Electric Truck Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Electric Truck Market has been segmented by Electric Propulsion type (Plug-in Hybrid, Fuel Cell Electric, and Battery Electric), Application (Logistics, Municipal, Construction, Mining, and Other Applications), Truck Type (Light-duty Truck, Medium-duty Truck, and Heavy-duty Truck), and Geography (North America, Europe, Asia-Pacific, and Rest of the world). The report offers market size and forecast for the electric truck market on the basis of value (USD billion) for all the above segments.

Market Snapshot

electric truck market
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Europe
Largest Market: Europe
CAGR: 14.3 %
electric trucks market

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Market Overview

The electric truck market was valued at USD 22.63 billion in 2021, and it is expected to reach USD 57.67 billion by 2027, registering a CAGR of 14.30% during the forecast period (2022 - 2027).

The market has been impacted by the outbreak of COVID-19, as the major economies went under lockdown, and demand for commercial vehicles fell drastically as only essential 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 the 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.

Europe is expected to hold a significant share in the market, followed by North America and Europe. The growth in these regions is expected to be driven by growth in industrialization and urbanization, with the government's support for the use of eco-friendly vehicles over fuel-based vehicles during the forecast period.

Scope of the Report

The electric truck market covers the latest trends and technological developments in the electric truck market during the forecast period. The electric truck market report covers segmentation based on electric propulsion type, application type, truck type, and geography.

By propulsion type, the market is segmented into plug-in hybrid, fuel cell electric, and battery electric. By application, the market is segmented into logistics, municipal, construction, mining, and other applications.

By truck type, the market is segmented into light-duty truck, medium-duty truck, and heavy-duty truck. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the world. For each segment, market sizing and forecast have been done on the basis of value (USD billion).

Electric Propulsion Type
Plug-in Hybrid
Fuel Cell Electric
Battery Electric
Other Applications
Truck Type
Light-duty Truck
Medium-duty Truck
Heavy-duty Truck
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Rest of the World
South America
Middle East & Africa

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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 achieving 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 a 40% greenhouse 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 a 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.
  • In China, all vehicles sold and registered after July 1, 2020, should comply with the China 6 Emission Standards. Currently, the 6A standards (emission reduction from gasoline engine vehicles) are applied, and 6B limits (revised limits to reduce 50% hydrocarbon and 40% NOx emissions over Euro 6 standards) will be implemented from July 1, 2023. Medium- and heavy-duty vehicles are currently following China V emission standards. The latest version of China VI emissions came out in July 2018, and the implementation phase started on July 1st, 2019. All vehicles must comply with phase “a” from July 2021 and phase “b” from 2022.

All these aforementioned factors and developments are expected to drive demand in the market and likely contribute to faster adoption of e-mobility across the truck segment over the forecast period.

electric truck industry

Europe Expected to Capture Larger Market Share During the Forecast Period

The electric truck market is being led by Europe. The region is expected to shift to hybrid or full-electric technologies in an active drive toward the EU’s 20-20-20 target and achieve the COP21 objectives. Moreover, the growing concerns about environmental pollution through internal combustion engine vehicles are also expected to play a crucial role in the growth of the electric truck market.

Germany represents one of the largest markets for electric trucks globally. The presence of vehicle manufacturing companies, stringent emission norms, increasing freight and logistics, and construction activities are driving the demand for electric trucks in the country. In addition, 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 are 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. 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 growing demand for electric trucks and continuous investments drive the growth of the market studied across Europe.

electric truck market industry

Competitive Landscape

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 key companies are focusing on making new strategic partnerships, investing in R&D projects, and launching new products in the market, in order to gain a competitive advantage. For instance,

  • In March 2020, Hino Motors Ltd and Toyota Motor Corporation agreed to jointly develop a heavy-duty fuel cell truck and proceed with initiatives toward its practical use through verification tests and other means.
  • In February 2020, Scania deployed its first two battery-electric trucks for a pilot program with Norwegian wholesaler, ASKO, in Oslo. These city distribution trucks (27 metric ton GVW) have a basic range of up to 120 km (75 miles), equipped with 165 kWh battery packs.
  • In July 2019, Dongfeng Motor Corporation, in a joint venture with Nissan, launched an electric pick-up truck called “Dongfeng Rich 6 EV”. It is powered by a single electric motor with 160 hp and 420 Nm. The battery is 68 kWh.

Recent Developments

  • In February 2022, General Motor CEO Mary Barra announced that the company would accelerate its electric trucks and SUV segment by six-fold. Further, the company is aiming to deliver 400,000 EVs in North America between 2022-2023. With this plan, GM will be able to boost its capacity to make 1 million EVs by 2025.
  • In February 2022, RIVIAN, a California-based electric truck and SUV manufacturer, planned capacity expansion in its production facility. The company is looking forward to opening its second manufacturing facility in East Atlanta with the capability of producing 400,000 vehicles in a year.
  • In March 2020, Kenworth collaborated with Toyota Motor to develop 10 zero-emission Kenworth T680s. The vehicles will have a range of over 300 miles under normal operating conditions.
  • In February 2020, RAM brand CEO Mike Koval Jr. launched RAM RESOLUTION, where the company introduced a consumer outreach program to gauze consumer preference in its revolutionary EV truck vision for 2024. In this program, customers will be able to get updates on the program through the RamRevolution.com website and provide input toward the development of the truck.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Electric Propulsion Type

      1. 5.1.1 Plug-in Hybrid

      2. 5.1.2 Fuel Cell Electric

      3. 5.1.3 Battery Electric

    2. 5.2 Application

      1. 5.2.1 Logistics

      2. 5.2.2 Municipal

      3. 5.2.3 Construction

      4. 5.2.4 Mining

      5. 5.2.5 Other Applications

    3. 5.3 Truck Type

      1. 5.3.1 Light-duty Truck

      2. 5.3.2 Medium-duty Truck

      3. 5.3.3 Heavy-duty Truck

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.4.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Spain

        5. Russia

        6. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. South America

        2. Middle East & Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Dongfeng Motor Corporation

      2. 6.2.2 Hino Motors

      3. 6.2.3 Daimler (Mitsubishi Fuso)

      4. 6.2.4 PACCAR Inc.

      5. 6.2.5 Isuzu Motors Ltd

      6. 6.2.6 Navistar International Corporation

      7. 6.2.7 Renault Trucks

      8. 6.2.8 BYD Auto Co. Ltd

      9. 6.2.9 Scania AB

      10. 6.2.10 IVECO SpA

      11. 6.2.11 Alke SRL

      12. 6.2.12 Tesla Inc.


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Frequently Asked Questions

The Electric Truck Market market is studied from 2018 - 2027.

The Electric Truck Market is growing at a CAGR of 14.3% over the next 5 years.

The Electric Truck Market is valued at 22 Billion USD in 2018.

The Electric Truck Market is valued at 57 Billion USD in 2027.

Europe is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2021.

Dongfeng Motor Corporation, Daimler (Mitsubishi Fuso), PACCAR Inc., BYD Co. Ltd , Scania AB are the major companies operating in Electric Truck Market.

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