Commercial Vehicles Industry Overview
The global commercial vehicles market size was estimated at USD 1,274.50 billion in 2021 and is expected to reach USD 1,850.31 billion by 2030, at a CAGR of 4.0% from 2022 to 2030.
The COVID-19 pandemic affected the automotive industry, with the market witnessing a decline in growth as a result of low automotive sales or new requirements. Implementation of vehicle scrappage programs, aggressive investments in infrastructure and rural development, drafting of stringent regulatory norms for vehicle length, and loading limits, among other parameters, are anticipated to fuel the growth.
Gather more insights about the market drivers, restrains and growth of the Global Commercial Vehicles Market
The resumption of mining activities in some parts of the world, which has triggered the demand for tippers, is also expected to drive growth. The rising levels of disposable income in both developing and developed countries and the continued infrastructure development are also projected to bode well for the growth of the market.
The rise in awareness for an environmentally sustainable solution has motivated commercial vehicle manufacturers to develop vehicles that reduce carbon emissions. Manufacturers are working on innovative vehicle designs, reducing load factors & size, and customizing vehicles according to weight regulations.
Infrastructure conditions, driver technique, weather management, and national policy are additional influential factors considered by automakers for developing vehicles. Research & development for manufacturing such vehicles require lots of investment. Thus, there is a requirement for policy action and investment initiatives to be taken by the government, private and public sectors. Such initiatives will support manufacturers to reduce operation & production costs.
Furthermore, demand for small, medium and heavy commercial vehicles has increased for logistics and transportation in association with e-commerce. The logistics market has shifted from just being a service provider, to offering customer-centric solutions. Thus, the requirement for commercial vehicles has increased for transportation purposes.
A supportive regulatory framework and additional incentives from the government have raised the demand for commercial electric vehicles. There was an increase in the number of electric buses and heavy-duty truck registrations in North America, Europe, and the Asia Pacific region, in 2020. With the emerging economy in the Asia Pacific region, China dominates the overall electric bus and electric truck market.
According to IEA, more than 78k buses and 31k trucks have registered according to the local policies of the Chinese government, which is a significant contributor to the high sales of Electric Commercial Vehicles (ECVs). Further, European governments, Clean Bus Deployment Initiatives, and municipal level policies have resulted in 2.1k electric bus registrations. There was a 23% increase in the sale of electric trucks in 2020 than the previous year. Similarly, the increased growth of the ECV in California is due to government policies.
While various factors contribute to the growth of the commercial vehicle market, COVID-19 has posed a severe challenge. Global lockdown in 2020 stalled all the manufacturing and transportation activities. Disruption of the supply chain and economic slowdown impacted several sectors such as automobiles, transportation, and logistics. As the transportation and logistics sectors hold around 50% market share in the commercial vehicle market, less demand from this sector results in declining sales of commercial vehicles.
Commercial Vehicles Market Segmentation
Based on the Product Insights, the market is segmented into Light Commercial Vehicles (LCVs), Heavy Trucks and Buses & Coaches.
- The light commercial vehicles (LCVs) segment accounted for the largest revenue share of 77.3% in 2021. The LCVs are considered a cost-effective option for the transportation of goods and passengers.
- The buses & coaches segment is expected to witness a CAGR of 3.4% from 2022 to 2030. The growth of the segment can be attributed to the increased adoption of buses and coaches in the healthcare and tourism industries.
Based on the End-use Insights, the market is segmented into Industrial, Mining & Construction, Logistics, Passenger Transportation and Others.
- The logistics segment accounted for the largest share of 26.7% of the overall commercial vehicles market volume in 2021. The unabated growth of the e-commerce industry bodes well for the growth of the logistics segment.
- The passenger transportation segment is estimated to register a revenue-based CAGR exceeding 4.6% from 2022 to 2030. The increase in the adoption of public transportation is anticipated to drive the demand for commercial vehicles.
Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- The Asia Pacific regional market is expected to advance at the fastest CAGR of 5.6% during the forecast period. This is in line with the growing regional demand for transportation, warehousing, and unified logistics solutions.
- The highly unified supply chain network in North America connects manufacturers and consumers efficiently through multiple transportation modes, including freight rail, air, and express delivery services; maritime transport; and particularly truck transport; thereby driving the growth of the regional market.
Market Share Insights:
- October 2021: Tata Motors launched 21 new commercial vehicles, ranging from light commercial vehicles to heavy-duty trucks. The vehicles introduced by the automaker are technologically advanced and thus have the capacity to fulfill the rising demand of customers.
- March 2021: Volvo Trucks announced the commencement of production of the new generation of heavy-duty trucks, namely Volvo FH, FM, FH16, and FMX. The new-generation heavy-duty trucks would be manufactured at the company’s manufacturing plants in Russia, Belgium, and Sweden.
Key Companies Profile:
The key players that dominated the global market in 2020 are putting a strong emphasis on providing advanced products based on the latest technologies, as part of their efforts to enhance their respective product offerings in the market.
Some of the prominent players in the global commercial vehicles market include:
- Ashok Leyland
- Bosch Rexroth AG
- Volkswagen AG
- Toyota Motor Corporation
- Mahindra and Mahindra
- TATA Motors
- AB Volvo
- Golden Dragon
- General Motors
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