As per MRFR analysis, the US Electric Truck Market Size was estimated at 1.91 (USD Billion) in 2023. The US Electric Truck Market Industry is expected to grow from 2.5(USD Billion) in 2024 to 10 (USD Billion) by 2035. The US Electric Truck Market CAGR (growth rate) is expected to be around 13.431% during the forecast period (2025 - 2035).
Key US Electric Truck Market Trends Highlighted
In the US Electric Truck Market, there is a notable trend towards increasing regulatory support at both federal and state levels. Policies aimed at reducing greenhouse gas emissions and promoting sustainable transportation have bolstered the adoption of electric trucks. Initiatives such as emission standards set by the Environmental Protection Agency (EPA) and various state-led programs encourage fleets to transition towards electric vehicles. Another significant trend is the growing investment from major automakers and startups in the electric truck sector, driven by both consumer demand and environmental accountability.
Companies are focusing on developing more efficient electric models to compete with traditional diesel trucks, leading to technological advancements in battery life and charging infrastructure.Opportunities to be explored in this market include the expansion of charging networks, especially in urban areas and along freight corridors. As more electric trucks hit the roads, the need for accessible and efficient charging solutions becomes crucial. Additionally, logistics and transportation companies are increasingly recognizing the long-term cost savings associated with electric trucks, which could lead to increased orders. There is also potential for collaboration between manufacturers and technology firms to improve vehicle performance and software integration.
Trends in recent times have shown a shift towards innovation in delivery networks, particularly due to the growth of e-commerce.Electric trucks are being positioned as an eco-friendly solution to last-mile delivery challenges faced by online retailers. With cities implementing stricter air quality regulations, the urgency for electric alternatives intensifies and shapes the market landscape. Overall, the combination of regulatory frameworks, advancements in technology, and evolving consumer preferences is poised to drive the US electric truck market towards substantial growth in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Electric Truck Market Drivers
Increasing Environmental Regulations
In recent years, there has been a significant shift in the regulatory landscape in the United States, prompting enhanced focus on environmental sustainability. The Environmental Protection Agency (EPA) has implemented stricter emissions standards for heavy-duty vehicles, mandating a transition towards cleaner alternatives. The proposed rule from the EPA aims to cut greenhouse gas emissions by up to 47% by 2040, thereby greatly influencing the US Electric Truck Market Industry.
This stringent regulatory framework not only encourages manufacturers to innovate and invest in electric trucks but also compels logistics companies and fleet operators to transition for compliance. According to the U.S. Department of Transportation, heavy-duty vehicles contribute to approximately 23% of greenhouse gas emissions from the transportation sector, indicating a pressing need for electrification. An acceleration in the adoption of electric trucks can lead to a significant reduction in these emissions, thereby directly driving the growth of the US Electric Truck Market.
Advancements in Battery Technology
Technological advancements in battery technology are serving as a powerful driver for the US Electric Truck Market Industry. As of recent innovations, the cost of lithium-ion batteries has decreased by about 89% since 2010, significantly lowering the overall costs to produce electric trucks. This information comes from the U.S. Department of Energy, which also reported that energy density has improved, allowing electric trucks to cover greater distances on a single charge.
Companies like Tesla, which are leading in battery technology R&D, have made strides to enhance performance and reduce costs, further propelling market growth. With the ability of electric trucks to operate efficiently and economically over long distances, companies increasingly recognize electric trucks as a viable alternative to traditional combustion engines. This technological evolution is driving both manufacturers and fleet operators in the US to invest in electric truck alternatives.
Increasing Demand for Last-Mile Delivery Services
The rise of e-commerce has significantly altered transportation dynamics, notably increasing the demand for last-mile delivery services across urban areas in the United States. The American Transport Association noted a 55% increase in last-mile deliveries over the past five years, fueled by the growth of online shopping and an increased emphasis on rapid delivery. Electric trucks, being quieter and more environmentally friendly, are becoming increasingly desirable for these types of operations.
The US Electric Truck Market Industry stands to benefit from logistics companies that are eager to attract eco-conscious consumers while also optimizing their fleets for short-distance, high-frequency delivery routes that electric trucks excel in. This evolving market trend is expected to bolster the growth of electric trucks as logistics firms adapt to meet changing consumer demands.
