Published Date : 27 Mar 2024
The global zero emission trucks market size surpassed USD 5.93 billion in 2023 and is expected to rise around USD 60.78 billion by 2032, expanding at a CAGR of 29.50% during the forecast period from 2023 to 2032. The zero emission trucks market is observed to expand in the upcoming years with evident government support in order to curb environmental concerns across the globe. Alongside, the expansion of logistics and transportation businesses is observed to fuel the market’s expansion.
The zero emission trucks market is a subcategory of the automotive industry involved in the production, commercialization, and maintenance of trucks and other similar vehicles that utilize non-traditional energy sources. These vehicles may be powered via electricity, hydrogen fuel cells, etc., that do not release exhaust gas or other pollutants in the form of tailpipe emissions. The automotive sector is a major contributor to pollution, especially air, due to the partial burning of the onboard source in fossil fuel-powered vehicles. These growing environmental concerns largely promote the adoption of these electric trucks and fuel cell trucks.
The global zero emission trucks market is observed to grow with the emergence of technologies. Transportation-enhancing technologies are a good indicator of the status of its niche market. Novel ideas and developments of crucial technologies such as GPS, AI and automation, radar sensing, and laser instrumentation are an important part of the growth of the zero-emission truck market. Furthermore, the adoption of computer-controlled technologies has been able to boost the development of these technologies, further developing the market.
However, the expenditure involved in the manufacturing process is observed to act as a major hindering factor for the market. Establishing a robust charging or refuelling infrastructure for zero-emission trucks requires a substantial initial investment. Governments, private companies, or a combination of both are often required to invest heavily in developing the necessary infrastructure, which can strain budgets and financial resources. Obtaining the necessary permits and complying with regulatory requirements for the installation of charging or refueling infrastructure can be a time-consuming and complex process. This can result in delays and increased costs associated with navigating regulatory landscapes.
| Report Coverage | Details |
| Market Revenue in 2023 | USD 5.93 Billion |
| Projected Forecast Revenue by 2032 | USD 60.78 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 29.50% |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
According to market analysis, Asia Pacific holds the fastest-growing zero emission trucks market. This is supported by rapid product launches and the expansion of local companies' services into the global market. For instance, the China-based Zhejiang Geely Holding Group is responsible for releasing the nation's first ever zero emission truck, RD6 EV, into the international market. Similarly, other countries are rapidly expanding their services to maintain their presence in the competitive market landscape as well as meet their sustainability goals. Asian coutries such as Japan, Korea, and China are rapidly engaging in initiatives to support the development of hydrogen refueling station.
North America dominated the global zero emission trucks market in 2023. This is mainly due to lucrative business opportunities emerging in light of various state policies. Some notable projects involve the United States Postal Service Advanced-Drive Transport, Frito-Lay Zero- and Near-Zero Emission Project, and Delivery Vehicle Demonstration and The Green On-Road Linen Delivery Project by the San Joaquin Valley Air Pollution Control District.
Within North America, Canada has shown notable growth in the market. This surge in demand for electric trucks can be easily attributed to advanced technology utilizing various electronic components for various functions. Moreover, numerous companies are adopting strategies such as partnerships and collaborations to strengthen their market position. Aside from the business perspective, the nation's zero emission market growth can be attributed to environmental concerns.
Canada's transportation sector contributes towards 22% of its greenhouse gas emissions. The government's overall plan is to combat this climate challenge through regulatory mandates. According to an external source, Canada aims to make all passenger cars, SUVs, crossovers and light trucks sold by 2035 zero-emission vehicles.
Evolving electric vehicle infrastructure
The growth of charging infrastructure in major cities worldwide opens lucrative opportunities for businesses to participate in the market's growth. Local companies, along with several automotive giants, will capitalize on government funding and grants and simultaneously grow their market presence while developing the smart city infrastructure. Companies often bid on contract segments for public charging ports and service centers. This evolution supports the expansion of heavy-duty electronic vehicle transportation systems.
Market Segmentation
By Vehicle Type
By Source
By Application
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