According to Cognitive Market Research, the global Light Duty Vehicle Market size is USD 613.50 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031. Market Dynamics of Light Duty Vehicle Market

Key Drivers for Light Duty Vehicle Market

E-commerce Growth Boosting Demand - The growing e-commerce industry is significantly driving the light duty vehicle market. With the surge in online shopping, there is an increased demand for efficient last-mile delivery solutions. This has led to a rise in the need for vans and light-duty trucks to transport goods from distribution centers to consumers. E-commerce companies are expanding their delivery fleets to meet the high demand for quick and reliable delivery services, thereby boosting the market for light duty vehicles.
Technological advancements in vehicle safety and efficiency are propelling the adoption of light duty vehicles.

Key Restraints for Light Duty Vehicle Market

The exorbitant expense of installing and maintaining cutting-edge technology poses a serious threat to the smart port industry.
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Introduction of the Light Duty Vehicle Market

Light Duty Vehicles (LDVs) encompass a range of vehicles including pickup trucks, vans, and light-duty trucks typically used for personal transportation, commercial, and industrial purposes. These vehicles generally have a gross weight ranging from 6,000 to 14,000 pounds and are powered by various fuel types, including gasoline, diesel, and electric. The market growth for LDVs is driven by increasing demand in sectors such as logistics, e-commerce, construction, and utility services. Advances in fuel efficiency, environmental regulations pushing for lower emissions, and the growing adoption of electric vehicles are key dynamics shaping the market. Additionally, the surge in online shopping has amplified the need for efficient last-mile delivery vehicles, further propelling market expansion. Despite these growth drivers, challenges such as high initial costs of electric vehicles and fluctuating fuel prices pose constraints to the market.

The increasing number of SUVs and pickup trucks is projected to help the market grow. Consumers are increasingly drawn to these vehicles because of their size, adaptability, and ability to tackle a variety of terrains. This tendency is especially prevalent in developing nations, as an expanding middle class needs automobiles that can accommodate families and support their lifestyles. Thereby, the market size surpass USD 599.5 Billion valued in 2023 to reach a valuation of around USD 1194.54 Billion by 2031. Furthermore, higher government emissions rules are driving the sector towards more sustainable technology, with electric and hybrid vehicles gaining favor. This shift towards environmentally friendly light duty vehicles is likely to accelerate market growth. The rising demand for cost-effective and efficient global on board charger is enabling the market grow at a CAGR of 9% from 2024 to 2031.

Light Duty Vehicle Market: Definition/ Overview The light duty vehicle includes a wide range of vehicles meant primarily for personal or light commercial use, which are often distinguished by their reduced weight and size when compared to heavy-duty counterparts. These vehicles include passenger cars, sport utility vehicles (SUVs), crossover utility vehicles (CUVs), and light trucks with a gross vehicle weight rating (GVWR) less than a specified threshold, which is often around 8,500 pounds (3,855 kilograms). They are designed for a wide range of applications, including daily commuting, holidays, and small-scale cargo transportation. The light-duty vehicle market is an important part of the automobile industry, reflecting global consumer tastes and needs.

In recent years, the light-duty vehicle is undergoing major changes as a result of technology breakthroughs, environmental concerns, and altering consumer tastes. The push for sustainability and energy efficiency has resulted in the development and adoption of alternative powertrains such as hybrid, electric, and fuel cell vehicles, as well as modifications to standard internal combustion engines to improve fuel economy and lower emissions.

World Light Duty Vehicle is segmented by Application (Transportation, Delivery Services, Personal Use, Recreation, Commercial Use), Type (SUVs, Trucks, Vans, Sedans)

Light Duty Truck Market size is expected to be worth around USD 3.3 Trillion by 2034, from USD 1.5 Trillion in 2024, at a CAGR of 8.3%.

Los Angeles, Orange, and San Diego were the counties with the largest light-duty vehicle market. In Los Angeles, nearly ******* new vehicles were registered in 2023, a quarter of which were zero-emission vehicles (ZEVs). Santa Clara and Alameda were the counties among the fifteen largest light vehicle markets that recorded the highest share of ZEV sales at **** and **** percent, respectively.

This time series represents electric vehicles as a share of the global light duty vehicle fleet between 2025 and 2040. It is expected that, by 2040, electric vehicles will account for some ** percent of the global light duty vehicle fleet.

The global light duty vehicle (LDV) market, valued at $690.13 million in 2025, is projected to experience robust growth, driven by a Compound Annual Growth Rate (CAGR) of 6.3% from 2025 to 2033. This expansion is fueled by several key factors. Rising disposable incomes in developing economies, particularly in Asia-Pacific, are increasing demand for personal vehicles. Furthermore, advancements in automotive technology, including the rise of electric vehicles (EVs) and improved fuel efficiency in internal combustion engine (ICE) vehicles, are reshaping the market landscape. The shift towards automation, with increasing adoption of automatic transmissions, is another significant driver. Government regulations promoting cleaner vehicles and stricter emission norms are also pushing manufacturers to innovate and invest in greener technologies, further stimulating market growth. However, fluctuating fuel prices, economic downturns, and the high initial cost of EVs pose challenges to market expansion. Segmentation analysis reveals a dynamic interplay between vehicle type (automatic, manual, CVT) and application (fuel cars, electric cars). The electric car segment is expected to witness significant growth throughout the forecast period, driven by environmental concerns and technological advancements in battery technology and charging infrastructure. Competition among established players like General Motors, Toyota, Ford, and others is intense, prompting continuous innovation and strategic partnerships to capture market share across different regions. The geographical distribution of the LDV market is diverse, with North America and Europe currently holding significant shares. However, rapid economic growth and increasing urbanization in Asia-Pacific, particularly in China and India, are expected to drive substantial market expansion in this region over the forecast period. The market's evolution will be shaped by the ongoing competition between established automakers and the emergence of new players focusing on EVs and innovative automotive technologies. Successful players will be those that adapt quickly to changing consumer preferences, technological advancements, and evolving regulatory landscapes, particularly concerning sustainability and emission standards. Understanding the regional variations in consumer preferences and regulatory environments is crucial for effective market penetration and strategic decision-making within the LDV industry.

Light Duty Vehicle Market Outlook

The global light-duty vehicle market size in 2023 is estimated to be valued at approximately $600 billion and is projected to reach $900 billion by 2032, growing at a compound annual growth rate (CAGR) of around 4.5%. This growth can be attributed to several factors, including increasing urbanization, the rise in disposable incomes, and the growing awareness of environmental sustainability which is driving the demand for electric and hybrid vehicles.

One of the primary growth factors of the light-duty vehicle market is the increasing urban population across the globe. With more people moving into cities, there is a rising demand for personal and commercial vehicles that are suitable for urban environments. The convenience and flexibility offered by light-duty vehicles make them an ideal choice for city dwellers who require efficient and versatile transportation options. Additionally, the proliferation of ride-sharing and car-sharing services in urban areas has further fueled the demand for light-duty vehicles.

Technological advancements are another key driver of market growth. The automotive industry is witnessing rapid innovations, particularly in the realms of electric and hybrid technology. The development of more efficient batteries, enhanced charging infrastructure, and advancements in autonomous driving technology are making electric and hybrid light-duty vehicles more accessible and attractive to consumers. Governments around the world are also providing incentives and subsidies to promote the adoption of electric vehicles, which is significantly boosting market growth.

Environmental concerns and stringent emission regulations are also propelling the growth of the light-duty vehicle market. Governments and regulatory bodies are imposing stricter emission norms to combat air pollution and reduce greenhouse gas emissions. This has led manufacturers to invest heavily in the development of cleaner and more fuel-efficient vehicles. The shift towards electric and hybrid propulsion systems is a direct response to these regulations, as they offer a viable solution to meet emission standards while providing the necessary performance and reliability.

From a regional perspective, the Asia Pacific region is expected to dominate the light-duty vehicle market over the forecast period. The region's large population, rapid economic growth, and increasing disposable incomes are driving the demand for light-duty vehicles. Countries like China and India are witnessing significant growth in vehicle sales, supported by government initiatives to promote electric vehicle adoption. North America and Europe are also key markets, with high demand for both personal and commercial light-duty vehicles driven by technological advancements and environmental regulations.

Vehicle Type Analysis

The light-duty vehicle market is segmented by vehicle type into passenger cars and light commercial vehicles. Passenger cars dominate this segment, driven by the increasing demand for personal transportation. The convenience, comfort, and status associated with owning a passenger car make it a popular choice among consumers. Moreover, the availability of a wide range of models and price points allows consumers to choose vehicles that fit their needs and budgets, further fueling demand in this segment.

