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

Europe Van Market is segmented on the basis of Cargo Space (More than 5 cubic meter and Less than 5 cubic meter), End User (Commercial and Government), Drive Type (IC Engine, Electric, and Alternative Fuel), and Country (Germany, United Kingdom, Italy, France, Spain, and Rest of Europe). The report offers market size and forecasts for vans in Europe in value (USD Billion) for above all segments.

Market Snapshot

europe van market trends
Study Period: 2018-2027
Base Year: 2021
CAGR: 4.66 %

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Market Overview

The European Van Market was valued at USD 51.96 Billion in 2021, and it is expected to reach USD 69.63 Billion in 2027. The European Van Market is projected to witness a CAGR of 5% in terms of revenue during the forecast period 2022-2027.

Amid the COVID-19 pandemic, the demand for vans in Europe witnessed a significant decline, primarily attributed to a disruption in the supply chain, a halt in manufacturing activities, and reduced demand from consumers due to a decline in spending power.

The e-commerce industry across Europe has been witnessing a consistent rise over the past few years, primarily attributed to customer inclination toward online shopping and the availability of customer-friendly mobile applications for the online purchase of a variety of products, including industrial goods. This is likely to increase in demand for vans for the last-mile delivery of goods and commodities. Europe's E-commerce industry witnessed about a 10% increase in revenue in 2021 as compared to 2020.

Road transportation plays a vital role in the transportation sector across Europe. For instance, according to Eurostat, road transport accounts for approximately 75% of inland freight transportation inside the EU or around 1,750 billion metric ton-kilometer. This ratio can reach 90% or more in several European nations. The rising business partnership between the original equipment manufacturers and parcel service providers across the region is witnessing major growth in the market. In January 2022, BrightDrop, a subsidiary of General Motors, partnered with FedEx to supply vans to the latter for home delivery service.

Scope of the Report

The scope of the report covers the segmentation based on cargo space, end user, drive type, and country.

Based on the cargo space, the market is segmented into more than 5 cubic meter and less than 5 cubic meter. By end user, the market is segmented into commercial and government. By drive type, the market is segmented into IC engine, electric, and alternative fuel. By country, the market is segmented into Germany, the United Kingdom, Italy, France, Spain, and the Rest of Europe. The report covers the market size and forecast in revenue (USD Billion) for all the above segments.

By Cargo Space
More than 5 Cubic Meter
Less than 5 Cubic Meter
By End User
By Drive Type
IC Engine
Alternative Fuel
By Country
United Kingdom
Rest of Europe

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Key Market Trends

Rise in Sale of Electric Vans

The enactment of stringent emission norms across Europe is likely to increase the demand for electric vehicles. Major e-commerce industries have announced their fleet to be electric in the near future. For instance,

  • In March 2021, FedEx announced its global target for 50% of all newly procured vehicles to be electric by 2025, rising to 100% of all new purchases by 2030. FedEx aims to achieve carbon-neutral operations globally by 2040, with the electrification of its pick-up and delivery vehicles being a major area of investment.
  • In August 2020, Amazon ordered 1,800 electric vans from Mercedes-Benz for its European delivery fleet as part of its plans to run a carbon-neutral business by 2040.

Governments across the region offer various purchase incentives to enhance electric vehicle sales. Major vehicle manufacturers across Europe are planning to offer full-electric vehicles in upcoming years. For Instance, in February 2020, Ford announced that 100% of its passenger vehicle range in Europe will be zero-emissions capable, all-electric or plug-in hybrid, and will be completely all-electric by 2030. Similarly, Ford’s entire commercial vehicle range will be zero-emissions capable, all-electric, or plug-in hybrid, by 2024, with two-thirds of Ford’s commercial vehicle sales expected to be all-electric or plug-in hybrid by 2030. These all factors mentioned are likely to witness major growth for the electric van market across Europe.

europe van market analysis

Commercial User Dominating the Market

The commercial services of the European Union have been benefitting greatly from the vans present in the country. Vans are key players in the logistics chain, enabling the last-mile delivery of goods in urban areas. These vehicles are largely used by small and medium enterprises as business tools and power the country’s economy by a significant margin. According to the Department for Transport, the United Kingdom, 58% of the vans operational in the country in 2020, accounting for around 17,500 vans, were used to cater to commercial and business needs. The needs included carrying equipment, tools, or materials, along with goods transportation.

