by
Electric trucks utilize electric motors and rechargeable battery packs instead of conventional internal combustion engines, thus offering zero tailpipe emissions. They are increasingly being adopted for freight transportation and cargo delivery by major logistics companies due to stringent emission regulations.
The global Electric Truck Market is estimated to be valued at US$ 3.68 Mn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing demand for zero emission vehicles is one of the major trends driving the growth of the electric truck market. Several governments globally have implemented stringent emission regulations to curb air pollution and reduce carbon footprint from freight transportation. Major countries and regions like Europe, China and California have proposed bans on combustion engine vehicles by 2040. This is encouraging major fleet operators and logistics companies to adopt electric trucks. Many electric truck manufacturers are also expanding their production capacities to cater to the growing demand. For instance, in 2023, Rivian plans to significantly ramp up the production of its electric delivery vans for Amazon. The growing investments in electric vehicle infrastructure will further support the adoption of electric trucks in the coming years.
SWOT Analysis
Strength: Electric trucks have lower operating and fuel costs compared to diesel trucks. They also produce zero direct emissions and are more environmentally friendly than diesel trucks.
Weakness: The high upfront cost of electric trucks compared to diesel trucks is a major barrier for adoption. Range limitations and lack of charging infrastructure are also concerns.
Opportunity: Strong government support through subsidies and tax incentives in many countries is driving electric truck adoption. Major logistics and transportation companies are committing to electrify their fleets to reduce emissions.
Threats: Reliance on raw materials for batteries could pose geopolitical threats in the long run. Potential increase in cost of battery cells is also a threat if recyclability does not improve.
Key Takeaways
Global Electric Truck Market Size is expected to witness high growth over the forecast period of 2024 to 2031.The market size for electric trucks is anticipated to reach US$ 3.68 Mn by 2024.
Regional analysis- Europe dominates the global electric truck market currently due to strong government support and initiatives for electrification of transportation in countries like Germany, France and Norway. Many European logistics companies are targetting complete electrification of short-haul truck fleets by 2030. Asia Pacific is expected to witness the fastest growth in demand for electric trucks led by China. Chinese companies are major manufacturers of electric trucks and the government offers attractive FCEV subsidies.
Key players operating in the electric truck market are Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd., Orora Packaging Australia Pty Ltd, and Nippon Paper Industries Co., Ltd. Major logistics players are partnering with or investing in electric truck manufacturers for product development and fleet deployment.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
