Europe Electric Truck Market Size

Europe Electric Truck Market size was valued at USD 1.4 billion in 2023 and is estimated to grow at a CAGR of over 50% from 2024 to 2032. The expansion of low-emission zones (LEZs) in urban areas is a major driver of growth in the market. As cities implement stricter regulations to curb air pollution and improve urban air quality, they restrict access for high-emission vehicles, including traditional diesel trucks. This regulatory pressure pushes fleet operators to transition to electric trucks, which are exempt from these restrictions.

Consequently, the increased number of LEZs across Europe incentivizes businesses to invest in electric trucks to maintain operational access to urban centers and avoid fines associated with non-compliance.p

Moreover, the expansion of LEZs is creating a more favorable environment for electric trucks by increasing their attractiveness and practicality for urban logistics. As more cities adopt low-emission policies, the demand for electric trucks grows, spurring further investments in electric vehicle infrastructure and technology. This positive feedback loop accelerates the adoption of electric trucks, as businesses and fleet operators seek to align with environmental regulations and benefit from the operational advantages provided by clean, zero-emission vehicles.

The proliferation of LEZs thus acts as a catalyst for market growth, driving both regulatory compliance and innovation in the electric truck sector.  For instance, low emission zones (LEZs) have significantly expanded across Europe. There were more than 320 LEZs in Europe in 2022 and the number is expected to reach 507 by 2025.

Europe Electric Truck Market Trends

Charging infrastructure for electric trucks encompasses the network of facilities and equipment necessary to recharge electric vehicles (EVs). This includes a variety of charging stations, from standard AC (alternating current) chargers suitable for overnight or depot-based charging, to more advanced DC (direct current) fast-charging stations designed for rapid replenishment. The infrastructure typically involves both public and private charging locations, strategically placed along major transport routes and within logistics hubs to ensure convenient access for long-haul and regional electric trucks.

Integrating these stations with existing fuel networks and ensuring their compatibility with a range of vehicle models are key aspects of developing a robust charging network. For instance, in May 2023, Scania has successfully installed and tested a pilot megawatt charging system from ABB E-mobility, representing the next milestone in the development of an efficient, high power charging solution for heavy duty vehicles. The technology will enable half the charging time for heavy duty vehicles.

Fast-charging technology significantly enhances the feasibility of using electric trucks for long-distance travel by reducing downtime. Unlike standard charging, which can take several hours, fast chargers use high-power DC to deliver energy quickly, often within 30 minutes to an hour, depending on the truck’s battery capacity and the charger’s output.

Advances in fast-charging technology include high-power chargers with capabilities of 350 kW or more, which can accommodate the larger batteries typical of electric trucks. Additionally, innovations like ultra-fast charging and battery swapping systems are being explored to further reduce charging times and improve operational efficiency, making electric trucks more competitive with their diesel counterparts in terms of turnaround and operational logistics.

Europe Electric Truck Market Analysis

Battery degradation and replacement costs are significant factors restraining the growth of the electric truck industry in Europe. As electric truck batteries age, their performance and capacity can decline, leading to reduced range and efficiency. This degradation not only impacts the operational reliability of electric trucks but also necessitates costly replacements. The high expense associated with battery replacement can deter fleet operators from adopting electric trucks, particularly when compared to the lower long-term costs of maintaining traditional diesel trucks. These concerns about battery longevity and replacement contribute to hesitancy in investing in electric trucks.

Moreover, the financial burden of battery replacement can undermine the total cost of ownership benefits that electric trucks are supposed to offer. Although electric trucks generally have lower operational costs, the substantial upfront and periodic costs for battery maintenance and replacement can offset these savings. This economic factor, coupled with the uncertainty regarding the lifespan and performance of newer battery technologies, can slow the market adoption of electric trucks as businesses weigh the long-term financial implications against their environmental benefits.

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Based on vehicle, the market is divided into light duty trucks, medium duty trucks and heavy duty trucks. In 2023, the heavy duty truck segment was valued at over USD 1 billion. Financial incentives, such as subsidies, grants, and tax breaks, are making electric heavy-duty trucks more affordable. These incentives help reduce the higher initial costs of electric trucks compared to diesel ones. Government subsidies and grants lower the upfront investment required, making it easier for businesses to choose electric heavy-duty trucks. Tax incentives also cut the total cost of ownership by reducing the tax burden on purchases and operations.

Additionally, several programs offer incentives for building charging infrastructure, which supports the practical use of electric trucks. By reducing financial barriers, these incentives accelerate the adoption of electric heavy-duty trucks, helping businesses transition to greener technology more quickly. This not only aids in meeting regulatory standards and sustainability goals but also promotes long-term savings through lower fuel and maintenance costs.

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Based on propulsion, the Europe electric truck market is categorized into BEV, HEV, PHEV, FCEV. In 2023, the PHEV segment held a market share of over 64%. PHEV help businesses meet strict pollution regulations by combining electric and traditional power sources. This dual powertrain setup is especially useful in low-emission zones, where only vehicles with low emissions are allowed. By using electric power in these areas, PHEVs stay compliant with local rules and avoid penalties.

