Commercial Vehicles Market Size, Share, and Trends

Commercial Vehicles Market (By Product: Light Commercial Vehicles (LCVs), Buses & Coaches, and Heavy Trucks; By End-user: Industrial, Transportation, and Others; By Propulsion Type: IC Engine, Electric Vehicle; By Power Source: Gasoline, Diesel, HEV / PHEV, Battery Electric Vehicle (BEV), Fuel Cell Vehicle) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024 – 2033

  • Last Updated : March 2024
  • Report Code : 1062
  • Category : Automotive

The global commercial vehicles market size was valued at USD 531.8 billion in 2023 and is expected to reach USD 826.53 billion by 2033 and poised to grow at a compound annual growth rate (CAGR) of 4.50% during the forecast period 2024 to 2033.

Commercial Vehicles Market Size 2024 to 2033

To Access our Exclusive Data Intelligence Tool with 15000+ Database, Visit: Precedence Statistics

Key Takeaway

  • North America has held highest revenue share in 2023.
  • Asia-Pacific region is estimated to observe the fastest expansion during the forecast period.
  • By product, the light commercial vehicles segment captured the largest market share in 2023.
  • By product, the heavy trucks product segment is expected to expand at the fastest CAGR of 4.6% between 2022 to 2030.
  • By Propulsion Type, the IC engine has held highest revenue share in 2023.
  • By Power Source, the diesel segment contributed the largest market share in 2023.

Regional Insights

North America captured the maximum market value share in the global commercial vehicles market and is anticipated to grow at a considerable rate during the forecast period. The U.S. commercial vehicles market size is expected to be worth around USD 329.3 billion by 2033 and is growing at a compound annual growth rate (CAGR) of 4.89% from 2024 to 2033.

North America emerged as the market leader in the global commercial vehicles market owing to the high adoption rate of commercial vehicles in the U.S. Industrial growth, infrastructure development, and government regulations related to maximum loading capacity for commercial vehicles are some of the major factors that propel the market growth in North America.

U.S. Commercial Vehicles Market Size 2024 to 2033

Significant development in the industrial sector along with stringent government norms pertaining to load carrying capacity of commercial vehicles is the prime factor that triggers the growth of the region. Further, the rising penetration of electric vehicles and battery-powered vehicles as well as government initiatives to promote the adoption of these vehicles to curb carbon emission expected to propel the demand for commercial vehicles in the coming years.

Maximum Share Captured by North America

The rising demand for the long distance operation from fleet management in North America is significantly boosting the growth of the commercial vehicles market. Furthermore, the growing developments in the industrial sector and the strict regulations of the government pertaining to the load carrying capacity of the commercial vehicles have led to the growth of the market. The presence of unified supply network in North America and establishment of a strong connection between manufacturers and consumers via multiple transportation mediums such as maritime transport, air transport, truck transport, and rail transport are driving the growth of the North America commercial vehicles market. The easy availability of various financing options in North America is further boostingthe market growth. The aggressive investments in the infrastructural development in North America, presence of leading automotive manufacturers in the region, and favorable government support are the most prominent factors that has significantly driven the growth of the North America commercial vehicles market in the past years. Moreover, the demand for the light commercial vehicles is growing rapidly owing to the rising penetration of the online cab services and car rental services in North America.

Commercial Vehicles Market Share, By Region, 2023 (%)

Besides this, the Asia Pacific registered the highest growth rate over the analysis period. The attractive growth of the region is mainly because of escalating growth in industrial sector, highest adoption rate of electric vehicles in the region, and high yearly investment for infrastructure development.

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.

Asia Pacific Forecast the Strongest Growth Rate during the Forecast Year (2024-2033)

Asia Pacific is expected to witness the fastest growth rate during the forecast period. Asia Pacific is witnessing rapid industrialization, rapid urbanization, presence of huge population, and aggressive investments by the government in the development of sophisticated infrastructure. The presence of huge industries in the region has significantly boosted the demand for the commercial vehicles in this region for transportation of goods to the domestic and international regions. Furthermore, China is one of the largest producer and consumer of electric vehicles across the globe.

The rising government initiatives to eliminate carbon emission from vehicles have significantly boosted the demand for the electric commercial vehicles in the region. The growing popularity of the car rental services in this region is expected to fuel the demand for the commercial vehicles during the forecast period. The countries like India, China, and South Korea are heavily investing in the adoption of sustainable public transport solutions in order to move closer towards achieving zero emission economy, which is a prominent factor boosting the growth of the commercial vehicles market in Asia Pacific.

Commercial Vehicle Market Overview

Commercial vehicle is a type of motor vehicle used purposely for the transportation of goods or merchandise. Commercial vehicle growth is mainly influenced by the increase in e-commerce business as well as increasing adoption of commercial vehicles for transportation. Apart from this, increasing industrialization, adoption of e-mobility in commercial sectors, and infrastructure development that supports the advancement & development in automotive industry also triggers the market growth for commercial vehicles.

Commercial vehicle is a type of motor vehicle used for the transportation of goods, materials, and people. It is used across various industries including transportation & logistics, mining & construction, manufacturing industries, agriculture, and many others. Main products covered under the commercial vehicle market are light commercial vehicles, buses & coaches, and heavy trucks. Industrial growth and rising penetration of electric-powered vehicles in commercial vehicles are some of the prime factors that trigger the market pace of commercial vehicles during the forecast period.

Growth Factors

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.

Report Scope of the Commercial Vehicles Market

Report Coverage Details
Market Size in 2023 USD 531.8 Billion
Market Size by 2033 USD 826.53 Billion
Growth Rate from 2024 to 2033 CAGR of 4.50%
Fastest Growing Market Asia Pacific
Largest Market North America
Base Year 2023
Forecast Period 2024 to 2033
Segments Covered Product, End User, Propulsion Type, Power Source, Region
Companies Mentioned Bosch Rexroth AG, Ashok Leyland, Daimler, Toyota Motor Corporation, Volkswagen AG, Mahindra and Mahindra, VOLVO, TATA Motors, General Motors, and Golden Dragon

 

COVID-19 Impact

The outbreak of COVID-19 has shown effects in terms of flight cancellations, travel bans, and quarantines, which totally disrupted supply chain and temporarily stopped logistics activities across the globe due to imposed lockdowns all over the world. According to the industry experts operating in the global commercial vehicle industry, the automotive industry faced a negative growth in between 5% and 10% in first six months of 2020 due to several challenges such as transportation bans and the supply chain disruption.

With lockdown and quarantine protocols penetrating the advent of the new normal, customers and businesses are largely going digital, thus impacting in more product purchases through online sales channels. The robust growth of the online sector has contributed immensely to the logistics sector, owing to the significant rise in goods and services delivery, which is benefitting commercial vehicle market recovery over the foreseeable future.

Product Insights

In 2023, Light Commercial Vehicles (LCVs) led the global commercial vehicles market with significant revenue share 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.

Attractive revenue share of LCVs is majorly because of high adoption of small and medium sized vehicles for transportation of goods across various industrial sectors such as e-commerce business, mining & construction, production sites, and many others.

Commercial Vehicles Market Share, By Product, 2023 (%)

However, the heavy trucks segment is expected to account for the highest growth over the next decade owing to heavy investments of OEMs in the market, rising demand for powerful automobiles with higher Power Sources of carrying to manage weights and strong suspension systems, increasing need for fuel-efficient trucks, and the strict regulations and laws in relation with carbon footprint and emissions.

Commercial Vehicle Market Revenue, By Product, 2020 to 2023 (USD Billion)

By Product 2020 2021 2022 2023
LCVs 359.5 372.9 387.1 402.1
Buses & Coaches 15.0 15.6 16.2 16.9
Heavy Truck 98.8 103.2 107.9 112.8

 

Propulsion Type Insights

By propulsion type, IC engine capture the largest revenue share in the global commercial vehicles market; however, electric vehicle projected to grow at the fastest rate during the forecast time period. The accelerating growth of the electric vehicle in commercial vehicles market is mainly due to various government initiatives to propel the adoption of electric vehicles across every sectors. In addition, environment-friendly properties of electric vehicle also help to curb the rate of pollution across various regions.