Increased Investment from Private and Public Sectors
Investment in electric vehicle infrastructure is accelerating at both the federal and state levels in the United States. For instance, the Bipartisan Infrastructure Law allocates over 7 billion USD specifically for charging infrastructure upgrades. Recent funding rounds have also seen substantial investments flowing into electric truck startups and established manufacturers focusing on electrification.
According to a report by the U.S. Department of Energy, investment in electric vehicles reached approximately 27 billion USD in 2021 alone, reflecting a growing commitment to create a sustainable transportation system.This influx of funds not only supports Research and Development (R&D) but also ensures that the necessary infrastructure is in place for the widespread adoption of electric trucks. As both public and private sectors recognize the importance of transitioning to electric solutions, the US Electric Truck Market is poised for robust growth.
US Electric Truck Market Segment Insights:
Electric Truck Market Propulsion Type Insights
The US Electric Truck Market is experiencing a paradigm shift towards various propulsion types, significantly influencing market dynamics and growth potential. The market is highly segmented into Battery Electric Vehicles (BEV), Plug-in Hybrid Electric Vehicles (PHEV), and Fuel Cell Electric Vehicles (FCEV), each offering distinct advantages and catering to different consumer preferences and operational demands. BEVs are gaining substantial momentum due to their efficiency and low operational costs, aligning with the increasing emphasis on sustainability and reduced carbon emissions.
They represent a significant portion of the electric truck segment, with many logistics companies adopting them to enhance fleet efficiency and minimize environmental impact.PHEVs, while not as dominant as BEVs, still play a crucial role in bridging the gap between traditional internal combustion engines and electric mobility. Their hybrid nature allows for versatile applications and presents a flexible choice for operators uncertain about fully committing to electric technology. This segment attracts consumers who seek lower emissions without entirely forsaking the convenience of conventional fuel sources. Meanwhile, FCEVs are emerging as a noteworthy alternative, particularly in applications requiring rapid refueling and longer operational range, making them appealing for long-haul freight operations.
The advancement of hydrogen fuel cell technology is expected to bring more players into this field, capturing interest from industries reliant on heavy-duty transportation.
With supportive government policies and incentives aimed at promoting electrification and reducing greenhouse gas emissions, the US Electric Truck Market is poised for robust growth across all propulsion types. The ongoing trend towards clean energy and efficient transportation solutions underlines the importance of these segments in shaping the future landscape of the commercial trucking industry. As infrastructure for charging and refueling continues to expand, the various propulsion types will increasingly reflect the evolving needs and preferences of logistics companies and consumers, driving innovation and further market expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Electric Truck Market Type Insights
The US Electric Truck Market segmentation includes various types, specifically Light Duty Trucks, Medium Duty Trucks, and Heavy Duty Trucks, each playing a unique role in the transition towards electrification in the transportation sector. Light Duty Trucks are widely adopted due to their versatility and integration into urban logistics, significantly contributing to the reduction of emissions in city environments.
Medium Duty Trucks serve various industries such as distribution and local deliveries, providing the perfect balance between capacity and range, often attracting businesses looking to improve efficiency and sustainability.Heavy Duty Trucks dominate freight transport, representing a critical component in long-haul logistics; their electrification is vital for achieving national emissions reduction targets and adhering to stringent regulatory standards.
The US government promotes incentives for electric truck adoption, aligning with goals to enhance infrastructure and explore renewable energy sources. Market growth in the electric truck sector is bolstered by advancements in battery technology and charging infrastructure, allowing these trucks to operate effectively.However, challenges remain, such as high initial investment costs and concerns about charging availability in certain regions, presenting opportunities for growth through innovations and increased investment in infrastructure.
Electric Truck Market End User Insights
The End User segment of the US Electric Truck Market encompasses a variety of key applications that are gaining traction across the nation. Among these, Last-Mile Delivery is critically important as it caters to the growing demand for efficient logistics solutions, driven largely by e-commerce growth.
