Electric Truck Market is Estimated to Witness High Growth Owing to Opportunity to Reduce Carbon Emissions
Electric trucks come with zero direct emissions and can help reduce harmful exhaust emissions from diesel trucks. Electric trucks use electricity to power their motors rather than diesel or gasoline combustion engines. This helps reduce carbon emissions, making them an environment friendly alternative. Electric trucks provide equivalent haulage and towing capacities as conventional diesel trucks. They offer minimal maintenance, more uptime and lower running costs compared to diesel trucks as electricity is cheaper than diesel fuel on an equivalent energy basis.
The global Electric Truck Market is estimated to be valued at US$ 3.68 Bn in 2024 and is expected to exhibit a CAGR of 6.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Opportunity to reduce carbon emissions- Transportation is a major source of carbon emissions globally. Electric trucks provide an opportunity to significantly reduce carbon emissions from freight transportation. As they generate zero direct emissions, widespread adoption of electric trucks can help lower overall carbon footprint of logistics and haulage operations. This presents a major market opportunity for electric truck manufacturers to capitalize on increasing environmental regulations and demand for green transportation solutions. Manufacturers can promote electric trucks as a sustainable alternative to conventional diesel trucks that also provides total cost of ownership benefits.
Porter's Analysis
Threat of new entrants: The electric truck market requires high investments in R&D, manufacturing facilities and distribution networks. Hence, threat of new entrants is low.
Bargaining power of buyers: The presence of many electric truck manufacturers gives buyers bargaining power in terms of choice and price.
Bargaining power of suppliers: Few suppliers for critical components like batteries gives them bargaining power against electric truck manufacturers.
Threat of new substitutes: Alternatives like electric vans, buses pose a threat to demand.
Competitive rivalry: Intense competition exists among established players to gain market share.
SWOT Analysis
Strength: Rising environmental concerns and government support for EVs.
Weakness: High upfront costs, range and charging issues. Lack of required infrastructure.
Opportunity: Growing adoption in logistics, shipping industries. Potential in last-mile delivery segment.
Threats: Slow commercial adoption compared to expectations. Delays in setting up charging infrastructure.
Key Takeaways
Global Electric Truck Market Size is expected to witness high growth during the forecast period due to stringent emission norms and supportive policies.
Regionally, North America is the fastest growing market for electric trucks currently driven by efforts to decarbonize transportation. Europe and China are also making investments in electric infrastructure to boost EV adoption.
Key players operating in the electric truck market are Amcor plc, Mondi Group, International Paper Company, Smurfit Kappa, DS Smith, Klabin S.A., Georgia-Pacific LLC, Rengo Co., Ltd., Orora Packaging Australia Pty Ltd, and Nippon Paper Industries Co., Ltd.
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