Market Research Report
Electric Truck Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Electric Truck Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: April 21, 2021
Mordor Intelligence Pvt Ltd
Content info: 110 Pages
Delivery time: 2-3 business days
The electric truck market was valued at around USD 20 billion in 2020, and it is expected to reach USD 44 billion by 2026, and is anticipated to register a CAGR of 14.30 % during the forecast period (2021 - 2026).
The market has been impacted by the outbreak of pandemic COVID-19, as the major economies of the went under lockdown and demand for commercial vehicles fell down drastically as only essencial 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 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.
The electric truck market is dominated by major players, such as Tesla Inc., Renault Trucks, Dongfeng Motor Corporation, Hino Motors, Daimler (Mitsubishi Fuso), and Isuzu. In June 2018, Daimler AG unveiled two fully electric-powered commercial trucks, and this is likely to help the company maintain its competitive position in the market.
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 achieve 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 40% green house 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 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. The Zero Emission Vehicles (ZEV) Program requires OEMs to sell specific numbers of clean and zero emission vehicles (electric, hybrid, and fuel cell powered commercial and passenger vehicles). The ZEV plan aims at putting 12 million ZEVs on road by 2030.
Europe is the Largest Market
Germany represents one of the largest markets for electric trucks, globally. The presence of vehicle manufacturing companies, the stringent emission norms, increasing freight and logistics, and construction activities are driving the demand for electric trucks in the country.
Germany is trying to be in the list of those countries working on "electric highways" to foster eco-friendly trucking. The country has started real-world tests of an eHighway system on a 3.1-mile stretch of the Autobahn between Frankfurt and Darmstadt, with an electric-diesel hybrid truck that receives power from overhead cables to keep it from using its combustion engine.
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 is 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. In fact, 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 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 companies are focusing on making new strategic partnerships, investing in R&D projects, and launching new products in the market, in order to gain competitive advantage. For instance, Ford is investing more than USD 6 billion in US Michigan plant for manufacturing F-150 hybrid truck. The company is expected to introduce both an all-new F-150 and an F-150 hybrid version in 2020.