Electric Truck Market Trends

Global Electric Truck Market Drivers

Environmental Regulations

• One of the primary drivers of the electric truck market is the increasing pressure on companies to reduce their carbon emissions and comply with environmental regulations. Electric trucks produce zero tailpipe emissions, making them an attractive option for companies looking to reduce their carbon footprint.

Growing need for electric trucks in the logistics sector and other sectors

• In the main EV markets throughout the world, there has been an increase in demand for electric trucks in the logistics industry. Due to the substantially lower cost of charging electric vehicles than other fuels, the market for medium- and heavy-duty trucks is anticipated to expand as EV trucks can increase the long-term profitability of this sector. The US Postal Service placed an order for delivery trucks with Workhorse Group (US) in January 2022. By 2030, there will be a 36% rise in delivery vehicles in inner cities, according to the World Economic Forum (WEF). Other businesses include product transportation (the food and beverage industry), e-commerce enterprises (Amazon and Walmart), and logistics will also see an increase in demand for electric vehicles.

Technology advancement for self-driving trucks

• The recent trend of self-driving trucks will have an impact on the market for electric vehicles. AI is used by autonomous trucks to automate everything from long-distance deliveries to activities in the shipping yard. Leading OEMs have been working on the development of self-driving electric trucks for the market, including Tesla, Inc., AB Volvo, and Mercedes Benz Group AG. Startups including TuSimple (US), Embark (US), and Einride (Sweden) have also begun to create self-driving electric trucks. A deal to build self-driving trucks was announced by TuSimple and Navistar Inc. (US) in December 2022. Waymo (US) stated in June 2022 that its fleet of driverless semi-trailers would be used to deliver household products for Wayfair (US).

Global Electric Truck Market Restraints

High Cost

• The upfront cost of electric trucks is currently higher than that of traditional diesel trucks, which is a significant barrier to adoption for many companies. While electric trucks have lower operating costs over the lifetime of the vehicle, the high upfront cost can be prohibitive for some companies.

Extended charging period

• When compared to the filling time for other fuel choices, the EV charging time is significantly longer. Most public charging stations have Level 2 chargers. Vehicles can be charged from 0 to 100% with level 1 and level 2 charging in 8 to 16 hours. An EV can be charged from 0 to 80% with a Level 3 charger in around 60 minutes. Compared to diesel or CNG fueling, which can be completed in under 5 minutes, this is substantially higher. This has been a key factor in the market for electric trucks growing more slowly than expected. Technological advances will shorten charging times in the next few years, but batteries will need to be created for such rapid, high-voltage charging. Government incentives and other factors have accelerated the implementation of public charging stations.