Heavy Duty Truck Electrification Market Dynamics - 2021 to 2031
The heavy-duty trucks electrification market size is projected to reach US$ 22.60 billion by 2031 from US$ 12.10 billion in 2023. The market is expected to register a CAGR of 10.54% in 2023–2031. The continuously rising number of electric vehicles in the US has led to an increase in demand and the number of EV charging infrastructures. There was a steady rise in the need for public charging stations in the developed as well as developing economies globally. Thus, the growing charging infrastructure is bolstering the adoption of heavy-duty trucks electrification market.
Heavy-Duty Trucks Electrification Market Analysis
The market players present in the market are mainly focusing on product enhancements by the electrification of various components of the heavy-duty automobiles. Many firms are focusing on investing hugely for the electrification of vehicles and enhancing its capabilities and expanding its footprint in various geographies. A few key players included in the global heavy-duty trucks electrification market are Aisin Seiki Co., Ltd., BorgWarner Inc., Continental AG, Delphi Technologies, Denso Corporation, Magna International Inc., Robert Bosch GmbH, Mitsubishi Motors Corporation, ZF Friedrichshafen AG, and Schaeffler Technologies AG And Co. kg.
Heavy-Duty Trucks Electrification Market Overview
Various factors such as the persistent trend in the haulage and commercial vehicle industry for providing greater efficiency with a reduced total cost of ownership and growing implementation of rules and regulations for reducing carbon emission produced from the vehicles are driving the heavy-duty truck electrification market globally. The electrification of commercial vehicles is functioned as business resources, which are anticipated to generate a return along with reduced fuel costs. Similarly, some of the barriers faced by the heavy-duty truck electrification include the electric vehicles must prove its reliability, consumers need to be well- educated to understand the advantages of electric vehicles, and proper training has to be provided to dealers, employees, and customers. The governments are encouraging and creating awareness associated with the advantages of electric vehicles, which influences the demand for heavy-duty truck electrification. Additionally, several governments have implemented strict rules and regulations to restrict the adoption of an internal combustion engine (ICE) vehicles, which has impacted the growth of the heavy-duty truck electrification market positively.
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Heavy-Duty Trucks Electrification Market: Strategic Insights
Market Size Value in US$ 8.28 Billion in 2018 Market Size Value by US$ 25.5 Billion by 2027 Growth rate CAGR of 14.3% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Heavy-Duty Trucks Electrification Market: Strategic Insights
| Market Size Value in | US$ 8.28 Billion in 2018 |
| Market Size Value by | US$ 25.5 Billion by 2027 |
| Growth rate | CAGR of 14.3% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Heavy-Duty Trucks Electrification Market Drivers and Opportunities
Growing demand for electric propulsion systems
An electric propulsion system is the next best thing that has struck the automotive industry, which is looking to find new alternatives to reduce its carbon footprint around the world. Various alternative fuels have been deemed as the replacement of fossil fuels for vehicle propulsion. However, alternate fuels such as bio-diesel, compressed natural gas (CNG), and liquefied natural gas (LNG) have tried to substitute diesel and gasoline. Still, lower vehicle performance and degraded engine reliability have hindered its growth from becoming the mainstream fuel. However, an electric vehicle is considered to be the next best alternative to fossil-powered vehicles.
Growing R&D Activities
Moreover, charging infrastructure, higher battery costs, and lower running range are hindering the rise of the electric vehicle into the mainstream. The electric propulsion system for smaller vehicles such as passenger cars is slowly getting into the mainstream and is challenging internal combustion engine (ICE) powered vehicles. Most of the major OEMs are spending a significant amount on the R&D of electric vehicle powertrains. Tesla can be gleaned as the pioneer of electric passenger cars that proved to the world that electric cars could challenge the likes of fossil fuel guzzlers in terms of efficiency, performance, and ride dynamics.
Heavy-Duty Trucks Electrification Market Report Segmentation Analysis
Key segments that contributed to the derivation of the heavy-duty trucks electrification market analysis are components, and powertrain type.
- Based on components, the heavy-duty trucks electrification market has been divided into electric pumps, electric power steering, liquid heater ptc, electric air conditioner compressor, actuator, alternator, others. The electric power steering segment held a larger market share in 2023.
- Based on powertrain type, the heavy-duty trucks electrification market is segmented into fully electric, hybrid, fuel cell, Internal Combustion Engine (ICE). The ICE segment held the largest share of the market in 2023.
Heavy-Duty Trucks Electrification Market Analysis by Geography
The geographic scope of the heavy-duty trucks electrification market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
The heavy-duty trucks electrification market is broadly segmented into five major regions—North America, Europe, APAC, MEA, and SAM. North America comprises of the US, Canada, and Mexico. The US is a developed country in terms of the adoption of modern technology, the standard of living, infrastructure, and many others. North America has a developed automotive market and is considered to be the world's largest heavy-duty vehicle production and sales nations across the globe. The automakers across the region are focusing on the development of electric vehicles both for heavy-duty and commercial vehicles. The EVs have gained significant popularity in North America, especially in the US. Canada has the second-largest count for electric vehicles, and the country is escalating in terms of EV counts year on year. Mexico, on the other hand, is still at a promising state of EVs. Attributing to the rising concerns among the individuals as well as the US government, the electric vehicle manufacturers witnessed significant demand for heavy-duty electric vehicles. This factor has led the country to experience remarkable growth in the number of EVs over the years. The growing requirement of heavy-duty trucks for various applications such as the delivery of goods in intercities and urban areas, regional distribution, and international and national transportation has demanded the manufacturer to focus more on the development of electrification of heavy-duty trucks.
Heavy-Duty Trucks Electrification Market Report Scope
Heavy-Duty Trucks Electrification Market News and Recent Developments
The heavy-duty trucks electrification market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for heavy-duty trucks electrification market and strategies:
- On March 2023, Hyundai Motor Company and Iveco Group (EXM: IVG) are strengthening their partnership to drive innovation in the commercial vehicle sector. The two companies signed a Letter of Intent (LOI), reinforcing their partnership with a forward view towards electric heavy-duty truck solutions, including both battery electric trucks and fuel cell electric trucks, for European markets. By leveraging the advanced technologies and assets of each party, the two companies expect to accelerate the transition to a sustainable future. (Source: Hyundai Motor Company, Press Release/Company Website/Newsletter)
- On January 2024, As part of its efforts to reduce carbon emissions, Mars and Einride, a freight technology company, are partnering to bring a fleet of 300 electric and digitally optimized, heavy-duty trucks to its network across Europe by 2030. Across Europe it is estimated that the electric operations will save 20,000 metric tons of CO2e each year by 2030, which is a 10% reduction in Mars Europe’s road transport GHG emissions annually. (Source: Mars, Press Release/Company Website/Newsletter)
Heavy-Duty Trucks Electrification Market Report Coverage and Deliverables
The “Heavy-Duty Trucks Electrification Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed Porter’s Five Forces analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles with SWOT analysis
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Components ; Powertrain Type )
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Brazil, Canada, China, India, Italy, Japan, Mexico, Russian Federation, South Africa, United Kingdom, United States
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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