Market Synopsis:
The global Electric Truck Industry is anticipated to witness considerable growth over the forecast period as per the analysis and study undertaken by Market Research Future (MRFR). The growth of the market is reported to be at a compound annual rate of 15% during the forecast period between 2021 and 2027.
The increasing number of strict policies imposed by the government to control vehicular emissions and the incentive-based policies imposed to increase the purchase of electric trucks in countries like Germany, Japan, the US, and China is a major driving factor for the global market. Furthermore, the increasing per capita disposable income of consumers, continuous increase in transport activities, and the growing prices of fuel is also expected to increase the growth of the global market. Also, the less operating cost linked with electric mobility and the growing efforts put forward by manufacturers in terms of discounts on additional features or packages is also anticipated to massively boost the sales of electric trucks during the forecast period. However, it is also worth noting that the high prices associated with these electric trucks is expected to hamper the growth of the global market over the forecast period.
COVID-19 Pandemic to Impact the Global Market
The COVID-19 pandemics are expected to cause a significant drop in new vehicle sales. The government's actions to combat the virus are expected to limit market expansion. Factory closures, which result in worker expulsions, and the fear of stagnation due to coronavirus are causing a large drop in electric truck sales. Furthermore, government attempts to reduce pollution are projected to drive market growth. The surge in demand for electronic trucks in the commercial and logistics sectors is expected to boost market expansion.
Government Initiatives to Reduce Hazardous Emissions
The ban on diesel vehicles in various locations around the world is expected to increase the demand for electric vehicles. Government initiatives to reduce hazardous emissions by reducing carbon dioxide (CO2) and nitrogen oxides (NOx) in the air are expected to stimulate market growth. So far, big cities such as Mexico City, Paris, and Madrid have announced diesel bans. Around 200 cities in European countries have been designated as low-emission zones, followed by Germany, the United Kingdom, and Italy.
Governments all around the world are placing pressure on vehicle manufacturers to minimize carbon emissions caused by diesel fuel combustion and address greenhouse gas emissions, which is prompting them to invest in creating electric trucks. Governments are offering incentives through initiatives and schemes for the manufacture of battery-electric trucks, which is expected to accelerate the growth of the electric truck market. Furthermore, governments all over the world are providing tax breaks and subsidies to encourage the purchase of electric vehicles. Furthermore, the central governments of a few countries exclude electric vehicles from highway tolls. For example, in order to accelerate the adoption of electric vehicles, the Indian government intends to reduce the Goods and Services Tax (GST) on e-vehicles from 12% to 5%. Furthermore, tax exemptions of up to $2,101.5 will be granted on loans taken out for the purchase of an e-mobility. Furthermore, the South Korean government has stated that it will provide $900 million in tax breaks and subsidies for the development and purchase of electric and fuel cell vehicles. Thus, one of the primary factors driving demand for electric trucks is a growth in government support for the development and purchase of electric mobility in the form of tax credits, subsidies, and incentives.
Use of renewable sources of energy
A vehicle to the grid technology can boost the performance of electric components and boost the value of electric vehicle owners. The electric vehicle charging system utilizes a bidirectional flow of electrical energy between the power grid and plug-in electric vehicles. A vehicle to grid assists in storing unused power in electronic vehicles and releasing it to the grid.
Solar panels can be utilized at charging stations to charge these electric vehicles, and the usage of renewable energy sources to power electronic vehicles is a huge key opportunity for companies in the electric truck market industries. The cost of installing solar panels is lower, and as a result of the lower cost, the solar-powered station is idle for commercial buildings and households.
lack of suitable charging infrastructure
The lack of suitable charging infrastructure for electric trucks is the primary impediment to the global electric truck market's growth. The government must develop suitable plans and investments for the installation of charging stations in order for the electric truck market to overcome this barrier.
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Regional Analysis
It is reported through the study undertaken by MRFR that the global market of electric trucks is flourishing across various regions, especially in Europe and North America. The Asia Pacific region is expected to experience significant growth and demand over the forecast period due to the presence of China. China is identified as the leader in terms of manufacturing any type of fully or hybrid electric technologies like electric trucks. This is due to the presence of various major manufacturers herein. Furthermore, it is stated that the availability of subsidies and incentives provided through government schemes will further ameliorate the global demand and sales for electric trucks in the Asia Pacific region.
Elsewhere, the European region is estimated to switch towards full or hybrid electric trucks to attain the target set for EU’s 20-20-20 policy. The North American regional market is projected to witness slow paced growth in the coming years compared to other mentioned regions. The sales of full and hybrid type electric vehicles is projected to be less than the ones with natural gas powertrains. This is due to the lack of development of battery charging infrastructure in major countries of this region like the US and Canada.
Both North America and Europe combined with China comprise more than 70% of the global market of electrics trucks. It is reported that the increasing concerns related to environmental pollution through internal combustion engine vehicles will be a major factor in driving the development of the global market.
Market Segmentation
By truck type, the market segments into heavy duty and medium duty.
By charge type, the market breaks down into plug-in hybrid, battery, hydrogen fuel cell, and hybrid.
By application, the market segments into municipal, logistic, and others.
Key Players
Notable players in the global electric truck market include –
- AB Volvo
- Daimler AG
- PACCAR Inc.
- Volkswagen AG
- BYD Company Limited
- Tesla
Industry News
In March 2020, Daimler Trucks will begin the Electric Freightliner Customer Experience Fleet in North America. The fleet includes two medium-duty Freightliner eM2 106 and six heavy-duty Freightliner eCascadia.
Browse Report – https://www.marketresearchfuture.com/reports/electric-truck-market-6261
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