Europe Electric Truck Market Size

Electric Trucks Europe Market Analysis

The Europe Electric Truck Market size is estimated at USD 1.12 billion in 2024, and is expected to reach USD 10.76 billion by 2029, growing at a CAGR of 57.13% during the forecast period (2024-2029).

The COVID-19 pandemic hindered the growth of the electric truck market due to trade and travel restrictions imposed by governments across the region. However, the sales of electric trucks decreased notably in the first half of 2020 and recovered significantly in the latter half.

Over the medium-term, electric trucks are expected to become the preferred choice over diesel trucks owing to their remarkable advantages such as gobs of torque, noise pollution, lower maintenance cost, and others.

However, as restrictions eased, e-commerce and logistic providers witnessed revenue growth, increasing demand for electric trucks. The current situation is further expected to be driven by the development of alternative-fueled trucks, specifically commercial battery-electric trucks, across the European region, in the wake of its notable environmental targets. For instance, Switzerland is encouraging fuel cell electric truck growth through its road tax on diesel truck operations, making alternative fuels more attractive for large Swiss retail associations.

• The European Commission launched the 'Alternative Fuels Infrastructure Facility' in October 2021. The USD 1.5 billion funds support building zero-emission infrastructure such as fast charging and hydrogen refueling stations. The fund brings European countries closer to reaching their goal of 1 million recharging stations by 2025 and 3.5 million by 2030.
• The German government also pledged an additional USD 6.6 billion to incentivize commercial fleets to replace or upfit their diesel vehicles. The funding covers the purchase of N1 (similar to US class 2), N2 (similar to US class 3-6), and N3 (similar to US class 7-8) zero-emissions vehicles, as well as the conversion to zero-emission drives in N2 and N3 vehicles. The program also includes funding for expanding the zero-emission infrastructure required to power the new vehicles. Countries such as Belgium, Denmark, France, and Spain are expected to follow Germany's example in the future.

Enactment of stringent emission norms on the use of IC engine-powered vehicles and rising government incentives and subsidies focusing on improving the penetration rate of commercial electric vehicles, especially trucks, are expected to drive the market during the forecast period. Development of self-driving technology, lightweight components, and materials to offer new opportunities for players in the market.

Besides these, increasing investments in research and development efforts by key market players and notable developments across autonomous trucks/self-driving trucks are other factors expected to drive the overall Europe electric truck market forward in the future.