The electric truck market was valued at USD 19.80 billion in 2020, and it is expected to register a CAGR of 14.3 % 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.
Key Market Trends
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.
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1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Electric Propulsion Type
5.1.1 Plug-in Hybrid
5.1.2 Fuel Cell Electric
5.1.3 Battery Electric
5.2.5 Other Applications
5.3 Truck Type
5.3.1 Light-duty Truck
5.3.2 Medium-duty Truck
5.3.3 Heavy-duty Truck
5.4.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.4.4 Rest of the World
184.108.40.206 South America
220.127.116.11 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Dongfeng Motor Corporation
6.2.2 Hino Motors
6.2.3 Daimler (Mitsubishi Fuso)
6.2.4 PACCAR Inc.
6.2.5 Isuzu Motors Ltd
6.2.6 Navistar International Corporation
6.2.7 Renault Trucks
6.2.8 BYD Auto Co. Ltd
6.2.9 Scania AB
6.2.10 IVECO SpA
6.2.11 Alke SRL
6.2.12 Tesla Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.