The global commercial vehicles market size is expected to reach USD 1,850.31 billion by 2030. The industry is expected to advance at a CAGR of 4.0% from 2022 to 2030. Continued infrastructure development, the growth of the construction and mining industries, and the subsequent need for the development of road infrastructure are expected to drive industry advancement. The unabated growth of the e-commerce industry, which has drastically transformed the logistics sector, is also expected to drive the demand for commercial vehicles.
The prevalence of advanced technologies and the continued integration of telematics and communication capabilities into commercial vehicles also bodes well for the growth of the market during the forecast period. Customers willing to invest in commercial vehicles are also scouting for additional services, such as financing services, rental services, and leasing services. The growing demand for individualized solutions is another trend increasingly being adopted in the market.
Large enterprises, along with medium-sized companies, are also opting for customized financial deals, especially leasing solutions. At the same time, the focus on safety in commercial vehicles is gradually shifting from reducing the impact of an accident to preventing an accident. Hence, customers are opting for vehicles equipped with new-age safety features that can potentially help prevent accidents.
The COVID-19 pandemic took its toll on the demand for commercial vehicles in 2020. The lockdowns imposed in various parts of the world, as part of the efforts to arrest the spread of coronavirus, affected several industries and industry verticals, including manufacturing, automotive, entertainment, and hospitality. The global automotive production volumes declined over the year in 2020, mainly due to the dwindling production volumes in North America and Europe, among other regions, as production facilities were shut temporarily as part of the lockdown procedures.
According to the Organisation Internationale des Constructeursd' Automobiles (OICA), global commercial vehicle production dropped by more than 15% over the year, from 91,786,861 units in 2019 to 77,621,582 units in 2020. Nevertheless, the market is looking forward to some respite in the short term, as various governments are gradually relaxing the restrictions and allowing businesses to operate with mandates, such as social distancing; additionally, the demand for cars from the middle-class population is growing.
North America holds more than 50% share of the commercial market, which can be attributed to the increased initiatives taken by automakers to develop technologically advanced commercial vehicles. The incorporation of new technologies to improve the vehicle's maneuverability enhances drivers' safety and experience.
Besides, to increase the customer base, commercial vehicle manufacturers have started providing vehicle service and thus increased their involvement in the distribution business. For instance, in May 2021, Ford Motors launched the Ford Pro service range. These services are designed to anticipate customers' requirements and address their needs.
The Asia Pacific region is expected to witness significant growth in the commercial vehicle market due to an increase in demand for commercial vehicles in the construction and transportation sector. Thus, key regional players are focusing on product launching activities to address this need. For instance, Tata Motors, in October 2021, 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.
The prevalence of advanced technologies and the continued integration of telematics and communication capabilities into commercial vehicles also bodes well for the growth of the market during the forecast period. Customers willing to invest in commercial vehicles are also scouting for additional services, such as financing services, rental services, and leasing services. The growing demand for individualized solutions is another trend increasingly being adopted in the market.
Large enterprises, along with medium-sized companies, are also opting for customized financial deals, especially leasing solutions. At the same time, the focus on safety in commercial vehicles is gradually shifting from reducing the impact of an accident to preventing an accident. Hence, customers are opting for vehicles equipped with new-age safety features that can potentially help prevent accidents.
The COVID-19 pandemic took its toll on the demand for commercial vehicles in 2020. The lockdowns imposed in various parts of the world, as part of the efforts to arrest the spread of coronavirus, affected several industries and industry verticals, including manufacturing, automotive, entertainment, and hospitality. The global automotive production volumes declined over the year in 2020, mainly due to the dwindling production volumes in North America and Europe, among other regions, as production facilities were shut temporarily as part of the lockdown procedures.
According to the Organisation Internationale des Constructeursd' Automobiles (OICA), global commercial vehicle production dropped by more than 15% over the year, from 91,786,861 units in 2019 to 77,621,582 units in 2020. Nevertheless, the market is looking forward to some respite in the short term, as various governments are gradually relaxing the restrictions and allowing businesses to operate with mandates, such as social distancing; additionally, the demand for cars from the middle-class population is growing.
North America holds more than 50% share of the commercial market, which can be attributed to the increased initiatives taken by automakers to develop technologically advanced commercial vehicles. The incorporation of new technologies to improve the vehicle's maneuverability enhances drivers' safety and experience.
Besides, to increase the customer base, commercial vehicle manufacturers have started providing vehicle service and thus increased their involvement in the distribution business. For instance, in May 2021, Ford Motors launched the Ford Pro service range. These services are designed to anticipate customers' requirements and address their needs.
The Asia Pacific region is expected to witness significant growth in the commercial vehicle market due to an increase in demand for commercial vehicles in the construction and transportation sector. Thus, key regional players are focusing on product launching activities to address this need. For instance, Tata Motors, in October 2021, 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.
Commercial Vehicles Market Report Highlights
- The light commercial vehicles (LCVs) segment is estimated to register the highest CAGR of 4.3%, in terms of revenue, during the forecast period. Increased fuel prices and high demand for fast delivery have shifted consumers’ preference from heavy-duty trucks to light commercial vehicles for same-weight logistics.
- The logistics segment was the largest segment in 2021 and is anticipated to reach USD 556.17 billion by 2030. The growing trade activities in developing economies, coupled with the strengthening logistics infrastructure, are some of the prime factors that are expected to drive the growth of the logistics segment.
- The North American region held the largest market share for global commercial vehicles in 2021. Manufacturers focusing on developing technologically advanced solutions for drivers’ safety and passengers’ experience is the key factor in contributing to the growth of the region.
Table of Contents
Chapter 1. Methodology and Scope
Chapter 3. Commercial Vehicle Market Variables, Trends & Scope
Chapter 4. Commercial Vehicle Market: Product Outlook
Chapter 5. Commercial Vehicle Market: End Use Outlook
Chapter 6. Commercial Vehicle Market: Regional Outlook
Chapter 7. Competitive Landscape
Companies Mentioned
- Ashok Leyland Ltd
- Bosch Rexroth AG
- Daimler AG
- Volkswagen AG
- Toyota Motors Crop.
- Mahindra & Mahindra
- Tata Motors
- Volvo Trucks Corporation
- Xiamen Golden Dragon Bus Co.Ltd
- General Motors Company
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 110 |
| Published | April 2022 |
| Forecast Period | 2022 - 2030 |
| Estimated Market Value ( USD | $ 1351.69 Billion |
| Forecasted Market Value ( USD | $ 1850.31 Billion |
| Compound Annual Growth Rate | 4.0% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
