US Electric Truck Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: The US Electric Truck Market (2024-30):

The US Electric Truck Market size is valued at USD 711.42 million in 2023 and is projected to reach USD 13.92 billion by 2030. The market is also estimated to grow at a CAGR of around 36.16% during the forecast period, i.e., 2024-30. The demand for electric trucks in the US has showcased stable growth over the historical period. This is attributed to the incentives provided by the government and the corporate sustainability goals of companies operating across different sectors. The past years have witnessed the announcement of various government initiatives like the Advanced Clean Trucks Rule and the National Zero-Emission Freight Corridor Strategy. These initiatives have reinforced fleet operators to shift to electric trucks from diesel trucks, which increased the market size of electric trucks in the US.

Moreover, many companies operating in sectors, like FMCG, e-commerce, and heavy industries have set ambitious goals to reduce their carbon footprints. Owing to this, many companies are focusing on the electrification of their logistic ecosystem. As a result, they are outsourcing their logistics duties to third-party transporters with electric truck fleets. For instance:

• In 2024, Frito-Lay North America, Inc. a division of PepsiCo, announced third-party shipment on an electric truck with Schneider National Inc., a logistics services provider. In accordance with the partnership, Schneider National proclaimed the utilization of almost 100 new medium and heavy-duty trucks for Frito-Lay’s logistics transfer service.

Hence, the sustainability goals of various establishments are driving them to adopt cleaner technologies, which is increasing the integration of electric trucks into their commercial vehicle fleet. Furthermore, as e-commerce is rapidly expanding, the network of last-mile delivery services is also growing. These last-mile delivery operating in the nation, are now focusing on more sustainable last-mile logistics solutions. As a result, these companies are also adopting electric trucking solutions. For instance:

• In 2023, Bolloré Logistics and Sarcona announced the commissioning of electric trucks into their fleet, to deliver between New Jersey and New York.

Along with this, the government is increasing its efforts to optimize the domestic supply chain through initiatives like Freight Logistics Optimization Works (FLOW). This initiative is a public-private partnership between government and logistics enterprises to improve supply chain conditions. Following this government initiative, the supply chain sector would expand, and this expansion would enhance the demand for new trucking fleets. This growth in demand for trucking fleets, coupled with government initiatives and establishments' CSR policies would continue to increase the demand for electric trucks during the forecast period.

The US Electric Truck Market Driver:    

Supportive Administrative Frameworks to Stimulate Market Growth – In the US, the government significantly focuses on reducing emissions of pollutants like nitrogen oxides and particulate matter. For this, the government is supporting the transition to electric vehicles, as they consider it a key strategy to reduce carbon footprints. In line with this, the administration has introduced various initiatives to increase electric truck adoption. For instance:

• In 2024, the government passed the Inflation Reduction Act, which provides USD 1 billion in support for increasing adoption of electric trucks.

The presence of these supportive government initiatives has enhanced the adoption of electric trucks by logistics companies. Furthermore, it is targeted by the US administration to touch 100% zero-emission truck sales by 2035, and a near-zero-emission transportation sector by 2050. In line with these ambitions, the government would continue to incentivize the rates of electric trucks. Hence, this support would continue to catalyze the market size during the forecast period.

The US Electric Truck Market Opportunity:

Government Plans to Expand Charging Infrastructure for Freight – In the US, the government’s aim towards achieving sustainability and climate goals has enhanced its focus on encouraging the adoption of zero-emission vehicles. Therefore, to vitalize the enterprises to adopt electric truck fleets the government is trying to attempt to increase the availability of charging infrastructure and for this, the government is launching various initiatives. For instance:

• In 2024, the government launched the National Zero-Emission Freight Corridor Strategy, which aims to increase the deployment of medium & heavy-duty vehicle electric charging infrastructure through 2040.

This would increase the network of charging stations across the country solving issues regarding range anxiety, and amplify the appeal of electric trucks to fleet operators. Hence, the government plans to strengthen the charging infrastructure network for freight trucks, which would escalate the market’s potentiality and generate a remarkable opportunity for electric truck companies in the US.

