Electric Truck Market Size (2025-2030)

The Electric Truck Market was valued at USD 560 million and is projected to reach a market size of USD 2202 million by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 31.5%. 

The market for electric trucks is expanding at a lightning pace, triggered by advances in technology and an increasing global focus on green transport. The North American market is dominant, representing 45.4% of the total global share in 2024, spurred on by tight emission controls and major investments in the infrastructure of electric vehicles. Technological advancements, specifically in battery technology, are increasing the viability of electric trucks for long-distance freight transportation, resolving issues such as range restrictions and charging facilities. Joint ventures between manufacturers, technology companies, and transport companies are further driving market growth by stimulating innovation and responding to environmental sustainability. Government incentives in the form of subsidies and tax relief are also serving to decrease upfront investment expenditures and drive adoption. Despite these encouraging trends, hurdles like the requirement for extensive charging networks and the premium price tag of electric trucks over conventional ones persist. Nonetheless, continued research and development investments combined with favorable policy support should neutralize these hurdles, clearing the way for a cleaner and more technologically superior freight transportation industry.

Key Market Insights:

• The electric truck industry is in the middle of radical change, typified by impressive data-driven trends, technological advancements, and strategic industry realignments. In 2024, light-duty electric trucks led the market, capturing more than 65% of global sales, fueled by the growing need for clean urban transportation options.
• One of the innovations is the creation of small electric models designed for urban delivery and personal use, which provide advantages like lower emissions and lower operating expenses. For example, in January 2024, Mitsubishi Fuso, a Daimler Truck subsidiary, launched the newest version of the eCanter electric truck in Hong Kong, specifically designed to meet urban environmental issues such as noise pollution and carbon dioxide emissions.
• Strategically, partnerships are redefining the market; Mars teamed up with freight technology company Einride to roll out a fleet of 300 electric, digitally optimized heavy-duty trucks throughout its European network by 2030, reflecting a commitment to green logistics.
• Moreover, the coupling of telematics and onboard sensors is optimizing fleet management through real-time monitoring of vehicle performance and driver behavior, resulting in increased operational efficiency.
• Despite these developments, issues like expensive batteries and scarce charging facilities continue to remain a challenge, calling for sustained investment and policy interventions to realize the full potential of electric trucks in global transport systems.

Electric Truck Market Key Drivers:

Government Regulations and Incentives Drive Global Growth in Electric Truck Market.

Governments across the globe are instituting strict emissions regulations and providing economic incentives to encourage the purchase of electric trucks. These practices will help lessen greenhouse gas emissions and fight global warming. An example is the South African plan for a 1-billion-rand investment in aiding domestic electric vehicle manufacturing, such as trucks, within its 2023 Electric Vehicles White Paper that aims at going electric by 2035. The electric truck industry is growing rapidly with a mix of environmental, economic, and technological drivers.

Incentives and government regulations are the key to this growth. Most nations are implementing policies requiring lower emissions and offering economic incentives to promote electric vehicle adoption. These policies contribute not only to lowering environmental pressures but also to establishing favorable market conditions for electric trucks. For instance, South Africa's recent investment in local electric vehicle manufacturing highlights the international trend towards sustainable transport solutions. Economic factors, especially the total cost of ownership (TCO), are also important in propelling the use of electric trucks.

Government Policies and Incentives: Electric trucks can be more expensive upfront, but they provide tremendous cost savings in operational costs over the long run. Lower fuel costs, lower maintenance needs as there are fewer parts to move, and incentives provided by governments create a more economical total cost of ownership (TCO). All these economic benefits make electric trucks a preferable choice for fleet owners looking to optimize cost efficiency. Although electric trucks have higher upfront purchase costs, they provide significant fuel and maintenance cost savings over their operating life. Electricity is less expensive than diesel, and electric trucks have fewer mechanical parts that need to be serviced, resulting in decreased downtime and lower servicing costs. Collectively, these factors result in a more favorable TCO that renders electric trucks an economically sound option for companies that desire long-term cost savings. Advances in technology, especially battery technology, have dramatically improved the practicality and viability of electric trucks. Advances in battery energy density have increased the driving range of electric trucks, which has mitigated one of the main issues of fleet operators over range constraints.

