Europe Electric Truck Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Europe Electric Truck Market is expected to exhibit a growth rate of over 18% during the forecast period 2020-2025.

Key Highlights

• Some of the major factors driving the growth of the electric truck market in Europe are the enactment of stringent emission norms imposed on commercial vehicles, incentives for adoption of cleaner and zero emission vehicles and reduction in fuel and maintenance costs.
• Governments across the European Region are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, this in turn is pushing them to invest in developing electric trucks (e-trucks), while low-emission zones are driving fleets to replace diesel trucks with cleaner options.
• However, there are certain risks associated with the adoption of e-trucks, such as new vehicles must prove to be dependable, consumers need to be educated, and dealers and customers may require training. Furthermore, inadequate charging infrastructure for electric trucks is also expected to hinder the growth of the market.

Key Market Trends

Stringent Emission Regulations are Fueling the Market Growth

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 in the coming years.

In Europe, European Union (EU) is committed to achieve 20% greenhouse gas reduction target in 2020 for second phase of Kyoto Protocol (base year 1990). European Union has also set the target to achieve 40% greenhouse gas reduction by 2040 compared to 1990. By 2050, EU has set a target of 0% greenhouse gas emission by 2050. European Union regulation EU 253/2014 sets the target of 147 gm of CO2 emission per kilometer for 2020 and 2021 for light commercial vehicles (LCVs) based on NEDC test procedure. European Union set the target of 31% reduction of CO2 emission for LCVs by 2030.

Germany to Exhibit a Significant Growth Rate

Germany is expected to account for significant share in the total sales of electric trucks during the forecast period. Germany is investing heavily in infrastructure development for electric mobility and it opened a new electric highway for hybrid electric trucks where they will be powered from overhead electric lines. Moreover, growing concerns about environmental pollution through internal combustion engine vehicles are also expected to play a crucial role in the growth of the electric truck market. However, the ongoing research and development in commercial vehicle fuel cell technology is expected to hamper the growth of battery electric trucks in Europe. In April 2020, Daimler Trucks AG and Volvo Group agreed to form a joint venture to produce fuel cell powered and battery powered medium and heavy trucks.

Competitive Landscape

The European electric truck market is characterized by major players, such as BYD Auto, Scania, MAN, Daimler Trucks, Volvo Trucks, etc. among others. Recently, Volvo unveiled two fully electric-powered commercial trucks in 2020, and this is likely to help the company maintain its competitive position in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support