The Europe Medium and Heavy-duty Commercial Vehicles Market size is estimated at 40.99 billion USD in 2025, and is expected to reach 50.13 billion USD by 2029, growing at a CAGR of 5.16% during the forecast period (2025-2029).
Due to the strategic importance of medium and heavy-duty vehicles in Europe's commercial transport landscape, businesses are focusing on efficiency and regulatory compliance
- Transport plays a pivotal role in bolstering Europe's economy, fostering growth, and enhancing its competitiveness. The commercial vehicle sector is actively aligning with the climate goals outlined in the Paris Agreement. While the adoption of alternative fuels and powertrains is gaining traction, the availability of charging and refueling infrastructure for commercial vehicles remains limited. With over 6.3 million vehicles plying the roads of the EU, they account for a staggering 76.7% of all land-based freight, moving a colossal 15 billion tonnes annually.
- Europe bore the brunt of the COVID-19 impact, witnessing a production loss of approximately 50,000 units in March and April. This was primarily due to stringent factory closures, workplace regulations, supply chain disruptions, and stay-at-home orders. By the close of 2020, commercial vehicle manufacturing in Europe had plummeted by nearly 20% compared to the preceding year. Notably, countries like Poland in Central Europe and Italy in the West, pivotal hubs for the continent's trucking industry, are projected to witness the sharpest demand decline.
- The growth in logistics and construction activities has spurred the demand for material transportation, leading to a surge in commercial vehicle sales across Europe. This trend is expected to further bolster the business vehicle market in the near future. The market is poised for growth, driven by the uptick in construction and e-commerce operations. Additionally, the shift toward electric vehicles holds promising prospects for market expansion in the coming years.
Europe Medium and Heavy-duty Commercial Vehicles Market Trends
Environmental concerns, government support, and decarbonization goals fuel European electric vehicle demand and sales
- The demand and sales of electric vehicles in European countries have grown significantly over the past few years. Germany witnessed a growth in the sales of electric cars by 22% in 2022 over 2021, followed by the United Kingdom with an 18.40% increase in 2022 over 2021. Growing environmental concerns, stringent governmental norms, advantages of electric vehicles such as fuel efficiency, low service cost, no carbon emissions, and subsidies by the government are some of the factors contributing to the growth of electric vehicles in European countries.
- The demand for electric commercial vehicles, especially light trucks, is growing gradually in European countries. Moreover, the governments of various countries are also supporting the adoption of electric vehicles. In November 2021, the government of the United Kingdom announced a pledge that all heavy-duty vehicles would be zero-emission by the year 2040. Such factors have increased the sales of electric commercial vehicles in the United Kingdom by 23.17% in 2022 over 2021, and similar practices in various countries are enhancing the demand for electric commercial vehicles across Europe.
- It is projected that the electrification of vehicles in European countries is expected to grow tremendously in the next few years. The efforts of the governments in the regions for decarbonization are expected to drive the electric commercial vehicle market in Europe. For instance, in January 2022, the transport minister of Germany announced a goal to put 15 million electric vehicles on the road by 2030. Such factors are expected to increase the sales of electric vehicles during the 2024-2030 period in European countries.
Europe Medium and Heavy-duty Commercial Vehicles Industry Overview
The Europe Medium and Heavy-duty Commercial Vehicles Market is fairly consolidated, with the top five companies occupying 87%. The major players in this market are Daimler AG (Mercedes-Benz AG), Man Truck & Bus, PACCAR Inc., Scania AB and Volvo Group (sorted alphabetically).
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