Due to the high amounts of greenhouse gases (GHG) being emitted from vehicles, the federal and state governments in the U.S. are stepping up efforts to make transportation cleaner, according to IDTechEx‘s recent Electric Trucks 2020-2030 report.
Since the exit of the nation from the Paris Climate Change Agreement, 23 states, along with the District of Columbia, have set strict GHG emission reduction targets. Under the terms, emission of nitrogen oxide and carbon dioxide are to be reduced by 28% by 2025, from the levels registered in 2005.
Due to this reason, the revenue generated in the U.S. electric truck market, which was $211.5 million in 2019, is projected to increase to $30,335.3 million in 2030, at a CAGR of 58.2% between 2020 and 2030 (forecast period). Additionally, the government, in California, which is the largest user of electric trucks in the nation, is providing $12-20 million, annually till 2020, for the purchase of these automobiles.
In 2030, the battery electric vehicle (BEV) category is expected to dominate the U.S. electric truck market, on account of the government support which encourages the adoption of full-electric trucks. Moreover, with the decline in battery prices and increase in the life and energy density of the batteries, the demand for BEVs would rise further.
Heavy-duty trucks (HDT) would witness the highest CAGR in the U.S. electric truck market, of 103.2%, in terms of value, during the forecast period. This is ascribed to the rising demand for freight services, as a result of the swift growth in the e-commerce industry. Seeing the demand and the supportive government regulations for electric vehicles, trucking firms are focusing on procuring electric HDTs for their fleet.
In the coming years, the fastest growth in the U.S. electric truck market would be experienced by the >500 miles division, due to the rising preference for long-range trucks that lead to almost zero emissions. To cater to the requirement, truck manufacturers are stepping up efforts to offer long-haul variants with hydrogen fuel cells.
In 2019, the logistics classification generated the highest revenue in the U.S. electric truck market, and the situation would be the same in the coming years. This is attributed to the rising demand for logistics services on account of the expanding e-commerce, retail and manufacturing sectors in the nation.
To read the summary and or download IDTechEx’s Electric Trucks 2020-2030 report, click here.
Source: https://ngtnews.com/government-initiatives-to-boost-electric-truck-market
