Electric Trucks Market Trends

Growth Drivers

• Growing need for electric trucks in the transportation and other sectors - In the major EV markets worldwide, there has been an increase in demand for electric trucks in the logistics industry. Growth in medium- and heavy-duty trucks is anticipated as the adoption of electric vehicles can boost the industry's long-term profitability because EVs require significantly less money to charge than other fuels.
  The US Postal Service placed an order for delivery trucks with Workhorse Group in January 2022. The World Economic Forum projects that in 2030, a 36% rise in the number of delivery vehicles operating in inner cities. Other sectors include product transportation, state services, and e-commerce businesses like Amazon and Walmart will see an increase in demand for electric trucks. Each of these elements could support market expansion.

• Advancement of technology for self-driving trucks - The recent development of self-driving trucks will have an impact on the electric truck business. AI is used by autonomous trucks to automate anything from long-distance deliveries to shipping yard operations. Leading automakers including Mercedes Benz Group AG, AB Volvo, and Tesla, Inc. have been working on producing autonomous electric trucks for the market. TuSimple and Navistar Inc. (US) established a collaboration to build self-driving trucks in December 2022. These fundamentals could all lead to electric truck market growth.

• Increased use in the online retail sector - The market for electric trucks is anticipated to grow in the near future due to the growing usage of these vehicles for last-mile deliveries of goods from warehouses to clients. To cut down on pollutants and fuel costs, businesses are thinking about adding electric vehicles and electric pickup trucks to their fleets.
  
  Tesla, Inc. stated in November 2022 that it had received 1.5 million preorders for their electric cyber truck worldwide. 20 VOLVO FH electric trucks will be supplied by AB Volvo to Amazon in Germany for delivery reasons, the company stated in October 2022. The market may grow as a result of all these variables.

Challenges

• Extended duration of charging - When compared to other fuel choices, the charging period of an electric vehicle is significantly longer. Most public stations are equipped with Level 2 charges. Vehicles that are charging at Levels 1 and 2 may require 8 to 16 hours to reach 100% charge. An EV can be charged from 0% to 80% in around 60 minutes using a Level 3 charger.
  
  Compared to CNG or diesel fueling, which takes less than five minutes, this is significantly greater. This has been a significant factor in the market's sluggish growth for electric trucks. Technological developments in the next years will shorten the charging period, but batteries for such rapid, high-voltage charging will still need to be produced. All these factors may impede market growth.

• One of the main obstacles to the broad adoption of electric trucks has been their high production costs.

• The limited range of electric trucks in comparison to conventional internal combustion engine (ICE) vehicles is one of their main drawbacks.