From $155.4 billion in 2021, the Western European heavy ground transportation vehicles market size is set to reach $271.5 billion by 2030 with a CAGR of 6.4%. This is attributed to the introduction of advanced automotive technology, rapid urbanization, and rise in the scale of trade among regional nations. Moreover, the integration of digital technologies and electric propulsions is allowing for the development of truck and trailer telematics solutions for a smarter logistical network.
Conventional trucks created the highest revenue in the Western European heavy ground transportation vehicles market in 2021. These trucks are the most common as they are less expensive as opposed to hybrid, electric, and fuel cell variants. Furthermore, they are more comfortable driving for long distances because of their longer wheelbase. Additionally, they are less hassle-prone to inspect and maintain because it is quite easy to lift their bonnet over those employing other propulsive technologies.
Transit buses dominated the Western European heavy ground transportation vehicles market, and they are also projected to grow with the highest CAGR in the coming years. Buses are the most used public transport in the region and a vital contributor to tourism. Furthermore, these automobiles improve social inclusion by providing access to education, employment, and healthcare to all, including those with low income, non-drivers, the elderly, the disabled, and those living in remote areas.
The demand for hybrid and pure-electric buses in the continent is forecast to grow quickly in the coming years, because they release minimum pollution. In addition, they make mobility sustainable by decreasing the dependence on conventional fuels. Additionally, the Sustainable and Smart Mobility Strategy released by the European Commission in 2020 seeks to lower the emissions from the transport sector by 90% by 2050. Encourage by it, private and public transit agencies are expected to give up diesel buses and adopt electric and hybrid alternatives instead.
The demand for LCVs in the Western European heavy ground transportation vehicles market for trucks is likely to grow in the coming years. This can be credited to LCVs’ lower upkeep requirements and higher efficiency than the heavier alternatives. Furthermore, the advent of intelligent logistics and transportation solutions supports the acceptance of light trucks. Their sale is also on the rise as they are cheaper, which makes them reasonable for small-and mid-sized companies in the region for deliveries.
The snowballing number of trade agreements among the countries in the region and presence of established Western European heavy ground transportation vehicles market stalwarts, who are actively launching newer models products; and increasing R&D spending will drive the market in France at the highest CAGR in the western part of the continent. Traton Group, Volvo Group, and Daimler Truck, came together to create a high-performance network for durable battery-electric trucks and coaches all around Europe In December 2021.
Furthermore, the large number of trade agreements between neighboring countries boost the demand for buses and trucks. For example, Germany is the closest neighbor as well as the one of the biggest trade partners of France. Both the countries are involved in trade through different means of transportation, thereby offering lucrative opportunities to commercial vehicle OEMs. While France is a major exporter of wines, Germany is known for its automobiles, electrical goods, beers, and the many types of sausages
Hence, the growth of the market is mainly because of the rapid urbanization and technological innovations.