The Europe Electric Truck Market size is estimated at USD 1.12 billion in 2024, and is expected to reach USD 10.76 billion by 2029, growing at a CAGR of 57.13% during the forecast period (2024-2029).
The COVID-19 pandemic hindered the growth of the electric truck market due to trade and travel restrictions imposed by governments across the region. However, the sales of electric trucks decreased notably in the first half of 2020 and recovered significantly in the latter half.
Over the medium-term, electric trucks are expected to become the preferred choice over diesel trucks owing to their remarkable advantages such as gobs of torque, noise pollution, lower maintenance cost, and others.
However, as restrictions eased, e-commerce and logistic providers witnessed revenue growth, increasing demand for electric trucks. The current situation is further expected to be driven by the development of alternative-fueled trucks, specifically commercial battery-electric trucks, across the European region, in the wake of its notable environmental targets. For instance, Switzerland is encouraging fuel cell electric truck growth through its road tax on diesel truck operations, making alternative fuels more attractive for large Swiss retail associations.
Enactment of stringent emission norms on the use of IC engine-powered vehicles and rising government incentives and subsidies focusing on improving the penetration rate of commercial electric vehicles, especially trucks, are expected to drive the market during the forecast period. Development of self-driving technology, lightweight components, and materials to offer new opportunities for players in the market.
Besides these, increasing investments in research and development efforts by key market players and notable developments across autonomous trucks/self-driving trucks are other factors expected to drive the overall Europe electric truck market forward in the future.
With the growing environmental concerns, governments and environmental agencies are enacting stringent emission norms and laws that may increase the manufacturing cost of electric drivetrains and fuel-efficient diesel engines during the forecast period.
Further, innovative government legislative policies focusing on spurring the penetration of electric trucks are expected to propel demand in the market during the forecast period. For instance, in February 2022, EU member states adopted new legislation which states that all EU member states have until 2023 to implement a new road toll system that gives big incentives for zero-emissions trucks.
Green transportation is swiftly growing around the world, owing to which the goods transportation companies are also converting their existing fleet into electric propulsion-based vehicles. As the demand for electric trucks is growing, vehicle manufacturers are planning to launch more electric trucks. For instance,
Furthermore, in the wake of growing e-commerce and logistic activities, several companies operating across these sectors are widely depending on the trucking industry to transport goods across the nation. The demand for increases in shipping speed is fueled by huge online competitors, such as Amazon and other retailers that use their trucks and drivers as part of their e-commerce supply chain. For instance,
Based on the aforementioned factors, consistent launches of new electric trucks, growing investment in electric truck manufacturing, and the government's EV-supporting policies around the world are likely to drive the battery-electric truck market over the forecast period.
The United Kingdom is expected to account for a significant share of the total sales of electric trucks during the forecast period. The United Kingdom is investing heavily in infrastructure development for electric mobility. It opened a new electric highway for hybrid electric trucks that overhead electric lines will power. It is constantly focusing on encouraging electric mobility and its policies are intended to push electric trucks into the country, expected to drive demand in the market.
Country's pollution laws are constantly changing, and diesel-powered trucks may be phased out entirely in the future. They would be replaced by electric counterparts, taking advantage of the electric construction vehicle industry.
Additionally, the British government has extended its electric van and truck subsidy scheme for another two years until 2025. New weight classes will be eligible for the subsidy beginning in April. According to the government, the subsidy is designed to help businesses convert their fleets in time and be "one step ahead" of the combustion engine's demise in 2030. Since the scheme's inception in 2012, plug-in van and truck grants have aided in the purchase of over 26,000 electric vans and trucks in the United Kingdom.
With the growing e-commerce sector, the demand from Logistics and delivery companies in the country has increased. To commercialize the market share, these companies started designing plans to deploy more electric commercial vehicles in their fleet in the coming years. For instance,
Therefore, in line with the abovementioned instances and developments associated with electric trucks in the country, the UK electric truck market is expected to capture a significant share in the overall market.
The European electric truck market is characterized by major players, such as Daimler, Scania, MAN, Renault Trucks, Volvo Trucks, etc. The market is highly competitive, as major and local players compete to gain a larger market share. Companies are entering into mergers, acquisitions, joint ventures, and collaboration agreements to strengthen their position in the market. For instance,
In May 2022, Volvo Trucks and Bucher Municipal joined in electrifying sewer cleaner trucks. Bucher Municipal aims to provide up to 80 fully electric sewer cleaner vehicles to European communities by the end of 2023. By the end of 2023, Bucher Municipal anticipates that up to 80 sewer trucks, or 50% of their cleaning vehicle production, maybe Volvo zero-emission trucks.
In March 2022, Renault Trucks announced the launch of a new project with Geodis, the Oxygen 16-ton e-truck. Renault Trucks announced its E-Tech portfolio, which includes some critical services that may assist customers in their transition to electric vehicles. The Renault Trucks T E-Tech for regional transport and the Renault Trucks C E-Tech for the construction industry will be available in 2023.
In June 2021, Volta Trucks revealed the first running prototype chassis of the Volta Zero - the world's first purpose-built full electric 16-tonne commercial vehicle designed specifically for inner-city logistics. The Volta Zero will be Europe's first commercial vehicle to use an innovative e-Axle for increased efficiency and vehicle range. Full-scale production of customer-specification vehicles will then follow at the end of 2022.
In June 2021, Proton Motor Fuel Cell GmbH signed a "Memorandum of Understanding" (MoU) with UK company "Electra Commercial Vehicles Limited" to develop the zero-emission fuel cell truck market in the UK and Ireland. Under the MoU, Electra will act as a system integrator to integrate Proton Motor Fuel Cell's fuel cell systems into their existing electric truck portfolio.
Thus, based on the abovementioned instances and developments in the region, market players anticipated exploring new opportunities to capture the majority market share in the Europe electric truck market.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook