The global commercial vehicles market was valued at USD 1.71 Trillion in 2021 and expected to reach USD 3.07 Trillion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 6.8% during the forecast period 2022 to 2030.
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.
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
|Market Size||USD 3.07 Trillion by 2030|
|Growth Rate||CAGR of 6.8% from 2022 to 2030|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Forecast Period||2022 to 2030|
|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|
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.
In 2021, Light Commercial Vehicles (LCVs) led the global commercial vehicles market with significant revenue share of around 78% 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.
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.
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.
In 2021, 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 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.
Power Source Insights
Diesel segment accounts for highest revenue share 2021, which is US$ 268.9 billion. The robust growth of this segment is owing to the 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.
Fuel cell vehicle segment is projected to grow at the fastest rate over the next decade, with a CAGR of 7.5%. Hydrogen fuel cell vehicles possess high potential to alleviate emissions in relation with 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 vehicles share. In addition, research and development activities in hydrogen and fuel cells are further expected to propel the fuel cell vehicle market.
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.
North America emerged as the market leader in the global commercial vehicles market owing to high adoption rate of commercial vehicles in 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.
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.
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.
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 (2022-2030)
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.
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 2017 to 2030. This report comprises market division and its revenue valuation by categorizing it depending on product, end-use, and region:
By Propulsion Type
By Power Source
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