Published: December 2018 | Report Code: AT11391 | Available Format: PDF | Pages: 152
Electric Truck Market Overview
The global electric truck market is forecasted to reach 1,508.1 thousand units by 2025, registering a CAGR of 18.5% during the forecast period. The market has witnessed a significant growth in the recent years, owing to low operating and maintenance cost of these trucks, governments’ regulations and incentives, and declining battery price.
Based on propulsion, the electric truck market is categorized into battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), and fuel-cell electric vehicle (FCEV). Of these, the market for BEV category is expected to grow at the fastest pace during the forecast period. This is due to governments’ support in the form of financial incentives for the purchase and the development of these vehicles, and improvements in battery technology. Governments’ incentives for BEV trucks have been announced in few countries, with programmes and schemes that are tailor-made for driving the growth of the market for battery trucks and supporting related freight equipment and infrastructure.
Besides, ongoing research and development (R&D) of battery technology by electric truck manufacturers, in collaboration with their battery and motor technology partners toward improving energy density and increasing battery life, coupled with the reduction in the battery price, is also driving the growth of the electric truck market for BEVs.
In the coming years, the demand for heavy-duty trucks (HDTs) is expected to register the fastest growth in the electric truck market, both in terms of volume and value, as compared to other categories, globally. Major factors that are responsible for this are the fast-growing freight demand across the globe and significant economic growth in developing countries such as China and India. In developed economies, including the U.S. and European nations, the market for electric HDTs is growing at a significant pace, attributable to the increasing demand for long-haul HDTs running on alternate fuels by fleet operators. Also, trucking companies continue to add the HDTs to level with the rising freight demand and avail maximal gains under governments; financial incentive schemes.
Based on application, the electric truck market is categorized into logistics, municipal, and others. The logistics category held the largest market share over the historical years, and will continue being the dominant category under this segment during the forecast period, owing to the growing logistics industry and significant growth in e-commerce, retail, and manufacturing industries in developing economies.
Asia-Pacific (APAC) held the largest share in the electric truck market during the historical period, accounting for over 85% sales volume in 2017. Globally, China continues to remain the largest market for these trucks. The domestic demand for these trucks in China is strongly driven by favorable government subsidies, national alternative-fuel-vehicle replacement sales targets, and municipal air quality targets.
The electric truck market in other regions is still in its nascent phase and depends largely on government policies. The comparatively higher upfront costs, underdeveloped value chain, and presence of few electric truck manufacturers have limited the sales in these regions. However, the manufacturers in these regions are investing heavily in the development of these trucks, which is expected to boost the market growth during the forecast period.
Electric Truck Market Dynamics
The low operating and maintenance cost of an electric truck may help to achieve cost parity as compared to its conventional counterpart. But it is the government regulations that are expected to drive the electric truck market growth much faster. Major regulatory measures are stringent emissions targets for the reduction of nitrogen oxides (NOx) and carbon dioxide (CO2) in air; and anticipated diesel bans in various urban areas across the world, with cities such as Paris, Madrid, and Mexico City having already started announcing diesel bans.
At present, there are around 200 cities in Europe with access regulations and low-emission zones, led by the U.K., Germany, and Italy. With France and the U.K. having already announced bans on the fossil-fuel vehicle sales starting from 2040, the major truck manufacturers, under this direct regulatory pressure, are shifting from the conventional diesel trucks to the electric ones. The diesel bans and other emission regulations are forcing the truck manufacturers to include electric trucks in their product offerings, thereby driving the growth of the electric truck market.
One of the major challenges that should be overcome for the deployment of electric trucks is the inadequate charging infrastructure. For this to happen, proper planning and installation of charging stations for these vehicles need to be done, which would require huge investments. It would also need that the government entities work in close collaboration with power utility companies and concerned private entities (including original equipment manufacturers, electric vehicle supply equipment providers, and other related component suppliers) toward developing an efficient network of charging stations to boost the adoption of these trucks across the world.
Electric Truck Market Competitive Landscape
The global electric truck market is dominated by Chinese players. The players in the country are benefitted by the rapid industrialization, urbanization, and economy growth coupled with government support for the adoption of eco-friendly vehicles. Dongfeng was the leading player in the market, holding 25% share in 2017. The company has a wide range of products. BYD company ltd. is another major player in the market. The company has the global presence and is the second largest manufacturer of electric trucks. The other important players operating in the electric truck market are Mitsubishi Fuso Truck and Bus Corporation, Voltia a.s., Alkè, and Zenith Motors LLC.
Our dedication to providing the most-accurate market information has earned us verification by Dun & Bradstreet (D&B). We strive for quality checking of the highest level to enable data-driven decision making for you
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
With 24/7 research support, we ensure that the wheels of your business never stop turning. Don’t let time stand in your way. Get all your queries answered with a simple phone call or email, as and when required
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws