by Market Overview:
The electric truck market involves electrically-powered trucks which are integrated with electric drivetrains and batteries instead of conventional internal combustion engines. Electric trucks provide zero tailpipe emissions and higher fuel efficiency than diesel or gasoline trucks. They help reduce operating costs and are more environment-friendly.
Market key trends:
One of the key trends driving the electric truck market growth is the stringent emission regulations imposed by governments worldwide on commercial vehicles. Governments are promoting adoption of electric vehicles through tax credits and other incentives in order to curb air pollution and reduce dependence on fossil fuels. For instance in the U.S. the Infrastructure Investment and Jobs Act provides USD 7.5 billion funding to build out the electric vehicle charging infrastructure across the country. Growing concerns regarding environmental pollution coupled with rising fuel costs are also fueling the demand for electric trucks.
Porter’s Analysis
Threat of new entrants: The threat of Global Electric Truck Market Share is low as electric trucks market is still developing and requires huge investments in R&D manufacturing facilities marketing and brand building by new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are few manufacturers for electric trucks currently however numbers will increase in coming years providing more choices to buyers.
Bargaining power of suppliers: The bargaining power of suppliers like battery and component manufacturers is high as manufacturing electric trucks at scale requires developing strong supply chain partnerships.
Threat of new substitutes: The threat of new substitutes is moderate as fossil fuel based trucks are still dominant but pressures to reduce emissions are pushing adoption of electric trucks.
Competitive rivalry: Intense as major automakers are investing heavily in electrifying their trucking divisions.
SWOT Analysis
Strength: Growing concerns over carbon emissions and local pollution are driving demand for green vehicles. Government supports in form of incentives and subsidies are encouraging electric truck adoption.
Weakness: High upfront costs of electric trucks compared to diesel/petrol variants. Limited driving range per charge constraints widespread commercial use. Lack of supporting charging infrastructure in many regions.
Opportunity: As batteries prices decline and technology progresses driving ranges will increase expanding total addressable market. Rising freight volumes will spur demand from logistics operators.
Threats: Prolonged low gasoline/diesel prices can dampen switch to electric. Delay in setting performance standards risks losing early mover advantage to Asian manufacturers.
Key Takeaways
The global electric truck market is expected to witness high growth exhibiting CAGR of 18.% over the forecast period due to increasing environmental pressures on commercial vehicles sector to lower emissions. Major automakers and new startups are developing electric trucks suitable for heavy-duty long haul applications as well as last-mile delivery vans accelerating the energy transition.
North America currently dominates the electric truck market owing to supportive federal and state policies incentivizing commercial fleet electrification especially in the US. China is also expected to spearhead adoption in Asia Pacific as the government aims to have new energy trucks accounting for 30% of all new commercial vehicle sales by 2025.
Key players operating in the electric truck market are AB Volvo Workhorse BYD Company Ltd. Tesla Daimler AG Scania AB Tata Motors Rivian Dongfeng Motor Group Co. Ltd. Man SE. These companies are investing heavily in developing diverse electric truck models across payload and application segments as well as setting up manufacturing facilities. Partnerships across the ecosystem will be crucial to leverage individual strengths and ramp up production numbers.
Note:
- Source: Coherent Market Insights Public sources Desk research
2. We have leveraged AI tools to mine information and compile it
