Heavy-Duty Trucks Market Analysis Europe - Size and Forecast 2024-2028

Europe Heavy-duty Trucks Market Size 2024-2028

The Europe heavy-duty trucks market size is forecast to increase by USD 17.08 billion, at a CAGR of 8.09% between 2023 and 2028. Market growth hinges on several factors such as rising demand for HD trucks in Eastern Europe, increasing adoption by truck rental service providers, and stringent emission standards. These elements drive expansion by meeting regional transportation needs, enhancing fleet capabilities, and complying with environmental regulations. The growing preference for HD trucks among rental providers underscores their reliability and operational efficiency. As emission standards tighten, there is a heightened focus on vehicle efficiency and sustainability, encouraging innovation in engine technology and fuel management systems. These dynamics shape the market landscape, prompting manufacturers to develop advanced solutions that align with market trends and regulatory requirements. Stakeholders are expected to capitalize on these opportunities, leveraging them to expand market presence and meet the evolving demands of transportation and logistics sectors in Eastern Europe and beyond.

What will be the size of the Market During the Forecast Period?

 Market Forecast 2024-2028

Market Dynamic

The Heavy-Duty Trucks market encompasses a wide range of vehicles designed for long-distance freight transportation and extreme situations. These include heavy commercial vehicles such as forklifts, tractors, and commercial trailers. The market caters to various industries like Agriculture, Mining, Construction, Logistics, and Cargo, requiring strong construction, powerful engines, and significant weight-carrying capability. Heavy-duty trucks play a crucial role in long-distance freight transportation, particularly in industries where operational efficiency and productivity are paramount. In mining operations and industrial activities, these vehicles are indispensable for moving raw materials and supplies. The market is witnessing a shift towards sustainability goals, with alternative-fuel vehicles gaining popularity. Regulatory pressure and emissions reduction targets are driving fleet modernization and the adoption of autonomous heavy-duty trucks. Autonomous technologies aim to reduce operational costs and improve safety. However, the market faces constraints such as high initial investment costs and regulatory challenges. In conclusion, the Heavy-Duty Trucks market is a significant contributor to various industries, offering powerful engines, strong construction, and weight-carrying capability. The market's future growth is expected to be influenced by the shift towards alternative fuels, fleet modernization, and the adoption of autonomous technologies.

Key Market Driver - Increasing demand for HD trucks in Eastern Europe

Eastern Europe is expected to account for a significant portion of the adoption of HD trucks in Europe due to factors such as the increase in manufacturing activities and improvement in road infrastructure driving the demand for HD trucks in Eastern European countries. In addition, countries in this region are witnessing faster economic growth, which can be positively correlated with the accelerating demand for transportation and logistics.

Besides, Eastern European economies attract many prominent manufacturers due to the low cost of manufacturing supported by lower labor costs. These economies rely heavily on exporting the finished products/goods to the rest of Europe, which acts as an enabler for the HD trucks market in Europe, as road transportation is a prominent medium for goods transportation in the region. Therefore, the rising demand for HD trucks in Eastern Europe will drive the growth of the market during the forecast period.

Primary Market Trends - Development of multi-brand truck platooning in Europe

The truck platooning concept has gained interest from prominent automotive manufacturers. Truck platooning involves traveling multiple trucks at an aerodynamic distance and driving cooperatively by maintaining the distance at high speeds. A truck platoon is like a train's compartment-like arrangement but with physical disconnects. Nowadays, truck platooning is being tested by market players across the globe with the aim of commercializing the technology.

Moreover, the adoption of multi-brand truck platooning will be approvingly beneficial to European countries as it enhances fuel economy, lowers emissions, ensures traffic safety, and enhances fleet operator efficiency. Technavio expects such developments to positively impact the growth of the Europe heavy-duty trucks market during the forecast period.

Major Market Challenge - High cost associated with HD trucks

An increase in the price of raw materials such as stainless steel, hardened steel, cast iron, and other metal alloys has resulted in a subsequent increase in the manufacturing cost of trucks. Inflated manufacturing costs have reduced the profit margins for OEMs. In addition, HD trucks require continual maintenance and repairs, which add to the total cost of ownership. Further, the implementation of stringent regulations to decrease emissions is contributing to the increase in manufacturing costs, which is exerting cost pressure on the OEMs.

