Electric Truck Market worth $32,133.4 million by 2032, at a CAGR of 29.5%

Globe and Mail

03-07-2025

Electric Truck Market by Propulsion (BEV, PHEV, FCEV), Type (Light-duty Trucks, Medium-duty Trucks, Heavy-duty Trucks), Range, Battery Type, Battery Capacity, Level of Automation, End User, Payload Capacity, and Region - Global Forecast to 2032
The electric truck market is estimated at USD 5,247.2 million in 2025. It is projected to grow at a CAGR of 29.5%, reaching USD 32,133.4 million by 2032.
The electric truck market is swiftly evolving as governments and fleets push for cleaner freight solutions. With prominent players such as AB Volvo and BYD rolling out models for urban delivery and long-haul routes, adoption is accelerating. For instance, in September 2024, AB Volvo launched a new electric truck with a 372-mile range per charge designed for long-haul transport. The model uses advanced battery technology to improve operational efficiency and reduce emissions. Incentives, emission targets, and expanding charging networks are further making electric trucks more practical. Light-duty models are leading adoption in cities, while medium- and heavy-duty segments are gaining momentum. As infrastructure and battery technology improve, electric trucks are poised to reshape global commercial transport.
'Lithium-Nickel-Manganese-Cobalt Oxide is expected to be the largest and fastest growing segment.'
The electric truck market, by battery type, is dominated by the Lithium-Nickel-Manganese-Cobalt Oxide (NMC) battery. Leading manufacturers such as Ford, Scania, and Rivian integrate NMC batteries into their vehicles to optimize performance and range. These batteries have a higher energy density than Lithium Iron Phosphate (LFP) batteries. Additionally, the declining cost of NMC batteries has brought them closer to price parity with LFP batteries, enhancing their market appeal. While LFP batteries are gaining traction, mainly due to their longer lifecycle, the adoption of NMC batteries is expected to rise significantly, particularly across European and North American markets, driven by performance requirements and energy density advantages.
As OEMs expand electric truck offerings across various duty cycles, battery chemistry selection is becoming increasingly application specific. NMC batteries, with their compact size and high-power output, are well-suited for long-haul and heavy-duty operations where space and energy demands are critical. Conversely, LFP batteries are preferred in short-haul, urban, and light-duty applications due to their lower thermal risk and extended cycle life. Manufacturers are also investing in flexible battery platforms to accommodate both chemistries, ensuring adaptability across diverse fleet requirements. This dual-chemistry strategy is expected to drive innovation and competitiveness in the electric truck battery ecosystem.
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'Heavy-duty trucks are anticipated to secure a leading market position. '
By type, heavy-duty trucks are emerging as the most influential segment in the electric truck market, driven by the global push to decarbonize long-haul and high-load freight transportation. These trucks are central to logistics and industrial operations, which contribute disproportionately to carbon emissions. Despite accounting for less than 20% of vehicle sales, medium- and heavy-duty trucks contribute nearly 40% of transport-related greenhouse gas emissions. This imbalance has compelled policymakers, particularly in North America and Europe, to mandate electrification across high-emission commercial fleets. Government frameworks like California's Advanced Clean Trucks (ACT) regulation and Canada's 2040 zero-emission target for MHDVs have fueled OEM investment, accelerated innovation, and increased deployment of electric heavy-duty trucks.
Modern heavy-duty electric trucks now rival diesel counterparts in both performance and range. For instance, the Tesla Semi, with a battery capacity of 900–1000 kWh, offers a range of up to 500 miles and supports Class 8 logistics applications. Similarly, Freightliner's eCascadia, launched by Daimler Truck North America, provides a 200–250 mile range and is used for regional haul and intermodal operations. Volvo's VNR Electric, with a 565 kWh battery pack, offers a range of up to 270 miles and targets heavy-duty urban distribution. These models illustrate how manufacturers are integrating high-capacity batteries and advanced propulsion to serve long-haul, last-mile, and intercity freight demand.
Fleet operators increasingly favor these trucks due to the reduced total cost of ownership (TCO), resulting from savings in fuel, maintenance, and emissions compliance. PepsiCo, for example, began deploying the Tesla Semi to fulfill long-haul logistics in the US, helping the company meet its sustainability commitments with zero tailpipe emissions. As infrastructure scales and regulations tighten, heavy-duty trucks are set to remain pivotal to commercial EV adoption globally.
''The European electric market is projected to grow significantly.''
France, Germany, the Netherlands, Norway, Sweden, and the UK are core markets under the European electric truck landscape. The region is governed by stringent emission regulations, with national governments actively incentivizing the electrification of transport. Policies such as tax exemptions, vehicle purchase subsidies, and infrastructure funding have collectively accelerated the shift toward electric trucks. Countries like Germany and the Netherlands have also introduced aggressive clean mobility programs that align with the EU Green Deal and Fit for 55 climate targets, impacting transport emissions and market expansion.
In 2024, Daimler Truck AG announced a substantial investment into its European e-mobility segment, launching next-generation electric variants such as the Mercedes-Benz eActros 600, which offers over 300 miles of real-world range. Similarly, Volvo Trucks scaled production of its FH Electric and FM Electric models across its Gothenburg and Ghent plants, with confirmed orders from logistics giants such as DFDS and DHL.
Furthermore, Europe is home to the world's leading electric truck manufacturers, including AB Volvo, Mercedes Benz Group AG, and Scania AB. These OEMs are driving innovation in electric powertrain technologies, battery integration, and range performance, positioning the region at the forefront of electric truck production. As manufacturers expand their electric truck portfolios to include light, medium, and heavy-duty variants, fleet operators across logistics, construction, and municipal sectors are increasingly adopting battery-electric alternatives. This well-established industrial base provides the technological foundation and supply chain efficiency needed to scale adoption.
To ensure a smooth transition, European governments are heavily investing in public and private charging infrastructure while continuing to offer long-term support for vehicle electrification. Funding mechanisms under the EU Recovery and Resilience Facility, as well as national climate programs, are prioritizing clean transport projects. With policy alignment, OEM leadership, and improved environmental awareness, the electric truck market in Europe is set for sustained and robust growth.
Key Players
The electric truck market is dominated by global players such as BYD (China), AB Volvo (Sweden), Ford Motor Company (US), Dongfeng Motor Corporation (China), and Rivian (US). These companies have been adopting various strategies to sustain their positions in the market. Major strategies adopted are product launches and deals. These strategies have been analyzed to understand the positions of these companies in the market.