The heavy-duty truck and off-road vehicle markets are steadily electrifying
Passenger EVs dominate the headlines, but it’s also critical to electrify larger vehicles—heavy-duty trucks and off-road vehicles such as construction and agricultural equipment—as they create a disproportionate amount of air pollution.
Above: A Tesla Semi prototype. Photo: Tesla
Research and Markets recently released a pair of reports that examine these two segments of the commercial EV market.
The company’s “U.S. Electric Truck Market Research Report” analyzes the current e-truck market, offers profiles of key players, and makes some forecasts for the future.
R and M expects revenue from the US electric truck market to grow at an eye-popping compound annual growth rate (CAGR) of 54%, and to exceed $15 billion by 2030.
The report finds that federal, state, and local initiatives are encouraging truck manufacturers to phase out legacy vehicles and replace them with zero-emission alternatives. Another key driver is the declining cost of batteries—R and M expects battery prices to drop to $100 per kWh by 2024.
The reports predicts that, while light-duty trucks made up over 90% of commercial vehicle sales in the US in 2021, the heavy-duty category is set to witness the fastest growth in the coming years. Trucks with a battery capacity of more than 300 kWh and range of over 500 miles will see the fastest rise in demand.
Major OEMs launching electric trucks include Chanje Energy, Orange EV, Mitsubishi Fuso, Nikola, Tesla, Ford, GM, Workhorse Group, BYD and Stellantis.
Another report from Research and Markets looks at the off-road market. “Off-highway Electric Vehicle Market Size, Share & Trends Analysis Report” predicts that the global off-highway EV market will reach $43 billion by 2030—a CAGR of 32%.
Companies in this space include Caterpillar, Volvo, Deere, Komatsu, Sandvik, Hitachi, Epiroc and Doosan.
“Stringent emission regulations by government agencies are driving the demand for off-highway EVs worldwide,” says R and M. “Factors such as lower noise levels and vibrations, lower overhaul cost, and improved efficiency of these vehicles are further contributing to their demand.”
Electrically-propelled equipment also offers advantages such as enhanced efficiency and accuracy and high maneuverability during operations. In the mining sector, EVs decrease exhaust emission inside mines. In agriculture, EVs can be integrated with artificial intelligence in order to analyze crop data during operation in the field.