Europe Specialty Vehicle Market Size & Outlook, 2025-2033

Europe Specialty Vehicle Market Size

The Europe specialty vehicle market size was valued at USD 27.33 billion in 2024 and is projected to reach from USD 28.27 billion in 2025 to USD 37.17 billion by 2033, growing at a CAGR of 3.45% during the forecast period (2025-2033).

The term specialty vehicle is commonly used in the business. A specialty vehicle is one that is designed to serve a certain professional objective. They can be created entirely from scratch or modified from an existing vehicle. One of the most well-known forms of specialised vehicles is ambulances. Despite the fact that a family vacation in an RV appears to be a "specialty," recreational vehicles are rarely referred to as such. Due to the vast number of local and international participants, the specialty vehicle industry is highly fragmented. As a result, there is a great deal of competition. Some of the market participants surveyed are investing extensively in new product research and development that can benefit both end-users and the environment. Nissan, for example, unveiled their fully-electric ambulance in Japan in May 2020, with the goal of removing pollution, noise, and vibration from the electric powertrain, which would help both patients and paramedics who must handle sensitive equipment in the back of a moving vehicle. The global specialised vehicle market is predicted to grow at a 3.21 percent CAGR through 2030, bringing in USD 128.65 billion in sales. The COVID-19 epidemic, which interrupted transportation operations and affected the supply chain, caused a decline in the market in 2020.

The market for specialist vehicles is being driven by an increase in European government spending on law enforcement and healthcare facilities. For example, in the fiscal year 2019-2020, the United Kingdom spent roughly GBP 153 billion, up 2% from the previous year.

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Market Growth Factors

Expenditures on law enforcement have increased and Increase in Riots: A increase in government spending on law enforcement and healthcare facilities around the world is driving demand for speciality vehicles. The increase in law enforcement spending is related to an increase in riots and protests in the region. From Hong Kong to Haiti, Bolivia to the United Kingdom, there were numerous protests in the region. In Europe, the number of major protests has increased dramatically since 2009 which drives the specialty vehicles market towards growth.

Increasing Use of Ambulances: Europe was the second-largest market for Specialty Vehicles in the global demand for ambulance services. Germany, France, the United Kingdom, Spain, and Italy are all major European marketplaces. According to the European Commission (EC), around 100 million persons in Europe have one or more physical disabilities, with this number predicted to climb due to an increase in accident occurrence throughout the forecast period. It would certainly increase the demand for ambulance transport to hospitals. As a result, the market for Specialty Vehicles in Europe is predicted to increase significantly throughout the forecast period.

Market Restraint

Challenges Linked with Specialty Vehicles

When it comes to expanding their business, specialty car manufacturers are faced with several business alternatives that can be extensively adjusted. These out-of-date systems are costly to operate and prevent automakers and specialty vehicle makers from adopting new technology. Furthermore, it is required for internal and external communication due to strict EDI (Electronic Data Interchange) regulations. Keeping up with shifting demand is one of the most difficult problems for specialty vehicle manufacturers. Manufacturers of automobiles and specialty vehicles must take steps to increase manufacturing efficiency and transparency. Self-monitoring capabilities for preventative maintenance and service, as well as the ability to support multi-mode manufacturing and Just in Time manufacturing, are among today's industrial demands. Manufacturers must focus on lowering costs and delivering appealing services as a result of shifting platforms, new service model requirements, and rising material and manufacturing expenses. Customers' purchasing patterns are evolving dramatically in the specialty vehicle market, particularly when it comes to product customisation. OEMs are confronted with additional options and complexity as the need for customization develops, and as a result, the manufacturer may face certain issues in the European market.

Market Opportunity

Large Tourism Sector

With over 700 million inbound tourists arriving in the region each year, Europe is the global leader in international tourism. As several countries become more mobile in the 2010s, the rate of growth quickened. In the European Union, tourism is a key economic activity with far-reaching implications for economic growth, employment, and social development. It has the potential to be a formidable tool in the fight against economic stagnation and unemployment. There is a lot of demand for Recreational Vehicles (RVs) in Europe because of the enormous tourism sector, which means there is a lot of opportunity for producers in the region.

Regional Analysis

By 2030, the Europe Specialty Vehicle Market is estimated to be worth USD 33.54 billion, increasing at a CAGR of 3.45% over the forecast period (2022–2030). A rise in European government spending on law enforcement and healthcare institutions is driving the demand for specialty vehicles. For example, the United Kingdom spent approximately GBP 153 billion in fiscal year 2019-2020, up 2% from the previous year.

The country with the biggest market share is France. Specialty cars are also in high demand throughout the rest of Europe. Local businesses, in addition to major commercial vehicle manufacturers, are developing mobile medical vehicles. In March 2020, the Gruau Group, for example, devised a mobile dentistry unit with a radiological information system and a built-in Laval. The use of a 3.5-ton truck to establish a mobile office is a first. Each year, the company builds over 54,000 vehicles in response to customer orders.

The market for specialist vehicles is being driven by an increase in European government spending on law enforcement and healthcare facilities. For example, in the fiscal year 2019-2020, the United Kingdom spent roughly GBP 153 billion, up 2% from the previous year. According to the data, government spending on law enforcement in the United Kingdom was GBP 16.37 billion in 2016-2017, up 3.2 percent from the previous year. It reached GBP 17.99 billion in 2018-2019 which has further pushed speciality vehicles market towards growth.

Specialized trucks are mostly employed in the construction and logistics industries, as well as for rubbish collection in Italy. During the projection period, the specialised vehicle market is projected to be driven by the rise of the country's construction industry, which will be aided by the active participation of the private sector.

Segmental Analysis

Ambulances, fire extinguishing trucks, mobile gasoline transporting tankers, and other specialty vehicles are segmented by kind in the European market. The other type segment has the largest market share and is expected to grow at a substantial CAGR in the coming years. Recreational vehicles (motorhomes, caravans, etc.), semi-trailers (Refrigerated, Flat body, Low boy, Curtain, etc.), vehicles used for patrol, prisoner transportation, and vehicles adapted or expressly constructed to fulfil company needs are among the vehicle types appraised in the market.

Medical and healthcare applications dominated the specialty vehicle market, which is expected to grow at a considerable CAGR. During the COVID-19 pandemic, major automakers reported an increase in demand for ambulances. Several manufacturers have introduced ambulance vehicles to the market to meet this need.

Mahindra & Mahindra, for example, introduced the Supro BSVI-compliant ambulance in two variants in June 2020. There are a number of government and non-government organisations present. Supro has received inquiries from companies interested in purchasing the ambulance, and the company is looking to increase production capacity in order to fulfil the increased demand.

List of key players in Europe Specialty Vehicle Market

1. Volvo Group.
2. Mobile Rescue Developers
3. Carrozzeria Veicoli Industriali Cavallo
4. REV Group
5. Matthews Specialty Vehicles Inc.

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Recent Developments

• April 2022– Volvo has announced that all of its automotive models would be able to receive software updates over the air starting in the 2023 model year (OTA). The most recent Volvo automobiles to receive this function are the XC90 large SUV, S60 sedan, and V60 Cross Country waggon. They'll get the Android Automotive infotainment system as well.
• Mercedes-Benz Vans announced in 2021 that the eSprinter will be used to electrify its ambulance trucks. Mercedes-Benz Vans and its partner "Ambulanz Mobile GmbH & Co. KG" from Schönebeck, Saxony-Anhalt, have utilised the eSprinter as the basis for their first fully electric vehicle for health-care duties, with a range of 120 km and a top speed of up to 120 km/h.