The Global Commercial Vehicles Market size is expected to reach $1.6 Trillion by 2027, rising at a market growth of 4.5% CAGR during the forecast period.
Commercial vehicles are four-wheeled vehicles used for goods transportation. The weight difference between light vehicles and heavy trucks is expressed in tonnes (metric tonnes). Based on national and professional norms, this limit ranges between 3.5 and 7 tonnes. Buses and coaches are vehicles that have more than 8 seats along with the driver's seat and a maximum mass larger than that of light automobiles (range from 3.5 to 7 tonnes).
Progress in the technology of electric and semi-autonomous commercial vehicles is expected to open new growth avenues for the market. In addition, the use of Electric Cars (EVs) for business transportation is predicted to grow gradually as a result of the various advantages they have over ICE vehicles.
The COVID-19 pandemic caused an extraordinary drop in sales of cars in early 2020, impacting the automotive industry. To avoid the spread of the coronavirus, transportation, and manufacturing operations, as well as public transit, have been suspended. Because of the coronavirus's growing influence on the commercial automobile sector, market demand and sales may fall dramatically. People are becoming increasingly anxious about the spread of the coronavirus, and many are wary of taking public transit. It is also anticipated that this may hinder the market growth.
Based on Type, the market is segmented into Light Commercial Vehicles (LCVs), Heavy Trucks and Buses & Coaches. The buses and coaches segment procured promising revenue share of the overall commercial vehicles in 2020. The segment's expansion can be attributable to the rising usage of buses and coaches in the healthcare industry and tourism sectors.
Based on End User, the market is segmented into Logistics, Industrial, Mining & Construction, Passenger Transportation, and Others. The passenger transportation segment held a significant revenue share of the overall Commercial Vehicles market in 2020. The increased use of public transit is expected to fuel demand for commercial cars.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, the Asia Pacific regional market collected a significant revenue share of the commercial vehicles market. This is due to the rising demand for warehousing, transportation, and unified logistics.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Tata Motors Limited, Toyota Motor Corporation, Mahindra & Mahindra Limited (Mahindra Group), Bosch Rexroth AG (Robert Bosch GmbH), Hyundai Motor Company, Volkswagen AG, Daimler AG, General Motor Co., Ford Motor Company, and Honda Motor Co. Ltd.
Commercial vehicles are four-wheeled vehicles used for goods transportation. The weight difference between light vehicles and heavy trucks is expressed in tonnes (metric tonnes). Based on national and professional norms, this limit ranges between 3.5 and 7 tonnes. Buses and coaches are vehicles that have more than 8 seats along with the driver's seat and a maximum mass larger than that of light automobiles (range from 3.5 to 7 tonnes).
Progress in the technology of electric and semi-autonomous commercial vehicles is expected to open new growth avenues for the market. In addition, the use of Electric Cars (EVs) for business transportation is predicted to grow gradually as a result of the various advantages they have over ICE vehicles.
COVID-19 Impact Analysis
The COVID-19 pandemic caused an extraordinary drop in sales of cars in early 2020, impacting the automotive industry. To avoid the spread of the coronavirus, transportation, and manufacturing operations, as well as public transit, have been suspended. Because of the coronavirus's growing influence on the commercial automobile sector, market demand and sales may fall dramatically. People are becoming increasingly anxious about the spread of the coronavirus, and many are wary of taking public transit. It is also anticipated that this may hinder the market growth.
Market Growth Factors:
Rapid Industrialization and adoption of Advanced Technologies and Electrification
The key causes for the considerable increase of good transport vehicles, globally, are fast population growth, rapid urbanization, the development of the industrial sector, and infrastructure development. The growth of the industrial sector, particularly in developing nations, is creating a great number of opportunities pertaining to jobs in a variety of industries, including mining, construction, and tourism. As a result, an increase in work possibilities leads to an increase of commuters, which has a significant influence on the requirement of public transportation solutions.Thriving automotive industry
Due to technical improvements and the introduction of automobiles with efficient fuel consumption technologies, the automotive sector has experienced tremendous development in recent years. Several businesses, like Ashok Leyland and Tata Motors, have been designing and introducing innovative commercial vehicles to various regions throughout the world. For example, Ashok Leyland intended to launch a new line of light commercial vehicles (LCVs) in September 2020, with the goal of reducing the company's exposure to future downturns.Marketing Restraining Factor:
Low Battery capacity in Electric Commercial Vehicles
The batteries in today's electric vehicles have low capacity and can only travel a short distance per charge. The performance and service life of batteries have a direct impact on electric vehicle performance and cost. Electric vehicles are now powered by lead-acid, nickel-cadmium, nickel-metal hydride, and lithium-ion batteries. Because lithium-ion batteries have a longer life span than lead-acid, nickel-cadmium, and nickel-metal hydride batteries, they are gradually replacing them in electric vehicles. Lithium-ion batteries, on the other hand, have insufficient capacity to power commercial vehicles. Batteries' charging-discharging performance deteriorates dramatically in cold temperatures, making it difficult for them to produce maximum power.
Type Outlook
Based on Type, the market is segmented into Light Commercial Vehicles (LCVs), Heavy Trucks and Buses & Coaches. The buses and coaches segment procured promising revenue share of the overall commercial vehicles in 2020. The segment's expansion can be attributable to the rising usage of buses and coaches in the healthcare industry and tourism sectors.
