Electric Truck Market is estimated to Witness High Growth Owing to Technological Advancements in Battery Technology
The electric truck market comprises light electric trucks, medium-duty electric trucks, and heavy-duty electric trucks. Electric trucks offer several advantages over conventional diesel trucks such as lower operating cost, reduced emissions, and lesser dependency on fluctuating fuel prices. The demand for electric trucks is increasing globally owing to stringent emission norms and the need for sustainable transportation and logistics solutions.
The Global electric truck market is estimated to be valued at US$ 3.68 Bn in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the electric truck market are Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd., Orora Packaging Australia Pty Ltd, and Nippon Paper Industries Co., Ltd. Key players are focusing on developing advanced batteries with higher range to accelerate the adoption of electric trucks. Some of the major players have partnered with technology companies and startups to develop suitable battery packs and charging infrastructure for commercial vehicles.
The growing investments in developing charging infrastructure especially for medium and heavy-duty vehicles present significant growth opportunities. Government initiatives in the form of subsidies and incentives for adoption of electric vehicles for commercial uses are further expected to drive the demand.
Technological advancements in battery technology has increased the driving range of electric trucks significantly. Major battery manufacturers are developing battery packs based on lithium titanate, solid-state, and lithium iron phosphate technologies which provide improved life cycle and higher energy density.
Market Drivers
Stringent emission regulations regarding particulate matter and NOx emissions from combustion engines is a major factor driving the growth of electric trucks. Countries and regions like China, European Union, and California have imposed stringent emission standards which are encouraging fleet operators to switch to zero-emission electric trucks. Growing concerns regarding environmental pollution and dependence on fossil fuels are further accelerating the transition towards sustainable electric commercial vehicles.
Current Challenges in Electric Truck Market
The Global Electric Truck Market Size is still at a nascent stage with various technological and infrastructure challenges. The high upfront costs of electric trucks is a major roadblock as the battery and powertrain costs are significantly higher than conventional diesel trucks. The driving range per charge for electric trucks is still low compared to diesel trucks which limits their route flexibility. There is a major requirement to establish adequate public charging infrastructure for electric trucks to gain widespread adoption. Electric trucks have higher maintenance costs associated with battery replacement and repairs. The lack of standardization in electric truck technologies and specifications poses integration challenges.
SWOT Analysis
Strengths: Electric trucks provide lower operating costs in the long run due to savings on fuel. They are more environmentally sustainable and help reduce carbon emissions. Electric powertrains are simpler with fewer moving parts resulting in higher reliability.
Weaknesses: High upfront purchase costs of electric trucks remain a major barrier. The driving range per charge is still limited requiring frequent charging stops. Lack of standardization poses integration challenges in the market.
Opportunities: Growing global emphasis on emission reductions and sustainability offers a conducive environment. Steady decline in battery prices is enhancing the commercial viability of electric trucks. Increasing production volumes provide economies of scale benefits.
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