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Light-Duty Trucks to Dominate U.S. Electric Truck Market till 2030
Valued at $211.5 million in 2019, the U.S. electric truck market is expected to reach $30,335.3 million by 2030, witnessing a CAGR of 58.2% during the forecast period (2020–2030). The key factors driving the growth of the market are the declining prices of the battery, low operation and maintenance costs of these vehicles, and supportive government initiatives.
Segmentation Analysis of U.S. Electric Truck Market
Light-duty trucks (LTDs) are expected to hold the largest share in the U.S. electric truck market in 2030, based on vehicle type, primarily due to the high demand for pickup trucks in the nation. Already in 2019, LTDs accounted for over 85% sales of commercial vehicles in the U.S. By offering electric variants of pickup trucks, market players can target fleet owner who are looking to reduce their operational expenditure.
During the forecast period, battery electric vehicles (BEV), on the basis of propulsion, would witness significant growth in the U.S. electric truck market, due to the improvements in the technology of the battery and government initiatives which promote the adoption of battery electric trucks. Further, battery manufacturers are collaborating with truck producers to increase the life and density of the batteries.
The 151–250 miles category dominated the U.S. electric truck market in 2019, under segmentation by range. This is attributed to the high preference for class I and II trucks, which mostly have a driving range of 151–250 miles. Moreover, issues such as high battery weight, long charging time, and low battery energy density have restricted the usage of longer-driving-range electric trucks.
In the coming years, the >300 kWh category, on the basis of battery capacity, is projected to experience the highest U.S. electric truck market CAGR, as a number of truck manufacturers in the country are now focusing on heavy-duty trucks (HDT) with a higher battery capacity, for logistics applications.
During the historical period (2014–2019), logistics was the highest-revenue-generating classification in the U.S. electric truck market, based on application. This is because of the growth in the logistics footprint and rapid expansion in the manufacturing, e-commerce, and retail sectors in the nation.
|Segments covered||Vehicle Type, Propulsion, Range, Battery Capacity, Application|
|Companies covered||Chanje Energy Inc., Orange EV, Mitsubishi Fuso Truck & Bus Corp., Nikola Motor Co., Tesla Inc., Ford Motor Co., General Motors Co., Workhorse Group Inc., BYD Co. Ltd., Fiat Chrysler Automobiles N.V.|
Deployment of Electric Trucks in Logistics Operations is Trending in Market
The key trend being witnessed in the U.S. electric truck market is the rapid deployment of these automobiles by logistics firms. The growth of the logistics sector is itself a result of the expansion of the e-commerce industry, which grew by 14.9% from 2018, to register sales worth $601.8 billion in 2019. With the increasing demand for faster and more-convenient deliveries at e-commerce customers’ doorstep, the requirement for logistics services will rise too. To make their operations more optimized, several logistics companies are electrifying their fleet. For instance, Amazon.com, one of the largest e-commerce firms, announced in September 2019 that it given an order of 100,000 electric trucks to Rivian Automotive Inc., all of which would be delivered by 2030.
Supportive Government Policies are Major Driver for Market
Among the most important growth drivers for the U.S. electric truck market is the support being offered by the government at the state as well as federal level. The governments here have already set stringent targets for the reduction of carbon dioxide and nitrogen oxide emissions from vehicles. Since the U.S.’s withdrawal from the Paris Agreement, 23 states and the District of Columbia are targeting a 26−28% reduction in vehicular emissions from the levels recorded in 2005, by 2025. Further, in California, which is the largest market for electric trucks in the nation, funds and vouchers are provided for the purchase of these vehicles. Till 2020, up to $20 million are to be provided for the purpose in California.
Increasing Demand for Long-Range Trucks is Key Opportunity Area
Lucrative growth opportunities are being created for the U.S. electric truck market due to the increasing demand for vehicles with a long driving range. As driving range is one of the first things customers look for before buying a truck, manufacturers are stepping up efforts to increase it. With the rising demand for long-range pickup trucks, manufacturers can look at it as an opportunity area. For instance, Atlis Motor Vehicles Inc. is expected to offer its Atlis XT electric pickup truck in three driving ranges: 480 km (300 miles), 640 km (400 miles), and 800 km (500 miles). These trucks are expected to have fast-charging lithium–nickel–manganese–cobalt oxide (Li-NMC) batteries.
Partnerships are Most Important Strategic Measures in Market
To give themselves the best chance of growth, companies in the U.S. electric truck market are entering into partnerships. For instance, in February 2020, Chanje Energy Inc. and Broadband TelCom Power Inc., which is a California-based manufacturer of electric vehicle charging systems, entered into a partnership to come up with a fast-charging system for electric trucks. With this partnership, Chanje Energy aims to easily transition to electric mobility.
On similar lines, in November 2019, Ford Motor Company and United Auto Workers signed a four-year agreement, under which the latter firm will provide over $6 billion for Ford’s Michigan plant, to enable the electrification of Ford T-150 pickup trucks. In return, Ford will supply hybrid and electric variants of the T-150 to United Auto Workers.
The major players in the U.S. electric truck market are Chanje Energy Inc., Workhorse Group Inc., Mitsubishi Fuso Truck and Bus Corp., BYD Co. Ltd., Orange EV, Tesla Inc., Nikola Motor Co., Fiat Chrysler Automobiles N.V., Ford Motor Co., Rivian Automotive Inc., BOLLINGER MOTORS LLC, Hino Motors Ltd., Daimler AG, Volvo AB, Dongfeng Motor Corp., Iveco S.p.A., ISUZU MOTORS LIMITED, Cummins Inc., Tevva Motors Ltd., Xos Trucks Inc., Toyota Motor Corp., Emoss BV, E-Force One AG, General Motors Co., Lordstown Motors Corp., Hercules Electric Vehicles, Atlis Motor Vehicles Inc., DAF Trucks N.V., Avevai Pte. Ltd., Croyance Automotive Pvt. Ltd., Canadian Electric Vehicles Ltd., Motiv Power Systems Inc., MAN Truck & Bus SE, Arrival Ltd., Balqon Corp., Boulder Electric Vehicle, Alkane Truck Co., Ev Fleet Inc., Stichting Hytruck, Foton Motor Group, and Kaiyun Motors Co. Ltd.
Market Size Breakdown by Segment
The U.S. electric truck market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Vehicle Type
Based on Propulsion
Based on Range
Based on Battery Capacity
Based on Application