  • The IC engine segment was valued at USD 400 billion in 2023 and it is expanding at a CAGR of 1.86% from 2024 to 2033.
  • The electric vehicle segment was valued at USD 131.8 billion in 2023 and registered growth at a CAGR of 9.76% from 2024 to 2033.

End-use Insights

In 2023, transportation segment accounted for significant market value share and predicted to exhibit lucrative growth rate of nearly 4.86% 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.

Commercial Vehicles Market Share, By End User, 2023 (%)

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 2021 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.

  • The transportation and logistics segment was valued at USD 409.2 billion in 2023 and registered growth at a CAGR of 4.86%.
  • The industrial segment reached USD 122.7 billion in 2023 and is projected to grow at a CAGR of 2.95% from 2022 to 2030. 

Power Source Insights

The diesel segment accounts for the highest revenue share in 2023. The robust growth of this segment is owing to factors which include a rise in demand for passenger vehicles and increasing concerns about fuel efficacy. The rapid economic development along with the urbanization trends watching individuals migrating from rural areas to urban areas is also one of the major factors driving the growth of this segment in the years to come.

The fuel cell vehicle segment is projected to grow at the fastest rate over the next decade, with a CAGR of 8.46%. Hydrogen fuel cell vehicles possess a high potential to alleviate emissions in relation to the transportation sector. This vehicle does not produce any CHG emissions during the operation, unlike diesel or gasoline vehicles. These benefits are expected to have a positive impact on overall fuel cell vehicle share. In addition, research and development activities in hydrogen and fuel cells are further expected to propel the fuel cell vehicle market.

Commercial Vehicle Market Revenue, By Power Source, 2020 to 2023 (USD Billion)

By Power Source 2020 2021 2022 2023
Gasoline 82.9 85.2 87.5 90.0
Diesel 262.4 268.9 275.7 282.9
HEV / PHEV 31.1 33.6 36.2 39.1
Battery Electric Vehicle (BEV) 59.4 63.7 68.4 73.5
Fuel Cell Vehicle 9.9 10.7 11.6 12.6
LPG & Natural Gas 27.7 29.8 31.8 33.7

 

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:

  • Bosch Rexroth AG
  • Ashok Leyland
  • Daimler
  • Toyota Motor Corporation
  • Volkswagen AG
  • Mahindra and Mahindra
  • VOLVO
  • TATA Motors
  • General Motors
  • Golden Dragon

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 2020 to 2033. This report comprises market division and its revenue valuation by categorizing it depending on product, end-use, and region:

By Product

  • Light Commercial Vehicles (LCVs)
  • Buses & Coaches
  • Heavy Trucks

By End-use

  • Industrial
  • Transportation
  • Others

By Propulsion Type

  • IC Engine
  • Electric Vehicle

By Power Source

  • Gasoline
  • Diesel
  • HEV / PHEV
  • Battery Electric Vehicle (BEV)
  • Fuel Cell Vehicle
  • LPG & Natural Gas

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Malaysia
    • Philippines
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • North Africa
    • South Africa
    • Rest of the Middle East & Africa

Frequently Asked Questions

The global commercial vehicles market was valued at USD 531.8 billion in 2023 and expected to hit USD 826.53 billion by 2033.

The global commercial vehicles market is exhibiting a CAGR of 4.50% during the forecast period 2024 to 2033.

Some of the key players operating in the market are Bosch Rexroth AG, Ashok Leyland, Daimler, Toyota Motor Corporation, Volkswagen AG, Mahindra and Mahindra, VOLVO, TATA Motors, General Motors, and Golden Dragon among others.

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.

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.

Based on product, Light Commercial Vehicles (LCVs) led the global commercial vehicles market with significant revenue share of around 75% and predicted to retain its position during the forecast period.

Proceed To Buy

USD 4900
USD 3800
USD 2100
USD 2100
USD 7500

Ask For Sample

No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client