As the air pollutions levels around the world are increasing, governments of various countries are imposing various policies and taking initiatives for reducing carbon dioxide emissions. The transportation industry is among the key contributors to the growing greenhouse gas emissions, most of the steps are taken in regard of vehicles, for example, the introduction of electric vehicles. Approximately, 200 cities in the European region have low-emission zones and access regulations, with Italy, Germany, and the U.K. at top, at the present time. Due to this kind of regulatory pressure, the sales of electric vehicles has risen significantly over the past few years.
Owing to all these factors, the demand for electric trucks
is also expected to increase considerably in the near future. According to a report by P&S Intelligence, the global electric truck market is predicted to reach 1,508.1 thousand units by 2025 and is expected to progress at an 18.5% CAGR during the forecast period. Electric trucks are of different types in terms of propulsion, namely fuel cell electric vehicles, battery electric vehicles (BEV), plug-in hybrid electric vehicles, and hybrid electric vehicles, among which, the demand for BEVs is projected to rise substantially in the coming years.
This is majorly because of the increasing government support for encouraging the adoption of these vehicles, in forms of financial incentives, and enhancements in the battery technology. Several countries are announced incentives specifically for BEV trucks that focus on related infrastructure and freight equipment as well. Out of heavy-duty trucks (HDT), light-duty trucks, and medium-duty trucks, the demand for HDTs is predicted to increase considerably in the years to come. The demand for these trucks primarily increasing in developed countries, including the U.S. and European countries.
Moreover, trucking companiesare adding HDTs in their fleet for catering to the increasing freight demand and availing maximum gains under financial incentive schemes of governments. Electric trucks are utilized for a number of applications, including logistics and municipal, between which, the demand for electric trucks has been higher for the logistics application in the past and the situation is expected to remain the same in the coming years as well. This can be ascribed to the expanding logistics industry and growth of the retail, e-commerce, and manufacturing industries in various emerging economies.
Geographically, the Asia-Pacific region has emerged as the largest electric truck market in the past and is further is expected to create the largest demand for these trucks in the near future as well. As is the case with most electric vehicles’ domain, China has been creating the largest demand for electric trucks within the region. This can be owing to the national alternative-fuel-vehicle replacement sales target, favorable government subsidies, and municipal air quality targets. Other than this, the demand for electric trucks is also expected to rise in other regions as well in the coming years because of heavy investments by manufacturers.
In conclusion, the demand for electric trucks has been increasing due to government efforts for decreasing carbon dioxide emissions.