The Future is Electric - The Electric Truck Market is Trending Towards Electrification

The Future is Electric - The Electric Truck Market is Trending Towards Electrification

Electric trucks offer significant advantages like zero tailpipe emissions, lower operating and maintenance costs compared to diesel variants. Being at the forefront of improving air quality and reducing carbon footprint, electric trucks have become popular choices for last-mile deliveries and shorthaul applications.

The global electric truck market is estimated to be valued at US$ 3.68 billion in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024 to 2031.

Electric trucks utilize electric motors and high capacity batteries to run instead of conventional internal combustion engines. This ensures cleaner transportation with minimal impact on the environment. Rapid progress in battery technology, higher density batteries and lowering battery costs have made electric trucks commercially viable options for fleet owners and logistics companies.

Key Takeaways

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. These companies are investing heavily in R&D to develop advanced electric powertrain systems and battery packs which improve performance and lower total cost of ownership of electric trucks.

The growing demand for sustainable logistics along with stricter emission norms across regions is a major factor driving the adoption of electric trucks. Many cities and countries have also announced plans to switch their commercial vehicle fleets to electric models to reduce local pollution. Various incentives and subsidies provided by governments on electric trucks make them attractive propositions for logistic companies and fleet owners.

The Global Electric Truck Market Size is expanding significantly with major truck OEMs and new players entering markets in Asia Pacific, Europe, and North America. Countries like China, Germany, US, Canada and South Korea are at the forefront in promoting electric trucks and developing required charging infrastructure. With maturing technology, falling battery prices and widespread policy support, the demand for electric trucks is expected to pick up pace globally over the coming years.

Market Key Trends

One of the key trends witnessed in the electric truck market is the increasing preference for Fully Electric trucks over Hybrid electric trucks. While hybrid electric trucks still utilize diesel or CNG fuels along with electric powertrains for extended ranges, fully electric trucks offer zero emissions and total electrification. Major commercial vehicle manufacturers are focusing on developing all-electric models and variants with sufficient driving ranges to address range anxiety issues associated with electric trucks.

Porter’s Analysis
Threat of new entrants: Electric truck market requires massive capital investment limiting new competitors. Bargaining power of buyers: Large fleet operators and logistics companies have significant influence over electric truck OEMs. Bargaining power of suppliers: Supply of critical electric vehicle components like batteries is consolidated among few global players putting OEMs at their mercy. Threat of new substitutes: Alternative fuel trucks like CNG and hydrogen fuel cell pose threat but lack infrastructure support currently. Competitive rivalry: Intense competition among existing players to gain early mover advantage through technology and pricing.

The electric truck market in North America is currently the largest globally in terms of value. Countries like the US and Canada are investing heavily in facilitating commercial EV adoption and expanding public charging infrastructure critical for electric trucks.

The Asia Pacific region is projected to showcase the fastest growth in the electric truck market over the forecast period. China, Japan and South Korea are aggressively pushing for electrification of commercial transport to reduce vehicle emissions. Countries like India also offer a sizable future market for electric trucks as freight activity grows along with rising e-commerce penetration.

Geographical Regions
North America currently accounts for the lion's share of the global electric truck market in terms of value led by the US. The region is making concentrated efforts to boost commercial electric vehicle adoption through supportive policy measures and expanding public charging infrastructure critical for heavy duty trucks.

Asia Pacific region is poised to witness the fastest growth in the electric truck market during the forecast period. Countries like China, Japan and South Korea are aggressively promoting electrification of commercial transport fleets to curb vehicle emissions. Rapid growth of e-commerce and logistics sectors in nations like India also present a sizable future market for electric trucks as freight activity grows.

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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)