Global Commercial Vehicles Market

The global commercial vehicles market size was USD 797.16 Billion in 2022 and is likely to reach USD 1269.91 Billion by 2031, expanding at a CAGR of 5.31% during 2023–2031. The growth of the market is attributed to rising number of building and e-commerce operations has increased demand for material transportation.

The word "commercial vehicle" refers to a vehicle that is primarily used to move goods or materials rather than people. CV vehicles have four wheels and are used to move goods. The weight difference between light automobiles and heavy trucks is expressed in tons. Buses and coaches are vehicles that can transport more than eight passengers in addition to the driver and have a maximum volume greater than that of light vehicles.

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Commercial vehicle manufacturers have been encouraged to design cars that cut carbon emissions as public awareness of the need for a sustainable solution has grown. Manufacturers are focusing on developing vehicle designs that reduce load factors and dimensions, as well as customizing vehicles to meet weight limits. Automakers also take into account infrastructure circumstances, national legislation, weather management, and driver technique while developing automobiles.

In addition, as a result of e-commerce, demand for small, medium, and large commercial vehicles has surged. The logistics industry has evolved from simply providing services to providing customer-centric solutions. As a result, the need for commercial vehicles for transportation has rapidly increased.

The Covid-19 pandemic affected the demand and supply of commercial vehicles market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

Commercial Vehicles Market Trends, Drivers, Restraints, and Opportunities

• Growing industrial sector in emerging nations, as well as the expansion of commercial operations in logistics, is estimated to increase the demand for commercial vehicles during the forecast period.

• Digitization and increased infrastructure spending is projected to boost the market during forecast period.

• Resuming of mining operations in some regions of the world, which has sparked demand for tippers, is also projected to fuel the market.

• Various policies and regulations have been implemented by governments in a number of countries to successfully manage the size of items that can be transported in a commercial truck, which is anticipated to drive the market.

• Increasing disposable income in developed and developing countries is projected to propel the market.

• Automobile manufacturers have shifted to electric vehicles as a result of strict pollution laws.

• High cost of the product is anticipated to hinder the market growth during the forecast period.

• Shift to electric vehicles is estimated to create growth opportunities for the market players during the forecast period.

• R&D and technological advancement is expected to offer immense opportunities for the market players.

Scope of Commercial Vehicles Market Report

The report on the global commercial vehicles market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Commercial Vehicles Market Segment Insights

The light CV segment held major market share of around 77.1% in 2020

Based on vehicle types, the market is segregated into light CV, heavy CV, and buses & coaches. The light CV segment held major market share of around 77.1% in 2020. LCVs are recognized as a cost-effective means of cargo and passenger transportation. LCVs offer a number of fiscal benefits as well as the potential to reduce pollution.

Furthermore, these vehicles are extremely dynamic and may be adapted to move both products and people. They are also affordable, which helps drive the market. The buses & coaches’ segment is estimated to expand at a CAGR of 3.2% during the forecast period, owing increasing use of buses and coaches in healthcare and tourist industries. Buses and coaches are the cost-effective means of transportation, which is why they are so popular. Electric buses are increasingly being used to reduce vehicular emissions in both developing and developed countries, which propel the market.

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The diesel segment holds the major market share

In terms of power sources, the market is fragmented into diesel, gasoline, HEV/PHEV, fuel cell vehicle, and battery electric vehicle. The diesel segment holds the major market share. On the other hand, the gasoline and HEV/PHEV segments are expected to grow rapidly due to increased demand for sources as a result of more rigorous fuel economy laws.

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The electric vehicle segment is expected to grow at a rapid pace during the forecast period

On the basis of propulsion types, the market is bifurcated into IC engine and electric vehicle. The electric vehicle segment is expected to grow at a rapid pace during the forecast period. Growth of the electric vehicle segment is attributed to rising construction, fright, and logistics activities globally. Goods transportation companies are changing their existing fleet to electric propulsion-based vehicles as a result of the increasing rise of green transportation worldwide.

Various regional governments have made major investments in green mobility, which is quickly replacing traditional buses. Automobile manufacturers are preparing to introduce more electric trucks as demand for them grows. However, there are several difficulties linked with the use of electric trucks. New vehicles must demonstrate their dependability, which may necessitate customers and dealers providing them with proper understanding of their functioning. Lack of charging infrastructure for electric vehicles is projected to hamper the market growth.

The Asia Pacific is anticipated to dominate the market during forecast period

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The Asia Pacific is anticipated to dominate the market at a CAGR of 5.4% during forecast period owing to rising demand for unified logistics solutions, warehousing, and transportation. Growth of the market in the region is attributed to easy availability of low-cost labor & raw material, improving road infrastructure, and as a result, an increase in the number of industrial facilities being built, particularly in developing economies like China and India.

North America's well-coordinated supply chain network efficiently connects businesses and consumers via a variety of modes of transportation such as freight air, rail, and express delivery services, maritime transport drives the market. Easy access to affordable financing options, as well as a strong emphasis by regional governments on ensuring in-house automotive manufacture and strong investment in infrastructure development are factors estimated to propel the market.

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Segments

The global commercial vehicles market has been segmented on the basis of

Vehicle Types

• Light CV
• Heavy CV
• Buses & Coaches

Power Sources

• Diesel
• Gasoline
• HEV/PHEV
• Fuel Cell Vehicle
• Battery Electric Vehicle

Propulsion Types

• IC Engine
• Electric Vehicle

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Isuzu Motors Ltd
• Scania AB
• Ford Motor Company
• Toyota Motor Corporation
• Fiat Chrysler Automobile
• Mitsubishi Motor Corporation
• Hyundai Motor Co. Ltd
• Volvo Group
• IVECO SpA (Industrial Vehicle Corporation)
• Daimler AG
• Hino Motors Limited
• Volkswagen AG
• TATA Motors
• Ashok Leyland
• Mahindra and Mahindra
• Bosch Rexroth AG

Competitive Landscape

Key players competing in the commercial vehicles market include Isuzu Motors Ltd; Scania AB; Ford Motor Company; Toyota Motor Corporation; Fiat Chrysler Automobile; Mitsubishi Motor Corporation; Hyundai Motor Co. Ltd; Volvo Group; IVECO SpA (Industrial Vehicle Corporation); Daimler AG; Hino Motors Limited; Volkswagen AG; TATA Motors; Ashok Leyland; Mahindra and Mahindra; and Bosch Rexroth AG. Some of these players are using several market strategies such as acquisitions, merger, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares and to generate revenue and raise their production line of the business in the coming years. For instance,

• In March 2021, Volvo Trucks has begun manufacture of the new heavy-duty trucks, known as the Volvo FH, FMX, FH16, and FM. These models are estimated to be manufactured at the Sweden, Russia, and Belgium plants.

• In January 2020, Isuzu Motors Limited and Honda R&D Co., Ltd, a Honda Motor Co., Ltd. R&D subsidiary, have agreed to collaborate on heavy-duty truck research using fuel cells as the powerplant.

• In June 2020, Volkswagen AG and Ford have agreed to collaborate on commercial vehicles, electric vehicles, and self-driving cars. Both companies will collaborate on commercial vehicles, such as the Volkswagen City Van, which was designed and constructed by Volkswagen Commercial Vehicles, the Ford 1-ton cargo van, and the Volkswagen medium pickup, which is based on the Ford Ranger chassis from 2022.