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The electric trucks market size is forecast to increase by USD 20.32 billion, at a CAGR of 35.44% between 2023 and 2028. In response to the growing demand for fuel-efficient and low-emission vehicles, electric trucks are gaining significant traction in the transportation industry. These trucks offer long-term value to customers by reducing operating costs through lower fuel expenses and minimal maintenance requirements. Additionally, stringent rules and regulations aimed at reducing carbon emissions make electric trucks an attractive option for businesses seeking to minimize their environmental footprint. With advanced technology and continuous improvements in battery capacity, electric trucks are becoming a viable solution for companies looking to modernize their fleets and meet sustainability goals.
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Electric trucks are revolutionizing the logistics industry with their sustainability and efficiency. These trucks, powered by battery technology, are gaining popularity due to their ability to reduce emissions and improve transportation efficiency. Daimler Truck, Truck World, and other leading manufacturers are investing heavily in electric truck manufacturing to cater to the growing demand. The market for electric trucks is expanding beyond light-duty vehicles to medium- and heavy-duty trucks used in waste management, municipal services, and even e-commerce. The need for fast-charging infrastructure and advanced transportation solutions is driving the growth of this market. Battery capacity is a crucial factor in the electric truck market, with incentives from governments and fleet operators encouraging the adoption of zero-emission vehicles. The market is expected to witness significant growth in emerging economies as emission norms become stricter. Tevva electric trucks and other players in the market are focusing on developing trucks with longer battery life and faster charging capabilities. Online dashboards and advanced features are also becoming standard in electric trucks to enhance the user experience. Waste management and municipal services are major sectors adopting electric trucks due to their environmental-friendliness and cost-effectiveness in the long run. The future of advanced transportation lies in electric trucks, and the market is expected to continue its growth trajectory in the coming years.
Growing demand for fuel-efficient and low-emission vehicles is notably driving market growth. The logistics sector is witnessing a significant shift towards electric trucks as sustainability and efficiency become top priorities. Daimler Truck's introduction of the eCascadia and eM2 electric trucks, Mitsubishi Fuso's eCanter, and Tevva's electric trucks are just a few examples of the advanced transportation solutions that are gaining traction. The adoption of battery electric trucks and hybrid electric trucks is increasing in various sectors, including waste management, municipal services, and e-commerce, due to their environment-friendly nature and ability to meet stricter emission norms. Battery capacity and charging infrastructure are crucial factors in the electric truck market. Fast-charging infrastructure and the integration of renewable energy sources, such as solar and wind power, are essential to ensure the viability of electric trucks for fleet operators. Incentives from governments and corporations are also driving the growth of the electric truck market.
Further, the shift towards electric trucks is not limited to developed economies but is also gaining momentum in emerging economies. Manufacturing operations are also embracing electric trucks to reduce their carbon footprint and meet emission reductions targets. With an online dashboard providing real-time vehicle performance data, fleet operators can optimize their operations and make informed decisions. The electric truck market is expected to grow significantly in the coming years, with battery electric trucks and hybrid trucks leading the charge. The transition to electric trucks is not only beneficial for the environment but also for businesses looking to improve their bottom line by reducing fuel costs and increasing energy security. Thus, such factors are driving the growth of the market during the forecast period.
Prominent truck manufacturers venturing into electric trucks market is the key trend in the market. The logistics sector is witnessing a shift towards advanced transportation solutions that prioritize sustainability and efficiency. Electric trucks are gaining traction as a viable alternative to traditional IC engine-based trucks, despite their current negligible market share in terms of revenue for leading manufacturers. This trend is driven by the increasing demand for environment-friendly and zero-emission vehicles, as well as stricter emission norms. Major automobile players, such as Daimler Truck, Mitsubishi Fuso, Volvo, Ford Motor, Hino Motors, BYD, and Renault, are expanding their product offerings to include electric trucks. These companies are developing battery electric trucks and hybrid electric trucks, such as Daimler's eCascadia and Mitsubishi Fuso's eCanter, to cater to the evolving market needs. Fleet operators are increasingly adopting electric trucks for their light-duty, medium-duty, and heavy-duty applications, especially in waste management and municipal services. The adoption of electric trucks is being facilitated by the availability of fast-charging infrastructure, incentives, and the integration of renewable energy sources like solar and wind power.
Moreover, the growing popularity of e-commerce and the need for emission reductions further boost the demand for electric trucks. Manufacturing operations are also exploring the use of electric trucks to reduce their carbon footprint. With advancements in battery technology, the future of electric trucks looks promising, offering significant potential for growth in emerging economies. Vehicle Type Insights reveal that battery capacity is a crucial factor in the adoption of electric trucks, with larger battery capacities enabling longer ranges and greater efficiency. Companies are investing in research and development to improve battery technology and charging infrastructure to address these challenges. An online dashboard can help fleet operators monitor and manage their electric truck fleet's performance and charging status in real-time. Thus, such trends will shape the growth of the market during the forecast period.
