From the period of 2022 to 2028, the Global Electric Truck Market is expected to reach USD 1686.6 Million in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 26.1%.
Over the projected period, the adoption of electric trucks is predicted to increase due to a steady increase in transportation emissions and pollution levels in metropolitan areas. Increased demand in the long-haul transportation sector has resulted in increased vehicle manufacturing across the world. Government restrictions requiring manufacturers to spend extensively on the adoption of fuel-efficient automobiles have pushed them to do so. Increased demand for high-power electric vehicles in emerging nations is expected to drive the Electric Truck Market over the forecast period.
Rising fuel prices, global warming, and air pollution, as well as government incentives for Electric Truck purchases, are likely to drive market expansion throughout the forecast period. Rapid transportation electrification is aiding market expansion by lowering greenhouse gas emissions and enhancing cost-effectiveness. OEM manufacturers' increased production of electric and hybrid electric vehicle segments is fuelling market expansion. Furthermore, the growing need for efficient vehicles to cut operational costs is driving market expansion. Battery technology advancements are increasing the practicality and cost competitiveness of electric trucks, which is boosting industry growth.
Key Highlights from the Report
- On the basis of Type, the market is segmented into Medium Duty Trucks, Light Duty Trucks, and Heavy Duty Trucks. Among the many vehicle categories, light-duty trucks (LDTs) are the most commonly utilized. This can be ascribed to the country's high desire for and adoption of pickup vehicles. The light-duty truck category is predicted to rise steadily in this market due to increased demand among fleet operators for utility vehicles such as pick-up trucks and minivans. Several industries are driving the need for these LDTs by incorporating them into their operations. As a result, LDTs will account for more than 90% of all commercial vehicle sales in the country by 2021. They present tremendous potential for important businesses to introduce new electric variations, assisting fleet owners in lowering total operational costs.
- On the basis of Propulsion Type, the market is categorized into PHEV, BEV, and FCEV. The battery-electric sector is expected to have the biggest market share due to its capacity to generate no pollution and operate quietly in comparison to conventional cars. This may be attributed mostly to decreasing battery costs, advancements in battery technology, and government assistance in the form of financial incentives for the development and purchase of these cars. Increasing emissions restrictions, particularly for commercial vehicles, are expected to drive market expansion in this sector over the forecast period.
- Asia Pacific is the fastest regional segment in terms of growth. The Asia-Pacific Electric Truck industry is expanding as people become more conscious of the dangers of carbon emissions. Due to rising urbanization, industrialization, and government backing for the adoption of eco-friendly vehicles, China accounts for the region's highest share of the Electric Truck industry. Growing worries about rising levels of air pollution in the region, as well as increased demand for cars that use clean fuel, are driving market expansion in APAC. The Asia-Pacific electric vehicle industry is likely to be led by rising environmental consciousness and government backing. The rising income levels and urbanization in Asia Pacific's growing economies are stable development engines for the electric car market.
Government Initiatives to Promote E-Mobility Should be Expanded
Governments all around the world are placing pressure on vehicle manufacturers to minimize carbon emissions caused by diesel fuel burning and address greenhouse gas emissions, which is prompting them to invest in creating electric trucks. Governments are offering incentives through programs and schemes for the manufacture of battery-electric trucks, which is expected to fuel the market's growth. Furthermore, governments around the world are providing tax breaks and incentives to encourage the purchase of electric vehicles. Moreover, a few nations' central governments exempt electric cars from highway toll charges. Thus, an increase in government support for the development and purchase of electric mobility in the form of tax credits, subsidies, and incentives is one of the key drivers driving demand for electric trucks. Furthermore, due to rigorous emission standards, several countries are aiming to transition entirely to electric trucks from conventional trucks.
Commercial Cars Powered by Fossil Fuels Must Meet Stringent Pollution Standards
With rising environmental concerns, governments and environmental organizations around the world are establishing tough emission standards and rules to decrease car emissions. Major regulatory initiatives include rigorous emission limits for reducing nitrogen oxides (NOx) and carbon dioxide (CO2) in the atmosphere. Because of the high levels of greenhouse gases released by automobiles, the federal and state governments in the United States are increasing efforts to make transportation cleaner. The EU has also set the goal of reducing greenhouse gas emissions by 40% by 2040 and reaching net zero by 2050. As a result, with the implementation of emission standards for fossil-fuel-powered vehicles, the burden on vehicle manufacturers, particularly commercial vehicle manufacturers, has increased. This is projected to increase the demand for electric trucks. As a result, tough emission standards imposed on fossil-fuel-powered commercial vehicles are fueling the rise of the Electric Truck Market.
Asia-Pacific holds the biggest market share due to favorable government regulations, a push toward alternative-fuel vehicle replacement, and intensified measures to manage air quality, this market's expansion is attributed to favorable government policies and regulations, increased investments by top automobile OEMs, and lower battery prices. The growing use of electric mobility in emerging nations, as well as the expansion of EV and battery production capabilities in Southeast Asia, provide lucrative potential opportunities for this industry. Vehicle penetration is considerably lower in emerging economies such as India and China than in Western ones. The desire to earn revenue and buy a car in this country will create an opportunity for electric car firms.