May 29, 2024
Electric Truck Market

Electric Truck Market driven by Government Support to Promote EVs is estimated to be valued at US$ 3.68 Mn in 2024

Electric trucks provide emission-free transportation of goods and cargo over short and long distances. They utilize electric motors powered by rechargeable battery packs, reducing dependence on fossil fuels. Regenerative braking also allows capturing energy lost during slowing and braking to charge the batteries further. This extends driving range on a single charge. Governments across nations are offering purchase incentives and subsidies for electric trucks to lower air pollution in cities and reduce carbon footprint of logistics operations. Growing emphasis on sustainable transportation and support for developing charging infrastructure are fueling wider adoption of electric trucks among fleet owners.

The global Electric Truck Market is estimated to be valued at US$ 3.68 Mn in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends in the electric truck market is the growing prominence of hydrogen fuel cell electric trucks. Fuel cell trucks have a significant advantage over battery-electric trucks in terms of quicker refueling and extended ranges. Major truck manufacturers have been investing heavily in developing fuel-cell drivetrains for class 6-8 trucks. For example, in April 2022, Hyundai revealed plans to introduce a fuel cell electric long haul truck in 2028, which is expected to have a driving range of over 600 miles on a single charge. Fuel cell trucks will help commercial fleet operators reduce operational costs and achieve sustainability targets with minimal downtime for charging. This is prompting several companies to add fuel cell trucks to their fleets.

Porter’s Analysis
Threat of new entrants: Low upfront capital costs required to enter the electric truck market could attract new players. However, established brands have strong brand recognition and distribution networks that create barriers.

Bargaining power of buyers: Large fleet operators and logistics companies have significant buying power to negotiate lower prices from electric truck manufacturers.

Bargaging power of suppliers: Electric truck OEMs largely depend on key battery suppliers like Panasonic and CATL. This increases suppliers’ bargaining power.

Threat of new substitutes: Natural gas trucks pose competition but lack widespread refueling infrastructure compared to electric trucks. Battery technology advancements may lead to new powertrain options.

Competitive rivalry: Presence of Tesla, Daimler, Volvo and others has intensified competition. OEMs focus on expanding product lines, driving down costs and developing advanced driver-assistance systems.

Key Takeaways
The Global Electric Truck Market Size is expected to witness high growth.

North America is leading the electric truck adoption driven by supportive regulations and incentives for commercial electric vehicles in the US and Canada. Strong focus on sustainability and local zero-emissions targets in the European Union is fueling electric truck sales in the region.

Key players operating in the electric truck market are Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd., Orora Packaging Australia Pty Ltd, and Nippon Paper Industries Co., Ltd. Tesla’s new electric semi truck launched in 2017 started generating significant interest from major fleet operators. Daimler revealed its electric Freightliner eCascadia and eM2 models. Volvo unveiled its electric VNR regional haul truck.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it