Europe Electric Truck Market Growth Analysis - Forecast Trends, Market Size, Share and Outlook (2025-2034)

Europe Electric Truck Market Outlook

The Europe electric truck market size was valued at USD 2.65 billion in 2023. The market is further projected to grow at a CAGR of 23.30% between 2024 and 2032, reaching a value of USD 18.66 billion by 2032.

Key Takeaways

• Switzerland had the largest heavy-duty electric truck market in Europe in 2021.

• In 2022, Germany was ranked the biggest market in Europe for plug-in electric vehicle sales.

• Volkswagen Group was the leading car manufacturer in Europe based on 3,50,000 new battery EVs registrations recorded in 2022.

• European Union aims to have 30 million electric vehicles on the roads by 2030.

Electric trucks are transforming the transport industry by providing enhanced efficiency, reduced noise pollution, and improved performance. These vehicles are not just a replacement for typical diesel trucks; they also represent a forward-thinking approach to logistics and transportation across regions.

The electric truck market in Europe showcases an upward growth, driven by the escalating need for high-load freight transportation, stringent emissions regulations, and advancements in electric vehicle technology. The market is also propelled by the need for sustainable transportation solutions, with governments, businesses, and logistics providers increasingly adopting electric trucks to reduce carbon emissions and achieve environmental targets set by European commission.

Key Trends and Developments

Expansion of electric truck models, rising adoption of autonomous technologies, surge in e-commerce sector, and government initiatives are boosting the market growth

January 2024

By 2030, a network of 300 electric, digitally optimized heavy-duty vehicles will be part of Mars and Einride's freight technology network throughout Europe. An estimated 10% of Mars Europe's yearly GHG emissions from road transportation will be saved by the electric operations.

March 2023

European Union adopted new CO2 standards for e-cars, e-trucks, and e-vans, which will result in a 55% reduction in emissions released by these new vehicles by 2030.

May 2022

Volvo Trucks and Deutsche Post DHL Group collaborated to accelerate the transition to zero-emission vehicles by deploying 44 new electric Volvo FE and FL trucks on European routes. These trucks will be utilised for package deliveries in urban areas.

December 2021

Tesco introduced the first electric heavy-good vehicles (HGVs) which are being utilised for commercial purposes in Britain to service its Welsh distribution centre. On a single charge, the vehicle can cover roughly 100 miles.

Rising adoption of autonomous technologies in e-trucks

Europe electric truck market growth is expected to improve due to increasing integration of autonomous features in e-trucks, which enhances road safety and efficiency. Several manufacturers are deploying electric autonomous trucks solutions such as, driver-assist systems and autopilot technologies.

Expansion of electric truck models

One of the major Europe electric truck market trends involve the expansion of various models of electric trucks, ranging from plug-in to battery electric vehicles and light-duty to heavy-duty e-trucks. They provide versatile solutions to cater to various transport needs, including construction and regional order deliveries.

Increasing government initiatives

Several European countries have taken initiatives to promote the adoption of electric trucks and reduce greenhouse gas emissions. Initiatives include subsidy schemes for heavy-duty vehicles and financial support for the first electric truck purchases. Germany has among the highest truck purchase subsidies in Europe, with 80% of additional costs of the vehicle and the charging infrastructure covered.

Surge in logistics or e-commerce sector

Europe electric truck market development can further be credited to the wide use of electric trucks in urban logistics or e-commerce sector as it addresses the last-mile delivery challenges. In 2021, Amazon acquired an autonomous driving company ‘Plus’ to enhance e-truck's safety, delivery of orders and reduce carbon emissions and fuel costs.

European Union (EU) has set a goal to have at least 30 million electric vehicles on the roads by 2030, and 1 million electric and hydrogen vehicle charging stations are to be installed by 2025. To launch different types of electric trucks, major players such as Daimler, Tesla Corp, Renault Trucks, and Volvo Trucks are competing to gain a larger electric truck market share. For example, Tesla recently has launched Tesla Semi, an electric truck designed with advanced features like autopilot, providing better acceleration and safety.

Electric trucks can be cheaper to own and run than diesel trucks in Europe and this cost-effectiveness makes electric trucks an attractive option for businesses. Due to this, the Europe electric truck market share is expected to increase from about 4,000 electric trucks registered in the EU in 2022 to almost 6,00,000 units by 2030. Amazon recently placed an order of 100,000 new electrical delivery vehicles, including e-trucks and will be deployed by 2030. Additionally, the continuous advancements in battery technology, including increased energy density and improvements in charging infrastructure, play a pivotal role in fostering the adoption of electric trucks, as these technologies enhances their range and feasibility.

