Electric Truck Market Size, Share & Industry Analysis, By Propulsion (BEV, PHEV, and FCEV), By Vehicle Type (Light Duty Trucks, Medium Duty Trucks, and Heavy Duty Trucks), By Range (150 Miles, 151-300 Miles, and Above 300 Miles), and Regional Forecasts, 2024-2032

The global electric truck market size was valued at USD 815.3 million in 2023 and is projected to grow from USD 1,091.6 million in 2024 to USD 13,045.4 million by 2032, exhibiting a CAGR of 36.4% during the forecast period of 2024-2032.

The electric truck market refers to the segment of the automotive industry that involves the production, sale, and utilization of trucks powered by electric motors and batteries rather than traditional internal combustion engines. These trucks may include various types, such as light-duty trucks, medium-duty trucks, and heavy-duty trucks, as well as specialized vehicles such as delivery vans, garbage trucks, and semi-trucks.

Electric trucks are equipped with one or more electric motors that drive the vehicle's wheels forward. The trucks are powered by large battery packs that store electrical energy. These battery packs are typically made up of lithium-ion cells, similar to those used in consumer electronics and electric vehicles. Electric trucks offer a cleaner and more sustainable transportation solution compared to conventional trucks, making them increasingly popular in various applications, including delivery fleets, logistics, and urban transportation.

The global impact of COVID-19 significantly impacted the market in the years 2020 and 2021. The automotive support for low- and zero-emission commercial vehicles helped aid the short-term recovery of the automotive industry. The demand for trucks decreased in 2020 due to the COVID-19 impact and increased in 2021. However, truck OEMs developed new technologically advanced electric truck models; more than 170 were available outside China in 2021.

Electric Truck Market Trends

Increasing Adoption of Autonomous Driving Technology is Boosting the Market Growth

The recent trend of self-driving technology will influence the global market. Top manufacturers such as Tesla, Volvo, Vera, Daimler, and others have been developing this self-driving technology in trucks for the market. Startup companies such as Embark, Einride, TuSimple, and others have also started developing this technology. Moreover, autonomous trucking brings greater efficiency to the trucking market. Cargo companies need to move large quantities of cargo every day. Autonomous truck would allow companies to move more freight with the same number or even fewer drivers, as one person will be responsible for monitoring multiple trucks.

Self-driving truck technology will increase the demand for electric trucks in the long run due to its advantages such as easy use, presence of value-added features, and reducing human errors as it is a driverless system. For instance, in November 2023, Aurora Innovation announced opened its first lane for driverless trucks connecting Dallas and Houston, supported by its commercial trucking terminal in Houston, ahead of a launch in 2024.

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Electric Truck Market Growth Factors

Increase in Prices of Fuels will Create Demand for Electric Trucks

Fuel prices globally are highly uncertain and rising. Refueling solutions will also have costs that vary by region and increase over time. With gas prices rising, electric vehicles look more appealing to consumers. It is estimated that the annual cost to fuel a light commercial vehicle is around USD 3,500 annually for the average American. The estimated cost to fuel a similar vehicle using a suitable electric propulsion system is around USD 850, roughly three times less. EVs have significantly less running costs than IC vehicles as electric motors are more efficient than gasoline engines. Further, around 85% of the energy through an electric motor is converted into movement; on the other hand, it is around 40% in gas-powered vehicles. In a situation where electricity and fuel costs were equal, a commercial electric vehicle would be cheaper to own than a gasoline-fueled vehicle. The major countries are also focusing on developing charging infrastructure, which will surge the demand for these trucks during the forecast period.

RESTRAINING FACTORS

High Manufacturing Costs for Electric Vehicles are Retraining the Market Growth

The initial asset required for manufacturing electric trucks is comparatively much higher than CNG, petroleum, and diesel trucks. The cost of components and machinery used for production is also relatively high. This is majorly due to the high cost associated with electric batteries used in trucks. Europe is responsible for over one-quarter of global EV assembly, but it is a tiny supply chain apart from cobalt processing at 20%. Moreover, the U.S. has an even more minor role in the global EV battery supply chain, with only 10% of EV production and 7% of battery production capacity. The production of these trucks is less sophisticated than other conventional fuel trucks and thus is highly affected by the prices of batteries in the market. Further, in most regions, the raw material required for batteries is required to be imported, which also adds to the high prices of batteries. The production of such commercial vehicles is currently limited due to the high cost incurred. According to a report by Forbes on energy innovation, the manufacturing cost of an electric truck is much higher currently compared to diesel or petrol trucks. Still, by 2030, it will be 50% cheaper compared to diesel and petrol variants with falling battery prices. 

Electric Truck Market Segmentation Analysis

By Propulsion Analysis

Battery Electric Vehicle (BEV) to Lead Market Owing to Profits Such as No Exhaust Gases production and Deliveries in Zero-Emission Zones

By propulsion, the market is segmented into Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), and Fuel Cell Electric Vehicle (FCEV).

The BEV segment held the largest market share attributed to its benefits and adoption in several countries, such as China and the U.S., and European countries. China accounted for nearly 70% to 80% of electric truck registrations in 2023. The electric truck market growth is projected to accelerate significantly depending on BEV sales and latest developments.

