Electric Truck Market to More than Triple by 2023 - Business Data

The main factors driving the growth of the electric truck market are stringent government regulations and incentives aimed at curbing carbon emissions from vehicles. As per P&S Intelligence, the market, by 2025, will register a sale of 1,508.1 thousand units, growing at a CAGR of 18.5% during the forecast period (2018–2025). Electric trucks use an electric battery, either on its own or in combination with an internal combustion engine (ICE), for propulsion, therefore lead to significantly less emissions than ICE trucks.

The electric truck is classified into battery electric vehicle (BEV), fuel-cell electric vehicle (FCEV), hybrid electric vehicle (HEV), and plug-in hybrid electric vehicle (PHEV), based on propulsion. Among these, the BEV classification is predicted to display the highest CAGR during the forecast period, in terms of sales volume and value. The reason for this is that as such trucks do not have an ICE, they produce almost no carbon emission.

Governments across the world have formed stringent regulations to check the emission of carbon dioxide (CO₂) and nitrogen oxides (NO_x) from vehicles. Several cities, including Madrid, Paris, and Mexico City, have already announced bans on the sale and operation of fossil fuel-based vehicles. This is impelling the major truck manufacturers to increase the production of electric trucks as compared to conventional-fuel models. Therefore, with such regulations and bans, the electric truck sector would advance across the world.

  

Coming to the vehicle type, the market is divided into light duty (LDT), medium duty (MDT), and heavy duty (HDT) trucks. Among these, the HDT category is expected to grow the fastest during the forecast period in terms of both sales volume and revenue. The reason for this would be the growing demand for freight transportation in countries including India and China. In developed countries, the major factor for the growth of this type in the electric truck market would be its increasing deployment for long-haul logistics operations.

This is substantiated by the fact that of all the primary applications of electric trucks, including municipal and logistics, the latter category dominated the market during the historical period (2013–2017) in terms of sales volume as well as value and will continue doing so in the forecast period as well. Further, on a global ground, Asia-Pacific dominated the electric truck market in 2017 with more than 85.0% sales volume share, primarily driven by the sale of such trucks in China.

Hence, government regulations and support would be one of the primary reasons for the progress of the market across the world.