Europe & CIS Tractor & Trailer Market – Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Tractor, Trailer), By Capacity (44 Tons, > 44 Tons, < 44 Tons), By Fuel Type (Diesel, Petrol, Electric, Others), By Country, By Competition, 2020-2030F

Market Overview:

The Europe & CIS Tractor & Trailer Market was valued at USD 18.36 Billion in 2024 and is expected to reach USD 24.19 Billion by 2030 with a CAGR of 4.70% during the forecast period. The Europe & CIS tractor and trailer market is experiencing steady momentum driven by rising demand for freight movement, expanding logistics networks, and the increasing need for high-capacity transport solutions across diverse industries. Growth drivers include heightened e-commerce activity leading to last-mile delivery expansion, adoption of advanced telematics and fleet management technologies, and the shift towards higher fuel-efficiency and low-emission commercial transport.

Market Drivers

Rising Demand for Long-Haul Freight Efficiency

The need for efficient long-haul freight transport is significantly driving growth in the tractor and trailer market. Businesses are increasingly focused on optimizing cargo movement across extended routes with fewer interruptions, pushing demand for powerful and durable tractors coupled with high-capacity trailers. Long-distance freight transport requires equipment that ensures minimal downtime, better fuel efficiency, and advanced features like automated transmissions and intelligent braking systems. Fleets are investing in long-haul optimized vehicles that reduce operational costs while maximizing payload capacity and reliability. Longer average shipping distances, driven by consolidated supply chains and centralized distribution hubs, are making performance, driver comfort, and endurance critical purchasing factors. Tractor-trailer combinations built for continuous operation over varying terrains and climates are witnessing stronger uptake across core logistics industries. For instance, The European Road freight market is set to grow by 2% in 2025, driven by stronger trade recovery, easing inflation, and rising consumer spending. Domestic freight is expected to rise by 1.3%, while international freight may reach $145 billion, reflecting renewed confidence in cross-border logistics. Despite challenges like driver shortages and toll increases, the sector remains resilient. The European Commission’s proposed $215 billion EU budget for 2025 is expected to offer support, helping operators adapt to rising costs and regulatory shifts while sustaining freight momentum across the region.

Expansion of Logistics and Distribution Networks

The rapid scaling of logistics and distribution infrastructure is fueling consistent growth in tractor and trailer demand. With warehousing hubs becoming more strategic and distribution centers expanding to accommodate omnichannel supply chains, there is a growing requirement for reliable, high-capacity vehicles that can bridge inter-regional and intra-network transport gaps. Tractor-trailers are being deployed to support bulk movement between centralized storage zones and last-mile fulfillment stations. Businesses are streamlining logistics networks to reduce transit times and manage larger inventories, leading to a surge in fleet acquisitions. Tractor-trailer configurations that support high-volume, time-sensitive deliveries are now integral to third-party logistics operations, freight forwarders, and e-commerce supply chains. Network expansion is also encouraging vertical integration, where manufacturers and retailers own or lease their own fleets, further increasing market demand. The need for timely replenishment of goods and scalable freight options is placing emphasis on standard and customizable trailer systems that cater to general cargo, perishables, and high-value goods. For instance, The European logistics market remains fundamentally strong despite a temporary slowdown in 2024, with vacancy rates stabilizing at 4.8% and new supply growing at its slowest pace since 2013. This limited pipeline, combined with resilient occupier demand, sets the stage for a healthy market rebound. Rental growth forecasts remain robust, with prime rates in core Western European markets expected to rise by 2.8% to 3.7% annually from 2025 to 2029. Markets such as France, the Netherlands, and Germany continue to benefit from strong demand and constrained supply, while countries like Spain, Poland, and Italy present emerging opportunities due to improving fundamentals and attractive pricing dynamics.

Technological Advancements in Telematics and Connectivity

Technological innovations in telematics and vehicle connectivity are transforming the tractor and trailer industry by enhancing fleet management, operational transparency, and vehicle lifecycle optimization. The integration of GPS tracking, engine diagnostics, remote sensor monitoring, and driver behavior analytics has made tractors and trailers smarter, safer, and more efficient. Fleet operators benefit from real-time location visibility, predictive maintenance alerts, and improved driver accountability, which collectively reduce downtime and lower costs. Advanced telematics systems enable proactive servicing, optimizing vehicle performance and extending operational life. Trailers equipped with load sensors and temperature tracking systems ensure cargo integrity, especially for time- or temperature-sensitive shipments. This technology-driven ecosystem also supports route planning algorithms and dynamic dispatching, resulting in fuel savings and reduced delivery times. Connectivity features are further enabling compliance with regulatory standards through automated reporting and monitoring of emissions, driver hours, and load conditions.