Market Segmentation

Europe Electric Truck Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:
 

Market Breakup by Propulsion Type

• Battery Electric Truck 

• Plug-in Hybrid Electric Truck 

• Fuel Cell Electric Truck

Market Breakup by Type

• Light Truck 

• Medium-Duty Truck 

• Heavy-Duty Truck

Market Breakup by Range

• Less than 200 Miles

• More than 200 Miles

Market Breakup by Level of Automation

• Semi-Autonomous 

• Fully-Autonomous

Market Breakup by Application

• Logistics

• Municipal 

• Others

Market Breakup by Country

• Germany

• United Kingdom

• France

• Italy

• Others

Fuel cell electric trucks are expected to hold significant market share due to government’s promotion of fuel cell EVs

As per the Europe electric truck market analysis, the fuel cell electric truck segment dominated the market due to their ability to cover long distance and the government promotion of sustainable (hydrogen) fuel-cell electric vehicles. May 2023 onwards, haulers operating battery electric or hydrogen fuel electric trucks in Europe received at least 50% discounts on distance-based road tolls. With road tolls costing haulers up to EUR 25,000 per truck annually, switching to zero-emissions vehicles have reduced their overheads considerably.

According to Europe electric truck market report, the battery electric truck segment is gaining momentum due to launches of new battery electric trucks and expanding e-commerce sector. In June 2022, Scania, a Swedish company introduced next level of battery-electric trucks (BEV) with R or S sleeper cabs. Due to this, the charging capability of the new e-trucks increased by 375 kW, which means that an hour of charging will add 270 to 300 km of range. These new electric truck models can enable e-commerce players smoothly deliver their orders and organise their warehouse operations.

Heavy-duty electric trucks  are highly preferred in the market due to their capacity to carry substantial payloads

As per Europe electric truck market forecast, medium and heavy-duty electric trucks segments are expected to hold significant shares in the market. Heavy-duty electric trucks are gaining traction in freight and long-haul transportation as these vehicles can run longer ranges and carry substantial payloads. Medium-duty electric trucks play a crucial role in regional transportation and reduction of local noise pollution.

Moreover, the development of a charging infrastructure is also supporting the increasing adoption of heavy and medium-duty electric trucks. By 2030, it is projected that around 270,000 battery electric medium and heavy-duty vehicles will be in operation in Europe, requiring up to 1,40,000 public and destination electric charging points. To support this need, Europe has recently unveiled its first electric truck corridor, a significant development in the region's transition to light, medium, and heavy-duty electric vehicles. The corridor, announced by BP pulse, features six public charging locations with ultra-fast 300kW charge points, which can create logistical convenience for various industries and is thereby expected to boost the Europe electric truck market demand.

Competitive Landscape

The market players are increasing their collaborations and acquisitions to meet the evolving regulatory landscape.
 

Mercedes-Benz Group AG was founded in 1926 and is a German multinational automotive corporation. The company is known for designing, manufacturing, distributing, and selling a wide range of automotive products such as passenger cars, trucks, vans, and buses. In addition to its automotive business, Mercedes-Benz Group also provides financial services, including financing, leasing, and car insurance.

AB Volvo, legally Aktiebolaget Volvo and stylised as VOLVO, is a Swedish multinational manufacturing corporation. Founded in 1927, the company's core activity is the production, distribution, and sale of trucks, buses, and construction equipment. In addition to this, Volvo also supplies marine and industrial drive systems and financial services.

BYD Europe B.V. is a multinational technology company that specialises in electric vehicles, battery energy storage systems, and photovoltaic products. The company was founded in 2005, with its headquarters in Hoofddorp, Netherlands. It is responsible for the sales, marketing, and distribution of BYD's products in Europe, including industry-leading technologies such as the Blade Battery, e-Platform 3.0, and dual-mode hybrid power technology.

Tevva Motors Ltd is a UK-based technology company and truck manufacturer that specialises in producing zero-tailpipe emission electric vehicles and long-range hydrogen electric trucks. The company is known for creating Britain's first 7.5-tonne electric truck and is recognised for its innovative approach, which blends both battery electric and hydrogen fuel cell technology.

Other key players in the Europe electric truck market include Traton SE, Volta Trucks AB, and E-Trucks Europe NL, among others.

United Kingdom is the leading country in European electric truck market due to high demand for EVs in its logistics sector

United Kingdom occupies a prominent Europe electric trucks market share due to country’s strong focus on electric vehicles (EVs) and it’s growing logistics sector. The logistics industry and e-commerce players operating in UK, such as DHL, Amazon, Walmart, and Marks & Spencer are increasingly turning to electric trucks for sustainable delivery solutions. In 2022, DHL, a German logistics company, deployed 44 new electric Volvo trucks on European routes for online deliveries in urban areas of United Kingdom.

Several other European countries are promoting the adoption of e-trucks by implementing specific government initiatives, aiding the Europe electric trucks market growth. For example, France provides incentives for commercial zero-emission vehicle (ZEV) purchases, with amounts ranging from EUR 10,000 to EUR 20,000. Meanwhile, Netherlands has implemented zero-emission zones for up to 40 of its largest cities, which will likely encourage the use of electric commercial vehicles in urban areas. In addition, Switzerland has encouraged e-truck growth through its road tax on diesel truck operations.

These initiatives aim to accelerate the transition to electric trucks, reduce greenhouse gas emissions, and create a more sustainable transportation system, further accelerating the Europe electric truck market development.

Key Highlights of the Report