The U.S. Electric Truck Market Is Driven by Declining Cost of Battery
The U.S. electric truck market is witnessing growth and is projected to reach USD 15,084.3 million by 2030. This is mainly because of the growing count of government measures to endorse e-mobility and stringent emission rules placed on fossil-fuel-powered commercial vehicles.
The industry is experiencing a notable shift with the rise of autonomous trucks, and this trend is expected to have a profound impact. The widespread adoption of self-driving technology is likely to fuel a growing demand for electric trucks over time. This surge can be attributed to the convenience of autonomous features, the self-driving mode, and the improved road safety prospects resulting from the removal of human error. In the United States, over 1,400 autonomous vehicles are currently undergoing testing, with more than 80 companies actively involved in these endeavors.
Among the various vehicle types, light-duty trucks (LDTs) are being used the most. This can be attributed to the high demand for and adoption of pickup trucks in the country. The demand for these LDTs is driven by several industries to use them in their operations. Resultingly, in recent years, LDTs accounted for more than 90% of the total commercial vehicle sales in the country. They offer a huge opportunity to the key players for the introduction of new electric variants, to help fleet owners.
Battery electric variants are utilized the most, and that is why they are estimated to be the fastest-advancing type of electric truck over the projection period. This growth can be mainly credited to the decreasing battery price, enhancements in the battery tech, and the government’s help in the form of monetary incentives for the growth and acquisition of such vehicles. As per a survey, there was a yearly decline of 16% in the price of battery packs between 2007 and 2020, and the average price was $144/kWh in 2022.
Geographically, California is projected to dominate the electric truck industry of the U.S. and show substantial development throughout the projection period. The supremacy of the state on the market is credited to the enormous support of the government in the form of rule formulation and incentive plans that boost the acceptance of EVs in the state.