Light commercial vehicles (LCVs) are also experiencing significant growth, particularly in the logistics and e-commerce sectors. The rise of online shopping has led to increased demand for efficient last-mile delivery solutions, where LCVs play a crucial role. These vehicles offer the versatility and capacity needed to transport goods within urban and suburban areas, making them an essential part of the modern supply chain. Additionally, advancements in LCV technology, including electric and hybrid models, are enhancing their appeal to businesses looking to reduce their carbon footprint.

The passenger car segment is likely to remain dominant throughout the forecast period, driven by continuous innovations and the introduction of new models by leading automotive manufacturers. Companies are focusing on developing passenger cars with advanced features, improved fuel efficiency, and enhanced safety to attract a broader consumer base. The shift towards electric and hybrid passenger cars is also gaining momentum, supported by government incentives and growing consumer awareness of environmental issues.

On the other hand, the light commercial vehicle segment is expected to grow at a faste

Automobile and light duty motor vehicle manufacturers have faced many challenges through the current period. Significant technological improvements, particularly regarding hybrid and electric vehicles, internal combustion engine fuel efficiency, infotainment development and autonomous driving capabilities, have spurred global demand from the growing global middle class. Even so, the pandemic led to a monumental slowdown, slashing vehicle demand. Similarly, rampant inflation and climbing interest rates made car buying more expensive, limiting potential growth despite pent-up demand for driving and travel following lockdown restrictions. Regardless, easing interest rates have created new opportunities in consumer markets, contributing to overall growth, despite many quarterly peaks and valleys. Overall, revenue has climbed at an expected CAGR of 1.7% to $370.5 billion through the current period, despite a 6.4% decline in 2025, where profit rebounded to 3.5% of revenue. Aluminum and steel are significant inputs for most automakers. Most input manufacturers cut production amid the pandemic, leaving automakers with supply chain shortages and long lead times, especially as automotive demand rebounded following the pandemic. Semiconductor and other integral electronic component manufacturers also failed to meet automakers' demand, exacerbating supply chain issues. Despite these issues, manufacturers have successfully pushed costs onto consumers, expanding profit. Many companies have also expressed greater supply chain oversight following disruptions, leading to more nearshoring, vertical integration and strategic partnerships and alliances. Even so, labor strikes, union demands and lingering economic uncertainty have contributed to volatility. Innovation and the economy's recovery will drive growth through the outlook period. Automakers will continue to invest heavily in technology and innovation, making waves with new electric and autonomous driving technologies. Companies will also lean on government support regarding electric and hybrid vehicle technology to generate strong returns and appeal to more consumers. However, the new presidential administration has started to roll back some EV rebates and implement new trade policies, potentially hindering the industry's growth outlook. Overall, revenue will expand at an expected CAGR of 1.3% to $394.3 billion through the outlook period, where profit will settle at 3.5%.

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The light commercial vehicle market share is expected to increase by 1436.98 thousand units from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 1.5%.

This light commercial vehicle market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers light commercial vehicle market segmentations by type (conventional fuel vehicles and alternative fuel vehicles) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The light commercial vehicle market report also offers information on several market vendors, including AMG Corp, Ashok Leyland Ltd, Cummins Inc., Daimler Truck Holding AG, Ford Motor Co., GAZ International LLC, General Motors Co, Honda Motor Co. Ltd, Hyundai Motor Co, Isuzu Motors Ltd, JAC Inc., Kia Motors Corp, Mahindra and Mahindra Ltd., Maruti Suzuki India Ltd., Nissan Motor Co. Ltd., Robert Bosch GmbH, Tata Motors Ltd, Toyota Motor Corp, and Volkswagen AG among others.

What will the Light Commercial Vehicle Market Size be During the Forecast Period?

Download Report Sample to Unlock the Light Commercial Vehicle Market Size for the Forecast Period and Other Important Statistics

Light Commercial Vehicle Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post-COVID-19 era. The rising penetration of downsized engines in LCVs to drive vehicle price is notably driving the light commercial vehicle market growth, although factors such as the implementation of fuel-efficiency standards resulting in increased prices of LCVs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the light commercial vehicle industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Light Commercial Vehicle Market Driver

The rising penetration of downsized engines in LCVs to drive vehicle prices is one of the key drivers propelling the light commercial vehicle (LCV) market growth.
Vehicle manufacturers are increasingly developing downsized engine blocks for decreasing curb weight, improving fuel efficiency, and limiting the formation of emissions. 
Most vehicle manufacturers equip turbochargers within diesel and gasoline engines to facilitate more air to be taken in for combustion. 
Gasoline engine turbochargers are made of composite materials that can resist high operating temperatures produced at a high rate of rpm. They also weigh significantly more than their diesel engine counterparts. 
The rising preference for fuel-efficient LCVs in China and India is expected to drive the market of turbocharged downsized engines in these countries. This is expected to drive the LCV makers to use turbochargers in their gasoline and diesel LCV models. 

