Panel Vans Market Intelligence Report, Key Trends, Innovations and Market Dynamics

Panel Vans Market Size, Trends and Growth Opportunities

The panels vans market is projected to reach USD 83.24 billion by 2034, expanding from USD 49.63 billion in 2025, at an annual growth rate of 6.05% during the forecast period from 2025 to 2034.

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Introduction

The panel vans market is a crucial segment of the commercial vehicle industry. This industry deals in manufacturing and distribution of panel vans in different parts of the world. These vans are powered by different propulsion technologies including ICE, electric, hybrid and some others. It comes with various weighing capacity such as below 2 tons, 2 to 3 tons, above 3 tons and some others. The end-users of these vans consist of several sectors such as freight delivery, utility services, construction and mining, and some others. The rapid growth of the e-commerce sector in numerous developed nations such as UK, France, China and some others has contributed to the overall industrial expansion. This market is expected to rise significantly with the growth of the automotive sector around the globe.

Highlights of the Panel Vans Market

• Asia Pacific generated highest revenue of the panel vans market.
• Europe is expected to rise with a significant CAGR during the forecast period.
• By propulsion, the ICE segment dominated this industry.
• By propulsion, the electric segment is expected to grow with a considerable CAGR during the forecast period.
• By end-use, the freight delivery segment held the largest share of the market.
• By end-use, the utility services segment is expected to grow with a notable CAGR during the forecast period.

Key Metrics and Overview

What are the Trends of Panel Vans Market in 2025?

The major trends in this market consists of partnerships, popularity of hybrid panel vans and rapid adoption of van rental services.

Partnerships

Several automotive brands are partnering with capital investors for developing panel vans to cater the needs of the commercial users. For instance, in February 2025, Everlectric partnered with UPD. This partnership is done for launching a new range of panel vans in South Africa. (Source: Cleantechnica)

Popularity of Hybrid Panel Vans

The demand for hybrid panel vans has increased rapidly in the western nations with an aim to reduce emission. For instance, in April 2025, Volkswagen launched Multivan eHybrid 4MOTION in the UK region. Multivan eHybrid 4MOTION is a hybrid panel van equipped with a 1.5 TSI engine and DSG 4MOTION powertrain to deliver superior driving range. (Source: Theevreport.com)

Rapid Adoption of Van Rental Services

The logistics companies have started adopting van rental services to enhance the delivery process in different parts of the world. For instance, in November 2024, Turo announced to launch a rental service of Mullen ONE. This service is launched for the logistics providers of the U.S. region. (Source: Service Truck)

Propulsion Insights

Why ICE segment held the largest share of the panel vans market in 2025?

The ICE segment generated highest revenue in this industry. The demand for ICE-based panel vans has increased rapidly in the e-commerce sector, thereby driving the market growth. Additionally, the growing adoption of CNG-based vans in developing nations such as India, Vietnam, Indonesia and some others to deduct fuel expenses is further adding to the overall industrial expansion. Moreover, continuous research and development activities by market players for developing powerful panel vans is expected to drive the growth of the panel vans market.

• In February 2024, Nissan launched Interstar. Interstar is powerful panel van equipped with 2.0 liter diesel engine that is capable of carrying loads of around 2.5 tons. (Source: Professionalvan)

The electric segment is expected to rise with a considerable CAGR during the forecast period. The growing demand for eco-friendly panel vans in different parts of the world has driven the market expansion. Additionally, numerous government initiatives aimed at adopting commercial EVs along with rising development in the EV charging infrastructure is playing a vital role in shaping the industrial landscape. Moreover, rapid investment by automotive brands for developing electric panel vans to curb emission is expected to propel the growth of the panel vans market.

• In May 2025, DFSK launched DFSK EC35. DFSK EC35 is an electric panel van that delivers a driving range of around 240 kms on a single charge. (Source: Babcox Media Inc)

End-Use Insights

How did the freight delivery segment led the panel vans market in 2025?

The freight delivery segment dominated the market. The rising trend of customized freight delivery solutions in numerous developed nations such as UK, France, the U.S. and some others has driven the market growth. Additionally, the increased adoption of electric vans for freight delivery is further contributing to the overall industrial expansion. Moreover, the growing demand for heavy-duty panel vans from the logistics sector to enhance goods transportation is expected to foster the growth of the panel vans market.

• In February 2025, Renault announced to launch a new range of panel vans in 2026. These vans are designed for enhancing logistics operations. (Source: Autoevolution)

The utility services segment is expected to rise with a notable CAGR during the forecast period. The growing use of panel vans for delivering postal items has driven the market expansion. Additionally, the rising demand for hybrid panel vans from electricity departments is playing a crucial role in shaping the industrial landscape. Moreover, the rapid adoption of heavy-duty panels vans in utility departments is expected to foster the growth of the panel vans market.

