The global electric truck market is estimated to be valued at US$ 2.73 billion in 2022 and is expected to exhibit a CAGR of 18.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Electric trucks are vehicles that run on electricity, eliminating the need for fossil fuels and reducing greenhouse gas emissions. These trucks offer numerous advantages such as lower operating costs, reduced maintenance needs, and environmental sustainability. The increasing emphasis on sustainability and the need to reduce carbon footprint is driving the demand for electric trucks in various industries, including logistics, construction, and waste management.
Market Key Trends:
One key trend in the electric truck market is the development of advanced battery technologies. As battery technology improves, electric trucks are becoming increasingly efficient with longer driving ranges and faster charging times. This trend is crucial in addressing the range anxiety associated with electric vehicles and is expected to drive the adoption of electric trucks in the coming years. Companies are investing in research and development to enhance battery performance, making electric trucks a viable and practical option for commercial use.
Overall, the electric truck market is witnessing significant growth driven by the increasing demand for sustainable transportation solutions. The development of advanced battery technologies is expected to further propel market growth in the forecast period.
Threat of New Entrants:
The electric truck market is expected to face a moderate threat of new entrants. While the market has been growing rapidly, the capital-intensive nature of the industry and the high barriers to entry, such as the need for advanced technology and infrastructure, limit the entry of new players.
Bargaining Power of Buyers:
Buyers in the electric truck market have a moderate bargaining power. While the demand for electric trucks is increasing, buyers still have several options to choose from, making the market fairly competitive. However, as the market continues to grow and more players enter, buyers may gain more bargaining power in terms of price and product features.
Bargaining Power of Suppliers:
Suppliers in the electric truck market have a moderate bargaining power. The market is still dominated by a few key players, and suppliers of key components, such as batteries and electric drivetrains, hold some power. However, as the market grows and demand increases, the bargaining power of suppliers may decrease as more suppliers enter the market.
Threat of New Substitutes:
The threat of new substitutes in the electric truck market is relatively low. The growing focus on sustainability and the need to reduce carbon emissions has led to a shift towards electric vehicles, and there are limited substitutes available that can offer similar environmental benefits.
The competitive rivalry in the electric truck market is high. The market is witnessing the entry of established automotive companies as well as startups, leading to intense competition. Key players are continuously innovating and launching new electric truck models to gain a competitive edge. The market is expected to witness further competition in the future.
The global electric truck market is expected to witness high growth, exhibiting a CAGR of 18.1% over the forecast period. This growth can be attributed to increasing government regulations and initiatives promoting the adoption of electric vehicles, rising fuel costs, and the growing demand for eco-friendly transportation solutions.
In terms of regional analysis, North America is expected to be the fastest growing and dominating region in the electric truck market. This can be attributed to the presence of major players in the region, government incentives and subsidies for electric vehicles, and the increasing demand for sustainable transport solutions.
Key players operating in the electric truck market include AB Volvo, Workhorse, BYD Company Ltd., Tesla, Daimler AG, Scania AB, Tata Motors, Rivian, Dongfeng Motor Group Co., Ltd., and Man SE. These players are investing in research and development activities, forming strategic partnerships, and expanding their product offerings to gain a competitive advantage in the market.
Overall, the electric truck market is poised for significant growth, driven by factors such as increasing government support, rising environmental concerns, and the need for sustainable transportation solutions. The market is expected to witness intense competition, and key players will need to focus on innovation and differentiation to stay ahead in the evolving market landscape.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it