Global Commercial Vehicles Market Size, Trades, COVID-19 Impact & Growth By Type (Light Commercial Vehicles, Medium Commercial Vehicles, and Heavy Commercial Vehicles), By Drive Type (Internal Combustion Engine, Electric Vehicles, and Hybrid Vehicles), By End-Use (Industrial, Mining & Construction, Logistics, Passenger Transportation, and Other End-Uses), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: Sep 2023
- Report ID: 67446
- Number of Pages: 231
- Format:
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Report Overview
The Global Commercial Vehicle Market size is expected to be worth around USD 1.9 Trillion by 2032 from USD 1.4 Trillion in 2022, growing at a CAGR of 3.40% during the forecast period from 2023 to 2032.
The global market for commercial vehicles serves as a dynamic and important component of the automotive industry by covering a diverse range of vehicles designed for different applications.
In recent years, technological advancements, evolving environmental concerns, and shifting consumer preferences have collectively shaped the growth of the global commercial vehicles market, prompting manufacturers to innovate and adapt to meet the demands of an ever-changing landscape.
Actual Numbers Might Vary in the Final Report
Key Takeaways
The Commercial Vehicle Market anticipates a slight decline, projected to decrease from USD 1.9 trillion in 2023 to USD 1.4 trillion in 2033, indicating a Compound Annual Growth Rate (CAGR) of 3.40%.
- Regional Dominance: North America emerges as the dominant region, commanding a significant 32.6% share, indicating substantial market presence and demand within the North American commercial vehicle sector.
- Segmentation Insights:
- Product Focus: Chilled Food transportation holds a substantial 58.6% share, signifying the prevalent use of commercial vehicles for transporting perishable goods.
- Transport Type: Refrigerated Road Transport dominates with a significant 38.4% share, emphasizing the importance of refrigerated transport in the commercial vehicle industry.
- Technology Preference: Vapor Compression Systems hold a noteworthy 42.6% share, indicating their significance in refrigeration technology used within these vehicles.
- Temperature Specifications: Multiple Temperature vehicles constitute a significant 57.4% share, catering to the diverse temperature needs for various goods during transportation.
- Market Dynamics
- Shift in Market Size: The market’s slight decline could be influenced by various factors such as evolving technology, changes in consumer behavior, or shifts in supply chain logistics impacting demand.
- North American Market Leadership: North America’s dominance suggests the region’s robust transportation industry and significant commercial vehicle demand for transporting chilled food using refrigerated road transport equipped with vapor compression systems catering to multiple temperature requirements.
- Focus on Perishable Goods: The dominance of chilled food and the use of refrigerated transport highlights the importance of commercial vehicles in the transportation of perishable goods, necessitating advanced refrigeration technologies to maintain multiple temperature zones.
- Industry Analysis: This analysis reflects a nuanced perspective on the Commercial Vehicle Market, indicating a slight decline in market value while emphasizing the dominance of North America and the focus on transporting perishable goods through sophisticated refrigeration technologies in the commercial vehicle sector.
Driving Factors
Expanding Economies and Changing Consumer Preferences Drive Demand for Commercial Vehicles
The expansion of economies, particularly in emerging markets, drives demand for commercial vehicles. Rapid industrialization, infrastructural development, and urbanization led to an increased need for the transportation of goods, spurring demand for commercial vehicles. The surge in e-commerce activities and changing consumer preferences toward online shopping have necessitated efficient last-mile delivery solutions. This has led to higher demand for smaller commercial vehicles optimized for urban deliveries.
Many businesses are replacing outdated fleets with newer, more fuel-efficient, and technologically advanced commercial vehicles. Modern vehicles offer enhanced reliability, reduced operational costs, and compliance with stricter emission norms. Governments globally are imposing stricter emission standards to curb pollution and promote environmental sustainability. This has driven manufacturers to develop electric, hybrid, and alternative-fuel commercial vehicles, accelerating innovation in the sector.
