Electric Truck Market set for major growth

In News3 MinutesBy NZ Trucking magazineSeptember 22, 2023

The electric truck market is set to achieve major growth over the few years, a new report from The Business Research Company has revealed.

In 2023, the market size is set to surge to $2.72 billion from $1.85 billion in 2022, reflecting a compound annual growth rate of 47.5%.

Projections indicate that the market will reachf $13.63 billion by 2027, boasting a CAGR of 49.6%.

Several factors are steering this growth, including:

Escalating Fuel Prices: Increasing fuel costs are driving the transition towards electric trucks, offering a cost-effective and eco-friendly alternative.

Government Support: Rising government initiatives and support for electric vehicles are accelerating market expansion.

Charging Infrastructure: The growing charging infrastructure network is boosting confidence in electric truck adoption.

Augmented Reality Revolutionises Electric Trucks

According to the report, the use of augmented reality is gaining significant traction in the electric truck market, offering innovative solutions for manufacturers and drivers alike. Electric truck manufacturers are leveraging AR technology to enhance customer services and strengthen their market position.AR-powered heads-up displays provide drivers with vital information like battery status, route navigation, and charging station locations, all without diverting their attention from the road.

For instance, in May 2023, Volvo Group introduced an electric truck safety app with AR technology called the Emergency Response Guide app. This app offers real-time guidance from the electric truck to the emergency services team arriving at the scene, ensuring safe rescue conditions and minimising risks.

Market Landscape

The global electric truck market is characterised by fragmentation, with a handful of prominent players dominating the scene. The top ten competitors accounted for 62.12% of the total market in 2022, reflecting high entry barriers due to the substantial costs associated with research and development.

BYD Company Ltd. emerged as the largest competitor with a 15.58% electric truck market share, followed by AB Volvo, Volkswagen AG, and others.

Regional Dynamics

Asia Pacific led the electric truck market in 2022, commanding 87.0% of the total market, followed by North America and other regions. The fastest-growing regions are expected to be Africa and the Middle East, with impressive CAGRs of 68% and 64.3%, respectively.

Market Segmentation

The electric truck market is segmented by vehicle type (light-duty, medium-duty, heavy-duty), propulsion (battery electric, hybrid electric, plug-in hybrid electric, fuel cell electric), range (up to 240km, 241-480km, above 480km), and end user (last-mile delivery, long haul transportation, refuse services, field services, distribution services).

In the vehicle type segmentation, the light-duty electric trucks segment is expected to witness significant growth, gaining $4,899.51 million in global annual sales by 2027.