Key Light Commercial Vehicle Market Trend

Electric LCVs for facilitating last-mile connectivity is one of the key light commercial vehicle (LCV) market trends fueling the market growth.
Automotive makers are increasingly researching raising the reliability of electric vehicles.
The lack of proper charging stations and limited power capacity batteries are the main drawbacks of electric vehicles.
Vehicle manufacturers are undertaking various experimental operations involving the usage of electric vehicles to troubleshoot the various issues faced by the vehicle in a real-world scenario. However, unlike passenger cars, LCVs require more power to be effective in hauling passengers or cargo.
Vehicle manufacturers have begun using electric LCVs in real-world scenarios to test their ability and endurance of electric LCVs. This, in turn, will fuel the market growth during the forecast period.

Key Light Commercial Vehicle Market Challenge

The implementation of fuel-efficiency standards resulting in increased prices of LCVs is one of the factors impeding the light commercial vehicle (LCV) market growth.
Implementation of fuel efficiency standards for LCVs will increase the prices of vehicles by about $4,500 per vehicle. Vehicle manufacturers will equip the vehicle's engine with numerous pieces of equipment to reduce the consumption of fuel.
The US is planning to upgrade fuel-efficiency standards for the fleet of LCVs owned by LCV manufacturers, which is expected to increase the cost of LCVs considerably and lead to a decline in sales of LCVs during the forecast period. 
Increased electrification of automotive components will cause a significant increase in the prices of vehicles. Hence, an increase in the cost of LCVs will further lead to a decline in sales of LCVs during the forecast period.

This light commercial vehicle market analysis

Global Light Electric Vehicles market size is expected to reach $131.76 billion by 2029 at 9.6%, segmented as by product, hybrid electric vehicle (hev), plug-in hybrid electric vehicle (phev), battery electric vehicle (bev)

The Light Commercial Vehicles Market report segments the industry into Vehicle Type (Commercial Vehicles), Propulsion Type (Hybrid And Electric Vehicles, ICE), and Region (Africa, Asia-Pacific, Europe, Middle East, North America, South America). Get five years of historical data alongside five-year market forecasts.

Light Duty Electric Trucks Market Outlook

The global light-duty electric trucks market size was valued at approximately USD 7.5 billion in 2023 and is projected to reach USD 28.9 billion by 2032, growing at a CAGR of 16.3% during the forecast period. This notable growth is driven by several factors, including the increasing emphasis on reducing carbon emissions, advancements in battery technology, and supportive government policies promoting the adoption of electric vehicles (EVs). The market is set to expand significantly as more companies and consumers shift toward sustainable transportation solutions.

One of the principal growth factors in the light-duty electric trucks market is the growing concern over environmental sustainability. Governments and regulatory bodies worldwide are implementing stringent emission norms and offering incentives to promote the adoption of electric vehicles. These measures are instrumental in driving the demand for light-duty electric trucks, which offer a greener alternative to traditional internal combustion engine trucks. Additionally, the rising awareness among consumers and businesses regarding the benefits of electric vehicles, such as lower operating costs and reduced environmental impact, is further propelling market growth.

Technological advancements in battery technology are also playing a crucial role in the expansion of the light-duty electric trucks market. Innovations such as solid-state batteries and improvements in lithium-ion battery efficiency are enhancing the performance and range of electric trucks. These advancements are addressing the primary concerns related to the range anxiety and charging infrastructure, making electric trucks a more viable option for both commercial and residential users. Furthermore, ongoing research and development efforts are expected to yield even more efficient and cost-effective battery solutions, thereby boosting market growth.

Another significant driver of market growth is the increasing investment from major automotive manufacturers in the development and production of electric trucks. Companies like Tesla, Rivian, and Ford are heavily investing in electric truck technology, launching new models, and expanding their production capacity. This influx of investment and interest from industry leaders is accelerating the commercialization and adoption of light-duty electric trucks. Additionally, partnerships between automotive companies and technology firms are facilitating the integration of advanced features such as autonomous driving and connected vehicle technologies, enhancing the overall appeal of electric trucks.

From a regional perspective, North America and Europe are leading the charge in the adoption of light-duty electric trucks, driven by supportive government policies, a robust charging infrastructure, and a high level of environmental awareness among consumers. Asia Pacific is also emerging as a significant market due to the rapid urbanization, growing middle class, and increasing government initiatives to promote electric vehicles. Latin America and the Middle East & Africa, while currently lagging in comparison, are expected to witness gradual growth as infrastructure developments and government policies catch up.

Vehicle Type Analysis

The light-duty electric trucks market is segmented by vehicle type into pickup trucks, vans, and others. Pickup trucks currently dominate the market, driven by their widespread use in both commercial and residential settings. These vehicles offer a versatile solution for various applications, including goods transportation, construction, and personal use. The growing demand for pickup trucks is further fueled by the increasing availability of electric models from major manufacturers such as Tesla's Cybertruck and Ford's F-150 Lightning. These models are receiving positive reception due to their impressive performance, range, and advanced features.

Vans, another significant segment, are gaining traction in the light-duty electric trucks market. Electric vans are particularly popular in the commercial sector for last-mile delivery services, where the need for efficient, environmentally-friendly transportation solutions is paramount. Companies like Amazon and UPS are increasingly incorporating electric vans into their fleets to reduce their carbon footprint and operating costs. The adoption of electric vans is also supported by advancements in battery technology, which are providing longer ranges and faster charging times, making them more practical for daily business operations.

The

Gain in-depth insights into Light Duty Vehicle Market Report from Market Research Intellect, valued at USD 1040 billion in 2024, and projected to grow to USD 1600 billion by 2033 with a CAGR of 5.5% from 2026 to 2033.

The global light-duty vehicle market is projected to grow at a CAGR of more than 6.5% from 2024 to 2030.

The all-electric light-duty truck market is poised for significant growth, driven by stringent emission regulations, increasing environmental concerns, and the declining cost of battery technology. While precise market size figures for 2019-2024 are unavailable, a reasonable estimation, considering the rapid adoption of EVs in other segments and the substantial investments by major players like Daimler, PACCAR, and others, suggests a market valued at approximately $5 billion in 2024. The Compound Annual Growth Rate (CAGR) is estimated at 35% for the forecast period (2025-2033). This robust growth is fueled by several key trends: the increasing availability of charging infrastructure, supportive government incentives promoting EV adoption, and the development of advanced battery technologies offering extended ranges and faster charging times. Furthermore, the growing awareness of environmental sustainability among businesses and consumers is significantly bolstering market demand. The segmentation of the market into complete vehicles, non-complete vehicles, and semi-trailers allows for specialized solutions catering to varied logistical and municipal needs. Geographical variations exist, with North America and Europe anticipated as early adopters, followed by a steady increase in demand within the Asia-Pacific region, particularly China and India, driven by their burgeoning e-commerce and logistics sectors. Restraints include the relatively high initial cost of electric trucks compared to their diesel counterparts, concerns about range anxiety, and the need for widespread development of charging infrastructure, particularly in less developed regions. Despite these challenges, the long-term outlook for the all-electric light-duty truck market is exceptionally positive. Technological advancements continually addressing range and charging concerns, coupled with increasingly favorable regulatory landscapes, are mitigating the current restraints. The entry of both established automotive giants and emerging electric vehicle startups ensures ongoing innovation and competition, leading to more affordable and higher-performing electric trucks in the coming years. The market's significant growth potential across various applications (logistics, municipal services) and vehicle types promises substantial returns for investors and significant environmental benefits globally. Regional disparities will persist initially, but the global nature of the supply chains and consumer demand will lead to market penetration across all geographical segments by 2033.

Global Automotive Light-Duty Vehicles Aerodynamics Market has valued at USD 14 Billion in 2022 and is anticipated to project robust growth in the forecast period.

This statistic shows the revenue of the industry “automobile and light duty motor vehicle manufacturing“ in the U.S. by segment from 2012 to 2017, with a forecast to 2024. It is projected that the revenue of automobile and light duty motor vehicle manufacturing in the U.S. will amount to approximately ***** billion U.S. Dollars by 2024.

