"Market Intelligence for High-Geared Performance"
The global electric truck market size was valued at USD 505.5 million in 2021 and is projected to reach USD 7,146.4 million by 2029 from USD 631.3 million in 2022, growing at a CAGR of 41.43% during the forecast period. Based on our analysis, the global market exhibited a decline of 19.70% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with electric truck experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.
Electric truck is powered by batteries designed to transport cargo, carry specialized payloads, or perform other valuable work. It is used in the services of milk floats, pushback tugs, forklifts, and others. Electric type of trucks accounted for just 0.3% of global truck sales in 2021. According to IEA, the sale of battery electric vehicle trucks increases yearly, and the increasing adoption of electric type of trucks will drive the market growth during the forecast period.
Decrease in Vehicle Production and Sales Hampered the Market Growth
Since December 2019, the COVID-19 pandemic has extended to almost 100 countries around the globe, with the World Health Organization (WHO) declaring it a pandemic. The global impacts of COVID-19 have already started to be felt and will significantly impact the market in the years 2020 and 2021.
Automotive support for low- and zero-emission commercial vehicles to aid the short-term recovery of the automotive industry. The demand for trucks decreased in 2020 due to COVID-19 impact and increased in 2021; truck OEMs have also developed new technologically advanced electric truck models; more than 170 were available outside China in 2021. Organizations were compelled to close down owing to the pandemic-persuaded lockdown or operate at decreased functioning capacity post production recommenced, which resulted in an extreme recession in vehicle manufacturing. As per the International Organization of Motor Vehicle Manufacturers (OICA), production was equal to sales in 2010, dropping by 16% to less than 78 million vehicles. Moreover, several vital countries additionally re-asserted their targeted
Request a Free sample to learn more about this report.
Increasing Adoption of Autonomous Driving Technology is Boosting the Market Growth
The recent trend of self-driving technology will influence the global market. Top manufacturers such as Tesla, Volvo, Vera, Daimler, and others have been developing this self-driving technology in trucks for the market. Startup companies such as Embark, Einride, TuSimple, and others have also started developing this technology. Moreover, autonomous trucking brings greater efficiency to the trucking market. Cargo companies need to move large quantities of cargo every day. Autonomous truck would allow companies to move more freight with the same number or even fewer drivers, as one person will be responsible for monitoring multiple trucks.
Self-driving truck technology will increase the demand for electric trucks in the long run due to its advantages such as easy use, presence of value-added features, and reducing human errors as it is a driverless system. For instance, in 2021, Tesla disclosed its plan to launch its self-driving electric type of truck by the end of 2025. Waymo has already started testing its self-driving trucks at the beginning of 2020. In February 2022, TuSimple, an autonomous driving technology company, announced the operation of autonomous routes between Tucson & Phoenix in Arizona and some areas of Texas.
Increase in Prices of Fuels will Create Demand for Electric Trucks
Fuel prices globally are highly uncertain and rising. Refueling solutions will also have costs that vary by region and increase over time. With gas prices rising, electric vehicles look more appealing to consumers. It is estimated that the annual cost to fuel a light commercial vehicle is around USD 3,500 annually for the average American. The estimated cost to fuel a similar vehicle using a suitable electric propulsion system is around USD 850, roughly three times less. EVs have significantly less running costs than IC vehicles as electric motors are more efficient than gasoline engines. Further, around 85% of the energy through an electric motor is converted into movement; on the other hand, it is around 40% in gas-powered vehicles. In a situation where electricity and fuel costs were equal, a commercial electric vehicle would be cheaper to own than a gasoline-fueled vehicle. The major countries are also focusing on developing charging infrastructure, which will surge the demand for these trucks during the forecast period.
High Manufacturing Costs for Electric Vehicles are Retraining the Market Growth
The initial asset required for manufacturing electric trucks is comparatively much higher than CNG, petroleum, and diesel trucks. The cost of components and machinery used for production is also relatively high. This is majorly due to the high cost associated with electric batteries used in trucks. Europe is responsible for over one-quarter of global EV assembly, but it is a tiny supply chain apart from cobalt processing at 20%. Moreover, the U.S. has an even more minor role in the global EV battery supply chain, with only 10% of EV production and 7% of battery production capacity. The production of these trucks is less sophisticated than other conventional fuel trucks and thus is highly affected by the prices of batteries in the market. Further, in most regions, the raw material required for batteries is required to be imported, which also adds to the high prices of batteries. The production of such commercial vehicles is currently limited due to the high cost incurred. According to a report by Forbes on energy innovation, the manufacturing cost of an electric truck is much higher currently compared to diesel or petrol trucks. Still, by 2030, it will be 50% cheaper compared to diesel and petrol variants with falling battery prices.
