According to the new research report published by The Insight Partners, titled "Heavy duty truck electrification Market - Global Analysis and Forecast to 2027", the global heavy duty truck electrification market is expected to reach US$ 25.5 Bn in 2027, registering a CAGR of 14.3% during the forecast period 2019-2027.
In 2018, North America was estimated to hold the largest market share and is also expected to be fastest region with a CAGR of 17.9%.
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. In the US, there are about 28 million trucks and buses present and approximately 2 million trucks and buses in California. The government and market players globally are actively concentrating on the reduction of carbon emission from vehicles.
In Asia pacific, the region experiencing enormous opportunities for the manufacturers as well as providers of an electric vehicle. The region has several growing economies, which is leading the growth with a wide variety of sectors such as manufacturing, automotive, technology, construction, and others. Many emerging economies in the APAC region are considered to be developing economies and therefore attracting investment from the regulatory bodies of these countries to bring enhancement in their technologies. This would eventually propel the growth and adoption of heavy-duty electric vehicles across various countries, which drive the demand for better and enhanced transportation in the region.
In North America, the growing requirement of heavy-duty trucks for various applications such as the delivery of goods in cities 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. The demand of Class 4, 5, 6 - parcel delivery vehicle; Class 5, 6, 7 for regional transport; and Class 7 and 8 for international and national transportation is boosting with demand. Recently, in August 2019, Proterra, Inc. (US-based) announced the Proterra Powered vehicle electrification solutions leveraging the company's electric vehicle technology for permitting the OEMs design heavy-duty electric vehicles. In the region, the US led the heavy duty truck electrification market.
Key findings of the study:
Asia Pacific is the fastest-growing region in the heavy duty truck electrification market. China led the heavy duty truck electrification market in the Asian market. China is among the leading new energy vehicle markets, growing with 61.7 % year-on-year sales to a total of 1.25 million in 2018 within the overall car market. As per the China Association of Automobile Manufacturers (CAAM), the anticipated sales for the year 2019 expected to reach 1.6 million. China is the largest EV manufacturer in the world.
The global heavy duty truck electrification market is anticipated to witness impressive growth during the forecast period, owing to the increasing demands for electric vehicles to lower emission level, due to which rules and regulations are taking place in both developing and developed countries of the world. During the forecast period of 2019 to 2027, hybrid powertrain type is expected to drive the demand for heavy duty truck electrification worldwide. Electric power steering by component in 2018 led the heavy duty truck electrification market whereas; electric air conditioner compressor is expected to be the fastest-growing component during the forecast period 2019-2027 growing at a high CAGR value.