Advancements in Battery Technology: Ongoing advancements in battery technology have improved the feasibility of electric trucks. Advances in energy density, range, and charging infrastructure have overcome earlier constraints in terms of range and charging time. With further development in battery technologies, electric trucks can travel greater distances on a single charge, making them more convenient for diverse applications, such as long-distance transportation and last-mile delivery. Moreover, advancements in faster charging solutions have minimized vehicle downtime, enhancing operational efficiency.

Electric Truck Market Restraints and Challenges:

The market for electric trucks, though set for expansion, also has numerous fundamental

Challenges impeding mass take-up. The principal challenge is that electric trucks cost a great deal to buy outright, due largely to high battery costs. For instance, the Tesla Semi costs between $150,000 and $200,000, almost double diesel trucks. Though lower operating costs and government subsidies can amortize these costs in the long run, the huge initial investment acts as a deterrent for most fleet operators. Another key challenge is the sparse charging infrastructure and related range anxiety. The existing network of charging points is inadequate, especially on long-distance routes, and it becomes difficult for electric trucks to drive long distances efficiently. Although fast-changing technology is being developed, the existing infrastructure is not yet capable of supporting the extensive adoption of heavy-duty electric trucks, requiring heavy investments in charging stations as well as power grid upgrades. Moreover, the recent bankruptcy of Northvolt, a leading European battery producer, is an indicator of the unpredictability of the industry. Despite the massive investments from giant firms such as

Volkswagen, Goldman Sachs, and BlackRock, Northvolt were not able to overcome their problems of management and overdependence on Chinese equipment, eventually resulting in its failure. This story reveals the problems of the battery-producing business, which may hinder the

advancement of electric truck takeover.
 

Electric Truck Market Opportunities:

The electric truck market is on the cusp of significant growth, fueled by several opportunities. One key driver is the growing global focus on decreasing carbon emissions, and thus the more stringent environmental policies and adoption of sustainable transport options. This has been stimulating the adoption of electric trucks by fleet operators to comply with regulations and company sustainability initiatives. Advances in battery technology are also a major driver. Enhancements in energy density and declines in battery prices are increasing the appeal of electric trucks for long-distance use. Telo Trucks, for example, revealed a preproduction version of the electric MT1 mini-truck with a modular design and variable cab, pointing to development within the industry. Another large opportunity is presented by the integration of autonomous driving technologies. Organizations such as Aurora Innovation are building driverless trucks with sophisticated sensors and AI capabilities, targeting "level 4" autonomy. These technologies could transform freight transportation by resolving driver shortages and enhancing operational efficiency.

ELECTRIC TRUCK MARKET REPORT COVERAGE:

Electric Truck Market Segmentation:

Electric Truck Market segmentation By Vehicle Type:

• Light-Duty Trucks
• Medium-Duty Trucks
• Heavy-Duty Trucks

Vehicle segmentation in the industrial refrigeration industry comprises Light Commercial Vehicles (LCVs), Medium Commercial Vehicles (MCVs), and Heavy Commercial Vehicles (HCVs). HCVs are leading the market currently, with a share of about 39% in 2024, owing mainly to their ability to transport large quantities of perishable items over long distances. Nevertheless, LCVs are growing the quickest. The growth is spurred by online shopping and internet grocery shopping, which boost the demand for cost-effective short-distance and last-mile delivery solutions.

