The US commercial vehicles market size surpassed USD 204.1 billion in 2023 and is predicted to hit around USD 342.1 billion by 2033, growing at a CAGR of 5.4% from 2024 to 2033.
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Vehicles used for business or commerce as opposed to personal mobility are referred to as commercial vehicles. Usually, these vehicles are built and outfitted to carry out certain duties or to transport cargo, people, or equipment in exchange for money. In many different sectors and industries, commercial vehicles are essential to the movement of products and services. Depending on their intended purpose, they frequently have particular configurations and are subject to various rules and licensing requirements.
Sales of 6476 units were reported by VE Commercial Vehicles Ltd. (a joint venture between the Volvo Group and Eicher Motors) in August 2023, up from 5003 units in August 2022, signifying an increase of 29.40%. This comprises 237 units under the Volvo brand and 6239 units under the Eicher brand.
|Growth Rate from 2024 to 2033
|CAGR of 5.4%
|U.S. Market Size in 2023
|USD 204.1 Billion
|U.S. Market Size by 2033
|USD 342.1 Billion
|2024 to 2033
|By Product, By End-use, By Propulsion Type, and By Power Source
Driver: Growth of online delivery services for groceries and perishable commodities
The rise of the US commercial vehicles market is being driven by the proliferation of online grocery and perishable product delivery. The need for reliable and efficient delivery services has grown as more people buy groceries and perishable goods online. Due to their ability to deliver these delicate items in a fast and secure manner, commercial trucks are essential to satisfying this demand.
Specialized trucks with temperature control systems are needed for the perishable goods segment to preserve the freshness and quality of items while they are being transported. Commercial trucks with refrigeration units that are built for cold chain logistics make it possible to deliver goods like dairy, prescription drugs, and fresh fruit.
The necessity for adaptable and well-equipped commercial trucks that can handle a range of load sizes, navigate urban surroundings, and meet strict delivery deadlines is increased by this growing trend. As a result, the commercial vehicle industry in the United States is expanding since these vehicles are essential to the smooth and effective delivery of groceries and perishable goods to customers' doorsteps.
Restraint: Short range of electric commercial vehicles
Modern electric cars have small-capacity batteries that can only go so far between charges. The cost and performance of electric vehicles are directly impacted by the quality and lifespan of batteries. Lead-acid, nickel-cadmium, nickel-metal hydride, and lithium-ion batteries are now used to power electric cars.
Lithium-ion batteries are gradually taking the place of lead-acid, nickel-cadmium, and nickel-metal hydride batteries in electric cars due to their longer lifespan. However, the capacity of lithium-ion batteries is not high enough to power commercial vehicles. It is difficult for batteries to generate their full power at low temperatures due to a severe decline in their charging-discharging performance. Thus, this is expected to hinder the US commercial vehicles market during the forecast period.
Opportunity: Increasing the use of fleet management and telematics systems
The US commercial vehicles market is being stimulated by the increasing integration of fleet management and telematics technologies. Fleet managers may now get real-time information on driver behavior, vehicle performance, location tracking, and maintenance requirements through these technologies. Fleet productivity is increased, downtime is decreased, and operational efficiency is optimized using this kind of data-driven knowledge. Because they enable preventative maintenance, optimize routes, and monitor driver behavior, telematics, and fleet management systems are essential for supporting safety protocols. Adopting these solutions is essential as companies place a greater emphasis on safety and regulatory compliance.
Additionally, the industry is being driven by the combination of telematics and the growing need for environmentally friendly transportation. Telematics helps businesses run more efficiently and sustainably by streamlining operations, cutting fuel use, and lowering carbon emissions. The US commercial vehicle market is changing as a result of the integration of telematics and fleet management systems, which provide eco-friendly, safer, and more efficient operations. As a result, it addresses changing industry demands and maximizes vehicle performance, which propels the expansion of the US commercial vehicles market.
The light commercial vehicles (LCVs) segment held the largest share of the US commercial vehicles market in 2023. For the transportation of both passengers and products, LCVs are seen to be an affordable choice. LCVs help reduce emissions and have several tax advantages. These cars may also be customized to carry both passengers and cargo, making them extremely dynamic. They are also reasonably priced, which could help the segment's expansion.
The buses & coaches segment is expected to grow at a rapid rate over the forecast period. The segment's expansion may be ascribed to the tourist and healthcare sectors' growing usage of buses and coaches. Because they are the most economical form of transportation, buses and coaches are in high demand and sell well. The increasing usage of electric buses to reduce vehicle emissions in both developed and developing nations is encouraging the expansion of the buses and coaches segment of the US commercial vehicles market.
The logistics segment held the largest share of the US commercial vehicles market in 2023. Commercial vehicles, such as trucks and vans, are the backbone of transporting goods from manufacturing facilities to distribution centers and ultimately to retailers or directly to consumers. The logistics industry heavily relies on a well-functioning fleet of commercial vehicles to ensure timely and efficient delivery. In addition, logistics companies invest in comprehensive fleet management systems to monitor and optimize the use of their commercial vehicle fleets. These systems often include technologies such as GPS tracking, fuel management, maintenance scheduling, and route optimization to enhance operational efficiency.
The passenger transportation segment is expected to grow at a significant rate over the forecast period. It is expected that the demand for commercial automobiles will rise as more people use public transit. In terms of both time and expense, many find that using public transportation—which is frequently well-developed in metropolitan areas—is more efficient than driving to work. A key driver of the passenger transportation industry is the availability and affordability of personal transportation, as well as the growing overall cost of personal car ownership. Thus, driving the segment growth.
The electric vehicle segment dominated the US commercial vehicles market in 2023. The segment expansion is attributed to the rising launches of commercial electric vehicles by the key market players in the US.
the battery electric vehicle (BEV) segment is expected to hold a significant market share over the forecast period. The BEV segment is expected to grow significantly during the forecast period. BEVs are considered more environmentally friendly compared to traditional internal combustion engine vehicles. The commercial sector's adoption of BEVs aligns with the growing emphasis on sustainability, reducing greenhouse gas emissions, and addressing climate change concerns. Thereby, driving the segment expansion.
Segments Covered in the Report
By Propulsion Type
By Power Source
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