Zero Emission Trucks Market size is estimated at USD 8.1 billion in 2024 and is projected to exceed USD 185.2 billion by the end of 2037, witnessing over 29.8% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of zero emission trucks is evaluated at USD 10.5 billion.
The zero emission trucks market growth can be primarily attributed to increasing government mandates to cater to climate change and reduce air pollution. Policies such as the U.S. Clean Air Act, India’s Council on Climate Change Act, 2021, Canada’s Net Zero Commissions Accountability Act, and the European Union’s Green Deal are steadily encouraging companies to adopt zero emission technology, including zero emission trucks across various sectors. Many governments across the globe are focused on implementing zero or low-emission zones where only zero-emission vehicles (ZEVs) are allowed. This has resulted in increasing overall sales of electric trucks.
Zero emission trucks are rapidly gaining traction across several sectors including logistics and transportation, last-mile delivery, and construction. According to the International Energy Agency (IEA), the sales of electric trucks have drastically increased by 35% in 2023 as compared to the sales in 2022. In June 2023, the North American Council for Freight Efficiency partnered with Rocky Mountain Institute to launch an initiative, Run on Less- Electric DEPOT that deployed more than 300 electric trucks of various sizes in different areas and applications to check where these trucks and where challenges persist.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
29.8% |
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Base Year Market Size (2024) |
USD 8.1 billion |
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Forecast Year Market Size (2037) |
USD 185.2 billion |
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Regional Scope |
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Vehicle Type (Electric Light-Duty Trucks, Electric Medium-Duty Trucks, Electric Heavy-Duty Trucks)
The electric heavy-duty trucks segment is predicted to account for more than 59.1% zero emission trucks market share by the end of 2037 owing to high demand for heavy-duty trucks in freight transportation in logistics, mining or construction, rapid adoption of advanced zero-emission technology in these trucks, and rising investments in developing durable and sustainable trucks. In May 2024, Hyundai Motor Company officially launched its NorCAL Zero Project, a unique initiative to bring zero-emission freight transportation to California’s Central Valley and San Francisco Bay Area, using its hydrogen fuel cell technology.
The sales of electric heavy-duty trucks have significantly increased to combat the e-commerce expansion and rising construction activities worldwide. According to the International Energy Agency (IEA), in 2022, about 60,000 medium and heavy-duty trucks were sold overall, accounting for 1.2% of global truck sales.
Application (Last Mile Delivery, Logistics and Transportation, Construction, Waste Management)
Based on the application, the construction segment is expected to register rapid revenue growth during the forecast period owing to rapidly expanding building and construction sector and high adoption of different types of zero-emission trucks in construction activities to reduce carbon emissions and achieve sustainability goals. The segment growth can also be attributed to stringent emission reduction targets set by governments and the need for less noisy vehicles in non-sensitive areas like cities. To cater to this, companies including, Volvo Trucks develop a wide range of heavy-duty electric trucks and dump trucks, especially for the construction sector. These trucks come with simple chassis and a variety of bodies such as mixers, cranes, and tippers.
Our in-depth analysis of the zero emission trucks market includes the following segments
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Vehicle Type |
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Source |
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Application |
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Asia Pacific Market Analysis
Asia Pacific in zero emission trucks market is set to hold over 39.2% revenue share by the end of 2037 owing to rapid urbanization, rising environmental concerns, and the booming e-commerce sector across the region. Governments in China, Japan, India, and South Korea are promoting zero emission vehicles, including trucks by offering benefits such as tax redemptions, subsidies, and other favorable policies. This is expected to boost zero emission trucks market growth in Asia Pacific in the coming years.
The zero emission trucks market in China is expected to witness robust growth during the forecast period owing to rapid advancements in battery technology and the presence of leading companies such as Geely, BYD, Foton, and Dongfeng. These companies are developing advanced products and technologies to keep up with the global competition. In April 2024, BYD announced the plan to launch its first electric pickup truck by the end of 2024 to compete with automotive giants including Tesla and Ford. Many companies in China along with local governments are investing in EV infrastructure to reach their goal of atleast 50% of vehicles being fully electric by 2035. This has resulted in rising sales of zero emission trucks in many parts of China. According to a report by Research Nester, China accounted for 80% of the global EV truck sales in the first half of 2024.
In India, the zero emission trucks market is anticipated to expand at a robust CAGR throughout the forecast period. This growth can be attributed to rapid urbanization, rising adoption of zero-emission vehicles including trucks and busses for last-mile delivery, logistics and transportation, construction, and waste management, and rising awareness about pollution and fuel emission. In August 2024, the Government of India released the Bharat Zero Emission Trucking (ZET) Policy Advisory to create a roadmap for policies including Net Zero 2070 and fulfill the country’s goal towards sustainable development. Another incident occurred in July 2024, when NITI Aayog collaborated with Smart Freight Centre India to accelerate the adoption of zero emission trucks in India. Initiatives like these are expected to boost zero emission trucks market growth going ahead.
North America Market
North America is expected to register staggering growth during the forecast period owing to rapid advancements in electric vehicles, stringent government policies on vehicle emissions to combat climate change, and presence of leading companies focused on developing zero-emission vehicles and technology. For instance, Isuzu North America Corporation announced the development of class 6 and 7 zero-emission trucks in May 2024. The trucks are equipped with Aceelera by Cummins powertrain for the U.S. and Canada.
In the U.S., federal and several state governments have released strict emission regulations in order to enhance the sales of zero emission trucks and buses. Several e-commerce and fleet companies in the U.S. are adopting zero emission trucks to align with sustainability goals. According to the International Council on Clean Transportation (ICCT) (2022-2023 report), the heavy-duty EV trucks section contributed the largest to the number of new ZE-HDV registrations.
Canada zero emission trucks market is also expected to witness significant throughout the forecast period owing to high adoption of EV trucks across several sectors and Canada’s strategic moves and policies stating new passenger cars and light trucks should be zero emission by 2035. The Government of Canada is also supporting the zero emission trucks market growth by introducing policies to reduce key barriers and make it easy for the citizens in Canada to purchase ZEVs.
The competitive landscape of the zero emission trucks market is rapidly evolving as established key players, automotive giants and new entrants are investing in electrification and hydrogen technologies. Key players in the zero emission trucks market are focused on developing new technologies and products catering to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global zero emission trucks market:
Author Credits: Saima Khursheed
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