Zero Emission Trucks Market Regional Analysis:
Asia Pacific Market Insights
Asia Pacific industry is set to account for largest revenue share of 39.2% by 2035 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 Insights
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.