The PHEV segment held the second-largest market share. The segment offers improved comfort and the overall performance of the truck. The key companies are focused on research and development of plug-in hybrid trucks. These factors will affirmatively affect the growth of the segment.

The FCEV segment held the third-largest share of the market. The growth of this segment is attributed to the product’s advantages and development from key trucking players.

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By Vehicle Type Analysis

Light Duty Truck Held Largest Share of the Market Owing to its Low Maintenance and High Performance

Based on application, the market is divided into light duty trucks, medium duty trucks, and heavy duty trucks.

The light duty trucks segment held the largest share of the market in 2023. Sales of light-duty have continued to increase. China accounted for the maximum number of light duty trucks in 2023; the growth is attributed to key market players and OEMs in the country. Europe was the second largest market share in 2023 due to increasing response to carbon dioxide (CO2) performance standards.

The medium duty trucks segment held the second-largest market share in 2023. Demand for medium-duty trucks is more significant in China, the U.S., and European countries. Features and services are of trivial significance than essential dependability and security. The segment held the third largest market share in 2023 due to the rising demand for electric trucks in constrictions of transportation.

By Range Analysis

151-300 Miles Dominates the Market Due to Increasing Development in Electric Truck

Based on range, the market is segmented into 150 miles, 151-300 miles, and above 300 miles.

The 151-300 miles segment held the largest market share in 2023. This segment's growth is attributed to registering and increasing electric truck sales (151-300 range) in Asia Pacific.

The 150 miles segment held the second-largest market share in 2023. This segments' growth is attributed to rising key developments by crucial companies in the market. The above 300 miles segment held the third largest share of the market and is expected to lead in the future considering the latest developments from giant players in this segment.

REGIONAL INSIGHTS

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Asia Pacific led the electric truck market share (with China accounting for most of the share), and it stood at USD 224.5 million in 2023. The factors include a growth in the sale and registration of commercial electric vehicles. For instance, in 2023, China showed significant growth from 2022 to 2023; Furthermore, most consumers prefer commercial electric vehicles in prime nations such as China, Japan, and India. This will result in an upsurge in demand for these trucks in the region.

Europe is anticipated to display substantial growth in the market owing to the high demand for electric trucks for zero-emission and reduced transportation costs. In 2023, the light-duty commercial vehicle was majorly sold in Europe. This may reflect that most electric LCVs are acquired for specific uses within fixed delivery areas and may not need an extended driving range. This will lead to an exponential boost in product demand.

North America is also anticipated to observe promising growth in the market. In the U.S., electric truck brands have consistently increased demand. The number of electric LDVs per public charging point in the U.S. is 18. Also, the infrastructure investment in charging stations was increased by the government. These factors will impact the market growth.

List of Key Companies in Electric Truck Market

BYD Company Ltd Leads Market Owing to Industrious Partnerships and Industry-leading Products

BYD Company Ltd is one of the dominating players in the market. Its business principally contains the development and manufacturing of electric trucks. These aspects have empowered the company to seize a larger market share.

LIST OF KEY COMPANIES PROFILED:

•  Tesla Inc (U.S.)


•  Daimler AG (Germany)


•  BYD Company Ltd. (China)


•  Tata Motors (India)


•  AB Volvo (Sweden)


•  Scania AB (Sweden)


•  Paccar Inc. (U.S.)


•  Workhorse (U.S.)


•  Navistar International Corp. (U.S.)


•  Hino Motors Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• May 2023 - Freightliner introduced the series production eM2 for pick-up and delivery applications, which is ready to order and will start production in the fall of this year. At the same time, Freightliner introduced an innovative eM2 medium-duty truck with the goal of learning from real-world customer experiences in vocational applications.


• April 2023 - Daimler Truck introduced a new electric medium-duty truck brand in the U.S. Rizon would deliver Class 4 and 5 trucks with lithium iron phosphate battery technology and start production in the third quarter of 2023. Distribution would start through an exclusive agreement with Velocity Vehicle Group. Rizon trucks would deliver a range of 75 miles to 110 miles or 110 miles to 160 miles.


• May 2022 – Daimler and Sysco signed a contract to purchase 800 Freightliner eCascadia electric trucks; the first lot delivery will be scheduled by year-end. The deployment of 800 trucks will be completed by 2026. With this deal, the company will be electrifying 35% of the fleet.


• May 2022 – Tata Motors launched the e-cargo transport Ace-EV. It will be the most advanced zero-emission small commercial vehicle(SCV) most suitable for intra-city applications. Also, Tata Motors announced the signing of an MOU with Amazon, BigBasket, City Link, DOT, Flipkart, LetsTransport, MoEVing, and Yelo EV. Under this MOU, Tata Motors will provide 39,000 units of the Ace EV.


• September 2022 – Volvo Trucks announced the start of sales of heavy-duty all-electric Volvo FH, Volvo FM, and Volvo FMX, with volume production planned to begin in late 2022. These trucks can operate at a total weight of 44 tonnes, and the three models represent around two-thirds of the company’s sales.

REPORT COVERAGE

The research report covers a detailed market analysis. It focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the electric truck market trends and highlights key industry developments. In addition to the factors mentioned above, the report delivers an in-depth analysis of several factors that have contributed to its growth in recent years.

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