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ADL Truck Electrification 2023
ADL Truck Electrification 2023
ADL Truck Electrification 2023
2023
T R U C K E L E C T R I F I C AT I O N
— PROFIT BOOSTER OR
WHITE ELEPHANT?
Thomas Knoblinger
MAK ING TR ANSP OR TATION - MAN Truck & Bus SE showcased its new eTruck.
such as industry, agriculture, and energy have OEM with five electric truck models already
continuously reduced their CO2 emissions, road on offer in Europe, attended under the banner
transport CO2 emissions have continued to “Towards Zero,” referring to both zero emissions
increase. Improving the sustainability of transport and zero accidents. Shortly before the exhibition,
in Europe is key to helping address climate Volvo also announced the start of series
Figure 1 shows a graphical representation of these cell trucks will play a more prominent role in long-
decisions. Among industry start-ups, Nikola is one haul trucking when they are mature enough for
of few manufacturers developing both battery widespread adoption. Figure 2 shows a forecast
electric and fuel cell technology. It is more common of the electric fleet, organized by haulage class.
for emerging OEMs to focus solely on one. On average, we assume that by 2030, 40% of
new medium-duty and heavy-duty trucks sold in
Although it remains to be seen which of the
Europe will be battery electric across use cases.
above strategies triumphs in the long run, battery
technology has certainly come a longer way than
fuel cell technology, despite massive investments
in R&D for both technologies. In the near term
B AT T E R Y T E C H N O L O G Y
at least, we believe battery electric trucks will HAS COME A LONGER
dominate the market for alternative fuel trucks W AY T H A N F U E L C E L L
and will have a particularly notable penetration in
TECHNOLO GY
Figure 1. A continuum of truck
short- and medium-haul use cases,OEM
whereastechnology
fuel bets
Battery electric vehicle (B) vs. hydrogen fuel cell (H2) — non-legacy OEMs vs. legacy OEMs
Non-legacy
OEMs
B H2
Technology
MIXED
continuum
Legacy OEMs
Medium duty
Heavy duty
Articulated
199
80
69
18
2 0 0 3
2021 2025 2030 2021 2025 2030 2021 2025 2030
ELEC TRIC TRUCKS ON developments are in line with the public charging
Figure 3. An overview
and delivery ofof truck charging
medium-haul use cases
trucks will increase
significantly, and by 2027 we expect to see a wider
Typical charging
• AC 22 kW-DC 150 kW • DC 350 kW • DC 500 kW-DC 1 MW+ • DC 100-150 kW
power ranges
Long haul
(trips over 400 km)
32
22 Medium haul
(trips up to 400 km)
15
10
6 Short haul
3 (trips up to 50 km)
0 1
Charging demand generated by increasing Furthermore, many depots may greatly benefit
usage of electric trucks for long- and medium- from vehicle-to-everything (V2X) technologies and
haul routes will also be fulfilled by an increased lower transmission losses, which provide additional
number of destination chargers, allowing trucks arguments in favor of DC chargers in an industry
to top off energy reserves while loading and/ driven by the total cost of ownership (TCO).
or unloading. Initially, however, this only makes
sense at highly utilized loading docks, as the THE ENERGY PERSPEC TIVE
limited time spent loading and unloading will
call for relatively high-powered chargers, which As electric trucks become increasingly
are still fairly expensive. However, as the costs commonplace, the demand for an immense
associated with these chargers decrease and amount of energy will rise. In fact, a
electric trucks become more common, we comprehensive Arthur D. Little analysis of fleet
expect an increase in destination chargers. development, driving patterns, and energy
consumption shows that by 2030, electric trucks
The use of electric trucks on longer routes will
could require close to half of the energy needed
drive demand for public and destination charging;
by its passenger vehicle counterparts (45 TWh
the correlating increase in battery capacity
versus 95 TWh) despite an expected fleet size
will drive demand for more powerful chargers
of only around 1% of that of electric passenger
across use cases. As power requirements in the
vehicles (battery electric and plug-in hybrids).
depot-charging space increase, DC charging
Figure 5 compares the energy demand for both
technology will inevitably become more relevant.
types of vehicles. In short, this means a single
With power requirements exceeding the capacity
electric truck is expected to have a yearly energy
of most current-day onboard chargers, the more
demand amounting to roughly 80 MWh, which
economically viable option will possibly be the
is 43 times the annual energy demand created
installation of DC chargers (prices for these are
by the average electric passenger vehicle and
expected to decline significantly), instead of
20 times more than the average electricity
developing and installing expensive high-capacity
consumption of a single-family home in Germany.
onboard chargers in already-expensive electric
trucks, particularly as trucks are high-turnover
assets for many companies.
