The rapid advancement of battery technology is anticipated to open up the new avenue for Electric Truck Market

The rapid advancement of battery technology is anticipated to open up the new avenue for Electric Truck Market

Market Overview:
Electric trucks use one or more electric motors for propulsion instead of a conventional internal combustion engine (ICE). They are powered by rechargeable battery packs which are lighter in weight than diesel/petrol fuel tanks. Electric trucks come in various types including light duty trucks, medium duty trucks and heavy duty trucks. They help reduce operating costs and provide better drivability compared to conventional ICE trucks. The zero tailpipe emissions of electric trucks also make them more environment friendly.

Market Dynamics:
Growing concerns regarding environmental pollution and stringent emission norms imposed on commercial vehicles are driving the adoption of electric trucks. Many countries and local authorities are offering attractive subsidies and tax rebates to promote electric trucks which is a major factor boosting the electric truck market growth. Additionally, the total cost of ownership of electric trucks is lower than ICE trucks due to lower maintenance and fuel costs. The improving battery technology with higher energy density and reduced battery prices is making electric trucks a viable alternative to diesel trucks, especially for short-haul distribution applications. However, lack of charging infrastructure and high upfront costs of electric trucks continue to limit broader market adoption.
Segment Analysis
The Global Electric Truck Market Share is dominated by the < 25 tons segment, which holds around two-third of the total market share. This segment consists of light and medium commercial vehicles that are mostly used for pick-up and delivery applications in last mile logistics. The < 25 tons segment is dominating as light electric trucks offer adequate capacity for delivery operations while being more affordable and easier to maintain than heavier trucks.

PEST Analysis
Political: Favorable government policies around the world such as emission regulations, tax rebates and purchase subsidies on commercial electric vehicles are driving the electric truck market growth.
Economic: Low operating costs of electric trucks due to cheaper electricity prices as compared to diesel is convincing commercial fleet owners to invest in electric trucks for better economic viability of operations.
Social: Growing consumer preference for green vehicles along with increasing adoption of sustainable practices by corporations is propelling the demand for zero emission commercial vehicles.
Technological: Continuous improvements in battery technologies such as solid-state batteries are increasing the driving range of electric trucks, alleviating range anxiety issues and accelerating their acceptance.

Key Takeaways
The global electric truck market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing stringent emission norms. The electric truck market size for 2023 is estimated to be US$ 3.19 Billion.

Regional analysis revealed that Europe dominates currently with over 40% market share due to strong government support schemes for commercial electric vehicles in countries like Germany, France, and UK. Asia Pacific electric truck market is poised to grow at fastest rate led by China due to rapid fleet electrification initiatives in key segments like delivery vans and garbage trucks in major cities.

Key players operating in the electric truck market are AB Volvo, Workhorse, BYD Company Ltd., Tesla, Daimler AG, Scania AB, Tata Motors, Rivian, Dongfeng Motor Group Co., Ltd., and Man SE. AB Volvo and BYD Company Ltd. lead the market currently with wide electric truck portfolio across segments and global manufacturing and sales network.

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https://www.marketwebjournal.com/electric-truck-market-is-estimated-to-witness-high-growth/