Europe Van Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Europe Van Market Share & Companies and It is Segmented On the Basis of Cargo Space (More Than 5 Cubic Meters and Less Than 5 Cubic Meters), End-User (Commercial and Government), Drive Type (IC Engine, Electric, and Alternative Fuel), and Geography (Germany, United Kingdom, Italy, France, Spain, and Rest of Europe). The Report Offers the Market Size and Forecast in Value (USD) for all the Above Segments.

Europe Van Market Size

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Europe Van Market Summary
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Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 60.51 Billion
Market Size (2029) USD 75.99 Billion
CAGR (2024 - 2029) 4.66 %
Market Concentration High

Major Players

Europe Van Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Van Market Analysis

The Europe Van Market size is estimated at USD 60.51 billion in 2024, and is expected to reach USD 75.99 billion by 2029, growing at a CAGR of 4.66% during the forecast period (2024-2029).

  • 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.
  • Over the long term, factors like increasing regulations on vehicle emissions, advancement in vehicle safety, the introduction of driver-assist systems in vehicles, and rapidly growing logistics in the retail and e-commerce sectors have been significantly driving the demand for new and advanced commercial vehicles in the market.
  • 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.
  • Vans find usage in several applications and segments of the European economy, i.e., construction, postal and courier services, law enforcement, and light duty passenger transport applications. The demand has significantly grown owing to the logistics and last-mile delivery needs of e-commerce giants like Amazon.
  • For instance, in January 2022, BrightDrop, a subsidiary of General Motors, partnered with FedEx to supply vans to the latter for home delivery service. Further, European governments are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, pushing them to invest in developing electric Vans.
  • Meanwhile, low-emission zones are driving the market. The transition towards electric mobility further increases the demand for LCVs, owing to the faster adoption of electric vehicles by major companies. Large-scale manufacturers are also offering several products, in partnerships with other major companies, to transform the existing majority of ICE LCVs to electric over the forecast period.

Europe Van Market Trends

Rise in Sale of Electric Vans

  • Commercial van electrification is a significant trend in Europe, driven by factors such as environmental regulations, government incentives, and the increasing demand for sustainable transportation solutions.
  • Looking at full-year 2022 volumes, nearly 1 million light commercial vehicles were registered across the European Union (EU). The decrease can be majorly attributed to the war that broke out between Ukraine and Russia. Despite the slowdown, the market promises to pose great growth potential for both manufacturers and suppliers across the European region.
  • Europe has set ambitious emission reduction targets to combat climate change. Tighter regulations, especially in urban areas, are aimed at reducing pollution and encouraging the introduction of electric vehicles (EVs). These regulations, such as low emission zones and stringent emission standards, are encouraging fleet managers to switch to electric commercial vehicles.
  • Governments across Europe offer various incentives to encourage the uptake of electric vehicles. These incentives include purchase, tax, and building charging infrastructure subsidies. This help offset the high acquisition costs of electric vans, making them more economically attractive to fleet operators.
  • According to the European Automobile Manufacturers' Association (French: L'Association des Constructeurs Européens d'Automobiles (ACEA)), the new light commercial vehicle registrations in the EU fell by 14.4%, totaling 102,226 units as of October 2022. All the major EU markets posted declines last month, especially Germany (-16.6%), Italy (-7.3%), and France (-6.7%), while new van sales remained relatively stable in Spain (-0.5%).
  • Electrically-chargeable vehicles grew by 44.9% to 12794 units of van registrations across the country in 2021, while hybrid vans grew by 67.6% to 1596 units for the same year. Sales of an electric version of GAZelleNext light commercial vehicle (LCV) have begun in Germany. Stuttgart company EFA-S is modifying Russian vehicles. The assembly started in the year 2020. The German company purchases LCVs in Russia without transmission, engine, or fuel system. Then in Stuttgart, they install an electric motor and battery.
Europe Van Market: Europe LCV Market, New Registrations in European Countries in 2022

