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U.S. Electric Truck Market Research Report: By Vehicle Type (Light-Duty Truck, Medium-Duty Truck, Heavy-Duty Truck), Propulsion (Battery Electric Vehicle, Hybrid Electric Vehicle, Plug-In Hybrid Electric Vehicle, Fuel Cell Electric Vehicle), Range (0–150 Miles, 151–250 Miles, 251–500 Miles, >500 Miles), Battery Capacity (<100 kWh, 100–200 kWh, 201–300 kWh, >300 kWh), Application (Logistics, Municipal) - Industry Analysis and Growth Forecast to 2030

  • Published: September 2020
  • Report Code: AT11970
  • Available Format: PDF
  • Pages: 177

U.S. Electric Truck Market Overview

Valued at $211.5 million in 2019, the U.S. electric truck market is expected to witness a CAGR of 51.6% during the forecast period (2020–2030). The key factors driving the growth of the market are the declining prices of the battery, low operational and maintenance costs of these vehicles, and supportive government initiatives.

Due to the COVID-19 pandemic, the government of the country is taking measures, such as the implementation of new economic plans, to ensure that its economy is stable. The country is currently focused on the economic and health threats due to COVID-19. In such a scenario, the U.S. electric truck market has certainly been adversely impacted.

U.S. Electric Truck Market

Light-Duty Trucks (LDTs) To Dominate Market in 2030

LDTs 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 owners who are looking to reduce their operational expenditure.

Battery Electric Vehicles (BEV) To Advance with Significant Rate during Forecast Period

During the forecast period, BEVs, 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 energy density of batteries.

0–150-Mile Range Dominated Market in Historical Period (2014–2019)

The 0–150 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 0–150 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.

>300-kWh Battery Capacity Category To Witness Fastest Growth in Forecast Period

In the coming years, the >300 kilowatt-hours (kWh) category, on the basis of battery capacity, is projected to experience the highest 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.

Logistics Application Projected To Retain Its Market Dominance during Forecast Period

During the historical period, logistics was the highest-revenue-generating classification in the U.S. electric truck market, based on application. The category is expected to remain the largest market in the forecast period, because of the growth in the logistics footprint and rapid expansion in the manufacturing, e-commerce, and retail sectors in the nation.

California – Highest Revenue Contributor in Industry

California is projected to remain the largest electric truck market in the U.S. till 2030. Moreover, the state is also expected to exhibit significant growth in the market during the forecast period. The dominance of the state on the U.S. electric truck market is attributed to the immense support of the government, in the form of policy formulation and incentive plans that encourage the adoption of these vehicles in the state.

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 has given an order of 100,000 electric trucks to Rivian Automotive Inc., all of which would be delivered by 2030.

U.S. Electric Truck Market

Supportive Government Initiatives

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 nitrous oxide emissions from vehicles. Since the U.S.’s withdrawal from the Paris Agreement, 23 states and the District of Columbia have been 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 being provided for the purchase of these vehicles. Till 2020, up to $20 million are to be provided for the purpose in California.

Low Operating and Maintenance Cost

Electric trucks have less operating and maintenance costs, as compared to conventional fuel-based trucks, which acts as a major driver for the U.S. electric truck market. Unlike conventional diesel trucks, electric trucks do not require the replacement of oils, spark plugs, fuel filters, and other components, thus resulting General Motors Co in substantial savings in the overall component cost. With electric trucks requiring less maintenance than their conventional counterparts, the vehicle uptime for the former increases significantly, which benefits electric truck fleet owners. Like other electric vehicles, electric trucks also employ regenerative braking systems, which help in achieving significant reductions in the wear and tear of brakes. Fuel cost, coupled with the repair and maintenance cost, constitutes around 35% of the total operating cost, in case of a diesel truck. This cost can be significantly reduced by replacing the diesel truck with an electric variant.

Declining Cost of Battery

In an electric truck, the battery pack is one of the primary components, thus accounts for a significant share of the overall drivetrain cost, and, as such, considerably influences the selling price of the truck. The battery packs in all electric vehicles include electrochemical cells within a casing, which are integrated with battery management systems. The price of the battery pack is mainly governed by the battery chemistry used in the electrochemical cells, as the battery chemistry determines a range of performance parameters, such as the energy-to-weight ratio, battery lifetime, and charging time. The batteries used in electric trucks are quite similar to the ones used in electric passenger cars, with the number of cells being greater in the former. Technological advancements achieved in batteries over the past decade have helped bring down the price of the battery pack. The decline in the cost of the battery is expected to reduce the selling price of electric trucks, which, in turn, will drive the growth of the U.S. electric truck market.

U.S. Electric Truck Market Report Coverage
Report Attribute Details
Historical Years 2014-2019
Forecast Years 2020-2030
Base Year (2019) Market Size $211.5 Million
Forecast Period (2020-2030) CAGR 51.6%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Impact of COVID-19, Companies’ Strategic Developments, Product Benchmarking, Company Profiling
Market Size by Segments By Vehicle Type, By Propulsion, By Range, By Battery Capacity, By Application, By State
Market Size of Geographies California, New York, Florida, Washington, Texas, New Jersey, Rest of U.S.
Secondary Sources and References (Partial List) Alliance of Automobile Manufacturers, Alternative and Renewable Fuel and Vehicle Technology Program (ARFVTP), Alternative Fuels Data Center (AFDC), American Association of Motor Vehicle Administrators (AAMVA), American Automobile Association‎ (AAA), American Trucking Association (ATA), Association of Licensed Automobile Manufacturers

Partnerships Are Most Important Strategic Measures in Market

The U.S. electric truck market is consolidated in nature, with the presence of players such as Chanje Energy Inc., Workhorse Group Inc., Mitsubishi Fuso Truck and Bus Corp., BYD Co. Ltd.

Moreover, to give themselves the best chance of growth, companies in the U.S. electric truck industry 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.
  • 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.

Some of Key Players in U.S. Electric Truck Market Are:

  • Chanje Energy Inc.
  • Orange EV
  • Mitsubishi Fuso Truck and Bus Corp.
  • Nikola Motor Co.
  • Tesla Inc.
  • Ford Motor Co.
  • General Motors Co.
  • Workhorse Group Inc.
  • Fiat Chrysler Automobiles N.V.
  • BYD Co. Ltd.

U.S. Electric Truck Market Size Breakdown by Segment

The research offers market size of the U.S. electric truck for the period 2014–2030.

Based on Vehicle Type

  • Light-Duty Truck (LDT)
  • Medium-Duty Truck (MDT)
  • Heavy-Duty Truck (HDT)

Based on Propulsion

  • Battery Electric Vehicle (BEV)
  • Hybrid Electric Vehicle (HEV)
  • Plug-In Hybrid Electric Vehicle (PHEV)
  • Fuel Cell Electric Vehicle (FCEV)

Based on Range

  • 0–150 Miles
  • 151–250 Miles
  • 251–500 Miles
  • >500 Miles

Based on Battery Capacity

  • <100 kWh
  • 100–200 kWh
  • 201–300 kWh
  • >300 kWh

Based on Application

  • Logistics
  • Municipal
  • Others

Geographic Analysis

  • California
  • New York
  • Florida
  • Washington
  • Texas
  • New Jersey
  • Rest of U.S.
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