According to a new report published by Allied Market Research, the global electric truck industry generated $392.3 million in 2020, and is anticipated to generate $3.8 billion by 2030, witnessing a CAGR of 26.4% from 2021 to 2030.
Prime determinants of growth
Increase in government initiatives for the promotion of e-mobility, stringent emission norms imposed on fossil-fuel powered commercial vehicles, and reducing cost of electric vehicle batteries drive the growth of the global electric truck market, the report states. However, lack of charging infrastructure and high cost of electric trucks hinder the market growth. On the other hand, rise in demand for electric trucks from the logistics sector and development of self-driving electric truck technology present new opportunities in the coming years.
The outbreak of the COVID-19 pandemic has had a slight negative impact on the growth of the global electric truck market, owing to the implementation of global lockdown which halted all manufacturing hubs and disrupted the supply chain across the globe, the report states. However, the sales of electric vehicles increased in 2020 and 2021 due to the growing trend of vehicle electrification in the majority of countries.
The hybrid electric truck segment to maintain its leadership status
Based on propulsion, the hybrid electric truck segment held the highest market share in 2020, accounting for nearly half of the global electric truck market, and is estimated to maintain its leadership status throughout the forecast period, the report states. This is attributed to stringent emission regulation standards particularly on commercial vehicles along with the growing demand for low or zero-emission vehicles. Moreover, the fuel cell electric truck segment is projected to manifest the highest CAGR of 29.9% from 2021 to 2030. Refueling advancements are in process which will help to refuel hydrogen fuel cell trucks in less than 5 minutes. This is opportunistic for the market expansion.
The up-to-150 miles segment to maintain its lead position
Based on range, the up-to-150 miles segment accounted for the largest share in 2020, contributing to nearly half of the global electric truck market, and is projected to maintain its lead position during the forecast period, the report states. This is due to the factors like an increase in the adoption of low-range electric trucks by end-users primarily in last mile deliveries and intra-city logistics among others. However, the above-300-miles segment is expected to portray the largest CAGR of 29.6% from 2021 to 2030, owing to factors such as long-range with single charge, lower operation cost among all-electric truck categories along with rise in demand for long-range electric trucks in commercial sectors such as automotive, online retail, and logistics.
Asia-Pacific, followed by Europe & North America, to maintain its dominance by 2030
Based on region, Asia-Pacific, followed by Europe & North America, held the highest market share in terms of revenue 2020, accounting for nearly half of the global electric truck market, the report states. An increase in vehicle production from China as well as increased investments in the India automobile industry is driving growth of the electric truck market in this region. Moreover, the Africa region is expected to witness the fastest CAGR of 37.8% during the forecast period. Increasing awareness regarding use of sustainable transport to reduce the environmental population in countries such as South Africa, Nigeria, and Morocco, which is expected to fuel growth of the electric truck market in Africa.