The global electric trucks market is projected to experience substantial growth, with an estimated USD 20.32 billion increase from 2024 to 2028, according to Technavio. This growth is fueled by a compound annual growth rate (CAGR) of 35.44% during the forecast period. A key driver is the increasing demand for fuel-efficient and low-emission vehicles, prompting major truck manufacturers to invest in the electric truck market. However, the high upfront cost of electric trucks presents a significant challenge.
Leading players in this burgeoning market include 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.
Major automobile manufacturers are recognizing the growing demand for sustainable mobility and are expanding their product offerings to include electric truck models. Notably, Ford launched its F-150 Lightning pickup truck in April 2022, Renault announced the delivery of its T E-Tech and C E-Tech trucks in 2023, and General Motors is expected to release its Hummer Truck in early 2022. This shift towards electric vehicles reflects a positive trend in the market, as manufacturers aim to reduce their reliance on internal combustion engine (ICE)-based vehicles and cater to evolving consumer preferences.
The adoption of electric trucks is gaining momentum across various industries, with fleet operations leading the charge. Government incentives are playing a crucial role in encouraging the adoption of zero-emission vehicles, benefiting both the logistics sector and the environment. Renewable energy sources, such as solar and wind power, are being integrated into charging infrastructure, further solidifying the sustainability of electric trucks.
Notable electric truck models include Mitsubishi Fuso’s eCanter and Mitsubishi Fuso Truck’s hybrid electric trucks. Tevva electric trucks are emerging as strong competitors in the market. Key adopters of electric trucks include the manufacturing sector, municipalities, e-commerce companies, and waste management organizations, all aiming to reduce their emissions. Emerging economies are also embracing electric trucks, driven by stricter emission regulations.
The electric truck market encompasses various vehicle types: battery electric trucks, hybrid trucks, and fuel-cell electric trucks. Advancements in battery technology and fast-charging infrastructure are driving market growth. Major players like Daimler Truck, Hyundai Hydrogen Mobility, Freightliner, and Truck World are investing heavily in electric trucks, focusing on sustainability, efficiency, and reducing greenhouse gas emissions.
The electric truck market is segmented based on vehicle type (light-duty, medium-duty, and heavy-duty trucks) and geographic region (Asia, Europe, North America, and the Rest of World). Online dashboards and vehicle-specific insights are empowering fleet operators to monitor and optimize their electric truck fleets.
While the electric trucks market is experiencing global growth, the high upfront cost of electric trucks remains a significant barrier to adoption. Despite government subsidies and incentives, the price of electric trucks remains higher than that of ICE-based trucks, averaging between USD 150,000 and USD 300,000. Price-sensitive markets like China, India, and Eastern Europe, where demand for long-haul trucks is high, are hesitant to adopt electric trucks due to their cost.
Fleet operators and individual customers with limited funding can explore financing options to purchase electric trucks. The operational cost savings associated with electric trucks can be used to make loan repayments. Financial institutions can play a crucial role in facilitating the adoption of electric trucks by offering attractive financing plans. However, the high upfront cost of electric trucks is expected to remain a challenge, potentially hindering the growth of the global electric trucks market during the forecast period.
Electric trucks are making significant inroads in various industries, particularly the logistics sector, as fleet operators strive to meet emission regulations and reduce greenhouse gas emissions. Challenges persist, however. While incentives for electric truck adoption are crucial, the development of charging infrastructure lags behind. Renewable energy sources like solar and wind power hold promise but face challenges in terms of availability and reliability.
Mitsubishi Fuso’s eCanter and Hyundai Hydrogen Mobility’s fuel-cell electric trucks are pioneering solutions in the market. Battery electric trucks, such as those offered by Tevva, and hybrid trucks from Mitsubishi Fuso Truck and Freightliner are popular choices. The logistics sector, e-commerce, municipalities, and emerging economies are embracing zero-emission vehicles.
Manufacturing operations face challenges in battery technology and fast-charging infrastructure. Light-duty, medium-duty, and heavy-duty trucks require different battery capacities. Daimler Truck’s Electric Freightliner, Freightliner’s eM2 106 and eCascadia, and Truck World’s focus on sustainability, efficiency, and environmentally friendly advanced transportation are leading the way. Online dashboards provide valuable Vehicle Type Insights for fleet management. Together, we are moving towards a more sustainable future for trucks.
In conclusion, the electric trucks market is poised for significant growth, driven by factors such as sustainability, efficiency, and the increasing adoption of zero-emission vehicles. However, overcoming challenges such as high upfront costs and inadequate charging infrastructure remains crucial for the market’s continued success. As technologies evolve and governments continue to support the transition to electric vehicles, the future of electric trucks appears bright.
