The electric truck market is on a rapid growth trajectory, with SkyQuest projecting a value of USD 111.10 billion by 2031 and a CAGR of 43.3% over the forecast period (2024-2031). One of the driving forces behind this market expansion is the increasing pressure on businesses to reduce their carbon emissions and comply with environmental regulations. Electric trucks, with zero tailpipe emissions, are becoming a favored choice for companies looking to minimize their carbon footprint.
In main EV markets worldwide, there has been a noticeable surge in demand for electric trucks, particularly in the logistics industry. The low cost of charging electric vehicles compared to other fuels is a key factor contributing to the growth of medium- and heavy-duty electric trucks. The US Postal Service recently placed an order for delivery trucks from Workhorse Group, a move indicative of the increasing adoption of electric vehicles. The World Economic Forum predicts a 36% increase in delivery vehicles in inner cities by 2030, further bolstering the demand for electric trucks.
The market for electric vehicles is expected to continue growing as businesses look to incorporate electric trucks and pickup trucks into their fleets to save on fuel costs and reduce emissions. Tesla, Inc. announced in November 2022 that its electric cyber truck has garnered 1.5 million pre-orders globally.
Leading companies in the Electric Truck Market include Daimler AG, Volvo Group, Tesla, PACCAR Inc., and others. The battery electric truck segment is anticipated to dominate the market with a revenue share of over 85% in 2019, and it is expected to maintain its lead throughout the forecast period. The increasing lifespan and energy density of batteries, coupled with declining costs, are expected to drive the growth of this segment.
Regionally, Asia Pacific currently dominates the market, with China expected to maintain a significant revenue share due to the presence of key players like Daimler AG, Dongfeng Motor Corporation, and BYD Auto Co., Ltd. The lifting of weight restrictions on truck and LCV subsidies by the Chinese government has spurred the adoption of electric trucks in the region.
On the other hand, the hybrid trucks segment, which had the smallest revenue share in 2019, is expected to decline over the forecast period due to stricter government regulations on greenhouse gas emissions.
The North American regional market is projected to witness the fastest growth, with the United States expected to experience the highest CAGR of 59.5% between 2023 and 2030. The market growth in this region is driven by increased demand from the logistics sector and the establishment of sales targets for electric truck manufacturers by the California Air Resources Board starting in 2024.
The industry has seen significant developments, including Panasonic Energy Co., Ltd. powering the new zero-emission truck brand Tern with its lithium-ion batteries, Toyota launching a Class 8 100% electric truck in the US market, and Tesla Motors securing a preorder of 1000 trucks from JFK Transporters. Collaborations and innovations in the industry are shaping the future of electric truck technology.