Australia Electric Truck Market — Growth, Forecast & Strategic Outlook 2026–2034

The Australia electric truck market is emerging as a high-growth segment in response to rising sustainability commitments, government initiatives, and technological advancements. According to IMARC Group’s research, the market was valued at USD 21.4 million in 2025 and is projected to reach USD 152.4 million by 2034, expanding at a strong compound annual growth rate (CAGR) of 23.63% during 2026–2034.

Electric trucks — including light-, medium-, and heavy-duty models — are increasingly adopted across logistics, municipal services, construction, mining, and other segments as companies and governments prioritise low-emission transport solutions. The market’s growth reflects broader trends in fleet electrification and sustainable freight operations within Australia’s commercial transport sector.

Request a Sample Report with Latest 2026 Data & Forecasts:

Why the Market Is Growing So Rapidly

1. Government Policies and Emission Reduction Targets

Australia’s shift toward electric trucks is strongly supported by government policies aimed at reducing transport emissions and meeting climate goals. Incentives such as rebates, tax breaks, and regulatory frameworks that favour zero-emission vehicles make electric trucks more attractive for fleet operators seeking long-term sustainability and compliance.

2. Rising Fuel Costs and Operational Efficiency

Escalating diesel and petrol prices continue to strain traditional transport operations. Electric trucks offer significantly lower energy and maintenance costs over time compared with conventional internal combustion engines, making them financially appealing for logistics and freight firms looking to improve cost stability and competitiveness.

3. Corporate Sustainability and ESG Commitments

A growing number of companies — particularly in logistics, retail, and e-commerce — are incorporating environmental, social, and governance (ESG) commitments into their strategic priorities. Switching to electric truck fleets helps reduce carbon emissions, enhance brand reputation, and align with shareholder and customer expectations for greener business practices.

4. Expansion of Charging Infrastructure

The pace of charging infrastructure development is crucial to market adoption. Government and industry investments are increasing the number of high-capacity EV charging stations along major transport corridors, in logistics hubs, and within urban centres. This expansion reduces range anxiety and enhances the feasibility of electric truck operations over longer distances — a key consideration for commercial fleet viability.

5. Advances in Battery Technology

Continuous improvements in battery performance — including extended driving ranges and faster charging times — are making electric trucks increasingly practical for a wide array of applications, from last-mile urban deliveries to medium-range regional transport. These technological enhancements address previous barriers to adoption and support broader electrification.

What the Opportunities Are

1. Fleet Electrification for Logistics and Freight Operators

Logistics companies can reduce fuel costs and emissions by integrating electric trucks into their delivery fleets — offering both sustainability benefits and long-term operational savings.

2. Expansion of Charging Solutions and Infrastructure Services

Infrastructure providers can capitalise on the market growth by deploying high-capacity charging networks tailored to heavy and commercial vehicles, supporting fleets across Australia’s metropolitan and regional corridors.

3. Partnerships Between Manufacturers and Energy Providers

Collaborations between truck OEMs and energy suppliers can facilitate seamless fleet transitions by combining vehicle offerings with reliable charging and energy management services.

4. Development of Battery and Powertrain Innovations

Ongoing research and investment in battery technology and powertrain efficiency can drive further gains in performance, range, and overall system costs, fostering broader adoption among commercial users.

5. Regulatory Compliance and Low-Emission Zones

Electric trucks present a strategic response for businesses needing to comply with emerging low-emission zone regulations in major cities, helping reduce penalties and future regulatory risks.

6. Urban and Last-Mile Delivery Electrification

Urban delivery services — including e-commerce and municipal operations — offer prime early adoption opportunities for electric truck deployments due to shorter routes and high stop densities.

7. Training and Workforce Development in EV Maintenance

Growth in electric truck fleets necessitates specialised technician training and workforce development, creating opportunities for service providers and vocational programs centred on EV technologies.

Recent News & Developments in Australia Electric Truck Market

• March 2025: Heavy Electric Truck Adoption: Australia Post unveiled its first heavy-duty electric truck, a Mercedes-Benz eActros 300, to operate within Melbourne’s logistics network. This high-profile deployment underscores the practical viability of electric trucks in national delivery operations and supports broader electrification goals.

• July 2025: Corporate Investment in EV Fleets: Team Global Express (TGE) announced an expansion of its electric truck fleet, trialling 60 Daimler and Volvo electric vehicles for urban routes around Western Sydney. This initiative demonstrates how major logistics operators are testing electric truck integration to improve sustainability and operational performance.

• November 2025: Record-Setting Electric Freight Demonstration: A collaboration between New Energy Transport (NET), Multiquip, and Chinese manufacturer Windrose completed a 480 km round-trip delivery on a single charge using a heavy electric truck — Australia’s longest electric truck haul to date. Plans are underway for a pilot fleet of up to 200 electric prime movers by 2031, highlighting performance potential and scalability.

Why Should You Know About the Australia Electric Truck Market?

The Australia electric truck market is more than a niche segment — it is a transformative force in commercial transport and logistics. For investors, the strong projected CAGR and supportive policy environment present compelling growth potential in electrification technologies and infrastructure services. For fleet operators and logistics firms, electric trucks offer a clear path to reduced operational costs, lower emissions, and compliance with future regulatory frameworks. For policy makers, supporting electric truck adoption helps achieve national climate goals while stimulating investment in renewable energy and low-emission transport ecosystems.