Furthermore, the hybrid system allows for the use of diesel power for longer trips or more demanding tasks, helping to meet interim emissions targets while offering flexibility for different driving conditions. This hybrid approach lets businesses reduce overall emissions while maintaining operational efficiency and performance. The ability to switch between electric and diesel power ensures that PHEVs can navigate urban areas with low emissions and cover longer distances without range anxiety, unlike fully electric vehicles. This makes PHEVs a practical and compliant choice for companies aiming to balance environmental goals with operational needs.

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Germany electric truck market accounted for 20% of the revenue share in 2023. Germany has world's largest and most growing automotive manufacturers, such as Daimler, Volkswagen, BMW, and MAN, which are heavily investing in electric vehicle (EV) technologies, including electric trucks. This industrial strength makes Germany a leader in electric truck production and development.

Western Europe has made significant efforts to build a comprehensive network of Electric Vehicle (EV) charging stations, creating a strong infrastructure that supports the widespread adoption of electric trucks. This extensive network includes high-speed charging stations strategically located along major transportation routes, in urban centers, and within industrial zones. By ensuring that charging facilities are easily accessible, Western Europe addresses a major concern for electric truck operators range anxiety.

Furthermore, the availability of frequent and reliable charging options means that businesses can confidently integrate electric trucks into their fleets without worrying about running out of battery on long routes or during peak operational hours. This infrastructure not only facilitates the smooth operation of electric trucks but also encourages more companies to transition to zero-emission vehicles. As a result, the well-developed charging network plays a crucial role in promoting the growth of the market in Western Europe

Europe Electric Truck Market Share

The competitive landscape of the European electric truck industry features a mix of major automotive manufacturers and emerging startups, all competing for market share as demand for sustainable transportation solutions rises. Key factors include technological advancements, battery efficiency, and the development of charging infrastructure. Supportive regulations for zero-emission vehicles further intensify competition. Partnerships among manufacturers, logistics providers, and technology companies are common to enhance product offerings and operational capabilities. As the market evolves, distinguishing factors such as service, range, and total cost of ownership will be vital for success.

Europe Electric Truck Market Companies

Major players operating in the Europe electric truck industry are:

• BYD
• DAF Trucks
• Daimler
• Hino
• Isuzu
• Nikola Corporation
• PACCAR
• Renault
• Traton
• Volvo
  

Europe Electric Truck Industry News

• In April 2024, IKEA announced USD 100 million investment to install EV charging stations at its stores worldwide. This move was aimed at supporting the shift towards electric vehicles and providing convenient charging options for customers.
  
• In November 2023, Rivian and Amazon extended their partnership with an order for additional electric delivery vans. Amazon, an early investor in Rivian, plans to integrate these electric vans into their delivery network to enhance sustainability and reduce the environmental impact of their logistics operations.
  

Europe Electric Truck market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & volume (Units) from 2021 to 2032, for the following segments:

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Market, By Vehicle

• Light duty trucks
• Medium duty trucks
• Heavy duty trucks

Market, By Axle

• 2-axle
• 3-axle
• 4-axle

Market, Application

• On-road
• Off-road

Market, Propulsion

• Battery electric trucks (BEV)
• Hybrid electric trucks (PHEV)
• Plug-in hybrid electric trucks (FCEV)
• Fuel cell electric trucks (ICE)

Market, Superstructure

• Box body
• Refrigerated body
• Flatbed body
• Curtainside body
• Tanker body
• Tipper body
• Crane body
• Skip Loader body
• Fire Engine body
• Hooklift body
• Spreading
• Ploughing
• Concrete mixer
• Refuse collector
• Sweeper
• Recovery vehicle

Market, Battery Capacity

• Below 100 kWh
• 100-300   kWh
• Above 300 kWh

Market, Range Capacity

• Short range (Up to 150 miles)
• Medium range (150 to 250 miles)
• Long range (Over Range 250 miles)

The above information is provided for the following regions and countries:

• Northern Europe
  • Denmark
  • Estonia
  • Finland
  • Iceland
  • Ireland
  • Latvia
  • Lithuania
  • Norway
  • Sweden
  • United Kingdom
• Western Europe
  • Austria
  • Belgium
  • France
  • Germany
  • Liechtenstein
  • Luxembourg
  • Netherlands
  • Switzerland
• Eastern Europe
  • Belarus
  • Bulgaria
  • Czech Republic
  • Hungary
  • Moldova
  • Poland
  • Romania
  • Russia
  • Slovakia
  • Ukraine
• Southern Europe
  • Albania
  • Bosnia and Herzegovina
  • Croatia
  • Cyprus
  • Greece
  • Italy
  • Kosovo
  • Malta
  • Montenegro
  • North Macedonia
  • Portugal
  • Serbia
  • Slovenia
  • Spain