Electric Trucks Market

Overview

The global electric trucks market was valued at approximately USD 7.8 billion in 2025 and is projected to reach nearly USD 29.2 billion by 2032, expanding at a CAGR of about 20.9% during 2026–2032. This market is driven by increasingly stringent emission regulations for commercial vehicles, rising volatility in diesel fuel prices, and growing pressure on fleet operators to decarbonize freight transportation. Governments across North America, Europe, and parts of Asia Pacific are introducing zero-emission mandates, low-emission zones, and purchase incentives that directly favor electric truck adoption. Urban freight and municipal fleets are among the earliest adopters, as electric trucks enable compliance with regulatory requirements while reducing noise and tailpipe emissions in densely populated areas. Lower operating costs, particularly in high-utilization urban routes, are further strengthening the business case for electric trucks.

Moreover, the electric trucks market is advancing rapidly through improvements in battery energy density, vehicle platform engineering, and charging ecosystem development. In June 2024, Nikola Corporation progressed electric and hybrid truck programs emphasizing infrastructure partnerships and fleet trials for long-haul applications. Advances in lithium-ion battery technology are extending vehicle range and improving durability, making electric trucks suitable for a broader set of duty cycles. Manufacturers are launching purpose-built electric truck platforms optimized for payload efficiency, regenerative braking, and fleet telematics integration. Expansion of depot-based charging infrastructure and introduction of high-capacity fast chargers at logistics hubs are supporting operational feasibility. 

Market Size & Share

Market Dynamics

Stringent Emission Regulations and Decarbonization Targets is the Key Driver

Stringent emission regulations and decarbonization targets are the primary drivers of the electric trucks market. Governments are enforcing stricter carbon emission standards for commercial vehicles to reduce greenhouse gas emissions and improve urban air quality. Fleet operators are under growing pressure to transition toward zero-emission vehicles to meet compliance requirements and corporate sustainability commitments. In March 2025, Tata Motors Limited expanded electric commercial vehicle offerings targeting municipal fleets and urban freight operations in emerging markets. Electric trucks offer a direct pathway to achieve these goals while maintaining operational efficiency, particularly in regulated urban delivery zones and municipal service fleets.

High Upfront Cost and Limited Charging Infrastructure is the Key Restraint

High upfront vehicle costs and limited availability of charging infrastructure remain significant restraints for the electric trucks market. Electric trucks require substantial initial investment due to battery costs, power electronics, and vehicle integration complexity. Development of charging infrastructure for medium and heavy-duty trucks involves high capital expenditure and grid capacity upgrades. These challenges can delay adoption among cost-sensitive fleet operators and in regions where charging networks are still underdeveloped.

Expansion of Urban Logistics and Zero Emission Delivery Zones is the Key Opportunity

Expansion of urban logistics operations and establishment of zero-emission delivery zones present major growth opportunities for the electric trucks market. Rapid growth of e-commerce and same-day delivery services has increased demand for clean, efficient urban freight solutions. Electric trucks are well suited for predictable routes and stop-and-go traffic, offering operational cost savings and regulatory compliance. Government incentives and preferential access policies further strengthen adoption opportunities in urban logistics.

Battery Performance and Operational Flexibility is the Key Challenge

Battery performance and operational flexibility remain critical challenges for widespread electric truck deployment. Heavy payload requirements, long-distance routes, and variable duty cycles can strain battery systems and limit range. Fleet operators must carefully manage route planning, charging schedules, and vehicle utilization to ensure reliability. Continued advancement in battery technology, fast charging solutions, and energy management systems is essential to overcome these challenges and support broader electric truck adoption.

Key Insights

The report will cover the following key insights:

• Overview of Parent Market
  
• Supply Chain Analysis
• Regulatory Analysis
• Industry SWOT Analysis
• Key Industry Developments
• Qualitative Analysis related to Covid-19

Electric Trucks Market Size, 2021-2032 (USD Billion)

Segmentation Analysis

Analysis by Vehicle Type

The light duty electric trucks category held the largest market share of 55% in 2025, supported by early adoption across urban logistics, municipal services, and last-mile delivery operations. Light duty electric trucks are well suited for short and medium routes with predictable duty cycles, making them ideal for city-based freight movement. Lower battery size requirements, faster charging turnaround, and easier integration into existing fleet operations have driven higher penetration in this segment. 

The medium duty electric trucks category will grow at the fastest CAGR of approx. 20.4% during the forecast period, driven by expanding use in regional freight, utility services, and mid-range logistics operations. Medium duty trucks offer a balance between payload capacity and electric range, enabling replacement of diesel trucks in a wider range of commercial applications. 

Vehicle Type categories include:

• Light Duty Electric Trucks (Largest Category)

• Medium Duty Electric Trucks (Fastest-Growing Category)

• Heavy Duty Electric Trucks

Analysis by Propulsion Type

The battery electric trucks category held the larger market share of 70% in 2025, reflecting strong regulatory support and technological maturity compared to hybrid alternatives. Battery electric trucks deliver zero tailpipe emissions, lower operating costs, and simpler drivetrain architecture, making them the preferred choice for fleet electrification strategies. 

The plug-in hybrid electric trucks category will grow at the faster CAGR of approx. 20.6% during the forecast period, driven by demand for transitional solutions in regions with limited charging infrastructure. Plug in hybrid trucks provide extended operational flexibility by combining electric propulsion with internal combustion backup, enabling longer routes and heavier duty cycles. 

Propulsion Type categories include:

• Battery Electric Trucks (Larger Category)

• Plug In Hybrid Electric Trucks (Faster-Growing Category)

Analysis by Range

The medium range (regional, 150–400 km) category held the largest market share of 60% in 2025, This range allows fleet operators to complete daily operations on a single charge, recharge overnight at depots, and avoid the high cost and weight of very large batteries. 

The long range (long-haul, >400 km) category will grow at the fastest CAGR of approx. 20.9% during the forecast period. Advancements in battery energy density, falling battery costs, and the rollout of high-power fast-charging and megawatt charging systems are making long-distance electric trucking increasingly viable. 

Range categories include:

• Short Range (urban, =150 km) 

• Medium Range (regional, 150–400 km) (Largest Category)

• Long Range (long-haul, >400 km) (Fastest-Growing Category)

Analysis by Level of Automation

The partial automation (level 2 and level 3) category held the largest market share of 60% in 2025, level 2 and level 3 systems support the driver with features such as adaptive cruise control, lane keeping, collision avoidance, and traffic assist, while the driver remains responsible for control. 

The high autonomous (level 4 & level 5) category will grow at the fastest CAGR of approx. 20.2% during the forecast period, because the industry is moving toward fully autonomous freight operations, especially for long-haul and hub-to-hub routes.

Level of Automation categories include:

• Semi-autonomous (Level 1)

• Partial Automation (Level 2 and Level 3)

• High Autonomous (Level 4 and Level 5)

Analysis by Payload Capacity

The up to 10,000 lbs category held the largest market share of 65% in 2025, because most electric trucks currently operate in urban and short-distance applications. Last-mile delivery, e-commerce logistics, municipal services, and city distribution mainly require lighter payloads. 

Above 26,000 lbs category will grow at the fastest CAGR of approx. 20.6% during the forecast period, because the market is now expanding toward heavy-duty and long-haul freight electrification. Governments and logistics companies are targeting emissions reduction in large commercial vehicles, which contribute significantly to transportation emissions. 

Payload Capacity categories include:

• Up to 10,000 lbs (Largest Category)

• 10,001–26,000 lbs 

• Above 26,000 lbs (Fastest-Growing Category)

Analysis by Application

The logistics and freight transportation category held the largest market share of 45% in 2025, driven by rapid electrification of delivery fleets and regional freight operations. Logistics operators are under increasing pressure to reduce emissions, control fuel costs, and meet sustainability commitments. 

The municipal and utility services category will grow at the fastest CAGR of approx. 20.8% during the forecast period, supported by government-led fleet electrification initiatives. Municipal vehicles typically operate on fixed routes with centralized depots, making them well suited for electric truck deployment. 

 Application categories include:

• Logistics and Freight Transportation (Largest Category)

• Municipal and Utility Services (Fastest-Growing Category)

• Construction and Mining

• Retail and E commerce Distribution

Analysis by End User

The fleet operators category held the largest market share of 45% in 2025, reflecting strong investment by large commercial fleets seeking to optimize operating costs and reduce emissions. Fleet operators benefit from scale efficiencies, centralized charging infrastructure, and data-driven fleet management systems that support electric vehicle deployment. 

The municipal authorities category will grow at the fastest CAGR of approx. 20.7% during the forecast period, driven by public-sector commitments to zero-emission transportation. Government fleets are increasingly mandated to transition toward electric vehicles, supported by dedicated funding and procurement programs. 

 End User categories include:

• Fleet Operators (Largest Category)

• Municipal Authorities (Fastest-Growing Category)

• Logistics and Transportation Companies

• Construction Companies

By Region

Electric Trucks Market Regional Analysis

Europe held the largest market share of 40% in 2025, supported by stringent emission regulations, aggressive climate targets, and strong government incentives for zero-emission commercial vehicles. Countries such as Germany, France, the Netherlands, and Nordic nations have implemented low-emission zones and fleet electrification mandates that directly favor electric trucks. High fuel prices, dense urban freight networks, and well-developed charging infrastructure are accelerating adoption across logistics and municipal fleets. Strong presence of electric truck manufacturers and supportive regulatory frameworks continue to reinforce Europe’s leadership position in the global electric trucks market.

Asia Pacific will grow at the fastest CAGR of approx. 21.5% during the forecast period, driven by rapid urbanization, expanding e-commerce activity, and strong government support for electric commercial vehicles. China leads regional adoption through large-scale deployment of electric trucks in urban logistics and municipal applications, supported by subsidies and domestic manufacturing capacity. Growing investment in charging infrastructure and rising fuel costs are encouraging adoption across other regional markets. Lower current penetration compared to Europe, combined with large fleet sizes and urban growth, positions Asia Pacific as the fastest-growing regional market.

Countries and region include:

• North America 

o U.S. (Larger and Faster-Growing Country Market)

o Canada 

• Europe (Largest Regional Market)

o   Germany (Largest Country Market)

o   U.K. (Fastest-Growing Country Market)

o   France

o   Italy

o   Spain

o   Rest of Europe

• Asia Pacific (Fastest-Growing Regional Market)

o   China (Largest Country Market)

o   India (Fastest-Growing Country Market)

o   Japan

o   South Korea

o   Australia

o   Rest of APAC

• Latin America

o Brazil (Largest Country Market)

o Mexico (Fastest-Growing Country Market)

o Rest of LATAM

• Middle East and Africa

o   Saudi Arabia (Largest Country Market)

o   South Africa (Fastest-Growing Country Market)

o   U.A.E.

o   Rest of MEA

Market Share

The electric trucks market is moderately fragmented, characterized by the presence of established commercial vehicle manufacturers, emerging electric-only players, and regional OEMs. Competition is driven by vehicle range, payload capability, charging compatibility, and total cost of ownership. While leading manufacturers benefit from scale, brand recognition, and distribution networks, new entrants compete through specialized electric platforms and partnerships with fleet operators. 

Key Players Covered

• Volvo Group (Sweden)

• Daimler Truck AG (Germany)

• BYD Company Limited (China)

• PACCAR Inc. (U.S.)

• Tata Motors Limited (India)

• Nikola Corporation (U.S.)

• Scania AB (Sweden)

• IVECO Group N.V. (Italy)

• Isuzu Motors Limited (Japan)

• MAN Truck & Bus SE (Germany)

Market News

• In October 2024, Volvo Group expanded electric truck production capacity focusing on regional freight and urban logistics applications to meet rising demand across European markets.

• In January 2025, Daimler Truck AG strengthened its electric truck portfolio emphasizing improved battery range and fleet charging solutions for commercial customers.

• In August 2024, BYD Company Limited scaled deployment of electric trucks across urban logistics fleets supporting zero-emission delivery programs in major cities.

• In November 2024, PACCAR Inc. advanced electric truck development focusing on medium and heavy-duty platforms optimized for regional haul operations.

Frequently Asked Questions