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Electric Truck Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 110 Pages
  • June 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4771946
The electric truck market was valued at USD 22.63 billion in 2021, and it is expected to reach USD 57.67 billion by 2027, registering a CAGR of 14.30% during the Forecasts period (2022 - 2027).

The market has been impacted by the outbreak of COVID-19, as the major economies went under lockdown, and demand for commercial vehicles fell drastically as only essential activities were permitted during the lockdown period.

However, it is expected that with the gradual opening up of economies, demand for electric trucks will return to the market as the enactment of stringent emission norms imposed on commercial vehicles, incentives for the adoption of cleaner and zero-emission vehicles, and reduction in the fuel and maintenance costs will drive demand in the market.

Governments across the world are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, in turn, pushing them to invest in developing electric trucks (e-trucks). Meanwhile, low-emission zones are driving fleets to replace diesel trucks with cleaner options.

However, there are certain risks associated with the adoption of e-trucks. New vehicles must prove to be dependable and perhaps require training of customers and dealers to equip them with adequate knowledge regarding their operations. Furthermore, the inadequate charging infrastructure for electric trucks is also expected to hinder the growth of the market.

Europe is expected to hold a significant share in the market, followed by North America and Europe. The growth in these regions is expected to be driven by growth in industrialization and urbanization, with the government's support for the use of eco-friendly vehicles over fuel-based vehicles during the Forecasts period.

Key Market Trends

Stringent Emission Regulations are Fueling the Market Growth

With the growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws that may increase the manufacturing cost of electric drivetrains and fuel-efficient diesel engines in the coming years.
  • In Europe, the European Union (EU) is committed to achieving its 20% greenhouse gas reduction target in 2020 for the second phase of the Kyoto Protocol (base year: 1990). The EU has also set the target to achieve a 40% greenhouse gas reduction by 2040 compared to 1990.
  • By 2050, the EU aims to achieve the target of 0% greenhouse gas emission. The regulation EU 253/2014 sets the target of 147 gm of CO2 emission per kilometer for 2020 and 2021, for light commercial vehicles (LCVs), based on the NEDC (New European Driving Cycle) test procedure. The European Union set a target of a 31% reduction of CO2 emission for LCVs by 2030.
  • In the United States, the EPA and NHTSA have proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) vehicles rule to be implemented from 2021 to 2026. The rule may set the standards for corporate average fuel economy and greenhouse gas emissions for passenger and light trucks.
  • In China, all vehicles sold and registered after July 1, 2020, should comply with the China 6 Emission Standards. Currently, the 6A standards (emission reduction from gasoline engine vehicles) are applied, and 6B limits (revised limits to reduce 50% hydrocarbon and 40% NOx emissions over Euro 6 standards) will be implemented from July 1, 2023. Medium- and heavy-duty vehicles are currently following China V emission standards. The latest version of China VI emissions came out in July 2018, and the implementation phase started on July 1st, 2019. All vehicles must comply with phase “a” from July 2021 and phase “b” from 2022.
All these aforementioned factors and developments are expected to drive demand in the market and likely contribute to faster adoption of e-mobility across the truck segment over the Forecasts period.

Europe Expected to Capture Larger Market Share During the Forecasts Period

The electric truck market is being led by Europe. The region is expected to shift to hybrid or full-electric technologies in an active drive toward the EU’s 20-20-20 target and achieve the COP21 objectives. Moreover, the growing concerns about environmental pollution through internal combustion engine vehicles are also expected to play a crucial role in the growth of the electric truck market.

Germany represents one of the largest markets for electric trucks globally. The presence of vehicle manufacturing companies, stringent emission norms, increasing freight and logistics, and construction activities are driving the demand for electric trucks in the country. In addition, most truck manufacturers in the United Kingdom find hybrid electric trucks as a better option as they use hybrid electric vehicle (HEV) technology as opposed to combustion engines, which are much cleaner.

In addition, the range of purely electric vehicles remains a concern. This is key, as petrol and diesel trucks are highly polluting, and the demand of the industry means that they spend a significant amount of time on the roads. Commercial vehicles and heavy-duty trucks contribute to nearly 20% of greenhouse gas emissions, yet they make up less than 5% of vehicles on the roads. The growing demand for electric trucks and continuous investments drive the growth of the market studied across Europe.

Competitive Landscape

The global electric truck market is mainly dominated by some of the major automotive players, such as Daimler AG, Dongfeng Motor Corporation, BYD Auto Co. Ltd, PACCAR Inc., and Scania, of which Daimler AG and BYD Auto Co. Ltd account for a significant market share across the world.

The key companies are focusing on making new strategic partnerships, investing in R&D projects, and launching new products in the market, in order to gain a competitive advantage. For instance,
  • In March 2020, Hino Motors Ltd and Toyota Motor Corporation agreed to jointly develop a heavy-duty fuel cell truck and proceed with initiatives toward its practical use through verification tests and other means.
  • In February 2020, Scania deployed its first two battery-electric trucks for a pilot program with Norwegian wholesaler, ASKO, in Oslo. These city distribution trucks (27 metric ton GVW) have a basic range of up to 120 km (75 miles), equipped with 165 kWh battery packs.
  • In July 2019, Dongfeng Motor Corporation, in a joint venture with Nissan, launched an electric pick-up truck called “Dongfeng Rich 6 EV”. It is powered by a single electric motor with 160 hp and 420 Nm. The battery is 68 kWh.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Electric Propulsion Type
5.1.1 Plug-in Hybrid
5.1.2 Fuel Cell Electric
5.1.3 Battery Electric
5.2 Application
5.2.1 Logistics
5.2.2 Municipal
5.2.3 Construction
5.2.4 Mining
5.2.5 Other Applications
5.3 Truck Type
5.3.1 Light-duty Truck
5.3.2 Medium-duty Truck
5.3.3 Heavy-duty Truck
5.4 Geography
5.4.1 North America United States Canada Rest of North America
5.4.2 Europe Germany United Kingdom France Spain Russia Rest of Europe
5.4.3 Asia-Pacific China Japan India South Korea Rest of Asia-Pacific
5.4.4 Rest of the World South America Middle-East and Africa
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Dongfeng Motor Corporation
6.2.2 Hino Motors
6.2.3 Daimler (Mitsubishi Fuso)
6.2.4 PACCAR Inc.
6.2.5 Isuzu Motors Ltd
6.2.6 Navistar International Corporation
6.2.7 Renault Trucks
6.2.8 BYD Auto Co. Ltd
6.2.9 Scania AB
6.2.10 IVECO SpA
6.2.11 Alke SRL
6.2.12 Tesla Inc.

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Dongfeng Motor Corporation
  • Hino Motors
  • Daimler (Mitsubishi Fuso)
  • PACCAR Inc.
  • Isuzu Motors Ltd
  • Navistar International Corporation
  • Renault Trucks
  • BYD Auto Co. Ltd
  • Scania AB
  • Alke SRL
  • Tesla Inc.