The Rise of Electric Trucks: Market Trends, Challenges & Opportunities (2025)

 As the global push toward sustainability accelerates, one of the most transformative trends in the transportation industry is the rapid emergence of electric trucks. Once considered a niche category, electric trucks are now at the forefront of innovation in commercial mobility. This blog delves into the current state of the electric truck market, its growth drivers, competitive landscape, challenges, and what the future holds.

Market Overview

As per MRFR analysis, the US Electric Truck Market Size was estimated at 1.91 (USD Billion) in 2023. The US Electric Truck Market Industry is expected to grow from 2.5(USD Billion) in 2024 to 10 (USD Billion) by 2035. The US Electric Truck Market CAGR (growth rate) is expected to be around 13.431% during the forecast period (2025 - 2035).

Key Market Drivers

1. Regulatory Push & Emission Norms

Governments worldwide are enacting stringent emissions regulations. The European Union’s Green Deal, the U.S. Inflation Reduction Act, and China’s New Energy Vehicle mandate are major catalysts driving adoption.

2. Total Cost of Ownership (TCO) Advantage

Despite higher upfront costs, electric trucks offer significantly lower TCO due to reduced fuel costs, fewer moving parts, and lower maintenance needs.

3. Fleet Electrification Initiatives

Major companies like Amazon (via Rivian), PepsiCo, FedEx, and UPS have begun rolling out electric delivery trucks to meet internal ESG goals and government mandates.

4. Technological Advancements

Battery technology, particularly lithium iron phosphate (LFP) and solid-state batteries, is enabling longer ranges and shorter charging times, improving fleet viability.

Market Segmentation

Electric Truck Market Propulsion Type Outlook

BEV

PHEV

FCEV

Electric Truck Market Type Outlook

Light Duty Trucks

Medium Duty Trucks

Heavy Duty Trucks

Electric Truck Market End User Outlook

Last-Mile Delivery

Long Haul Transportation

Refuse Services

Field Services

Distribution Services

Electric Truck Market Range Outlook

Up to 200 Miles

Above 200 Miles

Electric Truck Market Battery Capacity Outlook

Less Than 50kwh

50-250 Kwh

Above 250 Kwh

Competitive Landscape

Key Companies in the US Electric Truck Market Include:

Nikola

Workhorse Group

Canoo

Chevrolet

Freightliner

Lion Electric

Tesla

Hino Motors

International Truck

Bollinger Motors

Proterra

BYD

Lordstown Motors

Rivian

Ford

Startups and legacy OEMs alike are investing heavily, often collaborating with battery tech firms and infrastructure companies to improve range, performance, and charging access.

Market Challenges

  • Infrastructure Gaps: A major bottleneck is the limited charging infrastructure, especially for heavy-duty trucks on long-haul routes.
  • High Initial Costs: While TCO is attractive, high upfront vehicle costs can be a barrier for smaller fleet operators.
  • Battery Limitations: Weight, range anxiety, and charging times still pose operational hurdles, particularly for long-distance freight.
  • Supply Chain Risks: EV components like lithium, cobalt, and semiconductors remain vulnerable to global supply shocks.

Regional Insights

North America

The U.S. market is rapidly scaling with support from the Bipartisan Infrastructure Law. California leads with mandates like the Advanced Clean Trucks regulation.

Europe

Stringent emission targets and low-emission zones are driving adoption in urban logistics. Countries like Germany, the Netherlands, and the UK are leading.

Asia-Pacific

China is the world’s largest market for electric trucks, with extensive government incentives and a robust EV ecosystem.

Future Outlook

By 2035, electric trucks are expected to account for 15–20% of all new truck sales globally, with penetration even higher in the light- and medium-duty segments. Innovations in battery-swapping, autonomous driving, and fleet-as-a-service models will further transform the landscape.

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