North America Electric Trucks Market Outlook to 2030

North America Electric Trucks Market Overview

• The North America Electric Trucks market is estimated to have reached a market size of approximately USD 12.85 billion in 2023. This growth is primarily driven by increasing demand for environmentally friendly transportation solutions, stringent government regulations on emissions, and rising fuel costs. The adoption of electric trucks is further bolstered by advancements in battery technology, which have led to improved range and reduced charging times, making electric trucks a viable alternative to traditional diesel-powered vehicles.
• Key players in the North America Electric Trucks market include Tesla, Rivian, Daimler Trucks North America, Nikola Corporation, and Ford Motor Company. These companies lead the market due to their strong technological capabilities, extensive service networks, and substantial investments in research and development. Their continuous innovation in electric truck technologies, particularly in battery efficiency and autonomous driving features, helps them maintain a competitive edge in the market.
• Cities like Los Angeles, California, and New York City, New York, dominate the electric trucks market in North America due to their large urban populations and stringent emissions regulations. Los Angeless market leadership is driven by the citys aggressive clean energy goals and substantial investments in EV infrastructure. New York Citys dominance stems from its robust commitment to reducing vehicular emissions through the adoption of electric trucks for municipal and commercial use.
• In 2024, Tesla aimed to ramp up production of its electric Semi truck, with plans to significantly increase output to meet growing demand. However, mass production is now targeted for late 2025, with deliveries to external customers starting in 2026. Tesla is expanding its Megacharger network to support the Semi's adoption in the logistics sector.

North America Electric Trucks Market Segmentation

The North America Electric Trucks Market is divided into the following segments:

• By Vehicle Type: The North America Electric Trucks market is segmented by vehicle type into Light-Duty Trucks, Medium-Duty Trucks, and Heavy-Duty Trucks. In 2023, Heavy-Duty Trucks dominated the market due to their extensive use in long-haul transportation and the availability of high-capacity batteries. Companies like Nikola Corporation are focusing on developing electric trucks with advanced fuel cell technology, making them ideal for heavy-duty applications.
• By End-User: The North America Electric Trucks Market is segmented by end-user into Logistics, Construction, Mining, and Others. In 2023, the Logistics dominated the market due to the growing demand for last-mile delivery services and the push towards green logistics solutions. Companies such as Amazon and UPS have made significant investments in electric trucks to reduce their carbon footprints and meet sustainability targets.
• By Region: The North America Electric Trucks Market is segmented by region into the USA and Canada. In 2023, the USA dominated the market due to its larger market size, greater availability of charging infrastructure, and more aggressive government policies promoting electric vehicle adoption. The U.S. market is characterized by high investments in electric truck manufacturing and supportive policies that encourage fleet operators to transition to electric vehicles.

North America Electric Trucks Market Competitive Landscape

• Rivian Automotive, LLC: In 2024, Rivian secured a significant contract with Amazon to supply additional electric delivery trucks, expanding their partnership. This deal aims to enhance Rivian's production capacity, supported by a new manufacturing facility in Georgia. Rivian's focus on electric trucks for last-mile delivery positions it strongly in the growing logistics sector, catering to rising demand for sustainable delivery solutions.
• Daimler Trucks North America LLC: In 2023, Daimler Trucks North America announced a significant order for 2,000 Freightliner eCascadia electric trucks from Walmart, supporting the retailer's goal of achieving zero emissions across its global supply chain by 2040. This order highlights Daimler's leadership in the heavy-duty electric truck segment and reflects the growing demand for sustainable logistics solutions.

North America Electric Trucks Industry Analysis

North America Electric Trucks Market Growth Drivers

• Expansion of Charging Infrastructure:
  The North American electric truck market is heavily driven by the rapid expansion of charging infrastructure. The U.S. government, under the National Electric Vehicle Infrastructure (NEVI) program, aims to install 500,000 public EV chargers by 2024, significantly boosting the viability of electric trucks for long-haul operations. The availability of fast-charging stations, especially along major highways, will alleviate range anxiety and encourage fleet operators to adopt electric trucks for their operations.
• Corporate Sustainability Initiatives: The adoption of electric trucks is driven by corporate sustainability initiatives, with large logistics companies like Amazon, UPS, and FedEx committing to electrify their fleets. Amazon's order of 15,000 electric delivery trucks from Rivian in 2021 exemplifies the growing demand for zero-emission vehicles. As companies prioritize reducing carbon footprints, this trend is expected to significantly drive electric truck market growth.
• Government Incentives and Subsidies:
  Government incentives continue to play a pivotal role in the adoption of electric trucks. In 2023, the U.S. government provided USD 1.5 billion in grants under the Clean Trucks Initiative to support fleet operators transitioning from diesel to electric trucks. These incentives reduce the upfront costs of electric trucks, making them a more attractive option for businesses. Additionally, the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) continues to offer substantial rebates, further stimulating market demand.

North America Electric Trucks Market Challenges

• Battery Performance and Range Limitations: Battery performance, especially in extreme weather conditions, poses a challenge to the widespread adoption of electric trucks. In cold climates, the range of electric trucks can decrease by up to 30%, impacting their reliability for long-haul operations. Additionally, current heavy-duty electric trucks offer a range of around 300 miles on a full charge, significantly lower than the 1,000-mile range of diesel trucks, which remains a critical concern for fleet operators.
• Supply Chain Constraints: The electric truck market is facing supply chain challenges, particularly in sourcing critical raw materials such as lithium and cobalt, essential for battery production. Global demand for these materials has surged, leading to supply shortages and price increases. The geopolitical tensions affecting major lithium-producing countries have further exacerbated supply constraints, potentially impacting production timelines and increasing costs for electric truck manufacturers.

North America Electric Trucks Market Government Initiatives

• National Electric Vehicle Infrastructure (NEVI) Program (2021):
  Launched in 2021, the NEVI program is central to the U.S. governments strategy to support the adoption of electric vehicles, including electric trucks. The program aims to deploy 500,000 public EV chargers by 2024, with a significant focus on rural and underserved areas. This initiative is critical to addressing the charging infrastructure gap and facilitating the widespread adoption of electric trucks in long-haul and freight transportation sectors.
• California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) (2023): The HVIP program, which was expanded in 2023, offers rebates of up to USD 120,000 per electric truck to fleet operators in California. This initiative is part of the states broader effort to achieve its zero-emission vehicle targets by 2035. The program has significantly boosted the adoption of electric trucks, particularly among logistics companies operating in heavily polluted areas like Los Angeles and San Francisco.

North America Electric Trucks Market Future Outlook

The North America Electric Trucks Market is poised for substantial growth by 2028, driven by the increasing demand for sustainable and efficient transportation solutions. The market is expected to benefit from continued advancements in battery technology, the expansion of charging infrastructure, and supportive government policies.

Future Market Trends

• Adoption of Autonomous Electric Trucks: Over the next five years, autonomous electric trucks are expected to become a significant trend in the North American market by 2028. Companies like Tesla and Waymo are already testing self-driving electric trucks, and as technology matures, these vehicles will be increasingly deployed for long-haul transportation. The combination of autonomy and electrification will offer significant cost savings and operational efficiency, driving the future of the logistics industry.
• Increased Use of Renewable Energy for Charging: Over the next five years, as the market for electric trucks grows, there will be a greater focus on using renewable energy sources to power EV charging stations. By 2028, many major truck stops and logistics hubs in North America are expected to install solar panels and wind turbines to provide clean energy for charging electric trucks. This trend will contribute to further reducing the carbon footprint of the transportation sector.