Battery Segment is the largest segment driving the growth of Electric Truck Market
Market Overview:
Electric trucks operate on battery power and provide various advantages such as zero tailpipe emissions, reduced operating costs, and decreased dependency on fossil fuels. These trucks are suitable for short-haul applications in industries such as food & beverages, mining, construction, and logistics.
Market key trends:
One of the key trends in the electric truck market is increasing adoption in logistics and transportation industry. Large fleet operators are replacing their diesel trucks with electric variants to achieve sustainability targets. Electric trucks allow logistic companies to lower their operational costs through reduced fuel and maintenance expenses. They are also exempt from emissions taxes and tolls in several countries and cities, further enhancing their cost-effectiveness. Moreover, governments across regions are providing purchase subsidies for electric commercial vehicles, which is encouraging more logistic players to go electric.
Market key trends:
The Global Electric Truck Market Share has been witnessing significant growth over the past few years. One of the key trends driving the market growth is the stringent emission norms restricting the use of conventional ICE vehicles. Various governments across the globe are imposing strict regulations to curb vehicular emissions and promote the adoption of clean vehicles. For instance, some countries in Europe have proposed a ban on new ICE commercial vehicles by 2040. This is promoting a shift towards electric trucks which produce zero direct emissions.
SWOT Analysis
Strengths: Electric trucks offer lower operating costs compared to diesel trucks due to cheaper electricity prices versus diesel. They also have less mechanical parts leading to reduced maintenance costs.
Weaknesses: High upfront costs of electric trucks and limited driving range per charge are major challenges. Lack of adequate public charging infrastructure also restricts the adoption of electric trucks.
Opportunities: Favorable government policies in the form of subsidies and tax rebates on electric trucks present lucrative growth opportunities. Growing investments by automakers as well as startups in this space will drive innovative product launches.
Threats: Uncertain availability and pricing volatility of battery raw materials like lithium, cobalt etc. poses a threat. Dependency on global battery supply chains makes the market vulnerable to geopolitical issues.
Key Takeaways
The global electric truck market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing global focus on reducing vehicular emissions.
The North America region currently dominates the electric truck market supported by supportive government policies and initiatives in the US and Canada for clean transportation. The Europe region is expected to witness fastest growth due to stringent emission regulations in the region proposing a ban on new ICE commercial vehicles by 2040 in major countries.
Key players operating in the electric truck market are AB Volvo, Workhorse, BYD Company Ltd., Tesla, Daimler AG, Scania AB, Tata Motors, Rivian, Dongfeng Motor Group Co., Ltd., Man SE. Players are focusing on developing heavy-duty electric trucks with higher range through continuous investments in R&D and product developments.
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