Electric Truck Market segmentation By Propulsion Type:

• Battery Electric Vehicles (BEV)
• Hybrid Electric Vehicles (HEV)
• Plug-in Hybrid Electric Vehicles (PHEV)
• Fuel Cell Electric Vehicles (FCEV)

BEVs (Battery Electric Vehicles) now dominate in the electric truck segment and control around 91% of the market as of 2024. This dominance is credited to major advancements in battery technology, enhanced charging infrastructure, and robust global governmental backing. Major manufacturers are broadening their BEV lineups, seeing their lower total cost of ownership and environmental advantages. Plug-in Hybrid Electric Vehicles (PHEVs) are witnessing stunning growth, set to grow at around 48% from 2025-2030. This increase is because they are flexible to use both electric and traditional fuel sources, making them desirable for long-distance hauls and markets with emerging charging networks. Hybrid Electric Vehicles (HEVs) are also increasingly popular, especially in markets such as Europe, where hybrids accounted for 32.8% of new vehicle sales in September 2024, beating out gasoline-powered vehicles for the first time. Fuel Cell Electric Vehicles (FCEVs), although presently a minority in terms of market share, are becoming an increasingly viable solution for heavy-duty long-haul use because of their rapid refueling and longer driving range. As hydrogen infrastructure matures, FCEVs will increasingly become a major contributor to zero-emission commercial transportation.

Electric Truck Market segmentation By Range:

• Up to 150 Miles
• 151-300 Miles
• Above 300 Miles

In the electric truck segment, Battery Electric Vehicles (BEVs) dominate, comprising around 73% market share in 2024. The reasons for this control are fueled by improvements in battery technology and high environmental consciousness. Governmental incentives, especially in countries like China and Europe, have also hastened the adoption of BEVs.

In terms of vehicle range, electric trucks with 300-mile ranges had the largest market share in 2023. This range is best suited to the daily route needs of commercial fleets, particularly in urban and regional transport applications. These vehicles strike a balance between having enough range to get through daily routes without having too much battery capacity, minimizing initial costs, and enhancing the total cost of ownership. Still, the 300–600-mile range segment of electric trucks is anticipated to post the highest compound annual growth rate (CAGR) during the forecast period. The swift growth will be led by the growing adoption of vehicles with extended range among commercial fleets in a bid to electrify longer-haul operations. Improvements in battery technologies, reducing costs, and increasing charging infrastructure have driven additional demand for these extended-range trucks.

Electric Truck Market segmentation By End-User Applications:

• Last Mile Delivery
• Long Haul Transportation
• Refuse Services
• Field Services
• Distribution Services

In the industrial refrigeration industry, last-mile delivery is the fastest-growing and largest segment in the industrial refrigeration market. The growth is largely fueled by the exponential increase in e-commerce and the rising demand from consumers for quick delivery of perishable products. Businesses are making significant investments in improving their last-mile delivery networks so that products arrive at consumers quickly while being fresh, particularly for grocery and fresh food products where timeliness could result in spoilage and consumer dissatisfaction. Conversely, segments such as long-haul transportation, refuse services, field services, and distribution services are witnessing comparatively slower growth, since they are less affected by the fleeting consumer demand dynamics that heavily influence last-mile delivery.

Electric Truck Market segmentation By End-Use Industry:

• Agriculture
• Automotive
• Energy
• Industrial

The Proton Exchange Membrane (PEM) electrolyzer market finds applications in different end-use industries such as agriculture, automotive, energy, and industrial sectors. Out of these, the energy sector, especially ammonia production, has been the leading one, holding around 33% of the market share in 2024. This is attributed to increasing applications of green hydrogen in synthesizing ammonia, which is aligned with world sustainability agendas. Simultaneously, the automotive industry has become the industry with the fastest growth, triggered by the widening use of hydrogen fuel cell vehicles. The demand for clean transportation alternatives is accelerating the growth of PEM electrolyzer applications in the automotive market.

Electric Truck Market segmentation By Battery Capacity:

• Less than 250 kWh
• 250–500 kWh
• Above 500 kWh

Of these segments, the 50–250 kWh segment is the current market leader. This is due to its versatility and affordability, which can be applied to a broad variety of applications, ranging from regional freight to urban logistics. The trade-off between having enough range and not being too large of a battery pack means that it can operate efficiently without the weight penalties of large battery packs. Yet the over-250 kWh segment is growing fast and is expected to be the fastest-growing segment in the next few years. Advances in battery technology are lowering cost and increasing energy density, so higher-capacity battery packs are now viable for heavy-duty, long-haul trucking applications. Consequently, operators looking for zero-emission options for long distances are increasingly turning to high-battery-capacity electric trucks

Electric Truck Market segmentation By Level of Automation:

• Semi-Autonomous Trucks
• Autonomous Trucks

In the autonomous truck industry, semi-autonomous trucks now lead and are growing at a fast pace. The leadership comes from the inclusion of Advanced Driver-Assistance Systems (ADAS) that improve safety and operational effectiveness.

