Electric Trucks Market Research Report and Outlook by 2028

The market for electric trucks is projected to expand significantly, increasing from US$ 4,592.55 million in 2021 to US$ 26,542.90 million by 2028, reflecting a compound annual growth rate (CAGR) of 29.4% from 2022 to 2028.

In North America and Europe, the electric trucks market is witnessing substantial growth driven by ongoing innovations in battery technology and a rising focus on sustainable transportation solutions. The momentum in sales of heavy battery-electric trucks is indicative of a broader shift within the global trucking sector towards environmentally friendly practices, with Europe leading this transformation. The increasing presence of heavy all-electric vehicles in commercial fleets across Europe underscores the region's dedication to sustainable transport.

China is the dominant player in the electric trucks market within the Asia-Pacific (APAC) region. Other nations in this area are also encouraging the adoption of electric technologies, spurred by stringent pollution control regulations. Countries like South Korea and Japan are expected to make significant investments in electric vehicle infrastructure, including the establishment of charging stations. During the forecast period, the Asia-Pacific region is anticipated to achieve the highest CAGR in the electric trucks market.

In Europe, the share of commercial vehicles utilizing electric propulsion was recorded at 2.0% in 2020, which is lower than the 5.9% share of electric passenger cars. Despite European manufacturers focusing on the development of electrified commercial vehicles, the subsidies available have predominantly favored passenger vehicles.

Several nations in South America are emerging as leaders in the electric truck market. Chile, through public-private partnerships, is projected to become a highly competitive and appealing market for hybrid and electric vehicles from 2020 to 2025. Brazil is also developing its market, creating favorable conditions for the advancement of flex-hybrid technology and similar innovations. In terms of market volume, Mexico and Brazil are expected to be the largest electric vehicle markets, while Colombia and Chile are predicted to be the fastest-growing markets in South America. Additionally, Uruguay and Ecuador have implemented incentives and financial programs to encourage the adoption of electric buses in local fleets, leading to notable penetration rates of hybrid technology.

Key players in the electric trucks market include Daimler AG, AB Volvo, Tesla, BYD Company Ltd, Navistar Inc, FAW Group Co. Ltd, PACCAR Inc, Rivian, Scania, and Proterra Inc.

In North America, existing regulations and policies are propelling the production and sales of electric trucks. A notable example is the collaboration between the South Coast Air Quality Management District (South Coast AQMD), the California Air Resources Board (CARB), and the California Energy Commission (CEC) to deploy 100 battery-electric regional haul and drayage trucks throughout California, supported by NFI Industries (NFI) and Schneider under the Joint Electric Truck Scaling Initiative (JETSI). This initiative aims to enhance the availability of zero-emission heavy-duty trucks for freight transport and represents the largest initiative of its kind in North America to date. The U.S. Federal Government has set an ambitious target for 2030, aiming for half of all new passenger cars and light trucks sold in the country to be Zero Emission Vehicles (ZEVs), which includes battery-electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel-cell electric vehicles (FCEVs).

Prior to the COVID-19 pandemic, the electric trucks market was on a robust growth trajectory, fueled by increasing urban populations. However, the pandemic led to a decline in demand for electric trucks, causing disruptions in the supply chain for materials and components, production timelines, and sales dynamics, which in turn accelerated the shift towards online sales. The lockdown measures implemented to curb the spread of COVID-19 significantly impacted automotive manufacturing during the first half of 2020. As one of the largest producers of automotive parts, China's domestic production of conventional vehicle components rebounded quickly after the lockdown was lifted. However, the production of specialized EV components, such as power batteries, faced delays due to supply chain challenges related to upstream raw materials and reduced demand in downstream markets.

The assessment of the electric trucks market size was conducted using both primary and secondary research methods. Secondary research involved collecting qualitative and quantitative data from various internal and external sources, providing a comprehensive overview and forecast of the market across all segments. Additionally, primary interviews were held with industry experts, including vice presidents, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the electric trucks sector. These interviews aimed to validate the data and gather analytical insights on the market.