Electric Trucks Market Size, Share Global Analysis Report, 2026-2034

Industry Insights

[232+ Pages Report] According to Facts & Factors, the global Electric Trucks market size was estimated at USD 1.51 billion in 2025 and is expected to reach USD 17.09 billion by the end of 2034. The Electric Trucks industry is anticipated to grow by a CAGR of 29.7% between 2026 and 2034. The Electric Trucks Market is driven by stringent emission regulations and advancements in battery technology.

Market Overview

The electric trucks market encompasses vehicles powered by electric motors, utilizing batteries or fuel cells for propulsion, designed for commercial freight and logistics without reliance on internal combustion engines. These trucks focus on reducing emissions and operational costs, incorporating advanced energy storage and charging infrastructure to support heavy-duty transport needs across urban and long-haul applications.

Key Insights

• As per the analysis shared by our research analyst, the global Electric Trucks market is estimated to grow annually at a CAGR of around 29.7% over the forecast period (2026-2034).
• In terms of revenue, the global Electric Trucks market size was valued at around USD 1.51 billion in 2025 and is projected to reach USD 17.09 billion by 2034.
• The global Electric Trucks market is projected to grow at a significant rate due to government incentives and falling battery prices.
• Based on the Propulsion, the BEV segment accounted for the largest market share of around 55% in 2025, due to its zero-emission profile and improving range capabilities.
• Based on the Vehicle Type, the light-duty trucks segment accounted for the largest market share of around 45% in 2025, due to high demand in urban delivery and last-mile logistics.
• Based on the Range, the 151-300 Miles segment accounted for the largest market share of around 50% in 2025, due to balancing cost and practicality for regional hauls.
• Based on region, Asia Pacific was the leading revenue generator in 2025, with 56% share, due to rapid adoption in China and supportive government policies.

Growth Drivers

• Stringent Emission Regulations and Sustainability Goals

Global mandates for reducing carbon footprints in transportation have accelerated the shift toward electric trucks, as fleets comply with zero-emission zones in cities and international climate agreements. This driver fosters innovation in battery efficiency and charging networks, enabling broader deployment in logistics.

Corporate commitments to ESG principles further amplify demand, with companies like Amazon and UPS investing in electric fleets to lower operational emissions. These factors collectively drive market expansion by creating economic incentives through subsidies and tax credits.

Restraints

• High Initial Costs and Limited Infrastructure

The elevated upfront price of electric trucks, driven by expensive batteries, deters small operators despite long-term savings on fuel and maintenance. This restraint is exacerbated in regions with underdeveloped charging stations, limiting range and usability.

Battery supply chain vulnerabilities, including raw material shortages, increase costs and delay production. These issues hinder widespread adoption, particularly for heavy-duty applications requiring robust infrastructure.

Opportunities

• Advancements in Battery Technology and Fast Charging

Innovations like solid-state batteries promise longer ranges and quicker recharges, opening markets for long-haul electric trucks traditionally dominated by diesel. This opportunity attracts investments from tech firms, enhancing vehicle performance.

Government grants for infrastructure development, such as highway charging corridors, facilitate fleet transitions. These advancements could unlock new segments in e-commerce and urban freight, driving sustained growth.

Challenges

• Range Anxiety and Payload Limitations

Current battery weights reduce payload capacity compared to diesel trucks, challenging efficiency in heavy loads over long distances. This issue requires ongoing R&D to optimize energy density without compromising safety.

Integration with existing supply chains poses logistical hurdles, including skilled labor shortages for maintenance. These challenges necessitate collaborative efforts between manufacturers and regulators to standardize solutions.

Report Scope

Market Segmentation

The Electric Trucks market is segmented by Propulsion, Vehicle Type, Range, and region.

Based on Propulsion Segment, the Electric Trucks market is divided into BEV, PHEV, FCEV, and others. The most dominant segment is BEV, which holds the largest share due to its full electric operation without fuel dependency, offering lower operating costs and compliance with emission standards; it drives the market by enabling scalable production and attracting incentives for zero-emission vehicles. The second most dominant is PHEV, providing flexibility with hybrid capabilities for extended ranges; this segment contributes to market growth by bridging the gap for operators transitioning from traditional fuels, reducing initial adoption barriers.

