electric trucks Market

The electric trucks market is expected to grow from US$ 4,592.55 million in 2021 to US$ 26,542.90 million by 2028; it is estimated to grow at a CAGR of 29.4% from 2022 to 2028

The North America and Europe electric trucks market is experiencing considerable growth owing to continuous advancements in battery materials and increasing emphasis on eco-friendly transportation. With the sales of heavy battery-electric trucks gaining momentum, the global trucking industry is shifting towards sustainable transportation, and Europe is at the forefront of this transition. The presence of a growing number of heavy all-electric vehicles in commercial fleets on European roads indicates the region's commitment to sustainable transportation.

China primarily dominates the APAC electric trucks market. Other countries in the region are also promoting electric technology adoption due to increasingly strict pollution regulations. South Korea and Japan are anticipated to invest substantially in electric vehicle infrastructure, such as charging stations. In the forecast period, the Asia-Pacific region is predicted to experience the fastest compound annual growth rate (CAGR) in the electric trucks market.

The percentage of commercial vehicles using electric propulsion in Europe was 2.0% in 2020, which is lower than the percentage of electrically powered passenger cars (5.9%). Although European manufacturers have prioritized the development of electrified commercial vehicles, the subsidies provided have been mainly focused on passenger cars.

Several South American countries are leading the electric truck sector. With the help of public-private partnerships, Chile is expected to become one of the most competitive and attractive markets for hybrid and electric vehicles from 2020 to 2025. Brazil is also a developing market with favorable conditions for developing flex-hybrid technology and other similar technologies. In terms of actual market volume, Mexico and Brazil are predicted to be the largest electric vehicle markets, while Colombia and Chile are expected to be the fastest-growing markets in South America. Uruguay and Ecuador have introduced incentives and financial plans to promote the adoption of electric buses in local fleets, resulting in significant penetration rates of hybrid technology.

The key companies operating in the electric trucks market include Daimler AG; AB Volvo; Tesla; BYD Company Ltd; Navistar Inc; FAW Group Co. Ltd; PACCAR Inc; Rivian; Scania; and Proterra Inc.

The regulations and policies currently in place in North America are driving the production and sales of electric trucks in the region. An example of this is the partnership between the South Coast Air Quality Management District (South Coast AQMD), the California Air Resources Board (CARB), and the California Energy Commission (CEC) to deploy 100 battery-electric regional haul and drayage trucks across California, with the support of NFI Industries (NFI) and Schneider under the Joint Electric Truck Scaling Initiative (JETSI). This initiative aims to increase the number of zero-emission heavy-duty trucks for goods transportation and is the largest such initiative in North America to date. The US Federal Government has set a goal for 2030 where half of all new passenger cars and light trucks sold in the country should be Zero Emission Vehicles (ZEVs), including battery-electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen-powered fuel-cell electric vehicles (FCEVs).

The electric trucks market was experiencing significant growth before the COVID-19 pandemic due to increasing urban populations. However, the pandemic caused a slowdown in demand for electric trucks, resulting in disruptions to the supply of materials and components, production schedules, and sales dynamics, leading to an increase in online sales. The confinement measures implemented to control the spread of COVID-19 were a major factor in the decline of automotive manufacturing during the first half of 2020. As one of the largest manufacturers of automobile parts, China's domestic production of traditional vehicle components, such as electric motors, quickly recovered after the lockdown was lifted. However, production of special EV components, such as power batteries, was slower due to supply chain pressures from upstream raw materials and lower demand in downstream markets.

The size of the electric trucks market has been determined using primary and secondary sources. The secondary research involved gathering qualitative and quantitative information from internal and external sources. This helped to provide an overview and forecast of the market analysis for all segments. Additionally, primary interviews were conducted with industry experts, including VPs, business development managers, market intelligence managers, national sales managers, as well as external consultants such as valuation experts, research analysts, and key opinion leaders who specialize in the electric trucks market. The purpose of the interviews was to validate the data and obtain analytical insights on the topic.