Electric Truck Market Analysis

Global Electric Truck Market Overview:

Electric Truck Market Size was predicted at USD 11.96 billion in 2023. The electric truck industry is projected to grow from USD 13.63 billion in 2024 to USD 38.76 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.95% during the forecast period (2024 - 2032). 

The market is expanding due to factors including rising government measures to promote e-mobility, strict emission standards placed on commercial vehicles fuelled by fossil fuels and falling battery prices. The growing demand for electric trucks from the logistics industry and the advancement of self-driving truck technology is the key drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Electric Truck Market Trends

As EV batteries are one of the more expensive components of an electric truck, this has caused the price of electric trucks to plummet. For instance, the cost of an EV battery in 2010 was approximately USD 1,100 per kWh. While the cost is as low as USD 100 per kWh in China, their price dropped to about USD 137 per kWh by 2020. By 2030, the cost of EV batteries is anticipated to drop to about USD 40–60 per kWh, which will significantly lower the cost of EV trucks and bring their pricing closer to that of traditional ICE trucks. The expanding EV batteries industry is another factor driving the electric truck market revenue.

The electric truck market is anticipated to develop due to government incentives and programs. Innovative policies and incentive programs are being implemented by governments worldwide to promote the use of electric vehicles in all market segments (bikes, autos, cars and commercial vehicles). For instance, the Indian government introduced the FAME II amendment and the PLI (production-linked incentive) program for the auto industry, intending to convert 30% of private automobiles, 70% of commercial vehicles, and 80% of two- and three-wheelers to electric by 2032. Therefore, the growing government policies have enhanced the global market CAGR in recent years.

Electric Truck Market Segment Insights:

Electric Truck Propulsion Type Insights

The Electric Truck Market segmentation, based on propulsion type, includes BEV, PHEV, and FCEV. The battery electric truck category dominance will continue throughout the projected year. Due to improving battery life and energy density and falling battery prices, the segment is anticipated to grow at the greatest CAGR throughout the forecast period.

• March 2020: BYD Motors Inc. introduced the revolutionary Blade Battery for electric vehicles, which improves the battery pack construction by more than 50% over typical lithium iron phosphate batteries. It also boosts battery safety significantly. This creation has further broadened the growth opportunity for the electric truck industry.

Additionally, in 2021, the PHEV witnessed significant growth. Internal combustion engines and an electric vahicle motor work together to propel the plug-in hybrid truck. Leading automakers are launching a new charging infrastructure for electric trucks so that they may be charged while driving.

Electric Truck Type Insights

The Electric Truck Market segmentation, based on type has been segmented into light-duty trucks, medium-duty trucks, and heavy-duty trucks. The market's largest contributor, the light-duty electric truck sector, dominated the electric trucks. The light-duty trucks are expected to grow due to the introduction of a new range of models by electric vehicle automakers with impressive towing capacities.

Figure 2: Electric Truck Market, by Type, 2021 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The second fastest-growing segment in the electric truck industry is medium-duty vehicles. China, the U.S., and European nations have the highest demand for medium-duty trucks. Hence, rising applications of medium-duty trucks positively impact market growth.

Electric Truck Range Insights

The Electric Truck Market segmentation, based on range, includes up to 200 miles and above 200 miles. The upto 200 miles category was the largest contributor to the market. Due to their increased efficiency and lower operating costs, these vehicles are employed for short-distance applications. Given the most recent advances from major participants in the segment, the over 200 miles segment, which previously held the second-largest market share, is predicted to take the lead.

Electric Truck End-Use Insights

The Electric Truck Market data has been bifurcated by end-use into last-mile delivery, long-haul transportation, refuse services, field services, and Distribution Services. The last mile sector dominated the market. Delivery services for the last mile have seen a significant transformation and expansion. With the social distance and other Covid-related customs, consumers' reliance on doorstep last-mile delivery has grown significantly. However, in 2021, the field service experienced the fastest growth rate. For field service technicians who maintain these cars, the roads they drive on, and the power supply needed to keep them running, the development of electric vehicles is opening up a whole new world.

Electric Truck Battery Capacity Insights

The Electric Truck Market segmentation, based on battery capacity, includes less than 50kwh, 50-250 kwh, and above 250 kwh. According to estimates, the market's largest section is 50-250 KWh. The 50-250 kWh battery's quick charging at a low cost and good energy efficiency are significant benefits. The global adoption of above 250kwh is anticipated to be fueled by increased technological developments and falling battery prices.

Electric Truck Regional Insights

By Region, the study provides market insights into Europe, North America, Asia-Pacific and the Rest of the World. North America's electric truck market accounted for USD 3.9 billion in 2021 and is expected to exhibit a significant CAGR of 43.2 percent growth during the study period. The North American electric truck market is anticipated to be driven by many industry competitors and significant R&D efforts. For instance, Ford is spending more than USD 6 billion to build the F-150 hybrid vehicle at a plant in Michigan, USA. In 2020, the firm was anticipated to release a brand-new F-150 and a hybrid electric truck version of the F-150. The electric truck market in North America is also anticipated to rise due to significant investment due to increased demand for zero-emission commercial vehicles.

Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Electric Truck Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's electric truck market accounts for the second-largest market share. European governments and environmental organizations are passing strict emission rules and laws in response to the growing environmental concerns, which are driving up demand for commercial electric vehicles throughout the continent. For instance, the European Union (EU) is dedicated to meeting its 20% greenhouse gas reduction goal for the Kyoto Protocol's second phase in 2020. By 2050, the EU hopes to have eliminated all greenhouse gas emissions. Further, the German electric truck market held the largest market share, and the UK electric truck market was the fastest-growing market in the European region.

Asia Pacific electric truck market is predicted to have significant market growth. The expansion of the electric truck market in this area is driven by rising vehicle manufacturing from China and growing investment in the Indian automotive sector. For instance, China registered over 86,000 light commercial cars in 2021, a large increase from 2020 to 2021 and one that will fuel the expansion of the industry in this area. Moreover, China's electric truck market held the largest market share, and the Indian electric truck market was the fastest-growing market in the Asia-Pacific region.

Electric Truck Key Market Players & Competitive Insights

The industry will expand as major market players make significant R&D efforts to diversify their product ranges. Market participants participate in many strategic measures to strengthen their global positions, in addition to important market developments such as new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. If competitors in the electric truck industry want to progress and succeed in a more competitive market, they must charge reasonable prices for their products.

Local manufacturing to lower operational costs is one of the key business methods employed by the electric truck industry to satisfy clients and increase the market sector. The electric truck industry has made some of the most significant medical discoveries in recent years. Electric Truck market major players, such as AB Volvo, Daimler AG, PACCAR Inc., Volkswagen AG, and BYD Company Limited, are investing in R&D projects to enhance demand.

Volvo Trucks, a truck industry leader, is committed to improving technology and impacting the future of sustainable transportation. The Volvo Group, which includes Volvo Trucks, is one of the world's leading manufacturers of trucks, buses, construction equipment, and marine and industrial engines. For instance, in September 2022, according to Volvo Trucks, heavy-duty all-electric Volvo FH, Volvo FM, and Volvo FMX sales commenced, with volume production set to begin in late 2022. The three variants of these trucks, with a combined operational weight of 44 tonnes, accounting for around two-thirds of the company's total sales.

Tata Motors is a world-class vehicle manufacturer. Its varied portfolio includes various automobiles, SUVs, trucks, buses, and defense vehicles. Tata Motors is one of India's leading OEMs, providing a broad range of integrated, smart, and e-mobility solutions. For instance, in May 2022, Tata Motors unveiled the Ace-EV e-cargo carrier. It will be the most advanced zero-emission small commercial vehicle (SCV) for intra-city use.

GM’s Ultra Cruise sensor strategy is directly guided by the company’s safely deploying advanced driver assistance (ADAS) technologies.

PowerCo, the new battery company of the Volkswagen Group, and Belgian circular technology group Umicore. From 2025 onwards, will set up European battery cell factories with key materials for production. Headquartered in Brussels, the joint venture will cover a large part of PowerCo’s EU demand and provide Umicore with secured access to an important part of the European demand for EV cathode materials.

Key Companies in the electric trucks market includes

• AB Volvo


• Daimler AG


• PACCAR Inc.


• Volkswagen AG


• BYD Company Limited

Electric Truck Industry Developments

July 2024: The Volvo Group reported strong profitability in the second quarter of 2024 as demand in many areas continued to decline from the high levels of 2023. After accounting for exchange rate fluctuations, net sales came to SEK 140.2 billion, which was the same as the previous year. With a margin of 13.9% (15.4), the adjusted operating income came to SEK 19.4 billion (21.9). Margin was unfavorably impacted by lower volumes and our increased R&D expenditures, but it was positively impacted by the price hikes we carried out last year. When currency was taken into account, our service business expanded by 5%. The service industry brought in SEK 130.3 billion in sales during a rolling 12-month period, according to President and CEO Martin Lundstedt.

Electric Trucks Market Segmentation

Electric Truck Propulsion Type

• BEV


• PHEV


• FCEV

Electric Truck Type

• Light Duty Trucks


• Medium Duty Trucks


• Heavy Duty Trucks

Electric Truck End User

• Last-Mile Delivery


• Long Haul Transportation


• Refuse Services


• Field Services


• Distribution Services

Electric Truck Range

• Up to 200 Miles


• Above 200 Miles

Electric Truck Battery Capacity

• Less Than 50kwh


• 50-250 Kwh


• Above 250 Kwh

Electric Truck Regional Outlook

North America

• US


• Canada

Europe

• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe

Asia-Pacific

• China


• Japan


• India


• Australia


• South Korea


• Australia


• Rest of Asia-Pacific

Rest of the World

• Middle East


• Africa


• Latin America