• In May 2025, Kia launched PV5. PV5 is an electric panel van designed for operating in several utility sectors. (Source: Professionalvan)

Geographical Insights

Why Asia Pacific dominated the panel vans market in 2025?

Asia Pacific led the panel vans market. The growing demand for diesel-powered panel vans from the mining and construction sector in numerous countries such as India, China, Japan and some others has boosted the market expansion. Additionally, the rapid growth of the e-commerce sector coupled with rise in number of EV startups is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as Toyota, Nissan, Hyundai and some others is expected to propel the growth of the panel vans market in this region.

• In January 2024, Nissan launched Nissan Urvan in Philippines. Nissan Urvan is panel van equipped with anti-lock braking system (ABS) with electronic brake force distribution (EBD) and brake assist (BA) to enhance safety. (Source: Nissan)

China dominated the market in this region. In China, the market is generally driven by the presence of well-established automotive industry along with rapid development of the e-commerce sector. Moreover, technological advancements in the logistics sector coupled with increasing awareness of people to reduce vehicular emission is further adding to the industrial expansion.

• According to the government of China, the online retail sales of China during the first half of 2024 was around 7.1 trillion yuan. (Source: English.gov.cn)

Europe is expanding with a significant CAGR during the forecast period. The rising adoption of electric panels vans in several nations such as UK, France, Germany and some others to reduce emission has boosted the industrial expansion. Also, the numerous government initiatives aimed at establishing EV charging stations coupled with rapid development in the logistics sector is positively contributing to the overall market growth. Moreover, the presence of several panel van manufacturers such as Volkswagen, Citroën, Mercedes-Benz and some others is expected to drive the growth of the panel vans market in this region.

• In January 2025, Volkswagen launched the Transporter Panel Van in UK. This van comes in different variants consisting of diesel and electric. (Source: Motor1)

Germany is the major contributor in this region. The growing adoption of eco-friendly panels vans in the construction sector coupled with rapid investment by government for developing the EV charging infrastructure has bolstered the market expansion. Also, the presence of prominent automotive manufacturers along with increasing trend of last-mile delivery is further adding to the industrial growth.

Industry Leader Announcement

• In March 2025, Klaus Rehkugler, the Head of Sales & Marketing Mercedes-Benz Vans made an announcement stating that,” With the new variants of the eVito panel van, we are expanding the fields of application for commercial electromobility and ensuring that locally COâ‚‚-emission-free mobility is even more suitable for everyday use.”

Competitive Landscape

The panel vans market is a highly fragmented industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Citroën, Peugeot, Renault, Toyota, Fiat, Ford, Iveco, Mercedes-Benz, Nissan, Volkswagen and some others. These companies are constantly engaged in developing advanced panel vans and adopting numerous strategies such as joint ventures, launches, collaborations, partnerships, business expansions, acquisitions, and some others to maintain their dominance in this industry.

• In February 2025, Fiat launched DOBLÒ PANORAMA in Algeria. DOBLÒ PANORAMA is a panel van equipped with a 1.6L gasoline engine that delivers power output of around 115 hp. (Source: Stellantis)

• In March 2024, Toyota announced to launch Toyota Hiace Panel Van in Malaysia. This panel van is equipped with several advanced features such as high mount stop lamp, anti-lock braking system (ABS), load sensing proportioning & bypass valve (LSP & BV), and reverse sensors and some others. (Source: TOYOTA MOTOR)

• According to the annual report of Mercedes Benz, around 219127 large commercial vans were sold in 2024 followed by mid-size vans (101205) and small vans (23351). (Source: Mercedes)

Recent Developments

• In February 2025, Farizon Auto launched a new range of panel vans in UK. These vans have a payload capacity of 1390 kgs and provide a range of around 247 miles on full charge. (Source: Electricdrives)
• In January 2025, Flexis joined hands with Volvo Group, Renault Group, and CMA CGM. This joint venture is done for developing a panel van designed for the logistics sector. (Source: Professionalvan)
• In August 2024, Mercedes Benz launched E sprinter in South Africa. E sprinter is an electric panel van equipped with a 100-kW permanent magnet synchronous motor (PSM), and an 81-kWh battery. (Source: Engineeringnews)

Panel Vans Market Segments

By Propulsion

• ICE
• Petrol
• Diesel
• CNG
• Electric
• HEV
• BEV
• Others

By Tonnage

• Below 2 tons
• 2 to 3 tons
• Above 3 tons

By End Use

• Freight Delivery
  • ICE
  • Electric
• Utility Services
  • ICE
  • Electric
• Construction & Mining
  • ICE
  • Electric
• Others
  • ICE
  • Electric

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa