Government Support at Center of Booming Electric Truck Demand in U.S.
Since the U.S.’s withdrawal from the Paris Climate Agreement, 23 states and Washington D.C. have pledged to reduce the emission of greenhouse gases (GHGs) by 28% from the levels registered in 2005, by 2025. The U.S. is the second-largest GHG emitter in the world after China, and in the country, the transportation sector is responsible for at least 14% of those. This is why a strong need has been felt here to make the transportation system cleaner, for which financial incentives, subsidies, and other benefits are being offered to the buyers of electric vehicles at the federal and state levels.
This, says P&S Intelligence, will prove significant in pushing the U.S. electric truck market from $211.5 million in 2019 to $15,084.3 million by 2030, at an explosive 51.6% CAGR during 2020–2030. Since trucks and buses are larger and have more-powerful engines than cars and two-wheelers, they release higher amounts of GHGs, which is why it is necessary to strongly focus on replacing diesel trucks and buses with electric and other alternative-energy variants.
Presently, the most-productive state in the U.S. electric truck market is California, owing to the strong government support, which is encouraging companies, as well as individuals, to shun their diesel trucks in favor of electric variants. For instance, under the Advance Clean Truck Rule implemented by the California Air Resources Board (CARB) In June 2020, all new trucks being sold in the state from 2045 onward must be propelled by electricity.
Thus, on account of the increasing awareness regarding the role of electric transportation in reducing the GHG emissions and the decreasing prices of batteries, the adoption of electric trucks is set to rise in the U.S.
Source: P&S Intelligence