ID: MRFR/AM/4800-CR | January 2021 | Region: Global | 154 pages
The global electric truck market was estimated to have reached a electric truck market revenue worth USD 7.9 billion during the historic forecast period in 2019. For the ongoing forecast period of 2021-2028, the powered electric truck market has been projected to reach a final market value worth USD 27.7 billion by the end of the forecast period in 2028. While attaining this exact revenue amount, the global electric truck market is likely to expand at a CAGR of 14.8% during the forecast period. The growth of this market is mainly driven by the large-scale and growing deployment of the urban air mobility truck. Further, the increasing use of electric trucks for cargo applications and different aerial mission-specific activities is helping the electric truck market propel at a remarkable degree amid the global electric truck market functioning in locations.
The sudden and surprising spread and the outbreak of the novel COVID-19 pandemic have taken a toll on the crisp functioning of various industrial sectors, with aviation being one of the worst affected owing to the constant need for the industry and its services. However, the electric truck market did not seem to have been impacted much by the pandemic and the aviation industry as a whole. Militaries widely used electric UAVs for various missions and reasons like border security. In contrast, the global governments and law enforcement agencies used them on an experimental basis.
The electric truck market's civil and commercial applications include transportation methods of medical supplies by prominent companies like Zipline and primarily for processes like aerial photography. Retail and other logistics-concerned companies are increasingly looking forward to using electric UAVs to distribute the essential items due to intermittent lockdowns imposed and the imposition of social distancing norms and protocols worldwide. In the North American region, prominent global companies like Amazon and USP have already scaled their production and enhanced their usage of electric drones for their deliveries. Electric drones are further witnessing an increased application in international markets like Africa. They are being used in the form of the art of EMS services to supply medicines and other amenities and transport organs and blood across cities. These factors have risen and helped the electric truck market to sustain the overall impact of the COVID-19 pandemic on the global economy since its outbreak.
Due to technological advancements and the production of EV batteries on a mass scale, the cost of EV batteries has been decreasing over the past decade. This has led to a decrease in charge of electric trucks as EV batteries are one of the most expensive parts of an electric truck. For Instance, in the previous decade that ended in 2010, the price of an EV battery was around USD 1,100 per kWh.
These batteries' manufacturing costs, reduced cathode material prices, more significant production volumes, etc. The prices of EV batteries are expected to fall to around USD 40-60 per kWh by 2030, which will significantly reduce the cost of EV Trucks, making them priced similar to conventional ICE Trucks, according to a report on Research Gate.
The initial investment for producing electric trucks is much higher than that of petroleum, diesel, or CNG trucks. The price of parts and machinery used for production is also relatively high. This is primarily due to the high cost of electric batteries used in electric trucks. Once the electric truck market’s battery technology improves and prices fall, the price of electric trucks will get lower than trucks using other fuel types. The production of these trucks is less sophisticated than other fuel trucks and thus is highly affected by the prices of EV batteries in the electric truck market.
The electric trucks market will be affected by the recent trend of self-driving trucks. The electric truck market biggies like Tesla, for instance, plan to launch their self-driving electric truck by the end of 2021. Waymo began testing its self-driving trucks in January 2020. TuSimple has plans to operate autonomous routes between Pheonix and Tucson in Arizona and some areas in Texas. Einride had also started its testing for driver-less trucks in May 2019.
The electric radio control truck has been on the verge of witnessing an extraordinary amount of growth and demand owing to the expansion in the product portfolio that has been a result of the rising investment and funding followed by the recent developments that have been undertaken. The electric truck market has been segmented based on the following factors:
By Propulsion Type
By Battery Capacity
By Payload Capacity
By Level of Automation
By Battery Type
The North American region is projected to experience steady growth owing to the high demand for electric trucks for logistics transport fleets. The European region is projected to be the fastest-growing market due to the high adoption rate of electric pick-up trucks in the logistics sector. The rising factors such as the rise in pollution and environmental hazards, stringent government regulations, and stiff competition have compelled automotive OEMs to make fuel-efficient and environment-friendly vehicles. In this pursuit, various market industries like automotive OEMs and component manufacturers are exploring ways to develop and design trucks that can meet fuel efficiency standards and vehicle emissions.
The governments of the European region are providing considerable incentives to promote electric vehicles. As a result, the demand for electric cars has increased tremendously. The area is home to electric truck manufacturers such as Volvo, Daimler, and others. Europe has set a very ambitious goal of reducing 80% CO2 emissions by 2050 and has created a roadmap. The governments of various countries in participating regions like Europe are subsidizing electric infrastructure, and the focus will continue to be on electric vehicles in the long run.
The electric truck market has been segmented to
These functional players have long-term supply contracts with leading automotive manufacturers and autonomous vehicle technology developers. These global companies have adopted the strategies of new product developments, acquisitions, agreements, collaborations, expansions, joint ventures, partnerships, and others like the supply contracts to gain traction in the electric trucks market. Partnership and other global collaborations are the most widely adopted strategies by significant players.
In 2020, Tesla, one of the world’s top and trusted EV manufacturers, had already announced plans to drastically reduce the prices of their EV batteries in the next few years. Other top battery manufacturers like Samsung SDI, followed by others like Panasonic, LG Chem, SK Innovative, CATL, etc., have been working with top EV manufacturers to achieve this goal in the next 4-5 years.
In January 2019, Daimler took to the international scale and had announced an investment of USD 570 million for self-driving electric trucks. As a part of the market, self-driving electric truck technology will increase demand for electric trucks in the long run due to the various advantages like easy use, presence of value-added features, etc. This technology is expected to mature by the upcoming 5-6 years.
In December 2020, Paccar's electric trucks were equipped with 141 kWh and 282 kWh battery packs enabling 100 and a 200-mile range. The global customers will get an option to choose between motors rated at 355 hp and 469 hp.
In March 2021, the Volvo Group acquired 50 percent of the partnership interests in the existing segment of Daimler Truck Fuel Cell GmbH & Co. The market ambition is to make the new joint venture a leading global manufacturer of fuel cells and thus help the world take a significant step towards climate-neutral and sustainable transportation by the end of 2050.
The electric truck market report has been prepared for the interested business chiefs and market investors to make investment decisions and further understand the factors that will either drive the global electric truck market towards growth or hamper the market from growing as per the predictions. The global electric truck market report helps to understand the basis of the electric truck market functioning and segmentation that is helping to meet the rising and vibrant needs of the global target audience.
|Market Size||324,120 million 2030|
|CAGR||73.65% CAGR 2030|
|Forecast Period||2020 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Technology, By Application, By Vehicle type, By Charge Type,|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||AB Volvo, Daimler AG, PACCAR Inc., Volkswagen AG, BYD Company Limited,|
|Key Market Opportunities||Use of renewable sources of energy|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The major market competitors in the electric truck market are PACCAR Inc. (US), Isuzu Motors Ltd (Japan), Navistar, Inc. (US), FAW Group Co., Ltd. (China), and China National Heavy Duty Truck Group Co Ltd., (China).