Government support for electric trucks is quite high in the U.S., and the prices of battery packs are also witnessing a slump. Further, these vehicles are cheaper to operate and maintain than conventional diesel trucks. Because of these factors, the U.S. electric truck market is projected to grow to $15,084.3 million by 2030, advancing with a CAGR of 51.6% during 2020–2030 (forecast period).
However, the COVID-19 pandemic is having an adverse impact on the U.S. electric truck market, by restricting its growth significantly. The manufacturing industry around the world is witnessing several challenges, owing to the government mandates for lockdown, smaller workforce, and reduced product demand from consumers. Moreover, the pandemic negatively impacted the supply chain of numerous sectors across the country during the first two quarters of 2020.
Battery Electric Vehicles (BEV) To Be Largest Category in 2030
In 2019, the battery electric vehicle (BEV) category held a significant share in the U.S. electric truck market, owing to the increasing government support, in the form of financial incentives, on their purchase and the constant drop in the cost of the battery. Further, market players are collaborating with battery developers for bringing down the battery costs further and increasing their life and energy density.
The logistics division would witness the highest CAGR in the U.S. electric truck market during the forecast period, owing to the growing retail, e-commerce, and manufacturing sectors, which is resulting in an increasing demand for logistics services throughout the country. In 2019, e-commerce sales in the U.S. were worth $601.8 billion, increasing by 14.9% from the previous year. The demand for electric trucks from the logistics sector is increasing rapidly; in September 2019, Amazon.com ordered 100,000 electric trucks from Rivian Automotive Inc., with all the deliveries planned to be completed by 2030.
Geographically, the U.S. electric truck market is dominated by California, with the supportive measures taken by the state government being a major factor for the growth of the market in this state. For instance, in June 2020, the California Air Resources Board (CARB) passed the Advanced Clean Truck initiative, under which the state targets to convert all new trucks sold by 2045 into electric variants.
Partnerships and Collaborations Characterize Market Competitive Landscape
U.S. electric truck market players are entering into partnerships and collaborations to expand their market share. For instance, in August 2020, Orange EV entered into a partnership with Firefly Transportation Services LLC, in order to offer its new pure-electric, tandem-axle yard truck, for enabling zero-emission goods movement across the roads, on a full load.
Similarly, in February 2020, Chanje Energy Inc. partnered with FedEx Corp. for the development of charging infrastructure at 42 FedEx Corp. stations in California. FedEx Corp. had earlier announced that it would add 1,000 of Chanje Energy Inc.’s V8100 electric delivery vehicles to its fleet. The agreement to develop the charging infrastructure is expected to further support the rollout of Chanje’s commercial electric vehicles.
Some of the major players operating in the 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., and BYD Co. Ltd.