With rising demand from commercial e-commerce business segments, major original equipment manufacturers have been developing and innovating new commercial vehicles. For instance, in November 2021, Groupe Renault announced that it was field-testing its new commercial van EZ-Flex, which is completely dedicated to catering to the last mile delivery needs of postal services, courier companies, and e-commerce companies.

europe van market share

Competitive Landscape

Europe's van market is highly competitive. The presence of major OEMs across the region is likely to drive the growth of the market. Major key players in the market include Mercedes Benz, Volkswagen Group, Ford Motor Company, and Vauxhall, along with new entrants like Arrival Electric Group Limited, catering to the region's electric van needs.

Growing mergers and acquisitions and business expansion by vehicle manufacturers are likely to boost the van market. For instance, in March 2021, Volkswagen announced its plans to set up six new battery factories across Europe. All the six factories are expected to be operational by 2030 and are expected to cater to the battery needs of Volkswagen and be sold to external OEMs as well. This is expected to help the company expand its electric vehicle business in the European region.

In January 2019, Hyundai Motor announced the group 2020 business direction. The company planned to invest KRW 100 trillion (approximately USD 87 billion) for future growth over the next five years, with the annual investment amounting to USD 17 Billion.

Recent Developments

  • In January 2022, Volkswagen unveiled a new electric van. The van is equipped with batteries from 48kWh to 111kWh and ranges up to 342 miles. The van was expected to be available for sale in March 2022 across Europe.
  • In November 2021, Renault introduced a new van model Kangoo Van E-tech Electric. The van is equipped with a 90KW motor and has a range of 300 kilometers. The van is also equipped with six different drive modes.
  • In October 2021, Ford unveiled an all-new Tourneo connect multi-activity van in Europe. The van is also expected to be equipped with new levels of driver assistance.
  • In September 2021, Nissan launched a new van Townstar based on the concept of the Renault Kangoo. The van is available in two engine options: gasoline and electric. The Townstar is built at Renault’s Maubeuge plant in northern France and is available in passenger and commercial versions.
  • In August 2021, Mercedes launched a new model Citan in the van segment. The van is optionally equipped with the latest features. The van could be available in diesel and petrol engines. In the second half of 2022, the company is expected to also come with an electric engine option.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Cargo Space

      1. 5.1.1 More than 5 Cubic Meter

      2. 5.1.2 Less than 5 Cubic Meter

    2. 5.2 By End User

      1. 5.2.1 Commercial

      2. 5.2.2 Government

    3. 5.3 By Drive Type

      1. 5.3.1 IC Engine

      2. 5.3.2 Electric

      3. 5.3.3 Alternative Fuel

    4. 5.4 By Country

      1. 5.4.1 Germany

      2. 5.4.2 United Kingdom

      3. 5.4.3 Italy

      4. 5.4.4 France

      5. 5.4.5 Spain

      6. 5.4.6 Rest of Europe


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Ford Motor Company

      2. 6.2.2 Daimler AG

      3. 6.2.3 Volkswagen AG

      4. 6.2.4 Toyota Motor Corporation

      5. 6.2.5 Vauxhall Motors Limited

      6. 6.2.6 Stellantis NV

      7. 6.2.7 Hyundai Motors

      8. 6.2.8 Groupe Renault

      9. 6.2.9 Nissan Motors Co. Ltd

      10. 6.2.10 BYD Co. Ltd

      11. 6.2.11 IVECO Group NV

      12. 6.2.12 Arrival Electric Group Limited


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Frequently Asked Questions

The Europe Van Market market is studied from 2018 - 2027.

The Europe Van Market is growing at a CAGR of 4.66% over the next 5 years.

The Europe Van Market is valued at 51 Billion USD in 2018.

The Europe Van Market is valued at 69 Billion USD in 2027.

Ford Motor Company, Daimler AG, Volkswagen AG, Stellantis NV, Groupe Renault are the major companies operating in Europe Van Market.

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