Europe Van Market Statistics 2031 -
The Europe van market was valued at $81.2 billion in 2021, and is projected to reach $142.6 billion by 2031, registering a CAGR of 5.6% from 2022 to 2031.
A van is a type of road vehicle used for transporting goods or people. Vans have a very diverse end use application area. From construction work to deliveries or services and from SMEs to large companies, vans are used in multiple sectors and by various kinds of companies and organizations. In addition, vans are key elements in the logistics chain, enabling last mile delivery of goods in urban areas.
Factors such as expansion of the e-commerce industry, along with development of the automotive industry with growing inclination toward leisure & recreational activities are some of the prominent factors that fuel demand for vans in Europe. However, availability of alternate vehicles and implementation of stringent emission norms are expected to hinder growth of the Europe van market. Moreover, increase in government initiatives for promotion of e-mobility and rise in demand for electric vans from the logistics sector in Europe is expected to provide growth opportunities for the market during the forecast period.
The Europe van market is segmented on the basis of vehicle type as small, medium and large van. The small van segment is further divided into panel van and people mover. The panel van segment is sub-divided into converted and non-converted, whereas the people mover segment is divided into converted and non-converted. The medium van segment is segregated into panel van and people mover. The panel van segment is further divided into converted and non-converted. The people mover segment is divided into converted and non-converted. The large van segment is divided into panel van, people mover and tipper. The panel van within large van is divided into converted and non-converted.
The people mover segment is divided into converted and non-converted. Prominent players operating in this Europe van market are Adventure Van, Affinity RV Sp. z o. o, Alphavan GmbH, Bilbo's Design, Concept Mutli-Car, CoTrim, Danbury, Devon Conversions, Laika Caravans, and Vanderlust.
Development of the automotive industry
The automotive industry has registered a significant growth in recent years, owing to technological advancements and introduction of vehicles with efficient fuel consumption technology. Numerous companies such as Volkswagen, Mercedes, Fiat, and Ford have been developing and introducing their advanced vans to different markets across the globe, which has supplemented growth of the market. For instance, in April 2021, Fiat launched a full-electric version of the Ducato medium van.
Moreover, key players have been upgrading their existing van line-up, which is expected to provide lucrative opportunities for the van market in Europe. For instance, in September 2020, Alphavan developed a Mercedes-Benz Sprinter-based camper van with a rear under-bed garage space that can alternatively be used as a children's bedroom. Hence, such factors propel the market growth.
Expansion of the e-commerce industry
E-commerce refers to buying and selling of goods by using internet. Therefore, freight transporters carry out shipping of products from retailers to consumers. In addition, the e-commerce industry utilizes third-party logistics service to manage and oversee supply chain of e-commerce companies, which allows these companies to focus on marketing and other business operations. These third-party logistic suppliers such as FedEx, XPO Logistics, and DHL utilize several vans to deliver the product to the nearest product delivery station. These companies have a larger fleet of vans, owing to the fact that smaller vans are more fuel-efficient as compared to heavy commercial vehicles when commuting within a city.
Moreover, due to numerous benefits provided by different vehicle manufacturers to freight transporters, adoption of efficient vans in the e-commerce industry is increasing at a significant rate, thereby driving growth of the Europe van market. For instance, in August 2022, Canoo partnered with Walmart, letting retailers use its Lifestyle Delivery Vehicles (LDVs) as part of its InHome delivery service, the agreement consists of purchasing 4,500 of its vans with an option to purchase up to 10,000 vans total. Hence, such factors propel the market growth.
Implementation of stringent emission norms
Increase in carbon footprint has enforced governments across the globe to implement stringent emission norms, thereby creating a negative impact on growth of the ICE-based van market. In the European Union (EU), van CO2 emission targets in 2018 were set at 175g/km. In April 2019, the EU imposed stricter CO2 emission standards on passenger cars and light commercial vehicles (vans), which came into force in January 2020. According to the new regulation standards (Regulation (EU) No 2019/631), average CO2 emission target was 147 grams of CO2 per kilometer.
The new regulations focused on reducing average CO2 emission by 31% for LCVs by 2030 as compared to 2021. The commission imposed an excess emission premium on manufacturers of $112.15 for each g/km that is applicable for all registered LCVs if manufacturer exceeds specific emissions target. Moreover, stringent CO2 emission regulations impacted manufacturing expenditure; hence, such limitations affect growth of the Europe van market across the globe.
Availability of alternate vehicles
Advancements in the automobile industry has increased demand for alternate vehicles such as electric rickshaws or smaller transportation vehicles to commute within cities. For instance, manufacturers have introduced vehicles such as Tata Ace Mini Trucks, Mahindra Supro Mini Truck, and Maruti Suzuki Super Carry Mini Truck, which are efficient as compared to vans. Hence, such alternatives are anticipated to hamper the market growth.
Increase in government initiatives for promotion of e-mobility
Governments across the world are pressurizing vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, in turn, encouraging them to invest in developing electric vehicles. For this purpose, governments are providing incentives with programs and schemes for manufacturing of battery electric vehicles, which, in turn, is anticipated to propel growth of the electric-based van market. In addition, governments across the globe are supporting purchase of electric mobility, in terms of tax credits and incentives.
For instance, in April 2022, Italy signed a decree to allocate $ 709 million per year from 2022 to 2024 for incentives to buy electrified or low-polluting cars. Funds are also available for incentives to buy new motorcycles and for small and medium sized business to buy fully electric vans. Moreover, the government of UK announced that the discount available on most electric vans through the Plug-in Van Grant (PIVG) incentive scheme has been extended by two years as of March 2022. Thus, increase in government support for development and purchase of electric mobility, in terms of tax credits, subsidies, and incentives, is one of the major factors that propel demand for electric-propelled vans.
