Electric Truck Market Size, Share, Growth Analysis, By Battery Capacity, By Type, By Range, By End Use, By Battery Type, By Region - Industry Forecast 2024-2031

Global Electric Truck Market size was valued at around 4.36 billion in 2022 and is expected to rise from USD 6.25 billion in 2023 to reach a value of USD 111.10 Billion by 2031, at a CAGR of 43.3% during the forecast period (2024-2031).

The growth of the electric truck market is being driven by several factors, including the increasing demand within the logistics sector, decreasing fuel and maintenance costs, and financial incentives for transitioning to zero-emission vehicles. Stricter pollution regulations for commercial vehicles are compelling manufacturers to invest heavily in electric truck production. This trend is expected to lead to substantial investments by manufacturers to meet rising demand, thereby boosting market expansion. Electric trucks are being utilized across various industries such as municipal services and logistics, with the latter being a key contributor to GDP growth globally. The expansion of e-commerce is also prompting logistics companies to replace traditional internal combustion engine fleets with electric vehicles. An example of this shift is CEVA Logistics, a UK-based company that began testing electric trucks for deliveries in Central London in February 2020. Two Tevva electric trucks were used for daily deliveries from Dartford to St Thomas' NHS Foundation Trust and Guys over a six-month period. However, the market for electric trucks faces challenges, including insufficient charging infrastructure and high costs associated with regulatory and permitting processes for setting up charging stations. Additionally, the adoption of electric trucks is slower in emerging economies due to lower investment levels. The COVID-19 pandemic has further impacted market growth, with lockdowns disrupting global supply chains and production activities, leading to decreased demand. However, as restrictions are eased and governments reinforce emission reduction targets, the electric truck market is expected to recover and expand, driven by increased post-pandemic demand.

Top-down and bottom-up approaches were used to estimate and validate the size of the global Electric Truck market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Electric Truck Market Segmental Analysis

The global electric truck market is segmented based on vehicle type, propulsion, battery type, level of automation, GVWR, Battery Capacity, end user, region. Based on vehicle type, the market is segmented into Light-duty Trucks, Medium-duty Trucks and Heavy-duty Trucks.Based on range the market is segmented into above 200 miles and below 200 miles. Based on propulsion type the market is segmented into BEV, PHEV, FCEV. Based on end user, the market is segmented into Last Mile Delivery, Long Haul Transportation, Refuse Services, Field Services and Distribution services. Based on GVWR the market is segmented into Upto 10,000 lbs (about 4535.92 kg). , 10,001-26,000 lbs (about 11793.39 kg) and Above 26,001 lbs (about 11793.85 kg) of a school bus). Based on level of automation, the market is segmented into Level 1, Level 2& 3, Level 4, Level 5. Based on battery type, the market is segmented into Lithium-nickel-manganese-cobalt Oxide, Lithium-iron-phosphate and Others. Based on battery capacity the market is segmented < 50 kWh, 50-250 kWh and Above 250 kWh. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Drivers of the Global Electric Truck Market

Globally, there is a growing demand for electric trucks within the logistics sector, driven by their lower charging costs compared to traditional fuels. This trend is expected to foster significant growth in the market for medium- and heavy-duty electric trucks, as they offer the potential for enhanced long-term profitability. For example, in January 2022, the US Postal Service ordered delivery trucks from Workhorse Group, highlighting the shift towards electric vehicles. According to the World Economic Forum (WEF), there is projected to be a 36% increase in delivery vehicles in urban areas by 2030. Additionally, sectors such as product transportation, including the food and beverage industry, e-commerce companies like Amazon and Walmart, and logistics providers are all anticipated to see a rising demand for electric vehicles.

Restraints in the Global Electric Truck Market

The initial cost of electric trucks remains higher compared to traditional diesel trucks, presenting a significant hurdle for many companies considering adoption. Although electric trucks offer lower operating costs over their lifespan, the substantial upfront expense can be a major deterrent for some businesses. Despite the long-term savings associated with reduced operational costs, the high initial investment required for electric trucks continues to be a barrier for widespread adoption. Companies may find it challenging to justify the expense, even with the potential for lower lifetime costs.

Market Trends of the Global Electric Truck Market

Electric trucks are particularly ideal for urban delivery tasks due to their quiet operation and zero emissions, making them a compelling choice for last-mile deliveries. This segment of the market is anticipated to experience rapid growth, fueled by the expansion of e-commerce and a rising demand for eco-friendly transportation options. The growing trend towards sustainable transportation solutions is expected to accelerate the adoption of electric trucks in urban areas. As e-commerce continues to thrive, the need for efficient and environmentally friendly delivery methods is becoming more pronounced, further driving the expansion of the electric truck market in the last-mile delivery sector.