High upfront cost of electric trucks is the major challenge that affects the growth of the market. The logistics sector is witnessing a shift towards electric trucks as part of the global push for sustainability and efficiency in advanced transportation. Daimler Truck, Mitsubishi Fuso, Tevva, and other manufacturers are leading the electric truck manufacturing trend, producing battery electric trucks and hybrid electric trucks for various vehicle types, including light-duty, medium-duty, and heavy-duty trucks. However, the high upfront cost of electric trucks remains a significant barrier to entry for fleet operators. The average price of an electric truck ranges from USD150,000 to USD300,000, making it a significant investment compared to IC engine-based trucks. Despite the high cost, there are incentives and charging infrastructure developments that support the adoption of electric trucks. Renewable energy sources, such as solar and wind power, are being integrated into fast-charging infrastructure to reduce the carbon footprint of electric trucks. Incentives from governments and municipalities are also driving the demand for zero-emission vehicles, as emission norms become increasingly stringent.
In emerging economies, waste management and manufacturing operations are adopting electric trucks for emission reductions. However, price sensitivity in highly competitive markets, such as China, India, and Eastern European countries, may restrict the adoption of electric trucks in these regions for long-haul applications. Nevertheless, the benefits of electric trucks, including reduced greenhouse gas emissions and improved vehicle performance, are compelling, and the market is expected to grow significantly in the coming years. Fleet operators can monitor their electric truck fleets through online dashboards, providing real-time vehicle performance data and enabling proactive maintenance. Vehicle Type Insights and Battery Capacity are key factors to consider when evaluating electric trucks for various applications. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo: The company offers electric trucks that are used for moving goods fast between logistic hubs and cities.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by hybrid electric trucks segment will be significant during the forecast period. The electric motor in a hybrid electric-truck is powered by a battery that is either charged by an external power source or regenerative braking. The hybrid trucks segment is witnessing steady growth owing to its high-mile range and reduced operational and maintenance costs. Trucks are meant for long-distance traveling, which requires a long mile range. Increasing awareness about reducing vehicular emissions, coupled with regulatory norms on curbing emissions, is compelling truck manufacturers to develop hybrid electric-trucks.
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The hybrid electric trucks segment accounted for USD 2.79 billion in 2018. Various manufacturers, including Daimler, Volvo and Volkswagen, among others, have started introducing and expanding their truck portfolio with hybrid trucks. Several other OEMs are expected to launch their hybrid truck models during the forecast period. For instance, US-based automobile manufacturers Ford Motor and General Motors Co. (General Motors) were expected to launch their hybrid pickup truck models by 2021.
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Europe is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. This is due to the growing demand for freight transportation from emerging markets, such as India, Thailand, and Indonesia, and the growing demand in the trucking industry in these countries. The increased demand for trucks to cater to the surging demand from industries like e-commerce is likely to be instrumental in the growth of the market in the region. Domestic truck manufacturers are witnessing growth in electric truck adoption in countries like China and Japan, while in developing countries like India, the market is expected to witness a boost because of prominent international brands.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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The market is experiencing significant growth and innovation with the introduction of various types such as light-duty trucks, medium-duty trucks, eCante, plug-in hybrid electric trucks, and fuel cell electric trucks. Companies like Mitsubishi Fuso Truck, Hyundai Hydrogen Mobility, and electric Freightliner are leading the charge with models like Freightliner eM2 106 and Freightliner eCascadia. These trucks aim to reduce fuel and maintenance costs significantly compared to traditional diesel vehicles, offering environmentally friendly solutions in urban logistics and freight transport. The adoption of fuel-cell electric trucks and plug-in hybrid electric trucks marks a shift towards sustainable transportation options, addressing concerns about emissions and fuel efficiency. As technology advances, electric trucks are becoming more viable across various industries, promoting cleaner air and reduced carbon footprints. The market's evolution towards electrification is driven by advancements in battery technology, infrastructure development, and government incentives supporting eco-friendly transport solutions.
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Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
accelerate at a CAGR of 35.44% |
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Market growth 2024-2028 |
USD 20.32 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
51.62 |
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Regional analysis |
Asia, Europe, North America, and Rest of World (ROW) |
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Performing market contribution |
Europe at 42% |
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Key countries |
China, Germany, The Netherlands, UK, and US |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB Volvo, BOLLINGER MOTORS LLC, BYD Co. Ltd., Daimler Truck AG, E Force One AG, Ford Motor Co., General Motors Co., Isuzu Motors Ltd., Lordstown Motors Corp., Navistar International Corp., Nissan Motor Co. Ltd., PACCAR Inc., Proterra Inc., Renault SAS, Rivian Automotive LLC, Scania AB, Sinotruk Hong Kong Ltd., Tesla Inc., Toyota Motor Corp., and VDL Groep BV |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Propulsion
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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