The Rise of Electric Trucks: Market Trends, Challenges & Opportunities (2025)
As the global push toward sustainability accelerates, one of the most transformative trends in the transportation industry is the rapid emergence of electric trucks. Once considered a niche category, electric trucks are now at the forefront of innovation in commercial mobility. This blog delves into the current state of the electric truck market, its growth drivers, competitive landscape, challenges, and what the future holds.
Market Overview
As per MRFR analysis, the US Electric Truck Market Size was estimated at 1.91 billion USD ) in 2023. The US electric truck market industry is expected to grow from 2.5 billion USD in 2024 to 10 billion USD ) by 2035. The US electric truck market CAGR (growth rate) is expected to be around 13.431% during the forecast period (2025-2035).
Key Market Drivers
1. Regulatory Push & Emission Norms
Governments worldwide are enacting stringent emissions regulations. The European Union’s Green Deal, the U.S. Inflation Reduction Act, and China’s New Energy Vehicle mandate are major catalysts driving adoption.
2. Total Cost of Ownership (TCO) Advantage
Despite higher upfront costs, electric trucks offer significantly lower TCO due to reduced fuel costs, fewer moving parts, and lower maintenance needs.
3. Fleet Electrification Initiatives
Major companies like Amazon (via Rivian), PepsiCo, FedEx, and UPS have begun rolling out electric delivery trucks to meet internal ESG goals and government mandates.
4. Technological Advancements
Battery technology, particularly lithium iron phosphate (LFP) and solid-state batteries, is enabling longer ranges and shorter charging times, improving fleet viability.
Market Segmentation
Electric Truck Market Propulsion Type Outlook
BEV
PHEV
FCEV
Electric Truck Market Type Outlook
Light-Duty Trucks
Medium-Duty Trucks
Heavy-Duty Trucks
Electric Truck Market End User Outlook
Last-Mile Delivery
Long-Haul Transportation
Refuse Services
Field Services
Distribution Services
Electric Truck Market Range Outlook
Up to 200 Miles
Above 200 Miles
Electric Truck Market Battery Capacity Outlook
Less Than 50 kWh
50-250 kWh
Above 250 kWh
Competitive Landscape
Key Companies in the US Electric Truck Market Include:
Nikola
Workhorse Group
Canoo
Chevrolet
Freightliner
Lion Electric
Tesla
Hino Motors
International Truck
Bollinger Motors
Proterra
BYD
Lordstown Motors
Rivian
Ford
Startups and legacy OEMs alike are investing heavily, often collaborating with battery tech firms and infrastructure companies to improve range, performance, and charging access.
Market Challenges
- Infrastructure Gaps: A major bottleneck is the limited charging infrastructure, especially for heavy-duty trucks on long-haul routes.
- High Initial Costs: While TCO is attractive, high upfront vehicle costs can be a barrier for smaller fleet operators.
- Battery Limitations: Weight, range anxiety, and charging times still pose operational hurdles, particularly for long-distance freight.
- Supply Chain Risks: EV components like lithium, cobalt, and semiconductors remain vulnerable to global supply shocks.
Regional Insights
North America
The U.S. market is rapidly scaling with support from the Bipartisan Infrastructure Law. California leads with mandates like the Advanced Clean Trucks regulation.
Europe
Stringent emission targets and low-emission zones are driving adoption in urban logistics. Countries like Germany, the Netherlands, and the UK are leading.
Asia-Pacific
China is the world’s largest market for electric trucks, with extensive government incentives and a robust EV ecosystem.
Future Outlook
By 2035, electric trucks are expected to account for 15–20% of all new truck sales globally, with penetration even higher in the light- and medium-duty segments. Innovations in battery-swapping, autonomous driving, and fleet-as-a-service models will further transform the landscape.