Electric Truck Market Regional Analysis:

The electric truck market has important regional differences in terms of growth and adoption. As of 2024, the market is led by North America, holding about 45.4% of the worldwide market share. This is caused by strict environmental regulations, heavy government incentives, and improvements in electric vehicle infrastructure, especially in the United States. Europe is witnessing strong growth, driven by aggressive carbon cut targets and favorable policies in nations such as Germany, France, and the Netherlands. The region is expected to have a robust market share, with an expectation that close to 30% of European trucks will be electric by the year 2030. The Asia-Pacific market, driven by China, is expected to be the fastest-growing market, with an expected Compound Annual Growth Rate (CAGR) of 20.2% during the forecast period. China's ambitious goals for electric vehicle uptake and large investments in EV infrastructure make it a strong contender in the electric truck market. Latin America and Middle East & Africa are anticipated to register steady growth, led by growing environmental concerns and new government policies to enhance electric vehicle uptake. However, limited charging infrastructure could moderate quick growth in these markets.

COVID-19 Impact Analysis on the Electric Truck Market:

The COVID-19 pandemic has had a diverse effect on the electric truck market, affecting supply and demand alike. On the supply side, the pandemic impacted global supply chains, causing shortages of essential parts and production delays. For example, the Volkswagen truck division, Traton, had a 1.3% drop in shares even as it reported a 3% nine-month revenue rise, underscoring the challenges of staying profitable in the face of supply tightness. The pandemic, however, speeded up the surge in e-commerce, substantially improving demand for last-mile delivery capabilities. This spike saw logistics businesses turn to greener and less expensive delivery mechanisms, which caused more use of electric vehicles (EVs) for last-mile deliveries. Within India, the three-wheeler and two-wheeler EV markets have remained incredibly robust, with the outlook suggesting that e-rickshaws, e-autos, and e-two-wheelers can contribute a total of more than four million units by 2025. Nonetheless, there remain challenges, notably in the electric heavy-duty truck segment. Daimler Truck's target of 50% of European sales coming from electric trucks by 2030 highlights the sector's focus on electrification, but high manufacturing costs and lack of charging infrastructure are still major challenges. Daimler Truck technology chief Andreas Gorbach highlighted the requirement for EU carbon emissions reduction goals to be harmonized with the charging infrastructure development speed, noting the need for accelerated development to reach these targets.

Recent Trends/Developments:

The electric truck industry is making major strides with technological advancements, government support, and strategic industry movements. New trends involve trucks with longer ranges and better battery efficiency to overcome past restraints in long-haul electric transport. For example, Volvo has announced it will offer a long-range FH Electric truck with a range of 600 km by late 2025, leveraging increased battery space and software solutions to cater to long-haul requirements. At the same time, the proliferation of charging stations is mitigating range anxiety for fleet operators and making electric trucks more feasible for wider use. Government subsidies and high emissions standards are also driving adoption; in New York, the "Advanced Clean Trucks" regulation requires companies to steadily drive the sale of zero-emission trucks, with a goal of 40% zero-emission tractor sales and 75% other truck sales by 2035. Furthermore, large logistics firms are electrifying fleets to address sustainability objectives, with UPS, DHL, and FedEx spending big on electric delivery vehicles to cut carbon emissions and meet sustainability objectives. These trends combined suggest a strong path toward a more sustainable and more efficient transportation industry.

Key Players in the Electric Truck Market:

1. Tesla
2. Rivian
3. BYD Auto
4. Mercedes-Benz
5. Freightliner
6. Mitsubishi Fuso
7. Volvo Trucks
8. Nikola Corporation
9. Ford
10. GMC