Discover how electric work trucks are transforming Canada’s commercial fleet market, with key trends, adoption drivers, challenges, and future outlook.
Canada’s Fleet Market at a Turning Point
Canada’s commercial transportation sector is entering a new era. Electric work trucks—once a futuristic concept—are now reshaping how companies operate their fleets. For decades, diesel has been the backbone of logistics, construction, and delivery services. Today, stricter emissions policies, rising fuel costs, and advances in electric vehicle (EV) technology are shifting the balance. The question is no longer if electric trucks will make an impact, but how fast they will redefine Canada’s fleet market.
Market Momentum: Growth Forecasts and Policy Support
According to the Canada Electric Drive Truck Market Forecast & Strategic Insights (2026–2033), Canada’s commercial EV truck sector is positioned for rapid expansion. Federal incentives like the iMHZEV program are reducing upfront costs, while businesses increasingly view zero-emission trucks as both an environmental and financial advantage.
Globally, the trend is undeniable. The electric truck market is forecasted to rise from USD 29.7 billion in 2024 to nearly USD 125 billion by 2030. In North America, the market could skyrocket to USD 219 billion by 2033, supported by a staggering 71% CAGR. Canada may represent a smaller portion of that total, but its fleet composition-urban delivery vans, heavy-duty work trucks, and long-haul operations-makes it a prime candidate for electrification.
Adoption Trends: A Market Ready for Transition
A recent study in the Greater Toronto and Hamilton Area (GTHA) revealed that 33% of commercial trucks and vans are ready to electrify today. By the early 2030s, more than half of the region’s fleet could make the switch.
What’s driving this readiness?
- Lower operating costs – Electric trucks reduce fuel expenses and minimize maintenance.
- Emission compliance – Stricter regulations push operators toward cleaner solutions.
- Sustainability goals – Corporations are aligning fleets with ESG and net-zero targets.
For operators, electrification is becoming less of a pilot project and more of a mainstream business decision.
Industry Leaders Driving Change
Canada’s electric truck market is already seeing real-world adoption:
- RIZON (Daimler Truck) introduced its Class 4-5 trucks in Canada in 2024, with deliveries starting in early 2025. Its e18L model rollout in British Columbia marked a milestone for medium-duty electrification.
- Canada Post became the first to deploy Navistar-built all-electric step vans, setting an example for public-sector leadership.
- Walmart Canada added a Nikola hydrogen fuel-cell-powered semi to its fleet in 2024, showing that corporations are exploring multiple clean-transportation pathways.
Beyond vehicles, infrastructure is evolving too. Plans are underway for a Windsor–Quebec City charging corridor, enabling long-range electric freight and work truck operations.
Challenges Holding Back Widespread Adoption
Despite strong momentum, barriers remain. EV registrations in Canada fell in early 2025, with ZEV market share dropping to 10% from nearly 19% at the end of 2024. This slowdown shows that the transition isn’t immune to market pressures.
Financial risks are also evident. Lion Electric, a Quebec-based leader in electric buses and trucks, entered insolvency proceedings in December 2024. Their struggles highlight the difficulties of scaling manufacturing in such a capital-intensive industry.
Other challenges include:
- High upfront purchase costs for fleets
- Limited charging infrastructure outside major cities
- Range limitations in extreme Canadian climates
Still, as technology improves and infrastructure expands, these barriers are expected to ease.
The Road Ahead: What’s Next for Canada’s Fleets
The future of commercial fleets in Canada is trending electric. Market forecasts, corporate adoption, and infrastructure planning all point to a decade of accelerated growth.
To unlock full potential, three priorities stand out:
- Infrastructure Investment – Expand depot charging and high-power public corridors.
- Policy Support – Sustain federal and provincial incentive programs.
- Fleet Education – Help operators understand cost savings and operational benefits.
With one of the cleanest power grids in the world and growing corporate demand, Canada is well-positioned to lead in fleet electrification. Electric work trucks are not just an alternative—they are emerging as the new standard for sustainable, cost-effective operations.
