A new report is predicting that the global market for electric trucks will climb to more than 1.5 million vehicles by 2025.
The analysis, conducted by P&S Intelligence, indicated that growth in the industry would be fueled by declining battery costs, lower maintenance costs on electric trucks, and government incentives and other regulations supporting the sector.
In addition, the report pointed to growth in freight transportation overall — and, in turn, an increase in demand for long-haul, heavy-duty trucks.
The market for long-range trucks — those with ranges of more than 500 miles — is expected to grow faster than demand for low- and medium-range trucks through 2025, and the heavy-duty segment will climb more quickly than its light- and medium-duty counterparts over that span.
In particular, the U.S., Europe, and other developed economies are driving increased demand for more fuel-efficient trucks, and analysts stated that manufacturers are investing in new technologies to help meet that market, particularly with hydrogen fuel-cell systems.
The report also highlighted that battery manufacturing is growing at a faster pace than demand for vehicle batteries, which makes the development of new battery technologies more economically viable.
Image credit: WR7 / Shutterstock.com