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Key Market Challenges

High Capital Costs and Long ROI Cycles

The significant upfront investment required for acquiring advanced tractor and trailer units poses a financial challenge for fleet operators and logistics companies. Modern tractors equipped with emissions-compliant engines, telematics systems, and driver-assist technologies can command high prices, which are further compounded when paired with customized or specialized trailers. For many operators, especially small and medium-sized enterprises, securing financing or managing capital expenditure for fleet expansion or modernization is a major hurdle. Even with long-term fuel savings and improved efficiency, the return on investment takes time, often stretching over several years. Maintenance contracts, insurance costs, and spare parts availability add further to the total cost of ownership.

Shortage of Skilled Drivers and Maintenance Personnel

The lack of qualified drivers and trained maintenance personnel is placing pressure on tractor-trailer operations and market growth. As fleet sizes grow and transport networks expand, the demand for licensed drivers capable of handling heavy-duty tractors and complex trailer configurations has outpaced supply. The job requires long hours, extensive travel, and adherence to strict safety and compliance standards, making recruitment and retention increasingly difficult. Many younger workers are opting out of trucking careers due to lifestyle concerns, regulatory burdens, and insufficient training pathways. This talent shortage is forcing logistics companies to either operate below capacity or rely on less experienced drivers, increasing accident risks and insurance liabilities. On the service side, maintaining modern tractor-trailers with advanced electronics and diagnostic systems requires specialized technicians.  

Key Market Trends

Shift Toward Electrification and Alternative Powertrains

The tractor and trailer industry is witnessing a clear shift toward electrification and the adoption of alternative powertrain technologies. Environmental regulations, rising fuel costs, and sustainability targets are prompting manufacturers and fleet operators to explore battery-electric, hybrid, and hydrogen-powered tractors. Electric tractors offer lower operating costs, reduced maintenance, and zero tailpipe emissions, making them increasingly attractive for urban and short-haul applications. Advances in battery capacity, charging infrastructure, and regenerative braking systems are improving the feasibility of electric long-haul transport as well. Trailers are also evolving with electrified axles and integrated energy systems to support electric braking and refrigeration. The push toward decarbonization is encouraging collaboration between OEMs, energy providers, and logistics companies to create integrated electric ecosystems. Pilot deployments of electric fleets are being scaled up based on favorable cost structures and government incentives. For instance, Electric truck sales in Europe surged nearly fivefold since 2021, fueled by cost declines and strict emissions targets. Despite supply chain hurdles and regulatory uncertainty, manufacturers are rapidly adapting, with electric models expected to reach 90% of sales by 2040.

Integration of Smart Trailers with Advanced Sensors

Smart trailers equipped with advanced sensors and connected systems are emerging as a critical trend in the tractor and trailer market. These trailers go beyond conventional hauling by offering real-time data on load weight, cargo conditions, brake health, tire pressure, and door activity. The integration of IoT-enabled sensors enhances cargo security, improves operational transparency, and reduces the risk of in-transit losses or spoilage. Smart trailers enable proactive decision-making by providing fleet managers with continuous visibility into trailer status and performance. For temperature-sensitive goods, real-time monitoring ensures compliance with cold chain protocols, while load sensors help avoid overloading penalties and optimize cargo space. Predictive maintenance features reduce unexpected breakdowns, lower repair costs, and enhance fleet availability. These trailers also support geofencing, digital proof of delivery, and trailer pooling, making them valuable assets in efficient logistics planning. As shippers demand higher levels of service assurance and traceability, smart trailers are becoming a standard rather than a luxury.

Rise of Modular and Customizable Trailer Designs

Customizable and modular trailer designs are gaining traction as transport companies seek versatile solutions that cater to specific cargo requirements and operational needs. Traditional one-size-fits-all trailer configurations are being replaced by modular systems that allow operators to adapt trailers for different applications such as flatbeds, refrigerated units, container carriers, and specialized equipment haulers. These adaptable trailers reduce the need for multiple trailer types, optimizing asset utilization and lowering fleet investment. Modular designs allow for quick reconfiguration through detachable or extendable components, enhancing operational flexibility across seasonal or contract-based demand. This trend is especially relevant in industries with fluctuating cargo types or volume patterns, such as construction, retail distribution, and agriculture. Custom-built trailers that integrate loading equipment, temperature control, or cargo securing mechanisms improve handling efficiency and safety. The shift toward modularity is also influencing trailer manufacturing, with OEMs focusing on scalable, lightweight, and high-strength materials that support diverse configurations without compromising durability.  

Segmental Insights

Type Insights

In 2024, the tractor segment led the Europe & CIS tractor and trailer market in terms of growth, driven by rising demand for powerful, fuel-efficient hauling solutions across long-distance logistics routes. Fleet operators are investing in new-generation tractors equipped with advanced powertrains, safety technologies, and smart connectivity features to improve operational efficiency and reduce total cost of ownership. The trend toward freight consolidation, along with increased axle load capacity regulations, has supported the preference for tractors capable of handling high payloads with optimized performance. On the other hand, the trailer segment is gaining traction due to growing demand for specialized cargo transport, including refrigerated, flatbed, and container trailers. For instance, in 2023, European agricultural tractor registrations declined by 4.9% year-on-year to 158,100 units, with the slowdown mainly concentrated in the second half due to squeezed farm incomes, falling commodity prices, and persistent high input costs. Despite this, demand for high-powered tractors above 132kW rose by 12%, highlighting a shift toward larger, more capable machinery. While overall demand eased, key markets like Germany, France, and the UK recorded modest growth, supported by order backlogs and stable supply chains, even as other regions faced weather disruptions and changes in subsidy schemes.

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Country Insights

In 2024, Germany emerged as the dominant region in the Europe & CIS tractor and trailer market. Its strong position was supported by the scale of freight operations, high logistics infrastructure density, and advanced vehicle technology adoption across the country. Fleet operators in Germany have shown significant interest in upgrading to more fuel-efficient and connected tractors to improve long-haul performance and reduce emissions. For instance, in 2023, Germany maintained stable tractor registrations with 30,336 units, nearly unchanged from the previous year. Of these, 28,881 were agricultural tractors. While the market for smaller tractors under 38 kW declined by 4%, larger power categories saw a slight 1% increase.

France showed strong growth in the trailer segment, driven by demand for modular and refrigerated units supporting retail and perishables logistics. Evolving distribution networks and regulatory standards boosted interest in customizable trailers that offer safety, efficiency, and versatility for regional cargo operations.

Poland’s tractor market grew rapidly in 2024, supported by its rising logistics sector and position along key European transport routes. Fleet operators prioritized modern, emission-compliant tractors equipped with telematics and enhanced driver comfort features to meet increasing cross-border freight demands.

Recent Developments

• ​In 2025, Monarch Tractor launched its European division in Antwerp, Belgium, aiming to expand its electric MK-V tractor across the region. The new hub supports R&D, local production, and farmer-focused trials.
• In 2025, Spanish startup Voltrac raised €2 million to launch an autonomous electric tractor platform for agriculture and logistics. Featuring per-wheel drive and AI-based adaptability, deliveries begin in 2026.
• In 2024, TAFE showcased new tractors at EIMA, including the EV28 electric model and a smart-featured 7515 Cab. Its 45–65 hp utility range targets efficient, low-compaction farming across Europe.
• In 2024, BYD launched the EYT 2.0 electric yard tractor in Europe, offering 16-hour runtime, 260 kW peak power, and 75 t towing capacity targeting greener port and logistics operations.

Key Market Players

• Claas KGaA mbH
• Deere & Company
• CNH Industrial NV
• AGCO Corporation
• Kubota Corporation
• Mahindra & Mahindra Ltd
• Tractors and Farm Equipment Limited
• SDF SpA
• Argo Tractors SpA
• PFG America, LLC

Report Scope:

In this report, the Europe & CIS Tractor & Trailer Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

•           Europe & CIS Tractor & Trailer Market, By Type:

o    Tractor

o    Trailer

•          Europe & CIS Tractor & Trailer Market, By Capacity:

o    44 Tons

o    > 44 Tons

o    < 44 Tons

•          Europe & CIS Tractor & Trailer Market, By Fuel Type:

o    Diesel

o    Petrol

o    Electric

o    Others

•           Europe & CIS Tractor & Trailer Market, By Country:

o    Germany

o    Russia

o    France

o    Spain

o    Italy

o    United Kingdom

o    Poland

o    Rest of Europe & CIS

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Europe & CIS Tractor & Trailer Market.

Available Customizations:

Europe & CIS Tractor & Trailer Market report with the given market data, Tech Sci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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