The all-electric light-duty truck market is experiencing robust growth, driven by stringent emission regulations, increasing fuel costs, and a growing focus on sustainability within the logistics and transportation sectors. While precise market size data for 2025 is unavailable, considering a plausible CAGR of 25% from a base year (let's assume 2024) of $5 billion and a historical period showing steady growth, a 2025 market size of approximately $6.25 billion is a reasonable estimation. This signifies a substantial increase in adoption, especially considering the relatively nascent stage of the technology. The continued growth through 2033 is projected to be equally impressive, propelled by advancements in battery technology leading to increased range and reduced charging times, coupled with supportive government incentives and expanding charging infrastructure. Key players like Daimler Truck AG, PACCAR, and others are heavily investing in research and development, resulting in a wider variety of models and improved performance characteristics. However, challenges remain. High initial purchase costs compared to traditional diesel trucks pose a significant barrier to widespread adoption. Range anxiety and limited charging infrastructure, especially in geographically dispersed areas, also continue to hinder market penetration. Overcoming these hurdles will require collaborative efforts between manufacturers, governments, and private investors to foster a more supportive ecosystem. The segmentation of the market, based on factors like payload capacity, range, and target applications (delivery, last-mile transportation, etc.) will further shape future growth, leading to specialized solutions tailored to specific customer needs. Continued innovation and strategic partnerships will be crucial for long-term success in this rapidly evolving market.

According to Cognitive Market Research, The Global Electric Truck market was USD 41815.2 million in 2024 and expand at a compound annual growth rate (CAGR) of 25.6% from 2024 to 2031.

North America Electric Trucks Market held 40% of the worldwide revenue with a market size of USD 16726.08 million in 2024 and will expand at a CAGR, commonly known as the compounded annual growth rate of 23.80% from 2024 to 2031.
Europe Electric Trucks Market held 30% of the worldwide USD 12544.56 million in 2024.
Asia Pacific Electric Trucks Market held 23% of the worldwide revenue with a market value of USD 9617.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 27.6% from 2024 to 2031.
South America Electric Trucks market held 5% of the worldwide revenue with a market value of USD 2090.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25% from 2024 to 2031.
Middle East and Africa Electric Trucks Market held 2% of the worldwide revenue with a market size of USD 836.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.3% from 2024 to 2031.
The sales in the light-duty trucks category are high because electric car manufacturers are releasing a new variety of vehicles with exceptional towing capacity; it is anticipated that the market for light-duty trucks will rise.
Medium-duty trucks are the fastest-growing category over the forecasted timeframe. The countries with the most demand for medium-duty vehicles are China, the United States, and Europe. Therefore, increasing medium-duty truck applications has a favorable effect on the market expansion.

Growing Need for Electric Vehicles in the Transportation and Other Sectors to Increase the Demand Worldwide

In the major EV markets globally, there has been an increase in demand for battery-powered vehicles in the logistics industry. Growth in medium- and heavy-duty trucks is anticipated. Adopting electric vehicles (EVs) can boost the industry's long-term profitability because EVs need significantly less money to charge than other fuels.

For instance, the US Postal Service ordered transport trucks with Workhorse Group (US) in January 2022. By 2030, the World Economic Forum projects a 36% rise in the number of inner-city delivery vans.

(Source: https://time.com/6242616/us-postal-service-trucks-going-electric/)

Surge in the E-commerce Industry to Propel Market Growth

The market for electric trucks will be driven by increased use in the e-commerce industry. The market for electric trucks is anticipated to grow shortly due to the growing usage of these vehicles for last-mile deliveries of products from warehouses to clients. To reduce pollutants and fuel costs, businesses are considering adding electric vehicles and battery-powered pickups to their fleets.

For instance, according to Performance Team (US), in October 2022, in response to client demand for environmentally friendly short haul storage and distribution center operations, Class 8 battery-electric vehicles from Volvo Vehicles North America will be deployed in Southern California.

(Source: https://www.maersk.com/news/articles/2022/10/06/performance-team-deploys-first-deliveries-of-volvo-vnr-electric-trucks)

Market Restraints of the Electric Truck

Exorbitant Price of Current Electric Vehicles to Limit the Sales

One of the main obstacles to the broad adoption of electrical trucks has been their high production costs. The overall cost of buying these vehicles should decrease as the market for electric trucks increases over the next ten years due to declining battery prices and lower R&D expenses. Due to the high cost of the rechargeable lithium-ion batteries that these trucks require, electric trucks are often far more expensive than their internal combustion engine equivalents. Because designing electric trucks is an expensive process, manufacturing these vehicles is likewise significantly more expensive than internal combustion engine trucks. Because better-range electric vehicles require more sophisticated batteries and advanced production techniques, developing them has become more expensive.

Impact of COVID-19 on Electric Truck Market

The unexpected COVID-19 pandemic breakout had a detrimental effect on the market for electric trucks. The nations' lockdown, intended to slow the virus's spread, ended efforts to produce and develop elect...