Central Europe Heavy Ground Transportation Vehicles Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Central Europe Heavy Ground Transportation Vehicles Market Trends & Growth Drivers

Electrification of Commercial Vehicles Is a Key Trend

• The electrification of trucks and buses is gaining thrust due to government regulations to decrease emissions, such as setting clear purchase targets for zero-emission technologies.
• Zero-emission HDV uptake is expected to increase significantly in the coming years, due to announcements of several manufacturers and EU-wide regulations regarding pollution reduction.
• With the continuous expansion in HDV model accessibility and variety, consistent improvements in batteries and power modules, and a decrease in the cost of batteries and other electric transmission components, many producers have come up with designs to deliberately eliminate combustion engines from the HDV sector by 2040.
• Additionally, a large number of automakers in Europe have announced short-term targets for zero-emission HDV sales from 2025 to 2030.

Surge in Urbanization and Innovations in Technologies Drive the Market

• The European population is growing continuously, as is the number of passenger and commercial vehicles in use. As per the World Bank, the urban population of Europe was 75.1% of its population in 2021. This urban population is expected to witness high growth in the coming years.
• Along with this, the disposable income of people is increasing across the region.
• As a result, the dependence on sustainable public transport systems continues to boom in the continent.
• Moreover, innovations in the existing electric and diesel ground transport machinery offer growth opportunities for manufacturers.
• With the growing market for ground transport machinery, many firms have strongly focused on launching new products in recent years.
• For instance, in February 2021, AB Volvo launched a 4-meter-high variant of its double-decker Volvo 9700 DD.

Lower Convenience of Public Transport Is a Challenge

• Public transport is less convenient than private transport because of privacy issues, limited amount of space, long waiting time, rush hour crowding, and unsuitability for remote areas.
• Moreover, public transport services follow a schedule, which may not always be convenient for commuters. This results in significant time loss for travelers who need to arrive at their destination early.
• Similarly, there is little privacy in public transportation. Travelers are crowded and have little personal space, especially in buses and commuter trains.
• Moreover, travelers may be exposed to germs from other passengers who are coughing, sneezing, or showing symptoms of contagious illnesses. Thus, these factors may hinder the growth of the market.

Central Europe Heavy Ground Transportation Vehicles Industry Analysis

Type Insights

Truck

• The truck category is estimated to have held a larger revenue share, of over 90%, in the market in 2024, and it is expected to witness the same trend in the coming years as well. This is due to the surging focus on electric transmission.
• Regional countries are trying to reduce their emission of greenhouse gases (GHGs), especially from road transportation, and oil dependence.
• Companies including AB Volvo and Mercedes-Benz Group AG are spending more on R&D so they can innovate transport for the cities of tomorrow.
• Moreover, countries such as Austria, the Czech Republic, Hungary, Poland, and Switzerland are adopting electric light and heavy trucks to reduce CO2 emissions.
• In addition, LCV trucks hold a larger revenue share in the Central European truck market. This category is also expected to grow with a higher CAGR during the forecast period.
• This is because light trucks are more in demand due to their lower price, which makes them affordable for small-to-mid-sized enterprises.
• Moreover, the growing need for last-mile delivery services is expected to drive the growth of the market in this category in the region during the forecast period.
• Additionally, conventional (diesel) variants dominate the Central European truck market. This is due to the low prices of these trucks, along with a minimal aftermarket service requirement.
• The Central European market for electric trucks is growing at a healthy rate, owing to the stringent government regulations for the reduction of carbon emissions, and a rising number of electric truck manufacturers in the region, including many that have majorly offered conventional, diesel-based variants till now.
• Many companies from overseas have also launched electric trucks, anticipating the growing demand for them in the region.
• The pilot e-truck projects by OEMs have also helped boost the adoption of these vehicles in the region.

Bus

• The bus category is expected to witness a higher growth rate, of around 7%, in the market during the forecast period.
• Bus sales in the region are mainly driven by the increase in the need for public transportation.
• Moreover, the surging demand for clean buses and government initiatives to promote public transportation is predicted to positively influence the Central European bus market during the forecast period.
• The prevailing concerns over the pollution caused by automobiles have forced governments to take initiatives to reduce the levels.
• For instance, in February 2019, the European Union (EU) adopted a new rule to make 25% of all European buses electric or hybrid by 2025.
• Moreover, single-decker buses are expected to witness a high demand in the coming years. This is because schools, colleges, universities, and other academic institutions, and public transport agencies continue to procure these variants in high numbers to suffice the demand for daily commutes.
• The transit buses category dominates the Central European bus market. These buses improve social inclusion, providing access to education, employment, and healthcare to all, including those on low incomes, those who do not drive, the older generation, people with disabilities, and people living in remote areas.
• Buses are the most widely used form of public transport in the region and thus, a vital contributor to tourism.

Types covered in the report include:

• Truck (Larger Category)
  • By type
  • By propulsion type
  • By transmission type
  • By application
• Bus (Faster-Growing Category)
  • By type
  • By application
  • By fuel type
  • By seat capacity

Regional Analysis

Poland Is the Largest Market

• Poland leads the Central European truck market, with an estimated revenue share of around 24% in 2024. Also, the Polish bus market is expected to witness the highest growth rate, of around 11%, during the forecast period.
• This is due to the high export and import values of the country. Poland’s chief export partners in terms of the value of the exported goods are Germany (27.5%), the U.K. (6.0%), the Czech Republic (6.1%), France (5.8%), and Italy (4.6%).
• Hence, the significance of the Polish market goes well beyond its borders. For the international trade of commodities, different means of transportation are required, which boosts the ground transport machinery industry.
• Moreover, Poland is one of the largest conventional- and electric-bus-producing countries in Central Europe. The manufacturing of electric buses is growing with many companies, such as Germany’s MAN Truck & Bus, starting production here.
• This new investment of MAN has strongly enhanced Poland’s position in the zero-emission public transport segment. MAN Truck & Bus is also collaborating with Solaris, the third-largest electric bus manufacturer in Europe.
• Poland produces one-third of all electric buses produced in Europe, and it is led by Solaris Bus & Coach.
• Moreover, in the region, Poland has the highest number of passengers traveling by road, which is essentially propelling bus sales here.

Further, countries analyzed for this report include:

• Austria
• Czech Republic
• Hungary
• Belgium & Luxembourg
• Poland (Largest and Fastest-Growing Country Market)
• Switzerland
• Netherlands
• Others

Central Europe Heavy Ground Transportation Vehicles Market Share

Market Nature – Medium Fragmented

The Central European heavy ground transportation vehicles market is medium fragmented, due to the presence of a large number of local and international players. These players have been involved in several development strategies, such as product launches, mergers and acquisitions, partnerships and collaborations, and facility expansions, to gain a competitive edge.

Central Europe Heavy Ground Transportation Vehicles Market News

• In May 2024, Volvo announced that it would launch hydrogen-powered trucks. Their on-road tests will begin in 2026 using hydrogen in combustion engines, and commercial launch by 2030.
• In May 2024, Volvo expanded its range of biodiesel-powered trucks, which can now be powered by 100% biodiesel.
• In April 2024, MAN Truck & Bus announced that it would deliver 200 hydrogen vehicles to customers by 2025.
• In March 2024, Volvo received an order of 100 electric trucks from DFDS, a logistics company.
• In March 2024, Hyundai Motor and Iveco Group expanded their collaboration to discover cooperation in the European markets for electric heavy-duty trucks.