The US Electric Truck Market Challenge:

Extended Charging Hours Slowing Down the Market’s Growth Pace – Although electric trucks have low maintenance costs and better performance, certain fleet operators and logistics companies are showcasing their redundancy to integrate these trucks into their fleets. This hesitancy among fleet managers is mainly due to the extended charging hours of electric freight carriers which increases the overall duration of trips. As per the American Trucking Association, contemporary long-haul battery electric trucks range about 150-330 miles and take 10 hours to charge fully. The extended charging hours are not suitable for many essential commodities in transit. Also, the longer duration of trips enhances the cost of trips, hampering the overall margin of logistics companies. Owing to this, many establishments in the logistics sector are not electrifying their fleet, which is hampering the US Electric Truck Market’s potentiality.

The US Electric Truck Market Trend:

Introduction of Medium-Duty Electric Truck Models by Market Players – In the US, the demand for medium-duty trucks is growing to a large extent due to surging demand from urban delivery services and municipal services. Along with this, the technology used in medium-duty electric trucks is more mature, compared to heavy-duty electric. Owing to this, end users planning to electrify their vehicle fleet are more likely to electrify their medium-duty vehicle fleet. In line with this, emerging market trend many vehicle manufacturers are launching these types of electric trucks in the US. For instance:

• In 2023, Daimler Truck announced the launch of a new line of medium electric trucks in the US market under the brand name RIZON.

Furthermore, the e-commerce ecosystem is rapidly growing in the US due to surging consumer inclination. This growth in e-commerce would increase demand for delivery vehicles, and as delivery companies are moving towards sustainability, the affinity towards medium-duty electric trucks would surge.

The US Electric Truck Market (2024-30): Segmentation Analysis

The US Electric Truck Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2019–2030 at the national level. As per the analysis, the market has been further classified as:

Based on Vehicle Type:

• Light-Duty Truck
• Medium & Heavy Duty Truck

Medium & Heavy Duty Trucks have showcased a high-growth prospectus. In the US, establishments across verticals have enhanced their focus on sustainability, owing to which they are trying to electrify their supply chain. This is pushing the drayage partners of these companies to add more electric trucks to their fleet. For instance:

• In 2022, footwear manufacturer PUMA’s, drayage partner NFI announced to addition of five electric trucks to the fleet to carry PUMA’s goods from the port to the warehouse.

This inclination of business prices towards zero-emission transportation is catalyzing the adoption of medium and heavy-duty trucks by logistics service providers. Owing to this, the market share of medium and heavy-duty trucks is showcasing stable growth.

Furthermore, in the US the craze for light ICE pickup trucks has been remarkably high during the historical period due to its towing and payload capacity. The ICE pickup trucks almost contributed 10%-20% of total vehicle sales in the country. The large consumer pool preferring this lifestyle-oriented vehicle is now gradually shifting towards an electric version of these vehicles. Owing to this, electric pickup truck models such as the Ford F-150 Lightning, Chevrolet Silverado EV, etc., are receiving very positive responses in the US market.

Based on Propulsion:

• Battery Electric Truck
• Hybrid Electric Truck
• Fuel Cell Electric Truck

Battery Electric Vehicle accounted for the potential share in the US Electric Truck Market over the past few years. The demand for battery electric trucks is surging at a robust rate due to the presence of supportive infrastructure & monetary subsidies. Moreover, in the US stringent emission regulations favor vehicles that significantly reduce or eliminate emissions.

Additionally, the increasing production of Battery Electric Trucks by the manufacturer and extensive improvements in battery technology are also growing product availability & consumer inclination, which would further increase the market size during the forecast period.

The US Electric Truck Industry Recent Development:

• 2024: Volvo’s subsidiary Volvo Trucks North America (VTNA) and Volvo Financial Services (VFS) partnered for a collaborative initiative for the Truck-as-a-Service (TaaS) business model. This collaboration is called “Volvo on Demand” and it was developed to simplify the acquisition and reduce the major upfront investment in battery-electric vehicles.
• 2023: Stellantis unveiled an electric pick-up truck 2025 Ram 1500 Ramcharger, with a range of 690 miles.

Gain a Competitive Edge with Our US Electric Truck Market Report

• The US Electric Truck Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
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