The automotive sector leads to heavy emissions of greenhouses gases (GHG), which is expected to be the key reason behind the massive 51.6 percent CAGR the U.S. electric truck market would witness during 2020–2030. At this rate, the revenue generated from the sale of these trucks will rise from $211.5 million in 2019 to $15 billion by 2030, according to a report by P&S Intelligence.
The main enabler for the U.S. electric truck market advance would be the initiatives being taken at the state level to transition to a cleaner economy. For instance, since the U.S.’s pullout from the Paris Climate Change Agreement, the District of Columbia and 23 states have initiated policies to drastically reduce their GHG emissions. Subsequently, in most of the states, the emissions have been targeted to be reduced by up to 28 percent from the 2005 levels by 2025.
Despite the call for a greener planet, the U.S. electric truck market hasn’t been immune to the devastating effect that the COVID-19 pandemic has had on the worldwide automotive industry. With manufacturers and major commercial firms in the country forced to shut down their operations, the demand for logistics services has drastically reduced. Due to this, companies are not investing heavily on the purchase of trucks, which has further led to low revenue for electric truck manufacturers, the report states.
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The fastest growth in the U.S. electric truck industry in the years to come would be witnessed by the heavy-duty trucks (HDT) category, based on vehicle type. The growth in the e-commerce sector of the country is leading to the increasing demand for bulk freight services, which are enabled by HDTs. This, coupled with the growing government support for electric mobility, is encouraging trucking companies to purchase HDTs.
During the next decade, the highest value CAGR in the U.S. electric truck market, of 66.1 percent, under segmentation by battery capacity, is predicted to be seen in the >300 kilowatt-hours(kWh) classification. On account of the increasing demand for long-distance logistics services, truck manufacturers are working to launch HDTs with a higher battery capacity.
Logistics has been the highest-revenue-generating application in the U.S. electric truck market, and the same situation would present in the coming years. With the rapid growth being witnessed in the country’s retail, manufacturing, and e-commerce industries, the deployment of electric trucks for logistics will continue increasing.
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The largest revenue contribution to the U.S. electric truck market is made by the state of California. The Californian government is providing $12 million to $20 million annually until 2020 for the purchase of these automobiles. Additionally, in June 2020, the Advanced Clean Truck initiative was launched by the California Air Resources Board (CARB), in order to make sure that 2045 onward, only electric trucks are sold in the state.
To make the most of the rapidly expanding U.S. electric truck market, automakers are increasingly launching newer models of such automobiles, with the following few features, the report states:
- Faster acceleration and higher driving range and power
- Reduced rate of environment degradation
- Higher battery capacities
- Wide price range
- Availability in more than one propulsion option
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The key players in the U.S. electric truck market are Workhorse Group Inc., BYD Co. Ltd., Chanje Energy Inc.,Tesla Inc.,Mitsubishi Fuso Truck and Bus Corp., Fiat Chrysler Automobiles NV, Orange EV, General Motors Co., Nikola Motor Co. and Ford Motor Co., P&S Intelligence says.