By Vehicle Type
Large Van is projected as the most lucrative segment
Rise in demand for electric vans from the logistics sector
Reduction in emission of harmful gases from vehicles is observed as demand for green transport is increasing worldwide, especially in the freight transportation industry, which highly contributes toward carbon dioxide emissions. In addition, replacement of commercial diesel vehicles by electric vehicles and supportive government initiatives for adoption of electric vans is anticipated to boost the market growth. Attributed to rise in demand for logistics services on account of expanding e-commerce, retail, and manufacturing industries, supply chain and logistics companies are actively participating in replacing their fleet with greener vehicles. For instance, in the UK, logistics companies have started plans to deploy more electric commercial vehicles in their fleet size in the coming years.
Furthermore, manufacturers are planning to develop and introduce electric vans, which is expected to support growth of the Europe van market. For instance, in March 2022, Ford announced that it will be offering a new generation of seven, all-electric, fully-connected passenger vehicles, and vans in Europe by 2024. Moreover, in July 2021, Vauxhall received around $113 million investment from Stellantis to transform its Ellesmere Port manufacturing plant to new EV manufacturing plant. In addition, in August 2021, London-based electric vehicle startup Arrival Ltd started working on autonomous electric vans and completed its test without driver. Its looking forward to its road test. Thus, these factors are collectively anticipated to offer remunerative opportunities for expansion of the market during the forecast period.
Growth in inclination toward leisure & recreational activities
Leisure and recreational activities have been gaining traction in recent years across the globe as individuals are focusing on positive lifestyle for stress management. Weather situations, geopolitics situations, and changing consumer spending outlook are the key factors that support recreational activities across the globe. Moreover, citizens are focused toward living healthier lifestyles, driving growth for active and outdoor recreation sector.
Recreational vehicles such as motorhomes, campervans, coaches, and caravans are widely used for recreational purposes across the globe. According to the European caravan federation, a record number of leisure vehicles, which include motorhomes and towable caravans, were sold in Europe in 2020, rising 12% to around 235,000 units. Recreational activities are gaining momentum and are expected to gain traction in the upcoming years. Increase in recreational activities is expected to support growth of the Europe van market.
COVID-19 Impact Analysis
The disruption in the supply chain has been a major impact of the COVID-19 pandemic across Europe. Germany has its vast supply chain network operational across most of the COVID-19-affected countries, including France, Italy, Spain, and the UK.
Moreover, apart from Germany, all these countries are involved in trade activities with one another for exchange of varied essential & nonessential goods, including automobile & their ancillary parts.
Moreover, vans helped small businesses through the COVID-19 lockdown. For instance, contactless delivery systems through vans boomed during the COVID-19 pandemic as they reduced the risk of transmission when delivering essential supplies such as food and medications. In 2020, Ford Motor Company and Troy Design & Manufacturing converted four Ford Transit vans into mobile test units. The vehicles collected genetic samples in the field and transported them to labs for testing. Free tests were given to first responders, nursing home residents, and people at substance abuse centers and community shelters in Michigan.
By Country
UK would exhibit the highest CAGR of 7.8% during 2022-2031.
KEY BENEFITS FOR STAKEHOLDERS
This study presents the analytical depiction of the Europe van market analysis along with the current trends and future estimations to depict imminent investment pockets.
The overall Europe van market opportunity is determined by understanding profitable trends to gain a stronger foothold.
The report presents information related to the key drivers, restraints, and opportunities of the Europe van market with a detailed impact analysis.
The current Europe van market is quantitatively analyzed from 2022 to 2031 to benchmark financial competency.
Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Europe Van Market Report Highlights
| Aspects | Details |
 By Vehicle Type |
|
 By Country |
|
 Key Market Players | Adventure Van, Devon Conversions, Vanderlust, Laika Caravans, Bilbo's Design, CoTrim, Alphavan GmbH, Concept Multi-Car (CMC), Danbury, Affinity RV Sp. z o. o |
Analyst Review
The Europe van market is expected to witness growth during the forecast period. The market is supplemented by numerous developments carried out by top van manufacturers. Moreover, technological advancements in the automotive industry have created a positive impact on growth of the Europe van market
Increase in demand for efficient and powerful commercial vehicles has enabled manufacturers to develop & introduce efficient vans for consumers. For instance, Ford Motor Company invested $300 million to build a new light commercial vehicle at its Craiova facility in Romania, starting in 2023. Similar developments have been carried out by companies such as Gaz Group, Mercedes, and Toyota, which supplement growth of the global market.
In addition, rise in demand for efficient vehicles with reduced CO2 emission is reinforcing the need for light commercial vehicle electrification. For instance, CO2 emission standards for new passenger cars and light commercial vehicles (vans) adopted in April 2019 set reduction targets of -15% and -37.5% for tailpipe CO2 emissions of newly-registered cars for 2025 and 2030, respectively. The 2030 target set for vans was -31%. Furthermore, increase in government and private investments to develop infrastructure for charging and hydrogen fueling is expected to create opportunities for major companies to move more toward electric vans.
Furthermore, to fulfill the changing demand scenarios, market participants are concentrating on product launches to offer a diverse range of products and meet new business opportunities. In addition, market participants are continuously focusing on contracts and partnership efforts to match changing end-user requirements and improve growth of the Europe van market.
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