North America Electric Truck Market Analysis

North America Electric Truck Market Analysis

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Based on vehicle, the market is divided into light duty trucks, medium duty trucks and heavy duty trucks. In 2023, the light duty segment was valued at over USD 900 million. The North American electric truck market is experiencing substantial growth in the light-duty segment, driven primarily by the increasing need for efficient last-mile delivery solutions. As e-commerce continues to expand, the demand for urban and suburban deliveries has surged, creating an ideal environment for light-duty electric trucks to showcase their efficiency and maneuverability advantages.
 

These vehicles' compact dimensions and reduced weight enable them to navigate city streets with ease, while simultaneously offering lower operational costs compared to their heavier electric counterparts. Government incentives aimed at promoting electric vehicle adoption in urban areas have further bolstered the growth of this segment. Additionally, major corporations such as Amazon and UPS are actively transitioning to emission-free delivery fleets, contributing significantly to the rising demand for light-duty electric trucks. This combination of factors has positioned the light-duty segment as a key driver of growth in the market.
 

Based on propulsion, the market is categorized into BEV, HEV, PHEV, FCEV. In 2023, the PHEV segment held a market share of over 55%. Plug-in hybrid electric vehicles (PHEVs) lead the North American electric truck market, owing to their versatility and extended range capabilities. These vehicles combine a conventional engine with an electric battery, providing fleets the flexibility to operate in regions where charging infrastructure is limited.
 

PHEVs alleviate operational concerns by enabling long-distance travel while simultaneously reducing emissions. This hybrid solution particularly appeals to logistics operators transitioning from diesel trucks, as it lowers fuel costs and emissions without complete reliance on electric charging stations. Consequently, PHEVs emerge as a practical choice for diverse operational needs in the trucking industry.
 

U.S. region accounted for a electric truck market share of over 78% in 2023 and is expected to exceed USD 177 billion by 2032. Regulatory incentives and corporate sustainability initiatives are driving the U.S. electric truck market. The Biden administration's focus on clean energy and zero-emission vehicle targets is encouraging investments in electric truck infrastructure, including expanded charging networks and tax incentives for electric vehicle purchases.
 

Concurrently, major logistics companies such as FedEx and Walmart are committing to transition their fleets to electric trucks as part of their broader sustainability strategies. California has become a key market for electric truck adoption, owing to its stringent emission regulations and substantial state-level incentives, which have fostered a strong demand for electric trucks in the United States.
 

The electric truck market in Canada is expanding, driven by the government's active efforts to reduce greenhouse gas emissions. Significant rebates for electric vehicle purchases and more stringent emission regulations are motivating fleet operators to switch to electric trucks. The logistics industry's emphasis on sustainable transportation and the ongoing development of public charging infrastructure further encourage the adoption of electric trucks. Canada's dedication to lowering its carbon footprint, especially in major urban areas such as Toronto and Vancouver, is fueling growth in the market. This growth is supported by initiatives at both the federal and provincial levels.