-Pacific is projected to be the fastest-growing region in the zero-emission trucks market over the projection period. This growth is driven by several factors such as rapid industrialization, increasing urbanization, and rising environmental awareness in countries such as China, India, and Japan. Government initiatives, infrastructure investments, and collaborations with global players further contribute to regional market expansion. The growing emphasis on reducing carbon emissions and meeting climate goals is fueling the adoption of zero-emission trucks across various industries., thereby fueling regional market growth.
Companies Focus on Launching Cutting-Edge Products to Expand Their Market Reach
The global zero emission trucks market reveals a fragmented landscape, featuring prominent companies including Tesla, Inc., Daimler AG, Volvo Group, Nikola Corporation, BYD Company Limited, Rivian Automotive, Inc., Ford Motor Company, Toyota Motor Corporation, Hyundai Motor Company, Cummins Inc., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their global business footprint and enhance their competitive position.