Electric truck fleet forecast Total electric charging demand Passenger xEV fleet forecast
EU27, NO, CH & UK (in thousand units) EU27, NO, CH & UK (in TWh, 2030) EU27, NO, CH & UK (in million units)
Electric trucks >6 tonnes GVW Truck AC xEV
Electric share of total fleet 52.0 xEV share of total fleet
3 TWh
Truck DC
37.0 +26%
42 TWh
139 72 TWh
69% of 25.2
demand
562
TWh
+86% 31% of 15.6
294 demand 8.2
140
4 53 23 TWh
2022 2024 2026 2028 2030 2030 2028 2026 2024 2022
0.1% 0.9% 2.4% 4.9% 9.2% Car DC Car AC 18.1% 13.4% 9.1% 5.6% 2.9%
Obviously, this will have a heavy impact on By extension, and as a result of the synergetic
grids and energy generation. Governments, nature of electric passenger vehicles and electric
motorway operators, TSOs, DSOs, and utility trucks, we expect the truck-charging use case
companies are advised to act swiftly, given to drive DC technology development, which will
the lead times typically associated with this inevitably spill over to the passenger vehicle side,
category of infrastructure development. To which in turn is a prerequisite for many energy-
put it in perspective, the electricity demand related value pools, such as grid balancing through
expected from 2030’s European fleet of electric V2X and bidirectional charging. Hence, beyond
trucks amounts to around 1.5% of the total gaining access to an attractive charging segment
electricity consumption in Europe in pre- in itself, savvy companies can also use this
pandemic 2019. When the demand expected opportunity to access yet-to-mature, high-value
from electric passenger vehicles is added, we revenue pools in the passenger vehicle market.
arrive at nearly 5% of the current yearly energy
consumption. Truck electrification can only work GROWING MARK E T
if we expand renewable energy generation and
OPP OR TUNITIES
grid infrastructure capacity. Most operators
in Europe are not prepared to meet the vast Naturally, the 550,000+ electric truck fleet
power requirements by 2040. EU governments expected in Europe by 2030 creates an enormous
must facilitate long-term network planning market opportunity for charging companies, as
and accelerate approval processes. Building charger demand is expected to soar from fewer
infrastructure takes years; planning now is than the 10,000 currently installed units to over
crucial. 400,000 units by 2030, indicating an average
yearly growth of the installed base of more than
Of greater interest to the EV charging ecosystem,
60%. Compared to the passenger vehicle sector,
however, is the astounding difference in demand for
we expect a more pronounced hockey stick–style
DC charging between the two vehicle categories.
development in the future. It will take some
Our forecasts show passenger EVs accounting
time until the vehicle and refueling reliability is
for more than two-thirds of 2030’s total energy
on par with conventional trucks, and currently,
demand; electric trucks are expected to drive close
additional government funding and toll
to 65% of the demand for energy delivered by DC
exemptions are needed to make the TCO for
chargers, thereby boosting the relevancy of this
electric trucks favorable in comparison to internal
technology. According to our forecasts, the sales
combustion engines. Environmentally friendly
of DC truck chargers will exceed that of public
legislation is on the way, and the passenger car
DC passenger vehicle charging post-2025. With
sector is driving technological enhancements to
the exception of software offerings, AC chargers
battery and charging technology at a very rapid
are comparatively unsophisticated and difficult
pace. Megawatt charging along motorways and
to differentiate; for example, DC chargers have
at important logistic nodes, such as harbors, will
the technical characteristics allowing successful
often require grid connection in the double-digit
companies to charge a premium for performance,
MW area that cannot be fulfilled by connections
quality, and uptime, and the higher potential
to the existing medium-voltage grid. These
margins of the DC charging market make it a highly
conditions represent a tremendous market
attractive segment.
opportunity for DC charger manufacturers
across the globe.
Figure 6 shows the incremental increase in demand charging in 2030 will be associated with the
for truck chargers. These will predominantly be depot charging use case, which is primarily due
depot chargers, but as longer-haulage operations to less costly hardware with significantly lower
become more technically feasible toward the end of power requirements (see Figure 7). In general,
the decade, other types of chargers are expected to we see that hardware-related revenue pools will
grow in importance. constitute almost a billion-euro business by 2025
and will triple by 2030. An even bigger growth is
Depot charging is predicted to account for more
expected in the recurring operation business that
than 80% of installed chargers by 2030, but it is
will quintuple from 2025 to 2030 to €800 million
less dominant from a revenue pool perspective.
(US $870 million). The vast majority of these revenue
In fact, our projections show that only around
pools are related to DC charging hardware.
Figure 6. Total truck-charger demand
41% of the total expected revenue pools for truck
419
Public overnight 6%
Public fast 4%
Destination 8%
Depot 326
+75% 245
181
81%
129
86
52
19
5
Figure
2022
7.2023
Truck-charging
2024 2025
revenue
2026 2027
pools
2028
by2029
use case
2030
PROJECT
HARDWARE INSTALLATION SOFTWARE TECHNICAL SUM
PLANNING
Σ HARDWARE Σ OPERATION
Revenue pools 2030
2,592 812
Note: Rounding errors might occur; includes all types of chargers (incl. AC 22 kW)
Source: Arthur D. Little
CONCLUSION
F U T U R E FA C T O R S
T R U C K C H A R G I N G I S A M O N G T H E FA S T E S T- G R O W I N G
BUSINESS OPPORTUNITIES IN THE WIDER VEHICLE
E L E C T R I F I C AT I O N S PA C E
2 The heavier duty cycle and shorter usage period of trucks relative
to cars will accelerate the shift to electric.