Long Haul Transportation stands out as an area poised for transformation, emphasizing reduced emissions and lower operational costs, which are pivotal to meeting regulatory standards. Refuse Services plays a crucial role in urban sustainability by modernizing waste management through electric vehicles, contributing to cleaner cities.Field Services require reliable and versatile transportation solutions for maintenance and service delivery, making electric trucks a viable choice for companies looking to enhance productivity.
Distribution Services benefit from the integration of electric trucks, promising better fuel savings and operational efficiency. As urbanization continues to rise in the US, these segments are expected to evolve to meet both environmental initiatives and consumer expectations, capturing a significant share of the market growth.
Electric Truck Market Range Insights
The US Electric Truck Market showcases a diverse range of offerings, particularly segmented by the range of operation, crucial for various logistic requirements across the nation. The segment categorized as 'Up to 200 Miles' addresses the needs of urban deliveries, facilitating short-haul operations which are increasingly important in reducing emissions as cities seek to lessen their carbon footprints. On the other hand, the 'Above 200 Miles' segment caters to regional transportation needs, appealing to businesses requiring substantial driving distances without compromising efficiency or performance.
As electric vehicle infrastructure continues to expand across the US, supported by government initiatives and investments in charging stations, the adaptability of electric trucks for prolonged ranges is becoming more viable. Furthermore, the growing demand for sustainable practices among consumers and businesses drives the need for electric trucks with extended ranges, fostering innovation in battery technologies and charging solutions. The US Electric Truck Market segmentation regarding range highlights the industry's focus on versatility to meet varying operational demands, reflecting the ongoing transition toward cleaner transportation in the market.
Electric Truck Market Battery Capacity Insights
The Battery Capacity segment of the US Electric Truck Market plays a critical role in the overall functionality and adoption of electric trucks, as these capacities determine their range, performance, and operational efficiency. The segment can be classified into three prominent categories: Less Than 50kwh, 50-250 Kwh, and Above 250 Kwh. Trucks with battery capacities of Less Than 50kwh are generally suited for urban deliveries and short-range applications, a necessity given the rise in e-commerce and last-mile delivery solutions in urban areas.On the other hand, the 50-250 Kwh range tends to cater to medium-distance logistics, making it a popular choice among fleet operators seeking a balance between capacity and weight.
Finally, the Above 250 Kwh category showcases the potential for long-haul transport, addressing a critical demand for heavy-duty trucks that require substantial power for extended travel. This segment holds significant market growth prospects as innovations in battery technology continue to enhance energy density and reduce costs, which is vital for fulfilling the increasing regulatory demands for cleaner transportation.With a projected increase in electric vehicle adoption driven by sustainability trends and governmental support for clean energy initiatives, understanding these Battery Capacity segments becomes crucial for stakeholders looking to navigate the US Electric Truck Market effectively.
US Electric Truck Market Key Players and Competitive Insights:
The US Electric Truck Market has witnessed significant growth and innovation in recent years, driven by the global push toward sustainability and reduce greenhouse gas emissions. Various companies in the sector are competing aggressively to capture market share, leading to rapid advancements in technology, infrastructure, and production capabilities.
The landscape comprises established automotive manufacturers, newcomers like startups, and traditional truck companies transitioning to electric offerings. This competitive environment fosters continuous improvement in product offerings, enhances operational efficiencies, and enhances consumer choice, while also influencing regulatory frameworks aimed at supporting electric vehicle adoption. As the market evolves, companies are leveraging their strengths in various areas like technology, partnerships, and customer relationships to establish themselves as leaders in the charge toward electrification.Nikola has made a notable mark in the US Electric Truck Market by focusing on hydrogen fuel cell and battery-electric technologies, positioning itself as an innovative player in the industry. With a strategic emphasis on sustainable transportation solutions, Nikola has developed several electric truck models tailored for heavy-duty applications, aiming to meet the needs of fleet operators seeking cleaner alternatives.
