Zero-Emission Trucks Market Size, Share, Trends, Growth and Forecast 2032

Zero-Emission Trucks Industry Prospective:

The global zero-emission trucks market size was worth around USD 5.89 billion in 2023 and is predicted to grow to around USD 56.7 billion by 2032 with a compound annual growth rate (CAGR) of roughly 28.6% between 2024 and 2032.

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Zero-Emission Trucks Market: Overview

A truck that doesn't release any pollutants or exhaust gas from its internal power source is known as a zero-emission truck. Additionally, according to the California definition, this covers all potential operational modes and circumstances. This is because, for instance, internal combustion engines often create the most emissions upon cold-starting. Transportation is identified as the primary source of greenhouse gases (GHG) and other pollutants in several nations and states.

Therefore, there is a strong political urge to reduce this. The zero-emission truck market is driven by several factors, such as stringent environmental regulations, corporate sustainability goals, technological advancements, government incentives and investment, rising fuel costs and operational savings, and many others.

Key Insights

• As per the analysis shared by our research analyst, the global zero-emission trucks market is estimated to grow annually at a CAGR of around 28.6% over the forecast period (2024-2032).
• In terms of revenue, the global zero-emission trucks market size was valued at around USD 5.89 billion in 2023 and is projected to reach USD 56.7 billion by 2032.
• The increasing collaboration among the key players is expected to drive the zero-emission trucks market over the forecast period.
• Based on vehicle type, the light-duty trucks segment is expected to dominate the zero-emission trucks market over the forecast period.
• Based on source, the Battery Electric Trucks (BEVs) segment is expected to hold the largest market share over the forecast period.
• Based on application, the logistics and transportation segment is expected to hold the largest revenue share over the forecast period.
• Based on region, North America is expected to dominate the market during the forecast period.

Zero-Emission Trucks Market: Growth Drivers

Stringent environmental regulations drive market growth

The Zero-Emission Trucks Market is driven mostly by rigorous environmental rules, which also fastens its expansion by imposing high emissions limits and rewarding greener technologies. Policies aiming at phase-off of internal combustion engines (ICEs) and support of zero-emission alternatives—including battery-electric and hydrogen fuel cell trucks—are being followed by governments and regulatory authorities all around. About total EU carbon dioxide (CO2), the primary greenhouse gas causing climate change, passenger automobiles and light commercial vehicles (vans) respectively account for roughly 16% and 3%. Thus, the demand for zero-emission trucks will be driven by growing government control of all kinds to lower greenhouse gas pollution.

For instance, the European Parliament and the Council changed the Regulation in April 2023 to improve the CO2 emission performance criteria for new passenger vehicles and vans, therefore bringing them into line with the EU's aim to achieve climate neutrality by 2050. This amendment set a 100% emission reduction objective for vans and vehicles from 2035 onward and strengthened the emission targets starting from 2030.

Zero-Emission Trucks Market: Restraints

High initial cost hinders market growth

One of the main challenges confronting the business is zero-emission trucks' high starting cost compared to traditional diesel trucks. The cost of lithium-ion batteries is one of the primary determinants since they can account for up to 40–50% of the total cost of the truck. Larger batteries needed in long-distance trucks drive expenses even more. Moreover, fuel cell systems and hydrogen storage tanks are expensive as hydrogen-generating technology is still in its early phases. Green hydrogen production and distribution still have somewhat high costs.

Furthermore, zero-emission trucks have relatively small manufacturing numbers as compared to conventional trucks, and their market is still in the developing phases. Mass production is not viable; hence, costs per unit increase. Thus, the main obstacle to zero-emission truck industry growth is the high starting cost of zero-emission trucks.

Zero-Emission Trucks Market: Opportunities

Rising collaboration among automotive manufacturers and e-commerce companies offers a lucrative opportunity for market growth

The growing collaboration among automotive manufacturers and e-commerce companies is expected to offer a lucrative opportunity to the zero-emission trucks market during the analysis period. For instance, in August 2023, to further facilitate the electrification of Amazon's middle-mile and last-mile delivery operations in India, Eicher Trucks and Buses, a business division of VE Commercial Vehicles Limited (VECV), announced a partnership with the online retailer. By aiming to deploy up to 1,000 state-of-the-art, zero-emission electric trucks across multiple payload categories into Amazon's delivery operations over the next five years through Amazon's transport service partners, this partnership between VECV and Amazon marks an important milestone.

