The electric truck market, by value, is estimated to be 101,499 units in 2022 and is projected to reach 1,067,985 units by 2030, at a CAGR of 34.2% from 2022 to 2030. Increased focus of government on emission free vehicles and policies would drive adoption of electric trucks in the e-commerce and logistics sector. Further, It will create opportunities for OEMs to expand their revenue stream and geographical presence in electric commercial vehicle industry.
Rising demand for electric trucks in logistics and other industries
There has been a rise in demand for electric trucks in the logistics sector across top EV markets worldwide. Medium and heavy-duty trucks are expected to witness growth as the use of EV trucks can improve the long-term profitability of this industry due to the much lower electric charging price compared to the use of other fuels. In January 2022, Workhorse Group (US) received an order for delivery trucks from the US Postal Service. The World Economic Forum (WEF) predicts a 36% increase in delivery vehicles in inner cities by 2030. The demand for electric trucks will also rise in other industries like product transport (food and beverage industry), e-commerce companies (Amazon and Walmart), and state services (post office trucks, fire trucks, and refuse trucks).
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Development of self-driving truck technology
The electric truck market will be affected by the recent trend of self-driving trucks. Autonomous trucks use AI to automate everything from shipping yard operations to long-haul deliveries. Top OEMs like Tesla, Inc., AB Volvo, and Mercedes Benz Group AG have been developing self-driving electric trucks for the market. Startups like Embark (US), Einride (Sweden), and TuSimple (US) have also started developing self-driving electric trucks. In December 2022, TuSimple and Navistar Inc. (US) announced an agreement to develop self-driving trucks. In June 2022, Waymo (US) announced the delivery of home goods for Wayfair (US) using its fleet of autonomous semi-trailer trucks.
‘’Increased use in e-commerce sector will drive the electric truck market’’
The increasing use of electric trucks for last mile delivery of goods from warehouses to customers is expected to boost the electric truck market in the near future. Companies are considering the addition of electric trucks and electric pickup trucks to their fleets to reduce fuel expenses and emissions. In November 2022, Tesla, Inc. announced a reach of 1.5 million pre-orders of its electric cyber truck across the globe. In October 2022, AB Volvo announced the supply of 20 VOLVO FH electric trucks to Amazon in Germany for delivery purposes. In October 2022, Performance Team (US) announced the deployment of Class 8 battery-electric trucks from Volvo Trucks North America in Southern California in response to customer demand for sustainable short haul warehouse and distribution center operations.
‘’Asia Pacific is expected to be a major electric truck market’’
Governments of economies such as China, Japan, South Korea, and India have recognized the growth potential of EV and related markets. Hence, the government have undertaken different initiatives to attract major OEMs to manufacture electric vehicles in domestic markets. This will lead to a growing demand for electric trucks in the region. The Indian government plans to make it mandatory for cab-hailing companies Ola and Uber to have 40% of their fleet as electric vehicles. These policies increased electric vehicle production volumes over the years, which cater to domestic and overseas demand. Delhi (India) set up a series of policies for deploying BEVs as 25% of all new vehicles by 2024. In January 2022, Dongfeng Motor Corporation announced the establishment of a new production facility for electric off-road vehicles in Wuhan. This is scheduled to start production in 2023 with a planned capacity of 10,000 vehicles.
Key Market Players
The electric trucks market is dominated by a few globally established players such as BYD(China)., Mercedes Benz Group AG (Germany), AB Volvo (Sweden), Ford Motor Company (US) and Rivian (US) and others.
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