The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates
This paper reviews the existing studies employing total cost of ownership (TCO) analysis to evaluate the comparative economic viability of battery electric trucks (BETs) and diesel trucks (DTs). A key finding is that until recent years, BETs have not been cost-competitive with DTs. Light-duty trucks...
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MDPI AG
2025-01-01
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| Series: | Energies |
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| Online Access: | https://www.mdpi.com/1996-1073/18/2/429 |
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| author | Romeo Danielis Arsalan Muhammad Khan Niazi Mariangela Scorrano Manuela Masutti Asees Muhammad Awan |
| author_facet | Romeo Danielis Arsalan Muhammad Khan Niazi Mariangela Scorrano Manuela Masutti Asees Muhammad Awan |
| author_sort | Romeo Danielis |
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| description | This paper reviews the existing studies employing total cost of ownership (TCO) analysis to evaluate the comparative economic viability of battery electric trucks (BETs) and diesel trucks (DTs). A key finding is that until recent years, BETs have not been cost-competitive with DTs. Light-duty trucks and medium-duty trucks started to become competitive in 2021 (1) according to some estimates, whereas heavy-duty trucks might remain to be not competitive even in future decades. However, (2) TCO estimates differ across continents. (3) The combing effect of fuel prices and taxes is most likely responsible for the fact that BETs enjoy a stronger competitive position relative to DTs in Europe, Asia, and Oceania, whereas, in North America, most estimates assign them poor competitiveness, both presently and in the coming years. (4) Most studies underline that significant cost disproportions persist in the heavy-duty truck segment due to its demanding operational requirements and a lack of robust high-powered charging infrastructure. Consequently, substantial financial incentives and subsidies will be required for heavy-duty trucks to enhance their economic viability, potentially accelerating cost parity from post-2035 to the near future. This paper identifies several constraints in its TCO analysis, including limited data on residual values, variability in discount rates, depreciation costs, and a lack of longitudinal and market data for BETs. |
| format | Article |
| id | doaj-art-0b52c7b8b7e2491485ebc38639e4e68e |
| institution | Kabale University |
| issn | 1996-1073 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | MDPI AG |
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| series | Energies |
| spelling | doaj-art-0b52c7b8b7e2491485ebc38639e4e68e2025-01-24T13:31:27ZengMDPI AGEnergies1996-10732025-01-0118242910.3390/en18020429The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership EstimatesRomeo Danielis0Arsalan Muhammad Khan Niazi1Mariangela Scorrano2Manuela Masutti3Asees Muhammad Awan4Department of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, ItalyDepartment of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, ItalyDepartment of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, ItalyDepartment of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, ItalyDepartment of Economics, Business, Mathematics and Statistics, University of Trieste, 34127 Trieste, ItalyThis paper reviews the existing studies employing total cost of ownership (TCO) analysis to evaluate the comparative economic viability of battery electric trucks (BETs) and diesel trucks (DTs). A key finding is that until recent years, BETs have not been cost-competitive with DTs. Light-duty trucks and medium-duty trucks started to become competitive in 2021 (1) according to some estimates, whereas heavy-duty trucks might remain to be not competitive even in future decades. However, (2) TCO estimates differ across continents. (3) The combing effect of fuel prices and taxes is most likely responsible for the fact that BETs enjoy a stronger competitive position relative to DTs in Europe, Asia, and Oceania, whereas, in North America, most estimates assign them poor competitiveness, both presently and in the coming years. (4) Most studies underline that significant cost disproportions persist in the heavy-duty truck segment due to its demanding operational requirements and a lack of robust high-powered charging infrastructure. Consequently, substantial financial incentives and subsidies will be required for heavy-duty trucks to enhance their economic viability, potentially accelerating cost parity from post-2035 to the near future. This paper identifies several constraints in its TCO analysis, including limited data on residual values, variability in discount rates, depreciation costs, and a lack of longitudinal and market data for BETs.https://www.mdpi.com/1996-1073/18/2/429total cost of ownershipbattery electric trucksdiesel-powered trucksheavy-duty transportationeconomic feasibility |
| spellingShingle | Romeo Danielis Arsalan Muhammad Khan Niazi Mariangela Scorrano Manuela Masutti Asees Muhammad Awan The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates Energies total cost of ownership battery electric trucks diesel-powered trucks heavy-duty transportation economic feasibility |
| title | The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates |
| title_full | The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates |
| title_fullStr | The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates |
| title_full_unstemmed | The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates |
| title_short | The Economic Feasibility of Battery Electric Trucks: A Review of the Total Cost of Ownership Estimates |
| title_sort | economic feasibility of battery electric trucks a review of the total cost of ownership estimates |
| topic | total cost of ownership battery electric trucks diesel-powered trucks heavy-duty transportation economic feasibility |
| url | https://www.mdpi.com/1996-1073/18/2/429 |
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