End User Outlook
Based on End User, the market is segmented into Logistics, Industrial, Mining & Construction, Passenger Transportation, and Others. The passenger transportation segment held a significant revenue share of the overall Commercial Vehicles market in 2020. The increased use of public transit is expected to fuel demand for commercial cars.
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, the Asia Pacific regional market collected a significant revenue share of the commercial vehicles market. This is due to the rising demand for warehousing, transportation, and unified logistics.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Tata Motors Limited, Toyota Motor Corporation, Mahindra & Mahindra Limited (Mahindra Group), Bosch Rexroth AG (Robert Bosch GmbH), Hyundai Motor Company, Volkswagen AG, Daimler AG, General Motor Co., Ford Motor Company, and Honda Motor Co. Ltd.
Recent Strategies Deployed in Commercial Vehicles Market
» Product Launches and Product Expansions:
- Nov-2021: Mahindra & Mahindra introduced 16 EV models across SUVs, LCVs. By this launch, the company aimed to strengthen its leading position in India's electric mobility segment.
- Oct-2021: Tata Motors launched 21 commercial vehicles across all segments. By this launch, the company aimed to fulfill its commitment to supporting the economic growth of India. Through this launch, the company aimed to maintain its leading position in the commercial vehicle segment by delivering a superior value proposition to consumers by introducing smart, future-ready services and products.
- Sep-2021: GM’s BrightDrop unveiled a smaller van for Verizon. The van is expected to have more than 400 cubic feet of cargo space and measure just under 20 feet overall in length. By this launch, the company aimed to provide a vehicle that is perfect for work in crowded spaces such as urban areas, mainly in the online grocery delivery & Telcom maintenance segments.
- Aug-2021: GM launched a new electric van and truck for commercial consumers. From this acquisition, the company aimed to add a full-size battery-electric cargo van for Chevrolet and a medium-duty truck for service and utility vehicles. The medium-duty truck is expected to be offered as a battery-electric vehicle with GM’s Ultium Cells also its Hydrotec fuel cells.
» Partnerships, Collaborations and Agreements:
- Dec-2021: Mahindra Group entered into a partnership with Reliance, an Indian multinational conglomerate. From this partnership, the companies aimed to speed up EV adoption in India with high-performance and swappable batteries which is expected to help in dispelling range anxiety. In addition, the memorandum of understanding also covers evaluating EV charging solutions by Jio-bp for Mahindra electric vehicles which include electric three and four-wheelers, quadricycles, and electric small commercial vehicles.
- Mar-2021: Toyota came into partnership with Isuzu, a Japanese commercial vehicle and diesel engine manufacturing company. Under this partnership, the companies aimed to design small commercial truck which includes vehicles & fuel cell technologies together in the future. In addition, the launch is expected to grow the competition for traditional automakers.
- Feb-2021: Daimler partnered with Cummins, a global power leader, and independent engine manufacturer. Under this partnership, Cummins is expected to invest in the development of medium-duty engine systems for Daimler trucks and Buses.
» Acquisitions and Mergers:
- Jun-2021: Hyundai Motor Group took over Boston Dynamics, an American engineering and robotics design company from SoftBank. Through this acquisition, the company aimed to speed up the development of cutting-edge robotics featuring the latest mobility, manipulation, and vision capabilities. By using Boston Dynamics, the company is expected to create a robotic value chain, from robot component manufacturing to smart logistics solutions.
- Apr-2021: Toyota took over the autonomous vehicle division of Lyft, an American company. In addition, Toyota also signed an agreement to use the system & fleet data of Lyft. By this acquisition, the company aimed to put together the resources, infrastructure, and people which is expected to help the company to transform the world and live in through mobility technologies that is expected to bring about a happier, safer future.
- Sep-2020: GM completed the acquisition of an 11 percent stake in Nikola, a leading manufacturer of heavy-duty commercial battery-electric vehicles. Under this acquisition, GM is expected to help Nikola in manufacturing its battery-electric and hydrogen fuel cell vehicles which include the Badger pickup truck.
Scope of the Study
Market Segments Covered in the Report:
By End User
- Logistics
- Industrial
- Mining & Construction
- Passenger Transportation
- Others
By Type
- Light Commercial Vehicles (LCVs)
- Heavy Trucks
- Buses & Coaches
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Tata Motors Limited
- Toyota Motor Corporation
- Mahindra & Mahindra Limited (Mahindra Group)
- Bosch Rexroth AG (Robert Bosch GmbH)
- Hyundai Motor Company
- Volkswagen AG
- Daimler AG
- General Motor Co.
- Ford Motor Company
- Honda Motor Co. Ltd.
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Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
Chapter 3. Global Commercial Vehicles Market by End User
Chapter 4. Global Commercial Vehicles Market by Type
Chapter 5. Global Commercial Vehicles Market by Region
Chapter 6. Company Profiles
Companies Mentioned
- Tata Motors Limited
- Toyota Motor Corporation
- Mahindra & Mahindra Limited (Mahindra Group)
- Bosch Rexroth AG (Robert Bosch GmbH)
- Hyundai Motor Company
- Volkswagen AG
- Daimler AG
- General Motor Co.
- Ford Motor Company
- Honda Motor Co. Ltd.
Methodology
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