In the year 2022, approximately 24.1 million vehicles were sold on a global scale, reflecting a substantial level of market activity and consumer demand. In the year 2022, the United States emerged as the global leader in commercial vehicle sales, achieving a remarkable milestone of over 11 million units sold, while China, the second largest market for such vehicles, recorded a substantial sales figure of approximately 3.3 million units.
Restraining Factors
Fossil Fuel Dependency and High Capital Investments Pose Challenges for Commercial Vehicle Manufacturers
Commercial vehicles are heavily dependent on fossil fuels, primarily diesel. Fluctuations in fuel prices can significantly impact the operational costs for fleet operators and transportation companies, potentially leading to a delay in fleet expansion or adoption of fuel-efficient technologies.
Establishing or expanding commercial vehicle manufacturing facilities demands significant capital investments. The lengthy lead time from planning to production can expose manufacturers to risks associated with changing market dynamics, technological shifts, and evolving customer preferences.
Growth Opportunities
The Surge in Electric and Alternative Fuel Commercial Vehicles Amidst Global Sustainability Initiatives
The shift towards sustainability and environmental concerns has led to a growing interest in electric and alternative fuel commercial vehicles. Governments and industries worldwide are investing in the development and adoption of electric trucks, vans, and buses.
As battery technology improves and charging infrastructure expands, the demand for electric commercial vehicles is expected to rise, presenting a significant growth opportunity for manufacturers and suppliers in the sector.
Advancements in autonomous driving technology and vehicle connectivity are reshaping the commercial vehicle landscape. The integration of AI-driven systems and IoT capabilities allows for enhanced safety, efficiency, and fleet management. Companies are investing in developing self-driving commercial vehicles for various applications, including long-haul trucking, delivery services, and public transportation.
Latest Trends
Clean Technologies Reshaping Commercial Vehicle Landscape
Internet of Things (IoT) technology is integrating into commercial vehicles to improve fleet management, real-time tracking, predictive maintenance, and operational efficiency. Telematics solutions became indispensable tools for fleet operators. E-commerce growth was driving demand for last-mile delivery solutions, leading to smaller electric delivery vans and innovative logistics strategies to meet consumer expectations for faster and more efficient deliveries.
Governments worldwide are implementing stricter emissions regulations to curb pollution from commercial vehicles. This prompted manufacturers to invest in cleaner technologies and alternative fuels to comply with these regulations.
Type Analysis
Light Commercial Vehicles Dominate Global Commercial Vehicles Market
Based on type the global commercial vehicles market is segmented into light commercial vehicles, medium commercial vehicles, and heavy commercial vehicles. The light commercial vehicles segment dominated the market with the largest market share of 75% in 2022 and is expected to remain dominant in the market during the forecast period.
The rise in urbanization has led to an increased demand for efficient and flexible transportation solutions, particularly for last-mile delivery of goods and services. LCVs, with their smaller size and flexibility, are well-suited for navigating congested urban areas and fulfilling the demands of e-commerce and rapid delivery services. The medium commercial vehicles segment is the second largest segment in the global market, with a market share of 18%.
Drive by Type
The Internal Combustion Engine (ICE) Segment is Dominant in the Market
Based on drive type, the global commercial vehicle market is segmented into internal combustion engines, electric vehicles, and hybrid vehicles. The internal combustion engine (ICE) segment is the dominant segment in the global commercial vehicle market, accounting for a market share of more than 60% in 2022. This segment includes vehicles powered by traditional gasoline or diesel engines.
ICE vehicles offer extended range and quick refueling times, making them suitable for long-haul transportation applications with heavy payloads. Unfortunately, their emissions and higher operating costs have led to an increased interest in cleaner alternatives. Electric vehicle (EV) sales have steadily been on the rise in commercial vehicle markets worldwide, particularly all-electric models.
End-Use Analysis
Logistics Segment Dominates Global Commercial Vehicles Market
Based on end-use, the global commercial vehicle market is classified into industrial, mining & construction, logistics, passenger transportation, and other end-uses. The logistics segment is the dominant segment in the global commercial vehicle market, accounting for a market share of 26% in 2022. With the growth of international trade and e-commerce, the demand for efficient logistics solutions has surged.
