INTERACT ANALYSIS REPORTS ON BATTERY ELECTRIC MARKET TRENDS
There is a lot of hype circling the globe when it comes to alternative fuel and alternative energy solutions. From hybrid to propane to electric and so on, it’s nice to get an idea of how well these markets are performing on a global scale. Thanks to Interact Analysis, we can give you the scoop.
What’s trending in the battery electric market for the work truck industry? We saw a slight drop in momentum for battery electric trucks in 2018 due to a lower demand in the Chinese market—which makes up 81 percent of battery electric truck sales—per Interact Analysis, an international provider of market research for the Intelligent Automation sector. How did we get here?
The lower demand in China that contributed to a 12 percent decrease in battery electric truck sales globally was primarily due to a subsidy reduction of approximately $11,000, although the trade war with the US and the threat of a Chinese economic slowdown may have also negatively influenced the market, Interact Analysis states.
Interact Analysis expects the global battery electric truck market to grow 20 percent in 2019.
Aside from a decrease in demand in the Chinese market, Interact Analysis reports that the global battery electric truck market grew by 63 percent.
Interact Analysis published its predictions for the future of the battery electric truck market in its report, “Hybrid and Electric Trucks and Buses 2019.”
Interact Analysis expects the global battery electric truck market to grow 20 percent in 2019. Here’s a snapshot of the predictions:
• Sluggish Chinese market offset by explosive growth in other markets
• Light-duty trucks to account for the bulk of the volume
• Just over 4 million electric trucks sold in next seven years
The author of the report, Rueben Scriven, believes that “just under 180,000 battery electric trucks will be sold in 2019 with most of the demand coming from China. Outside of China, we forecast that just over 50,000 electric trucks will be sold; an 81 percent increase from 2018.”
Interact Analysis forecasts that just more than 1.2 million electric trucks will be sold annually in 2025.
Scriven goes on to say, “because of the cost associated with large battery packs, the heavier segments will maintain a small share of the market while the light- and medium-duty segments will combine to make up 98 percent of the global battery electric truck market.”
YEARS TO COME
Interact Analysis forecasts that just more than 1.2 million electric trucks will be sold annually in 2025. The EU27 and APAC will make up the majority of the demand while the Middle East, Africa, and South America will experience relatively sober growth. The US and Canada will experience moderate growth in absolute volumes, but the number of electric trucks as a percentage of the total trucks sold in 2025 will only be 0.7 percent and 3.6 percent, respectively.
Electric commercial vehicles typically have fewer moving parts than their combustion engine counterparts, meaning that revenue generated from maintenance and servicing will likely be reduced. Given that there will be more than 4 million new electric trucks entering the global market in the next seven years, the provision of new services such as grid management and on-site power generation will become important new revenue streams. New Flyer, Nikola, Chanje, and Nissan have taken this approach, and many more will follow suit, Interact Analysis predicts.
MORE THAN TRUCKS
Work trucks powered by alternative fuels/electric energy have the ability to affect more than just their industry. With the predicted growth in the market, it’s exciting to see the potential for growth in multiple industries, as well.
In markets that adopt electric trucks, the vehicle is becoming less central to the transportation solution, which invites other industries to enter the market. For example, utility companies are well positioned to join the eco-system whereby they supply the charging infrastructure, grid-management, and on-site power generation with the potential to lease battery electric commercial vehicles as well, states Interact Analysis.
How far will battery electric work trucks go in the industry? Will your business help push that growth?
FOR MORE INFORMATION
Interact Analysis is an international provider of market research for the Intelligent Automation sector and has offices across the world, including the US, UK, and China. Its team of industry analysts delivers high levels of market intelligence in the field of Intelligent Automation. Its analysts have an average 15 years’ industry experience, and its leadership team has close to 100 years’ experience in technology-based research. For more, visit www.interactanalysis.com.
MODERN WORKTRUCK SOLUTIONS: FEBRUARY 2019 ISSUE
Did you enjoy this article?
Subscribe to the FREE Digital Edition of Modern WorkTruck Solutions magazine.