Based on Vehicle Type Segment, the Electric Trucks market is divided into Light Duty Trucks, Medium Duty Trucks, Heavy Duty Trucks, and others. The most dominant segment is Light Duty Trucks, commanding the highest share because of their suitability for urban logistics with shorter routes and frequent stops; it propels market expansion through high volume sales in delivery services, supported by city regulations favoring electric vehicles. The second most dominant is Medium Duty Trucks, used in regional distribution; this segment advances the market by addressing diverse commercial needs, improving efficiency in waste management and construction.

Based on Range Segment, the Electric Trucks market is divided into 150 Miles, 151-300 Miles, Above 300 Miles, and others. The most dominant segment is 151-300 Miles, with the largest share owing to its optimal balance of battery size and operational range for most commercial routes; it fuels market growth by meeting the needs of fleet operators without excessive costs. The second most dominant is Above 300 Miles, gaining traction with battery advancements; it supports market development by enabling long-haul applications, expanding the addressable market beyond urban areas.

Recent Developments

• In May 2024, AB Volvo announced new electric truck models for urban and regional transport, including the FL 16–18 t BEV with air suspension.
• In April 2024, Tesla expanded its Semi production, focusing on fleet partnerships for sustainable logistics.
• In March 2024, BYD launched an updated light-duty electric truck series with improved battery efficiency for Asian markets.

Regional Analysis

• Asia Pacific to dominate the global market

Asia Pacific leads the global electric trucks market, propelled by aggressive government policies promoting electrification and substantial investments in battery manufacturing that lower costs and enhance accessibility. The region's dense urban populations demand efficient last-mile solutions, while export-oriented economies boost production scales. China dominates as the key country, with its vast subsidies and mandates driving massive fleet adoptions in logistics, supported by a robust charging network and domestic champions innovating affordable models for both local and international markets.

North America maintains a strong position in the global electric trucks market, benefiting from federal incentives like the Inflation Reduction Act and corporate sustainability pledges that accelerate fleet transitions. The region's advanced R&D in autonomous tech integrates with electric platforms for efficiency gains. The United States emerges as the dominating country, leveraging its logistics giants and port operations to deploy heavy-duty models, with state-level zero-emission mandates fostering infrastructure growth and partnerships that position it as a leader in innovative trucking solutions.

Europe holds a significant share in the global electric trucks market, driven by stringent EU emission targets and urban air quality initiatives that mandate electric vehicles in city centers. Collaborative efforts among automakers advance hydrogen fuel cell options for long hauls. Germany stands out as the dominant country, utilizing its automotive heritage to develop medium-duty trucks for distribution, aligned with green deal objectives that encourage cross-border infrastructure and expand applications in public transport and construction.

Latin America is emerging in the global electric trucks market, spurred by mining and agriculture sectors seeking cost-effective alternatives amid fuel price volatility. International aid supports pilot programs in urban freight. Brazil leads as the key country, integrating electric models in its biofuel-heavy transport mix for delivery services, with government incentives attracting investments to build local assembly and charging facilities, addressing growing e-commerce demands.

The Middle East & Africa region is gradually adopting the global electric trucks market, fueled by oil diversification strategies and solar-powered charging potential in sunny climates. Infrastructure projects in logistics hubs drive interest. The UAE dominates as the primary country, deploying electric fleets in its smart city initiatives for port and airport operations, with vision plans fostering collaborations to import technology and develop regional manufacturing for sustainable transport.

Competitive Analysis

The global Electric Trucks market is dominated by players:

• BYD Company Ltd.
• Tesla Inc.
• AB Volvo
• Daimler AG
• Rivian Automotive Inc.
• Ford Motor Company
• Scania AB
• Tata Motors
• Workhorse Group Inc.
• Dongfeng Motor Group Co., Ltd.

The global Electric Trucks market is segmented as follows:

By Propulsion

• BEV
• PHEV
• FCEV
• Others

By Vehicle Type

• Light Duty Trucks
• Medium Duty Trucks
• Heavy Duty Trucks
• Others

By Range

• 150 Miles
• 151-300 Miles
• Above 300 Miles
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America