Moreover, large-mile travel has a positive impact on the TCO of electric trucks as compared to diesel trucks. However, most of the purchases made in the Europe - heavy-duty trucks market are based on the upfront cost, which is high for both diesel and electric trucks. Therefore, such factors will prove to be a considerable challenge for the high-volume adoption of HD trucks in Europe and hinder the growth of the market in focus during the forecast period.

Market Segmentation

Type Segment Analysis:

The 3.5 to 16 tonnes segment will account for a major share of the market's growth during the forecast period.?HD trucks with weight capacities ranging from 3.5 to 16 tonnes are designed to handle a wide range of transportation needs, making them indispensable in various industries and applications such as in the construction industry. One of the defining features of HD trucks in this weight class is their adaptability. They are well-suited for local and regional transport tasks, which often involve navigating urban and suburban environments.

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The 3.5 to 16 tonnes segment was valued at USD 16.52 billion in 2018. The growth of the e-commerce industry is increasing the demand for road transportation of goods in Europe. This is one of the key factors driving the demand for HD trucks weighing 3.5-16 tonnes. The introduction of electric truck versions in the HD trucks from the 3.5 to 16 tonnes segment is expected to be crucial for the growth of the segment. Furthermore, the rising launch of electric truck versions will generate interest in this segment, which will allow the segment to witness significant growth during the forecast period.

Who are the Major  Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Scania AB: The company offers heavy duty trucks such as Ecomet 1415 tipper, Ecomet 1815 HE and eComet 1415 7 cum tipper.

The market research and growth report also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

AB Volvo, Daimler Truck AG, PACCAR Inc., Tesla Inc., Volkswagen AG, BYD Co. Ltd., Toyota Motor Corp., Ashok Leyland Ltd, Oshkosh Corp., Eicher Motors Ltd., General Motors Co., Hindustan Motors Ltd., Mahindra and Mahindra Ltd., Iveco SpA, Sinotruk Hong Kong Ltd., Dongfeng Motor Group Co. Ltd., Ford Motor Co., Isuzu Motors Ltd., and Tata Motors Ltd.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type Outlook
  • 3.5 to 16 tonnes
  • Over 16 tonnes
• Fuel Type Outlook
  • Diesel powered
  • Gasoline powered
  • Electric powered
  • Solar powered

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Market Analyst Overview

A Comprehensive Analysis of Key Applications, Regions, and Technological Advancements Heavy-duty trucks play a pivotal role in various industries, including agriculture, mining, construction, logistics, and more. These vehicles, which include forklifts, tractors, commercial trailers, and heavy commercial vehicles, cater to diverse needs. In agriculture, modern tractors with advanced technologies are transforming farming practices. In mining, mining vehicles equipped with smart sensors and algorithms are optimizing resource extraction. In construction, dump trucks, semi-trailers, flatbeds, dry vans, reefers, and box trucks facilitate the transportation of raw materials and finished goods. Emerging economies in the Asia Pacific region, with their expanding road networks and smart city initiatives, are significant markets for heavy-duty trucks. The e-commerce industry's growth is also driving demand for logistics vehicles.

Further, the adoption of battery-powered trucks and automated trucks is on the rise, with charging stations and advanced driver-assistance systems becoming increasingly common. Industries like mining and construction have unique requirements, such as high load-carrying capacities. CogniMine's Autonomous Mission Kit and other technological advancements are addressing these needs. Farmers are also leveraging smart agricultural technologies to optimize their operations. Large-scale enterprises are investing in heavy-duty vehicles to streamline their supply chains and boost sales. In conclusion, the heavy-duty trucks market is a dynamic and evolving landscape, driven by various applications, regions, and technological advancements. The future holds exciting possibilities, with electric and autonomous vehicles poised to transform the industry.

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What are the Key Data Covered in this Market Growth Analysis Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the Europe heavy-duty trucks market between 2023 and 2027
• Precise estimation of the Europe heavy-duty trucks market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Europe heavy-duty trucks market companies

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