Over the next few months, Amazon will gradually install 50 Eicher electric trucks in important locations, including Delhi, Manesar, and Gurugram, as a first step in the partnership. Eicher's well-established electric vehicle platform, which is now in use in bus applications, will serve as the foundation for its electric trucks with cutting-edge digital capabilities. Custom cargo stacking arrangements will be installed on trucks with deck lengths between around eight and twenty-four feet. There will be choices for both fast and slow charging to accommodate the requirements of particular operations. The service solution also takes into account the fleet's overall energy management plans, operational needs, charging time limits, battery capacity, and the availability of charging infrastructure.

Zero-Emission Trucks Market: Challenges

Limited charging and refueling infrastructure pose a major challenge to market expansion

A main challenge in the market for zero-emission trucks is the lack of appropriate infrastructure for fueling and charging trucks. Particularly for heavy-duty and long-distance operations, this limitation influences the absorption and feasibility of hydrogen fuel cell and battery-electric trucks. Especially on long-distance goods routes, public charging outlets for battery-electric trucks (BETs) are rare. Heavy-duty trucks are sometimes incompatible with the charging networks that are presently in place, which are essentially designed for passenger cars due to size and power needs.

Moreover, the electrification of heavy-duty transportation strains already due to existing electrical systems. Grid changes are needed to satisfy the demand for power of large fleets charging simultaneously. Thus, the limited charging and refueling infrastructure poses a major challenge for the zero-emission trucks market.

Zero-Emission Trucks Market: Report Scope

Zero-Emission Trucks Market: Segmentation

The global zero-emission trucks industry is segmented based on vehicle type, source, application, and region.

Based on vehicle type, the global zero-emission trucks market is segmented into electric light-duty trucks, electric medium-duty trucks, and electric heavy-duty trucks. The light-duty trucks segment is expected to dominate the market over the forecast period. Demand is driven by rising consumer awareness and a preference for eco-friendly automobiles. Due to their decreased environmental effect and lower long-term expenses (fuel and maintenance), zero-emission trucks are preferred by many consumers, particularly in urban areas. This trend is reflected in the rising demand for electric trucks such as the Chevy Silverado EV, Rivian R1T, and Ford F-150 Lightning.

Based on source, the global zero-emission trucks industry is bifurcated into Battery Electric Trucks (BEVs), hydrogen fuel cell electric trucks, and hybrid electric trucks. The Battery Electric Trucks (BEVs) segment is expected to hold the largest market share over the forecast period. BEV adoption in the trucking industry is being pushed by governments throughout the world that are enforcing strict environmental laws and emissions limits. For instance, boosting sales of zero-emission trucks, particularly heavy-duty trucks, by 2035 is required by California's Advanced Clean Trucks (ACT) laws and the European Union's CO₂ reduction targets.

Based on application, the global zero-emission trucks industry is bifurcated into last mile delivery, logistics and transportation, construction, and waste management. The logistics and transportation segment is expected to hold the largest revenue share over the forecast period. Investments in zero-emission truck infrastructure, charging networks, and technologies are flooding the logistics and transportation industry. Public and private companies are funded by infrastructure for charging electric vehicles, research and development (R&D) for zero-emission trucks, and hydrogen refueling stations.

For instance, the U.S. Infrastructure Investment and Jobs Act and the EU's Connecting Europe Facility (CEF) provide large sums of money for EV infrastructure, which will help the logistics and transportation industries transition to zero-emission trucks.

Zero-Emission Trucks Market: Regional Analysis

North America dominates the market over the projected period

North America is expected to dominate the global zero-emission trucks market. Strong governmental regulations, regulatory pressures, and the growing use of electric and hydrogen-powered trucks in the logistics and transportation industries are the main factors propelling the geographical expansion of the zero-emission vehicles market.

With zero-emission trucks at the forefront of the region's transformation to a greener economy, North America—especially the United States and Canada—is dramatically shifting towards clean and sustainable transportation options. However, the Asia Pacific is expected to grow at the highest CAGR over the forecast period. The regional expansion of the market is attributed to the increasing government regulations and the growing e-commerce sector.

Zero-Emission Trucks Market: Competitive Analysis

The global zero-emission trucks market is dominated by players like:

• BYD Automotive
• Xos Trucks
• Daimler Truck
• Mitsubishi Fuso
• Iveco Group
• Navistar International
• Hyundai Motor Company
• Nikola Corporation
• Scania
• Lion Electric
• Tesla
• Paccar
• Lightning eMotors
• Volvo Trucks
• Cummins

The global zero-emission trucks market is segmented as follows:

By Vehicle Type

• Electric Light-Duty Trucks
• Electric Medium-Duty Trucks
• Electric Heavy-Duty Trucks

By Source

• Battery Electric Trucks (BEVs)
• Hydrogen Fuel Cell Electric Trucks
• Hybrid Electric Trucks

By Application

• Last Mile Delivery
• Logistics and Transportation
• Construction
• Waste Management

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa