The Global Electric Truck Market- Growth, COVID-19 impact and Forecast (2021-2025)
Global luxury truck market is segmented based on truck type as LDT, MDT and HDT; based on Propulsion type as Plug-In hybrid, Fuel cell electric and Battery electric; based on application as Logistics, Municipal, Construction, Mining and Others; based on geography as APAC, Europe, North America, and ROW.
Introduction
A battery electric truck uses an electric motor to propel the vehicle powered by a high voltage battery. The electric truck market has witnessed a significant growth in the recent years, owing to low operating and maintenance cost of these trucks, governments’ regulations and incentives, and declining battery price.
The major advantage of electric vehicles is their ability to convert energy generated by the braking system into to recharge the battery. Electric trucks are of two types, namely hybrid electric vehicle and pure electric vehicles. Hybrid electric vehicles run on both, fuel and electricity. Pure electric vehicles do not have a fuel tank and run only on electricity.
Globally, Covid-19 has has impacted the electric truck market and the measures such as closing factories, dealerships, offices, resulting dismissal of short time workers, and fear of recession that are politically enforced in order to contain the virus are anticipated to lead to a significant decline in sales of new vehicles.
Table of Contents
Market Overview
The global electric truck market is expected to grow to $38.63 billion by 2025 at a CAGR of 14.3%
Asia-Pacific accounted for the highest share in the global electric truck market in 2020 in terms of revenue.
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).
Key Trends
With the growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws that may increase the manufacturing cost of electric drive trains and fuel-efficient diesel engines in the coming years
Electric trucks can play significant role in curbing pollution, as they are best possible alternative and are designed for diverse applications ranging from garbage trucks and cargo trucks to mining trucks.
Key Market Players
The global electric truck market is dominated by Chinese players. The market is dominated by global vendors like Dongfeng, BYD, Mitsubishi, Voltia, Alke,and Zenith Motors.
Growth Drivers and Challenges
Rise in government initiatives for promotion of e-mobility and stringent emission norms imposed on fossil-fuel powered vehicles drive the growth of the global electric truck market.
Further, the battery manufacturing industry is growing much faster than the battery demand, which has led to economies of scale benefiting the advancement of the industry
The high price & limited capacity of batteries is expected to restrain market growth.
One of the major challenges that should be overcome for the deployment of electric trucks is the inadequate charging infrastructure. For this to happen, proper planning and installation of charging stations for these vehicles need to be done, which would require huge investments.
The players in the country are benefited by the rapid industrialization, urbanization, and economy growth coupled with government support for the adoption of eco-friendly vehicles.
Dongfeng was the leading player in the market, holding xx% share in 2020. The company has a wide range of products. BYD company ltd. is another major player in the market.