The global commercial vehicles market was valued at USD 1.51 Trillion in 2019 and expected to reach USD 2.55 Trillion by 2027 and poised to grow at a compound annual growth rate (CAGR) of 6.8% during the forecast period 2020 to 2027.
Although the market experiences sluggish growth in the recent past, it predicted to recover the overall sales performance in commercial vehicles, especially in the developing countries. Digitization along with the rising infrastructure spending anticipated to boosts the commercial vehicles market growth in the coming years. Initially the market development was closely related to the growth of global economy; however, this interrelation is crumbling rapidly. Demand for specific transport solutions by consumers, integration of telematics services, and rising popularity of shared mobility are some of the major trends that are shaping the commercial vehicle market growth. Further, governments across several nations have implemented various policies and regulations for effectively managing the size of goods that can be carried in a commercial vehicle. For instance, the Federal Motor Carrier Safety Administration (FMCSA) in the United States was established to prevent fatalities and injuries related to commercial vehicles. In wake of same, the body has regulated the maximum size of goods that can be carried in these vehicles. In in turn, is expected to flourish the sale of commercial vehicles in the near future.
In 2020, Light Commercial Vehicles (LCVs) led the global commercial vehicles market with significant revenue share of around 76% and predicted to retain its position during the forecast period. Dynamic nature of the vehicle that enables the incorporation of advanced technologies contributes prominently towards the growth of the segment. Further, advent of vehicle electrification and battery-powered engines expected to fuel the demand for light commercial vehicles in the coming years. Growth in the industrial sector also escalates the demand for LCV prominently. Presently, advent of smart industries has upended the fleet management systems. Need for real-time monitoring, tracking, and effectively managing the product delivery systems have triggered the need for smart and effective vehicle. This is attributed to significantly boost the sale of LCV in the near future.
However, buses and coaches segment expected to gain traction over the analysis period due to its rising adoption in the healthcare and tourism sector. Buses are the most cost-effective mode of transportation that positively influences its sales in the global commercial vehicles market. In addition, governments of various regions have significantly implemented the green mobility and rapidly replacing traditional buses and other mode of public transport into smart and electric based vehicles that prominently fuels the growth of the segment.
In 2020, passenger transportation accounted for significant market value share and predicted to exhibit lucrative growth rate of nearly 8% over the forecast period. Rising expenditure on commutation to improve accessibility and affordability is one of the prime factors that escalate the growth of the segment. Further, emerging trend of shared mobility along with norms related to traffic of fleet on road are the other prominent reasons that trigger the growth of passenger transportation in the coming years.
On the other hand, logistics segment witnessed prominent demand in the past few years owing to the growth in trade activities worldwide. Moreover, the segment captured remarkable revenue share in 2019 due to increasing penetration of e-commerce and retail business. Shifting consumer trend for online purchasing have flourished the growth of e-commerce sector, thereby boosting the market growth for logistics segment.
North America captured maximum market value share in the global commercial vehicles market and anticipated to grow at a considerable rate during the forecast period. Significant development in the industrial sector along with stringent government norms pertaining to load carrying capacity of the commercial vehicles is the prime factor that triggers the growth of the region. Further, rising penetration of electric vehicles and battery-powered vehicles as well as government initiatives to promote the adoption of these vehicles to curb the carbon emission expected to propel the demand for commercial vehicles in the coming years.
Besides this, the Asia Pacific registered the highest growth rate over the analysis period. This is attributed to the increasing road infrastructure along with rising manufacturing facilities due to cost-effective raw materials and labor, particularly in the developing countries such as India and China. In addition, the region is highly promising for the growth of smart mobility solutions owing to favorable policies by governments in the region expected to accelerate the market growth prominently.
Key Companies & Market Share Insights
The global commercial vehicles market is matured market with major revenue share occupied by some of the prominent market players that include Volkswagen AG, Tata Motors, Volvo Car Corporation, Ashok Leyland, and General Motors. Original Equipment Manufacturers (OEMs) in the market have established partnership with the raw material suppliers in aspect to speed up its supply chain functions, as suppliers provide more than 50% of the components of the commercial vehicles.
Some of the prominent players in the commercial vehicles market include:
Segments Covered in the Report
This research study encompasses comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative intelligences, and prognoses of the market. This report presents breakdown of market into major and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report comprises market division and its revenue valuation by categorizing it depending on product, end-use, and region:
By Regional Outlook
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