Western Europe Heavy Ground Transportation Vehicles Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Western Europe Heavy Ground Transportation Vehicles Market Trends & Growth Drivers

Increasing Number of Product Launches Is a Key Trend

• With the growing market for ground transport machinery, many firms have strongly focused on launching new products in recent years.
• For instance, in May 2024, Volvo announced that it would launch hydrogen-powered trucks. Their on-road tests will begin in 2026 using hydrogen in combustion engines, and commercial launch by 2030.
• In May 2024, Volvo expanded its range of biodiesel-powered trucks, which can now be powered by 100% biodiesel.
• Moreover, in February 2021, AB Volvo launched a 4-meter-high variant of its double-decker Volvo 9700 DD. The new bus is based on the same platform as Volvo’s range of premium segment coaches — the Volvo 9900, Volvo 9700, and Volvo 9700 DD — all of which are 4.25 meters high.

Rise in Trade Activities Drives the Market

• The market is strengthened by the trade agreements between neighboring countries. For instance, Germany shares a dual relation with France, as it is the former’s closest neighbor.
• Under this bilateral symmetrical relation, both countries exchange their goods and services through different transportation means, such as trains and trucks, thereby supporting the growth of the industry in the region.
• An enormous volume of trade in Germany is conducted at some of the world’s largest trade events, such as Medica, Hannover Fair, Automechanika, and the Internationale Tourismus Börse (ITB) tourism Show.
• As trade activities increase in the region, the demand for trucks will rise. Trade requires efficient goods transportation solutions, which boosts the growth of the truck market in Western Europe.

Lower Convenience of Public Transport Is a Challenge

• Public transport is less convenient than private transport because of privacy issues, limited amount of space, long waiting time, rush hour crowding, and unsuitability for remote areas.
• Moreover, public transport services follow a schedule, which may not always be convenient for commuters. This results in significant time loss for travelers who need to arrive at their destination early.
• Similarly, there is little privacy in public transportation. Travelers are crowded and have little personal space, especially in buses and commuter trains.
• Moreover, travelers may be exposed to germs from other passengers who are coughing, sneezing, or showing symptoms of contagious illnesses. Thus, these factors may hinder the growth of the market.

Western Europe Heavy Ground Transportation Vehicles Market Analysis

Type Insights

• The bus category is expected to witness a higher growth rate, of around 7%, during the forecast period, due to the increasing middle-salary population.
• Moreover, companies spending on R&D, for the deployment of electric buses in municipal fleets in Western European countries, has increased in the past few years.
• Governments are deeply concerned about the environment and are, therefore, aiding private fleet owners and public transport departments in adopting battery electric buses (BEBs), which are environment-friendly.
• In Western Europe, France, the U.K., and Germany together account for more than half the total number of electric buses.
• Additionally, the Netherlands has mandated 100% sales of zero-emission public buses by 2025 and targeted a 100% zero-emission vehicle (ZEV) fleet by 2030, replacing all fossil fuel vehicles.
• The market for electric and hybrid buses in Western Europe is expected to grow significantly during the forecast period, as they emit minimal levels of pollution. They also provide sustainable mobility options by reducing the reliance on fossil fuels.
• Furthermore, the European Commission’s Sustainable and Smart Mobility Strategy released in 2020 aims at 90% lower transport sector emissions by 2050. The adoption of this strategy will inspire public and private transit agencies to avoid diesel buses in favor of electric and hybrid variants in the coming years.
• Whereas, the truck category dominates the market, with an estimated revenue share of over 90% in 2024.
• Key factors responsible for this include the push for electrification, as the European Commission is reviewing the CO2 emission standards for new vehicles.
• Additionally, the evolution of digital technologies and culture is creating new use cases, e.g., in the context of advanced truck and trailer telematics.
• In Western Europe, the demand for LCVs is expected to grow significantly in the coming years. This can be ascribed to their higher productivity and lower maintenance cost than heavy-duty variants.
• Moreover, the emergence of intelligent transportation and logistics supports the adoption of light trucks.
• The demand for these trucks is also rising because of their low price, which makes them affordable for small-to-mid-sized enterprises in the region for last-mile deliveries.
• In addition, the demand for trucks with automatic transmissions is increasing at a high rate because they are easy to drive and more powerful than manual-transmission-based trucks.
• Automatic transmission requires a simpler system that allows the engine to operate at a higher efficient rate, which leads to better use of the fuel and a higher mileage as a result.
• Moreover, the stringency in the emission standards for heavy-duty vehicles, such as Regulation (EU) 2019/1242, has shifted the focus of OEMs toward alternative powertrains for vehicles. Thus, commercial vehicle OEMs in the region are developing automatic transmission trucks.

Types covered in the report include:

• Truck (Larger Category)
  • By type
  • By propulsion type
  • By transmission type
  • By application
• Bus (Faster-Growing Category)
  • By type
  • By application
  • By fuel type
  • By seat capacity

Regional Analysis

France Is the Largest Market

• France is estimated to have accounted for the largest revenue share, of around 27%, in the market in 2024, and it is expected to witness the same trend in the coming years as well. This is due to the increasing number of tourists and daily commuters in the country.
• The country has some of the world's most iconic landmarks, beautiful countryside, world-class art and architecture, and astounding history, which promotes tourism in the country.
• Moreover, the government supports the manufacturing of electric vehicles and the setup of the required charging infrastructure, to further drive the adoption of electric mobility in the country.

Further, countries analyzed for this report include:

• Germany
• U.K.
• France (Largest and Fastest-Growing Country Market)
• Italy
• Spain
• Others

Western Europe Heavy Ground Transportation Vehicles Market Share

The Western European heavy ground transportation vehicles market is medium consolidated in nature, due to the presence of a few major local and international players. These players have been involved in several development strategies, such as product launches, mergers and acquisitions, partnerships and collaborations, and facility expansions, to gain a competitive edge.

Western Europe Heavy Ground Transportation Vehicles Market News

• In April 2024, MAN Truck & Bus announced that it would deliver 200 hydrogen vehicles to customers by 2025.
• In March 2024, Volvo received an order of 100 electric trucks from DFDS, a logistics company.
• In March 2024, Hyundai Motor and Iveco Group expanded their collaboration to discover cooperation in the European markets for electric heavy-duty trucks.
•  In June 2023, CEVA Logistics announced its partnership with Toyota Motor Europe, to test one of the first heavy-duty HFC trucks.