Europe Electric Commercial Vehicle Market

European Electric Commercial Vehicle Market (2023 to 2028)

The European electric commercial vehicle market is anticipated to register a CAGR of 5.67% from 2023 to 2028.

Electric vehicles (EVs) are the growing trend across the globe, with the rising need to replace conventional vehicles that cause environmental pollution. They are gaining prominence due to features like higher performance, fuel efficiency, less carbon footprint, numerous options to charge, and decreased engine noises. Initially started with passenger vehicles, this technology is now moving towards the commercial sector, aiming to revolutionize the present scenario.

Some of the key factors driving the growth of the electric commercial vehicle market are the increase in e-commerce activities (which in turn has led to the growth of the logistics industry) and the emergence of new carpooling platforms. Retail sales and online e-commerce have increased due to the increased penetration of internet connectivity and smartphones. This should translate into an increase in the purchase of more commercial vehicles to facilitate rapid delivery of items to buyers. The main driver of Europe's electric commercial vehicle business growth is the increased preference for pick-up trucks and small vans over heavy trucks and railways for logistics.

Strict emission standards require automakers to reduce the use of fossil fuels to comply with emission standards. This has resulted in the use of lighter metals, such as aluminum and magnesium, and their lighter alloys and composites, such as carbon fiber, in vehicles. The increase in demand for LCVs in the region is also promoting overall trade. For example, Daimler has entered a joint venture with the American start-up Via, which is focused on developing scalable and on-demand route-sharing solutions. Together, the two companies aim to introduce demand-shared routes in Europe, which is likely to increase demand for electric vans in the European region during the forecast period.

Factors such as increased pollution and environmental risks, strict government regulations, and fierce competition have forced auto parts manufacturers to make fuel-efficient and environmentally friendly vehicles. In this quest, automotive OEMs and component manufacturers are exploring ways to develop and design commercial vehicles that can meet vehicle fuel efficiency and emissions standards.

However, the expenses related to manufacturing and the low fuel economy and serviceability of the EVs hamper the rapid expansion of the market.

REPORT COVERAGE:

This research report on the Europe electric commercial vehicle market has been segmented and sub-segmented into the following categories.

European Electric Commercial Vehicle Market - By Propulsion Type:

• Battery Electric Vehicle (BEV)          
• Hybrid Electric Vehicle (HEV)           
• Plug-in Hybrid Electric Vehicle (PHEV)          
• Fuel Cell Electric Vehicle (FCEV)

BEV accounted for the major share in the regional market due to the lower prices and easy adoption. However, HEV and PHEV are predicted to contribute significantly in the coming years due to more advanced loading options and an increase in production units.

European Electric Commercial Vehicle Market - By Vehicle Type:

• Bus            
• Pick-up Trucks       
• Van            
• Trucks

The bus segment occupies the dominant position in the region due to strict government regulations consumer awareness about public transport, and a pollution-free society. However, the electric van segment is expected to experience rapid growth during the forecast period due to the increasing adoption of these vehicles in the transportation and logistics sector with respect to the rising online product sales.

European Electric Commercial Vehicle Market - By Range:

• Less than 150 miles             
• 151-250 miles        
• 251-500 miles        
• More than 500 miles

The more than 500 miles segment is estimated to account for the highest share in the foreseen years.

European Electric Commercial Vehicle Market - By Component Type:

• Electric Motor       
• Hydrogen Fuel Cell              
• Electric Vehicle Battery

The electric vehicle battery segment holds the protruding portion of the overall market, owing to its importance in electric vehicles.

European Electric Commercial Vehicle Market - By Country:

• United Kingdom
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Rest of Europe

Europe is expected to be the fastest-growing market due to the high adoption rate of electric trucks in the logistics sector of the region. It is also foreseen to be the fastest-growing market for electric utility vehicles during the forecast period. The growing demand for electric vans in the logistics sector and the emphasis on the electrification of the public transport fleet are stimulating the market for commercial electric vehicles in Europe. Europe is a crucial region for innovations, significant R&D, and technological advances in electric vehicles, battery technologies, and charging solutions. France is a noteworthy area in the European market, followed by Germany. France is home to many established OEMs that supply electric vehicles and also has a higher adoption rate for electric utility vehicles. 

KEY MARKET PLAYERS:

AB Volvo (Sweden), VDL Bus and Coach (Netherlands), Daimler (Germany), CAF (Spain), EBUSCO (Netherlands), Scania (Sweden), Continental AG, Tesla, Nissan Corporation, Emoss Mobile Systems are some of the major key players involved in the European electric commercial vehicle market.

RECENT HAPPENINGS IN THE MARKET:

• Volkswagen, Daimler, and Honda will be showcasing their latest electric cars at shows, and if they can reach their target, it will help them avoid endings exceeding one billion euros. Volkswagen companies at Daimler will announce a new battery model in Frankfurt, hoping to attract consumers and reduce emissions.
• The Netherlands and Norway will completely ban the sale of fossil fuel cars by 2025. Other countries, such as Germany, have also decided to ban the sale of conventional vehicles by 2030.