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The Electric Truck Market size is estimated to grow by 562.44 thousand units between 2022 and 2027, accelerating at a CAGR of 28.82%. The demand for emission-free vehicles, including electric trucks, is surging due to growing concerns over fuel efficiency and low emissions. Strict regulations are further emphasizing the importance of this trend.
Last mile delivery services and organizations are increasingly turning to class 8 battery electric trucks and fuel cell electric trucks to meet their needs. Electric trucks are gaining popularity due to their eco-friendly nature and lower operating costs compared to traditional diesel trucks. The growth rate of the EV trucks market, such as cyber trucks and electric pickup trucks, is accelerating in the commercial vehicle sector. Sales of these vehicles, including electric cars, are expected to continue expanding as more companies adopt sustainable transportation solutions. Battery capacity is a key consideration for the success of these vehicles, with advancements in technology driving improvements in range and performance.
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The market is experiencing significant growth in the transportation industry, driven by the need for sustainable, emission-free vehicles and low-emission solutions. Manufacturers are investing heavily in innovation to improve the efficiency, range, and power capabilities of these vehicles. Charging infrastructure is a crucial component of the adoption of battery electric trucks, and technology advancements are making charging more convenient and faster. The logistics sector is also recognizing the benefits of electric trucks, as they offer reduced fuel costs and lower emissions. The growth of this market is expected to continue, as more companies seek to reduce their carbon footprint and improve their fleet sustainability. Overall, the battery electric truck market is a key area of investment and development in the renewable energy and transportation sectors.v
The renewable battery-powered transportation industry is experiencing significant growth due to the adoption of electric vehicles (EVs) in the logistics sector. Despite higher upfront costs, EVs offer sustainable solutions with reduced emissions, leading to long-term value creation for customers. The technology's efficiency and extended range contribute to substantial fuel savings and minimal maintenance costs, making it an attractive investment for fleet operators.
Prominent manufacturers are continuously innovating to improve battery durability and charging infrastructure, further driving the growth of the EV industry. The increasing focus on sustainable practices and the need for emissions reduction are key factors fueling the adoption of EVs in the transportation sector. Logistics firms worldwide are embracing this shift towards renewable energy sources to lower operating costs and contribute to a more sustainable future.
The majority of the leading truck manufacturers generate most of their revenues from the sales and production of IC engine-based trucks which is a major trend. The revenue generated through the sales accounts for a negligible share of their total revenue. However, the growing demand for sustainable mobility is expected to result in the replacement of IC engine-based vehicles with electric vehicles in the long run. Therefore, to sustain in such a business environment, several automobile manufacturers are working on expanding their product portfolios by developing electric truck models. For instance, major automobile manufacturers such as Volvo, Daimler, Ford Motor, Hino Motors, BYD, and Renault are developing their own that are expected to be launched during the forecast period. For example, In April 2022, Ford Motor Co. launched the all-new, electric F-150 Lightning pickup truck in North America. The F-150 Lightning is the only current full-size electric pickup with a starting price under USD 40,000 and the F-150 with the fastest acceleration.
Due to the harmful effects of fossil fuel emissions on people worldwide, the demand for low-emission vehicles has increased. Consumers are now opting for EVs due to fluctuating fuel prices, increased energy security, improved fuel economy, and reduced emissions. The shift from conventional vehicles to EVs has also been driven by growing geopolitical tensions in the Gulf region, a major crude oil exporter. The high greenhouse gas emissions from fuel-based vehicles are causing climate change and health problems, which have prompted governments and consumers to find viable options. EVs produce fewer emissions than ICE vehicles and are boosted by policies, guidelines, and technological advancements. The rising demand will further drive the growth of the market in focus.
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The market share growth by both hybrid and battery trucks 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 segment was valued at 46.89 thousand units in 2017. 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. In addition to pickup trucks, manufacturers are developing hybrid powertrains for heavy-duty trucks.
Light trucks, also known as light-duty trucks in the US and light commercial vehicles in Europe, have a truck-based chassis and can carry up to 4,000 pounds (1,815 kg) of payload. They are used for transporting goods or people and performing off-street tasks. The light-duty truck industry is moving towards electric vehicles, with significant growth in the adoption of light-duty battery electric vehicles (BEVs). LDTs are the most commonly used vehicle type, especially pickup trucks. Many sectors are driving the market for LDTs, with electric LDTs helping fleet owners cut operational costs.
Electric LCV sales increased worldwide by over 70% in 2021. Urban delivery fleets that frequently follow set routes and can be charged at commercial depots make the economic case for electrifying LCVs stronger. Light trucks are used by almost all industries to transport finished goods and raw materials. Sales of electric light-duty trucks in Korea have seen a rapid increase due to a policy that encourages the use of EVs for commercial use. Fleet owners' decisions to purchase electric LCVs are influenced by total ownership and low operating expenses. The increasing demand for electric light trucks in e-commerce is expected to propel the growth of the global market during the forecast period.
APAC is estimated to contribute 52% 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.
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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.
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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. One of the major players in the market include:
Bollingermotors - The company is primarily engaged in manufacturing or assembling complete passenger automobiles, trucks, commercial cars and buses, and special-purpose motor vehicles, which are for highway use. They offer trucks that use energy stored in batteries charged with electricity from the grid.
The market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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. Furthermore, it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing a surge in demand as businesses seek emission-free vehicles to align with sustainability goals. Particularly, the e-commerce and logistics sector is embracing electric truck as a means to reduce carbon footprint while enhancing operational efficiency. This shift not only promotes environmental stewardship but also creates a new revenue stream for manufacturers.
With a global geographical presence, electric truck manufacturers are securing lucrative supply contracts with major players in the industry. Collaborations between traditional automotive manufacturers and autonomous vehicle technology developers are driving new product developments and technological breakthroughs in the sector. Partnerships, agreements, and expansions are shaping the landscape, while advancements in electric charging price and fuel alternatives are making them more accessible. Infrastructure investments, including the expansion of public stations and the adoption of CNG as a viable fuel option, further bolster the market.
Innovations in self-driving truck technology are reducing manufacturing costs and battery prices, making them increasingly competitive. Moreover, the rise of e-commerce sector is fueling demand for electric trucks, especially for last-mile delivery from warehouses to consumers' doorsteps, significantly cutting fuel expenses.With increasing pre-orders and the anticipation surrounding vehicles like the Cybertruck and offerings from Performance Team in the Class 8 battery-electric truck segment, the electric truck market is poised for exponential growth. Cab-hailing companies are also eyeing electric truck as part of their fleets, further expanding the market. Comprehensive market analysis and reports indicate a promising future for electric trucks, heralding a new era in sustainable transportation.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Electric Truck Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.82% |
Market growth 2023-2027 |
562.44 th units |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
26.54 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, Japan, Norway, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, BOLLINGER MOTORS LLC, BYD Electronic Co. Ltd., Daimler AG, E Force One AG, General Motors Co, Hino Motors Ltd., Isuzu Motors Ltd., Lordstown Motors Corp., Navistar International Corp., PACCAR Inc., Proterra Inc., Rivian Automotive LLC, Scania AB, Sinotruk Hong Kong Ltd., Tesla Inc., VDL Groep BV, Renault SAS, Nissan Motor Co. Ltd., and Ford Motor Co. |
Market dynamics |
Parent market analysis, Market forecasting, 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 forecast period |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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