Electric trucks to touch annual sales of 2.25 mn units by 2025 : Frost & Sullivan report

Electric trucks to attribute to annual sales of more than 2.25 million units by 2025, finds Frost & Sullivan

Frost & Sullivan’s latest analysis of the electric truck market reveals that global light/medium/heavy-duty hybrid and full electric truck segments are expected to achieve annual sales of more than 2.25 million units by 2025. 

China is expected to lead the electrification of powertrains and contribute 60% of global sales. Primary reasons like a policy shift toward electric powertrains, incentive programs, strengthening of emission regulations and rapid developments in technologies will propel the growth of electric vehicles worldwide.

Chandramowli Kailasam, Mobility Team Leader at Frost & Sullivan, said, “The case for electric trucks is becoming more compelling with new business models like leasing of trucks and battery packs or fuel cell stacks, the availability of incentives, as well as subsidies driving market change.”

Europe is expected to adopt to full electric technologies or hybrid in an active drive towards European Union’s 20-20-20 target and also to fulfill COP21 promises. However awareness of hybrid- electric technologies in North America is expected to be lower than natural gas powertrains as limitations in efficiency gains and recharging points impede adoption rates until 2020.

Strategic imperatives for electric truck growth include :

  • Developing 250kW and above ultra-fast charging and battery swapping systems to make refueling of vehicle comparable to diesel filling times;
  • New players entering the market, developing electric trucks with a range of more than 300 miles, autonomous driving features, and aerodynamically streamlined designs;
  • Investments in battery pack production and vertical integration of the electric drivetrain will be common phenomenon as OEMs are trying to retain their technology exclusivity.

Kailasam said, “Full electric trucks in heavy-duty applications are still an ambitious proposition with significant strides required in battery capacity as well as price.

However electric trucks will find its place tailor made for application in areas like refuse collection, yard trucks, urban parcel and delivery services, and regional hauling. Plug-in hybrids and conventional hybrids will also form part of the mix.