United Kingdom is witnessing the Growth of the Market

  • The United Kingdom has played a significant role in driving the market growth of light commercial vehicles across the European region. With the establishment of e-commerce giants and major regional operations in the European market, sales of all vans up to 3.5 tons increased by 15.3% to 25,359 units as of May 2023.
  • However, sales of trucks between 3.5 and 6.0 tons decreased by 24.5% to 386 units, while sales of taxis decreased by 14.6% to 111 units. In January 2022, new vehicle sales of LCVs in the United Kingdom reached 17,566 units. By February 2022, the number decreased to 16,165 units, registering an MoM decline of around 8% compared to the previous month.
  • In January 2022, the United Kingdom electric LCV market witnessed a strong fall in overall sales by -26.9% with 17,566 registration compared to historic sales growth in the electric vehicle LCV segment. In addition, this has been a challenging month for the United Kingdom electric LCV market, although owing to changing consumer preferences and fleet renewable frequency shall exhibit a strong comeback for sales during Q2 2022.
  • Owing to this high market potential for light trucks, major companies, both private and government-owned, across the country have been introducing new products to the market. Aided by the national government's push towards electric vehicles, new vehicle models, along with upgrades to the existing vehicles, are being introduced to cater to the market needs.
  • For instance, in May 2023, LEVC (London Electric Vehicle Company) announced a battery upgrade for new TX taxis and VN5 vans. With this update, TX's electric-only range is now 78 miles (up from 64 miles), and its total range is increasing to 333 miles (up from 318 miles). VN5's electric-only range improves to 73 miles (up from 64 miles) and 328 miles in total (up from 318 miles).

Europe Van Market: Best-selling light commercial vehicle brands in the United Kingdom in 2021

Europe Van Industry Overview

  • Europe's van market is highly competitive. The presence of major original equipment manufacturers (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 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.
  • For instance, in June 2023, Punch Powertrain established a strategic agreement with Cubonic to develop and manufacture sustainable automated and autonomous electric light commercial vehicles (eLCVs), specifically the PeopleMover and CargoMover eLCVs from Cubonic.

Europe Van Market Leaders

  1. Stellantis NV

  2. Daimler AG

  3. Volkswagen AG

  4. Ford Motor Company

  5. Groupe Renault

*Disclaimer: Major Players sorted in no particular order

Europe Van Market Concentration
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Europe Van Market News

  • June 2023: TÜV Rheinland and Centro Tecnológico Randon (CTR) have announced a collaboration for automotive vehicle and component homologation, testing, and type certification. The collaboration aims to provide an extensive range of certification services for commercial vehicles, light cars, vehicle systems, and components while maintaining the security and flexibility that clients expect.
  • May 2023: Arrival announced a significant milestone, having built 3 L Vans at the Bicester factory during the first quarter of 2023, with 5 more currently in progress. Additionally, they have successfully accumulated over 90,000 kilometers of on-road test driving. The build and road testing of the L Vans has proven to be a valuable source of insights, aiding in the finalization of manufacturing methods and designs for the XL Van.
  • May 2023: AvtoVAZ introduced a one-of-a-kind series of regional displays featuring all modern LADA models and commercial samples based on the brand's vehicles. The showcased models include the LADA Granta Prima van, LADA NIVA Kub (an 8-seater van based on LADA NIVA Legend), pickup trucks based on LADA Granta and LADA NIVA Legend, as well as dual-fuel LADA Granta CNG and others, all part of the LADA Fleet Road Show.
  • January 2022: Volkswagen unveiled a new electric van equipped with batteries ranging from 48kWh to 111kWh, offering an impressive range of up to 342 miles. The van was expected to be available for sale in March 2022 across Europe.

Europe Van Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

      1. 4.1.1 Rise in Sale of Electric Vans

    2. 4.2 Market Restraints

      1. 4.2.1 High Cost of Electric Vehicle Battery

    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

  5. 5. MARKET SEGMENTATION

    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 Geography

      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

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Stellantis NV

      2. 6.2.2 Daimler AG

      3. 6.2.3 Volkswagen AG

      4. 6.2.4 Ford Motor Company

      5. 6.2.5 Groupe Renault

      6. 6.2.6 Vauxhall Motors Limited

      7. 6.2.7 Hyundai Motors

      8. 6.2.8 Toyota Motor Corporation

      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

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Europe Van Industry Segmentation

A van is an enclosed wagon or motortruck used for the transportation of goods.

The Europe van market is segmented based on cargo space (more than 5 cubic meters and less than 5 cubic meters), end-user (commercial and government), drive type (IC engine, electric, and alternative fuel), and geography (Germany, United Kingdom, Italy, France, Spain, and Rest of Europe). 

The report offers market size and forecasts for vans in Europe in value (USD) for all segments.

By Cargo Space
More than 5 Cubic Meter
Less than 5 Cubic Meter
By End-User
Commercial
Government
By Drive Type
IC Engine
Electric
Alternative Fuel
By Geography
Germany
United Kingdom
Italy
France
Spain
Rest of Europe
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Europe Van Market Research FAQs

The Europe Van Market size is expected to reach USD 60.51 billion in 2024 and grow at a CAGR of 4.66% to reach USD 75.99 billion by 2029.

In 2024, the Europe Van Market size is expected to reach USD 60.51 billion.

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

In 2023, the Europe Van Market size was estimated at USD 57.69 billion. The report covers the Europe Van Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Van Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Europe Van Industry Report

Statistics for the 2024 Europe Van market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Van analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Europe Van Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)