To know how our report can help streamline your business, Speak to Analyst
Battery Electric Vehicle (BEV) to Lead Market Owing to Profits Such as No Exhaust Gases production and Deliveries in Zero-Emission Zones
By propulsion, the market is segmented into Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicle (PHEV), and Fuel Cell Electric Vehicle (FCEV).
The BEV segment held the largest market share attributed to its benefits and adoption in several countries, such as China and the U.S., and European countries. China accounted for nearly 90% of electric truck registrations in 2021. The electric truck market growth is projected to accelerate significantly depending on BEV sales and latest developments.
The PHEV segment held the second-largest market share. The segment offers improved comfort and the overall performance of the truck. The key companies are focused on research and development of plug-in hybrid trucks. These factors will affirmatively affect the growth of the segment.
The FCEV segment held the third-largest share of the market. The growth of this segment is attributed to the product’s advantages and development from key trucking players.
Light Duty Truck Held Largest Share of the Market Owing to its Low Maintenance and High Performance
Based on application, the market is divided into light duty trucks, medium duty trucks, and heavy duty trucks.
The light duty trucks segment held the largest share of the market in 2021. Sales of light-duty have continued to increase. China accounted for the maximum number of light duty trucks in 2021; the growth is attributed to key market players and OEMs in the country. Europe was the second largest market share in 2021 due to increasing response to carbon dioxide (CO2) performance standards.
The medium duty trucks segment held the second-largest market share in 2021. Demand for medium-duty trucks is more significant in China, the U.S., and European countries. Features and services are of trivial significance than essential dependability and security. The segment held the third largest market share in 2021 due to the rising demand for electric trucks in constrictions of transportation.
151-300 Miles Dominates the Market Due to Increasing Development in Electric Truck
Based on range, the market is segmented into 150 miles, 151-300 miles, and above 300 miles.
The 151-300 miles segment held the largest market share in 2021. This segment's growth is attributed to registering and increasing electric truck sales (151-300 range) in Asia Pacific.
The 150 miles segment held the second-largest market share in 2021. This segments' growth is attributed to rising key developments by crucial companies in the market. The above 300 miles segment held the third largest share of the market and is expected to lead in the future considering the latest developments from giant players in this segment.
Asia Pacific Electric Truck Market Size, 2021 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific led the electric truck market share (with China accounting for most of the share), and it stood at USD 224.5 million in 2021. The factors include a growth in the sale and registration of commercial electric vehicles. For instance, in 2021, China showed significant growth from 2020 to 2021; China registered around 86,000 light commercial vehicles, which will drive the growth of the market in this region. Furthermore, most consumers prefer commercial electric vehicles in prime nations such as China, Japan, and India. This will result in an upsurge in demand for these trucks in the region.
Europe is anticipated to display substantial growth in the market owing to the high demand for electric trucks for zero-emission and reduced transportation costs. In 2021, the lightest commercial vehicle was sold in Europe. This may reflect that most electric LCVs are acquired for specific uses within fixed delivery areas and may not need an extended driving range. This will lead to an exponential boost in product demand.
North America is also anticipated to observe promising growth in the market. In the U.S., electric truck brands have consistently increased demand. The number of electric LDVs per public charging point in the U.S. is 18. Also, the infrastructure investment in charging stations was increased by the government. These factors will impact the market growth.
BYD Company Ltd Leads Market Owing to Industrious Partnerships and Industry-leading Products
BYD Company Ltd is one of the dominating players in the market. Its business principally contains the development and manufacturing of electric trucks. These aspects have empowered the company to seize a larger market share.
An Infographic Representation of Electric Trucks Market
To get information on various segments, share your queries with us
The research report covers a detailed market analysis. It focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the electric truck market trends and highlights key industry developments. In addition to the factors mentioned above, the report delivers an in-depth analysis of several factors that have contributed to its growth in recent years.
Value (USD Million)
By Vehicle Type
Fortune Business Insights says that the global market size was USD 505.5 million in 2021 and is projected to reach USD 7,146.4 million by 2029.
In 2021, the Asia Pacific market size stood at USD 224.5 million.
The market will exhibit a promising growth rate of 41.43% CAGR during the forecast period (2022-2029).
The battery electric vehicle segment held the largest market share in 2021.
An increase in the prices of fuels will create the product demand.
Daimler AG, AB Volvo, and Scania AB are the major players in the global market.
Asia Pacific held the largest share in the market in 2021.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry