Hyderabad, April 13, 2026 (GLOBE NEWSWIRE) -- According to a latest published report by Mordor Intelligence, the electric truck market size is entering a high-growth phase, with its value projected to rise from USD 19.31 billion in 2026 to USD 72.11 billion by 2031, expanding at a CAGR of 30.15%. Stricter global emission norms and rising Scope 3 commitments are accelerating the shift away from diesel, while declining lithium-ion battery prices in 2024 are making electric trucks more cost-efficient for urban operations. Regulatory alignment, including the U.S. EPA Phase 3 standards and EU CO₂ rules, is pushing OEMs to scale both battery-electric and fuel-cell production. At the same time, fleet operators are capitalizing on premium green freight contracts, improving profitability, while innovations such as megawatt charging and inductive highways are helping address range limitations.
Electric Truck Market Trends and Growth Drivers
Stricter CO₂ and NOₓ emission regulations are being enforced for heavy-duty vehicles
Global regulations are becoming stricter for heavy-duty vehicles, pushing manufacturers and fleet operators toward zero-emission solutions. In Europe, upcoming emission standards are tightening limits on pollutants and carbon output, while the U.S. is enforcing rules that encourage a shift to cleaner truck technologies. China is also strengthening its emission norms, particularly for heavier vehicles and urban freight. At the same time, companies are increasingly factoring emissions into procurement decisions, with reporting frameworks adding further pressure to adopt sustainable transport. This regulatory push is accelerating the transition toward electric and low-emission trucks worldwide.
Battery pack costs have dropped below the USD 100/kWh benchmark, improving affordability
Lithium-ion battery costs have been steadily declining, bringing electric trucks closer to matching the economics of diesel vehicles. Much of this progress is driven by Chinese manufacturers, particularly through advancements in LFP battery technology that offer better durability and efficiency. As a result, fleet operators are seeing quicker returns, especially in urban applications, which is encouraging faster vehicle replacement cycles. Real-world use cases, such as large fleet deployments, are already showing lower operating costs compared to traditional diesel trucks, further strengthening the case for electrification.
Electric Truck Market Share by Region
The Middle East and Africa are expected to record the fastest growth in the electric truck market, with a 30.23% CAGR through 2031, driven by strong government targets and large fleet orders. South Africa is piloting electric trucks for mining despite tariff concerns. In South America, Brazil’s tax policies are raising costs, while Chile’s funding support is boosting adoption.
Asia Pacific is rapidly gaining ground in the electric truck space, led by China’s strong policy support and large-scale adoption. Japan is focusing on hydrogen infrastructure, supporting the development of fuel-cell trucks, while India has seen slower progress after subsidy programs ended, making electric options less competitive against diesel. In Australia, government-backed charging infrastructure is helping enable early-stage trials for long-distance freight operations.
Europe remains a key region in the electric truck market, supported by clear regulatory direction and coordinated emission policies. Countries like Germany, France, and the Netherlands have made notable progress in building high-power charging networks, enabling wider adoption of new electric truck models. Norway continues to lead with strong policy support, encouraging a faster shift toward zero-emission vehicles. However, the U.K. is facing challenges with infrastructure readiness, particularly around grid connections, which is slowing large-scale fleet electrification despite favourable incentives.
“The electric truck market is progressing in line with evolving regulatory direction and fleet electrification efforts, supported by observable investments and adoption patterns across key regions. Mordor Intelligence combines structured research practices with cross-checked industry inputs, providing balanced, dependable insights for informed decision-making.” Says, Phani Kumar, Senior Research Manager, Mordor Intelligence
Electric Truck Market Segmentation Insights
By Propulsion Type
- Battery Electric (BEV)
- Fuel Cell Electric (FCEV)
- Plug-in Hybrid (PHEV)
By Truck Type
- Light Truck (≤ 3.5 t GVW)
- Medium-Duty Truck (3.6–12 t)
- Heavy-Duty Truck (> 12 t)
- Tractor Trailer
By Application
- Logistics & Parcel
- Municipal Services (Waste, Street Sweep)
- Construction & Mining
- Retail & FMCG Delivery
- Utility & Other Industrial
By Range
- Less than 150 km
- 150–300 km
- 301–500 km
- More than 500 km
By Battery Capacity
- Less than 150 kWh
- 150–300 kWh
- 301–500 kWh
- More than 500 kWh
By Motor Architecture
- Single Motor
- Dual Motor
- Tri/Quad Motor
For a full breakdown of market dynamics, segmentation insights, and competitive landscape, access the details of the Mordor Intelligence report
https://www.mordorintelligence.com/industry-reports/electric-truck-market?utm_source=globenewswire
Electric Truck Companies
- Auto Co. Ltd.
- Daimler Truck Holding AG
- Volvo Group
- Scania AB
- PACCAR Inc.
- Navistar International Corp.
- Isuzu Motors Ltd.
- Hino Motors Ltd.
- Dongfeng Motor Corporation
- Groupe Renault
- Tesla Inc.
- Nikola Corp.
- Rivian Automotive
- Hyundai Motor Co.
- Tata Motors Ltd.
- MAN Truck & Bus SE
- FAW Group
- Foton Motor
- Ashok Leyland
- Quantron AG
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