Global Electric Trucks Market Gathering Steam: Forecast to Grow at a CAGR of 14.6% by 2028
Global electric trucks market is growing at a high CAGR because of the growing adoption of battery-powered vehicles to promote zero-emission and sustainability. Furthermore, the increased public and private investment in the establishment of charging infrastructure to increase the adoption of electric cars and trucks also propels the market forward.
A recent study conducted by the strategic consulting and market research firmReport Ocean revealed that the global electric trucks market was worth USD 21.4 billion in 2021 and is estimated to grow at a CAGR of 14.6%, earning revenue of around USD 52.3 billion by the end of 2028. The growth of the global electric trucks market is attributable to the growing adoption of battery vehicles to promote zero-emission and sustainability. In addition, increased government initiatives and subsidies, along with increasing investments in establishing charging infrastructure by public and private players, are expected to drive the market growth during the forecast period. However, lack of sufficient charging infrastructure, especially in low and middle-income countries, may act as a major restraining factor for the growth of the global electric trucks market.
Global Electric Trucks Market - By Battery Type
Based on battery types, the global electric trucks market is segmented into lithium-nickel-manganese-cobalt oxide, lithium-iron-phosphate, and others. The lithium-iron-phosphate or lithium-ion battery type holds the largest market share as they offer high energy density and can operate at voltages ranging from 300 V to 500 V. This type of battery is deemed suitable for electronics that consume batteries at a high rate. As reported by CNBC, global electric truck giants, such as Tesla, have already announced that their new batteries will use lithium-iron-phosphate (LFP) chemistry in their longer-range vehicles. Such initiatives are driving the growth of the segment.
Global Electric Trucks Market - By Application
Based on applications, the global electric trucks market is segmented into logistics, municipal, construction, mining, and others. The logistics segment accounts for the largest market share mainly because of the adoption of electric trucks by major e-commerce platforms. For instance, according to a report by National Public Radio, Amazon, the largest e-commerce platform, has recently announced its plans to buy 100,000 of Rivians electric delivery vans to demonstrate its commitment to sustainability and zero-carbon emissions. Additionally, the logistics segment is increasingly investing in electric trucks to cut their fuel cost and maximize their profit, which is anticipated to drive the market growth during the forecast period.
Global Electric Trucks Market - By Range
Based on range, the global electric trucks market is segmented into up to 200 miles and above 200 miles. The up to 200 miles segment accounts for the largest market share. Most electric truck manufacturers such as MAN, Canoo, Kenworth, etc., target this range of vehicles. However, the above 200 miles range is anticipated to take over during the forecast period as leading automobile manufacturers such as Tesla are focusing on launching electric big-rig trucks with a working range of 200 to 300 miles, which is expected to propel the segments market growth during the foreseeable future.
Global Electric Trucks Market - Regional Insights
Geographically, the global electric trucks market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among these regions, Europe dominates the electric trucks market. However, the Asia-Pacific region is projected to emerge as the biggest market for electric trucks. A number of emerging economies, including China, Japan, India, South Korea, etc., are significantly investing in expanding the production capacity of electric trucks and establishing new production plants to boost their penetration within the domestic market. Additionally, the government of different APAC countries are also offering various incentives and subsidies for the adoption of electric trucks, which is anticipated to boost the growth of the electric trucks market in the APAC region during the forecast period.
Impact of COVID-19 on the Global Electric Trucks Market
The unprecedented COVID-19 outbreak significantly halted the growth of the global electric trucks market. The manufacturing and production activities of electric trucks were temporarily halted in the light of lockdown and social distancing norms which resulted in a shortage of workforce. The nationwide lockdown in various countries also restricted the mobility and operations of various end-users, due to which the demand for electric trucks declined during the pandemic period. However, the COVID-19 outbreak is anticipated to present lucrative growth opportunities for the electric trucks market as the focus on sustainability and cutting carbon emission is currently gaining traction worldwide.
Global Electric Trucks Market- Competitive Landscape
The leading players in the global electric trucks market are Dongfeng Motor Corporation, Tesla Inc., Hino Motors, Alke SRL, Daimler, IVECO SpA, PACCAR Inc., Scania AB, Isuzu Motors Ltd, BYD Auto Co. Ltd., Navistar International Corporation, Renault Trucks, Tata Motors Limited, Rivian Automotive Inc., Lucid Motors, Nikola Motors, Ford, Workhorse, Infraprime Truck Company, and other prominent players.
The global electric trucks market is highly consolidated and dominated by multinational automotive giants. Nonetheless, the market is relatively new, and therefore welcomes new entrants who offer advanced technology and improved efficiency. The players in this industry offer different products to cater to the various needs of their customers. They also constantly launch new electric truck models with advanced propulsion technology and higher battery and power efficiency. Furthermore, the adoption of competitive strategies, such as mergers, acquisitions, collaborations, joint ventures, etc., is also prominent in this market.