Heavy Duty Trucks Market Trends

Key Emerging Trends in the Heavy Duty Trucks Market

Governments worldwide, along with individual state governments, are spearheading initiatives to raise awareness about electric vehicle usage. This push aims to combat the adverse environmental impact and mitigate reliance on foreign exchange reserves. Notably, the International Council on Clean Transportation is collaborating on various fronts. This includes the Zero Emission Vehicle regulation, progressive electric utility policies, expanding model availability and marketing, offering consumer rebates, granting access to carpool lanes on congested highways, bolstering electric vehicle charging infrastructure, enabling access to high-occupancy vehicle lanes, and fostering continued growth in local electric vehicle promotions. This movement is a response to the escalating crude oil prices, which soared from nearly USD 41 per barrel in 2016 to almost USD 69 per barrel in 2018 due to dwindling oil availability.

Electric trucks emerge as a pivotal solution in reducing noise and pollution compared to conventional trucks. Their deployment presents opportunities for expanded transportation operations during nighttime, effectively alleviating daytime road congestion. Consequently, manufacturers of electric trucks are consistently investing in product development to meet the surging customer demand. Notably, Volvo Trucks announced plans in 2018 for its VNR Electric to undergo demonstration testing in California in 2019, with commercial sales slated for 2020. The company aims to introduce an electric Class 8 truck/heavy hauler onto US roads. Additionally, in 2018, DAF Trucks launched the eCascadia, an electric variant of North America's most popular long-haul truck. Collaborating with VDL Groep and Cummins, DAF Trucks is electrifying its CF and LF trucks, and Daimler's US brand, Freightliner, is also part of the electrification journey.

Government initiatives are still in their infancy, with numerous countries planning to introduce regulations and programs to drive electric truck adoption in the near future. Consequently, the anticipated impact of these government initiatives on electric truck demand is forecasted to transition from low to high during the projected period.

Governments worldwide, alongside various state administrations, are taking proactive measures to advocate for the adoption of electric vehicles. This concerted effort aims to mitigate environmental impacts and reduce dependence on foreign exchange reserves. The International Council on Clean Transportation is actively engaged in several initiatives, including advocating for Zero Emission Vehicle regulations, promoting progressive electric utility policies, enhancing model availability and marketing, incentivizing consumers with rebates, providing access to carpool lanes, expanding electric vehicle charging infrastructure, facilitating access to high-occupancy vehicle lanes, and fostering localized electric vehicle promotions. These efforts are a response to the escalating crude oil prices, which surged from around USD 41 per barrel in 2016 to nearly USD 69 per barrel in 2018 due to dwindling oil availability.

The emergence of electric trucks signifies a vital solution in curbing noise and pollution, presenting an opportunity for expanded nighttime transportation operations, thereby alleviating daytime road congestion. Manufacturers in this sector are significantly investing in product development to meet the growing consumer demand. Volvo Trucks, for instance, revealed plans in 2018 to conduct demonstration testing of its VNR Electric in California in 2019, with commercial sales set for 2020. The company aims to introduce an electric Class 8 truck/heavy hauler into the US market. Similarly, DAF Trucks introduced the eCascadia, an electric version of North America's most popular long-haul truck, in 2018. Collaborating with VDL Groep and Cummins, DAF Trucks is electrifying its CF and LF trucks, while Daimler's US brand, Freightliner, is also committed to the electrification journey.

While governmental initiatives are still in nascent stages, several countries are planning to roll out regulations and programs to drive electric truck adoption in the near future. Consequently, the expected impact of these governmental initiatives on electric truck demand is anticipated to transition from low to high over the projected period.