Heavy-Duty Trucks Electrification Market Growth Opportunities and Forecast by 2031

The heavy-duty trucks electrification market size is projected to reach US$ 22.60 billion by 2031 from US$ 12.10 billion in 2023. The market is expected to register a CAGR of 10.54% in 2023–2031. The continuously rising number of electric vehicles in the US has led to an increase in demand and the number of EV charging infrastructures. There was a steady rise in the need for public charging stations in the developed as well as developing economies globally. Thus, the growing charging infrastructure is bolstering the adoption of heavy-duty trucks electrification market.

Heavy-Duty Trucks Electrification Market Analysis

The market players present in the market are mainly focusing on product enhancements by the electrification of various components of the heavy-duty automobiles. Many firms are focusing on investing hugely for the electrification of vehicles and enhancing its capabilities and expanding its footprint in various geographies. A few key players included in the global heavy-duty trucks electrification market are Aisin Seiki Co., Ltd., BorgWarner Inc., Continental AG, Delphi Technologies, Denso Corporation, Magna International Inc., Robert Bosch GmbH, Mitsubishi Motors Corporation, ZF Friedrichshafen AG, and Schaeffler Technologies AG And Co. kg.

Heavy-Duty Trucks Electrification Market Overview

Various factors such as the persistent trend in the haulage and commercial vehicle industry for providing greater efficiency with a reduced total cost of ownership and growing implementation of rules and regulations for reducing carbon emission produced from the vehicles are driving the heavy-duty truck electrification market globally. The electrification of commercial vehicles is functioned as business resources, which are anticipated to generate a return along with reduced fuel costs. Similarly, some of the barriers faced by the heavy-duty truck electrification include the electric vehicles must prove its reliability, consumers need to be well- educated to understand the advantages of electric vehicles, and proper training has to be provided to dealers, employees, and customers. The governments are encouraging and creating awareness associated with the advantages of electric vehicles, which influences the demand for heavy-duty truck electrification. Additionally, several governments have implemented strict rules and regulations to restrict the adoption of an internal combustion engine (ICE) vehicles, which has impacted the growth of the heavy-duty truck electrification market positively.

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Heavy-Duty Trucks Electrification Market: Strategic Insights

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Heavy-Duty Trucks Electrification Market Drivers and Opportunities

Growing demand for electric propulsion systems

An electric propulsion system is the next best thing that has struck the automotive industry, which is looking to find new alternatives to reduce its carbon footprint around the world. Various alternative fuels have been deemed as the replacement of fossil fuels for vehicle propulsion. However, alternate fuels such as bio-diesel, compressed natural gas (CNG), and liquefied natural gas (LNG) have tried to substitute diesel and gasoline. Still, lower vehicle performance and degraded engine reliability have hindered its growth from becoming the mainstream fuel. However, an electric vehicle is considered to be the next best alternative to fossil-powered vehicles.

Growing R&D Activities

Moreover, charging infrastructure, higher battery costs, and lower running range are hindering the rise of the electric vehicle into the mainstream. The electric propulsion system for smaller vehicles such as passenger cars is slowly getting into the mainstream and is challenging internal combustion engine (ICE) powered vehicles. Most of the major OEMs are spending a significant amount on the R&D of electric vehicle powertrains. Tesla can be gleaned as the pioneer of electric passenger cars that proved to the world that electric cars could challenge the likes of fossil fuel guzzlers in terms of efficiency, performance, and ride dynamics.

Heavy-Duty Trucks Electrification Market Report Segmentation Analysis

Key segments that contributed to the derivation of the heavy-duty trucks electrification market analysis are components, and powertrain type.

• Based on components, the heavy-duty trucks electrification market has been divided into electric pumps, electric power steering, liquid heater ptc, electric air conditioner compressor, actuator, alternator, others. The electric power steering segment held a larger market share in 2023.
• Based on powertrain type, the heavy-duty trucks electrification market is segmented into fully electric, hybrid, fuel cell, Internal Combustion Engine (ICE). The ICE segment held the largest share of the market in 2023.

Heavy-Duty Trucks Electrification Market Analysis by Geography

The geographic scope of the heavy-duty trucks electrification market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The heavy-duty trucks electrification market is broadly segmented into five major regions—North America, Europe, APAC, MEA, and SAM. North America comprises of the US, Canada, and Mexico. The US is a developed country in terms of the adoption of modern technology, the standard of living, infrastructure, and many others. North America has a developed automotive market and is considered to be the world's largest heavy-duty vehicle production and sales nations across the globe. The automakers across the region are focusing on the development of electric vehicles both for heavy-duty and commercial vehicles. The EVs have gained significant popularity in North America, especially in the US. Canada has the second-largest count for electric vehicles, and the country is escalating in terms of EV counts year on year. Mexico, on the other hand, is still at a promising state of EVs. Attributing to the rising concerns among the individuals as well as the US government, the electric vehicle manufacturers witnessed significant demand for heavy-duty electric vehicles. This factor has led the country to experience remarkable growth in the number of EVs over the years. The growing requirement of heavy-duty trucks for various applications such as the delivery of goods in intercities and urban areas, regional distribution, and international and national transportation has demanded the manufacturer to focus more on the development of electrification of heavy-duty trucks.

Heavy-Duty Trucks Electrification Market Regional Insights

The regional trends and factors influencing the Heavy-Duty Trucks Electrification Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Heavy-Duty Trucks Electrification Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Heavy-Duty Trucks Electrification Market Report Scope

Heavy-Duty Trucks Electrification Market Players Density: Understanding Its Impact on Business Dynamics

The Heavy-Duty Trucks Electrification Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Heavy-Duty Trucks Electrification Market are:

1. Textron Inc.
2. Yamaha Motor Co Ltd
3. The Toro Company
4. Deere & Company
5. Waev Inc

Disclaimer: The companies listed above are not ranked in any particular order.

Heavy-Duty Trucks Electrification Market News and Recent Developments

The heavy-duty trucks electrification market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for heavy-duty trucks electrification market and strategies:

• On March 2023, Hyundai Motor Company and Iveco Group (EXM: IVG) are strengthening their partnership to drive innovation in the commercial vehicle sector. The two companies signed a Letter of Intent (LOI), reinforcing their partnership with a forward view towards electric heavy-duty truck solutions, including both battery electric trucks and fuel cell electric trucks, for European markets. By leveraging the advanced technologies and assets of each party, the two companies expect to accelerate the transition to a sustainable future. (Source: Hyundai Motor Company, Press Release/Company Website/Newsletter)
• On January 2024, As part of its efforts to reduce carbon emissions, Mars and​ ​Einride, ​a freight technology company, ​are partnering to bring ​a fleet of ​300 ​electric and digitally optimized, ​heavy-duty trucks to its network across Europe by 2030. Across Europe it is estimated that the ​​electric operations​ ​will save 20,000 metric tons of CO2e each year by 2030, which is a 10% reduction in Mars Europe’s road transport GHG emissions annually. (Source: Mars, Press Release/Company Website/Newsletter)

Heavy-Duty Trucks Electrification Market Report Coverage and Deliverables

The “Heavy-Duty Trucks Electrification Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed Porter’s Five Forces analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles with SWOT analysis