The company's investments in the infrastructure necessary for fuelling and charging electric trucks enhance its competitive edge, as it resolves concerns about range anxiety and operational efficiency for consumers. Moreover, Nikola's distinct approach to creating partnerships with stakeholders across sectors aids in bolstering its market presence, allowing the company to harness the synergies needed to innovate and expand its offerings in the electrified trucking sector within the US.Workhorse Group stands out in the US Electric Truck Market through its focused approach on electric delivery vehicles and last-mile logistics solutions. The company specializes in designing and manufacturing medium-duty truck chassis and fully electric delivery vans that cater primarily to the growing e-commerce segment.
With services tailored for urban environments, Workhorse Group has established itself as a preferred choice among logistics companies aiming to adopt cleaner fleets. The strengths of Workhorse Group lie in its proprietary technology, including an advanced telematics system that optimizes electric delivery solutions. The company has also engaged in strategic partnerships and collaborations that enhance its product capabilities and offers a broad service ecosystem. Furthermore, the company has pursued mergers and acquisitions to amplify its resources and expand its technological base, positioning itself effectively in the competitive landscape of the US Electric Truck Market.
Key Companies in the US Electric Truck Market Include:
US Electric Truck Market Industry Developments
Recent developments in the US Electric Truck Market highlight significant advancements and strategic movements among key players. Nikola announced plans to ramp up production of its hydrogen-powered trucks and is collaborating with various partners to expand its infrastructure. Workhorse Group has been focusing on delivering electric delivery vans, while Canoo recently revealed its innovative electric trucks, aiming to enter the commercial space effectively. Chevrolet unveiled its electric Silverado, targeting the retail market and emphasizing zero-emissions capabilities.
Freightliner is advancing with its eCascadia model, catering to long-haul trucking needs.In September 2023, Rivian secured additional funding to enhance its production capacity and expand the deployment of its electric trucks. Ford is rapidly increasing shipments of its all-electric F-150 Lightning, which has attracted significant consumer interest. Major valuations in the US Electric Truck Market are rising, fueled by government initiatives promoting electric vehicle adoption, such as tax incentives and infrastructure investments. Notably, Lion Electric raised its market valuation with a recent partnership to help deploy electric school buses, supporting the transition toward greener transportation solutions. The market is witnessing a period of robust growth, driven by innovation and a commitment to sustainable transportation.
US Electric Truck Market Segmentation Insights
Electric Truck Market Propulsion Type Outlook
Electric Truck Market Type Outlook
Electric Truck Market End User Outlook
Electric Truck Market Range Outlook
Electric Truck Market Battery Capacity Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 1.91(USD Billion) |
| MARKET SIZE 2024 | 2.5(USD Billion) |
| MARKET SIZE 2035 | 10.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.431% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Nikola, Workhorse Group, Canoo, Chevrolet, Freightliner, Lion Electric, Tesla, Hino Motors, International Truck, Bollinger Motors, Proterra, BYD, Lordstown Motors, Rivian, Ford |
| SEGMENTS COVERED | Propulsion Type, Type, End User, Range, Battery Capacity |
| KEY MARKET OPPORTUNITIES | Enhanced fleet sustainability, Government incentives and subsidies, Charging infrastructure development, Technological advancements in batteries, Growing demand for zero-emission deliveries |
| KEY MARKET DYNAMICS | growing environmental regulations, expansion of charging infrastructure, advancements in battery technology, increasing fleet electrification, rising fuel cost concerns |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Electric Truck Market is expected to be valued at 2.5 billion USD in 2024.
The market is projected to reach a valuation of 10.0 billion USD by 2035.
The expected CAGR for the US Electric Truck Market from 2025 to 2035 is 13.431%.
Battery Electric Vehicles (BEV) hold the largest market value at 1.5 billion USD in 2024.
The market for Plug-in Hybrid Electric Vehicles (PHEV) is expected to reach 2.5 billion USD by 2035.
Major players in the market include Tesla, Nikola, and Freightliner.
The market value for Fuel Cell Electric Vehicles (FCEV) is expected to reach 1.5 billion USD by 2035.
Opportunities arise from demand for sustainable transportation solutions and advancements in battery technology.
Challenges include high initial costs and the need for expanded charging infrastructure.
The competition is intensifying with several emerging players alongside established giants, fostering innovation.
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