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 (NOx) 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.
