There has been a growing demand for zero-emission alternative fuel vehicles owing to rising emissions levels and increasing prices of petroleum and its limited availability, which fuels the growth of the electric trucks market to reach 1,413,694 units by 2030 from little less than 70,000 units, estimated for 2021.
According to the new market research report by MarketsandMarkets - Electric Trucks Market by propulsion, type, range, battery type, battery capacity, level of automation, end-user, payload capacity and region - Global Forecast to 2030, the e-truck market is projected to grow at a CAGR of 39.7% till 2030.
The research firm said that the governments of several countries are taking initiatives to promote clean energy sources by instituting stringent emission norms and providing subsidies and tax benefits for early adoption of EVs and other low emission vehicles to help meet these stringent emission regulations. e-trucks have also been growing in demand past few years due to these reasons.
Top OEM's like Daimler AG, AB Volvo, Scania AB, PACCAR, Nikola Motors and other players like Renault, Rivian, Workhorse, Tata Motors have been working for the development of e-trucks, the report stated. The key strategies adopted by these companies to sustain their positions include new launches, expansions, collaborations, and joint ventures. The research firm has analysed these strategies to infer the positions of these companies in the market. For instance, the Volvo Group acquired 50% of the partnership interests in the existing Daimler Truck Fuel Cell GmbH in March 2021 to establish the new JV as a leading global fuel-cell manufacturer.
Scania AB acquired Nantong Gaikai in November 2020, allowing it to obtain a truck manufacturing license in China.
Nickel, Manganese and Cobalt (NMC) battery segment to lead to market growth
The NMC battery dominates the e-truck market as it is the most efficient. Many leading Chinese OEMs use these batteries in e-trucks in their fleets as they have a comparatively higher energy density than LFP (lithium ferrous phosphate) batteries.
In addition, the cost of NMC batteries is declining and level with the cost of LFP batteries, thus, further boosting the NMC battery market. On the other hand, the demand for LFP is also increasing since the life of LFP batteries is longer than the NMC batteries. Therefore, the adoption of NMC batteries is expected to rise soon in European and American countries, MarketsandMarkets said.
Light-duty vehicles to hold the dominant position
The e-truck market by vehicle type comprises mostly light-duty vehicles and a moderate amount of medium-duty and heavy-duty vehicles. This is because of their growing popularity for electric pickups around the world as zero-emission vehicles, while for medium-duty and heavy-duty vehicles, the price of long-range electric trucks increases drastically, which makes it less economical for many regions. As prices of EV batteries decrease and the range of vehicles keep improving, the market for electric trucks will also increase faster in the coming years. The demand for light-duty e-trucks will continue to grow due to increased demand for light-duty trucks in last-mile delivery, distribution services and others.
Europe to be the fastest-growing in the e-truck market
The e-truck market in Europe is segmented into France, Germany, Netherlands, Norway, Sweden, and United Kingdom. Europe has stringent emission regulation standards, and the governments of the European region are providing considerable incentives to promote EVs. Therefore, the demand for EVs has increased tremendously in the region. Moreover, the region is home to e-truck manufacturers such as Volvo, Daimler and others.
Besides, Europe has set a very ambitious goal of reducing 80% CO2 emissions by 2050 and has created a roadmap. Furthermore, the governments of various countries in Europe are subsidising electric infrastructure, and the focus will continue to be on electric vehicles in the long run, the research and consultancy company said.
Volvo has announced plans to launch a complete range of heavy-duty e-trucks in the region starting 2021 and through the upcoming years. It is currently running tests for Volvo FMX, Volvo FX, Volvo FM, used for regional transport and urban construction. Sales will start by the end of 2021, and production in large volumes will start by the first half of 2022. These trucks will come with a battery configuration of around 186 miles or 300 km. The company is targeting 50% electric sales in the region by 2030.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Volvo Trucks.