Commercial vehicles play a crucial role in transporting goods across supply chains, making the logistics segment a key driver of the market. Logistics companies are continually looking for ways to optimize operations and reduce costs. Commercial vehicles equipped with advanced technologies, including route optimization, real-time tracking, and fuel efficiency enhancements, contribute significantly to increased logistics efficiency.
The mining and construction segment involves heavy-duty vehicles designed for earthmoving, excavation, and transportation of materials in mining and construction sites. These vehicles include dump trucks, excavators, bulldozers, and loaders. This segment constitutes approximately 15% to 20% of the global commercial vehicles market due to the specialized nature and significant investment required for these vehicles.
Global Commercial Vehicles Market Segments Includes:
By Type
- Light Commercial Vehicles
- Medium Commercial Vehicles
- Heavy Commercial Vehicles
By Drive Type
- Internal Combustion Engine
- Electric Vehicles
- Hybrid Vehicles
By End-Use
- Industrial
- Mining & Construction
- Logistics
- Passenger Transportation
- Other End-Uses
Regional Analysis
North America Dominates the Global Commercial Vehicle Market
North America is the largest market for commercial vehicles, accounting for the largest share of 30% of the global market. North America, particularly the United States and Canada, boasts a dynamic and varied economy. These nations are well known for their thriving manufacturing, trade, logistics, and transport sectors; such economic success drives demand for various commercial vehicles such as trucks, buses, vans, and specialized models tailored specifically for industries like construction, agriculture, transportation, etc.
Also, technological progress in North America, including advancements in autonomous driving, AI, and IoT is driving the market growth. In 2022, commercial vehicle sales in the USA claimed the top spot globally, with 11,371,749 units sold. Canada secured the second position, recording 1,304,482 commercial vehicle sales. Meanwhile, Mexico ranked third with 647,480 units sold. These statistics are available and tracked from 2005 to 2022, showcasing the sales trends over this period.
Europe is the second largest market for commercial vehicles, followed by Asia Pacific. Europe is home to a wide range of industries, including manufacturing, agriculture, construction, and services. These industries require efficient transportation and logistics solutions, leading to substantial demand for commercial vehicles tailored to different needs.
For instance, in the first half of 2023, new van sales in the EU surged by 11.2% to reach 730,969 units, benefitting from improved supply chain conditions. Notably, Spain and Germany played a significant role in this growth, with van sales rising by 26.6% and 15.5%, respectively. In France, sales experienced a more modest increase of 3.6%, totaling 189,948 units.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Europe
- Germany
- France
- The UK
- Italy
- Spain
- Russia & CIS
- Rest of Europe
- APAC
- China
- Japan
- South Korea
- India
- ASIAN
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC
- South Africa
- United Arab Emirates
- Rest of the Middle East & Africa
The key players in the global commercial vehicle market are focusing on innovation, mergers and acquisitions, and expansion to new markets to maintain their competitive edge in the market. The global commercial vehicle market is characterized by a diverse range of key players that contribute to its growth and innovation.
Prominent companies such as Daimler AG, Volvo Group, Scania AB, MAN SE, Paccar Inc., and Navistar International Corporation hold significant market shares due to their extensive product portfolios, technological advancements, and established global presence. These industry key players are known for their diverse offerings, including trucks, buses, and vans, catering to various segments of the commercial vehicles market.
Market Key Players:
- Daimler AG
- Volvo Group
- Scania AB
- MAN SE
- Paccar Inc.
- Navistar International Corporation
- Ashok Leyland
- Tata Motors
- Isuzu Motors Ltd.
- Ford Motor Company
- General Motors
- Dongfeng Motor Corporation
- FAW Group Corporation
- Sinotruk
- IVECO S.p.A.
- Mitsubishi Fuso Truck and Bus Corporation
- Hino Motors, Ltd.
- Hyundai Motor Company
- Other Key Players
Recent Developments:
- In January 2023, Volvo Group announced an investment of EUR1.5 billion towards producing electric trucks across Europe, using this capital investment to establish a battery factory in Sweden as well as upgrade production lines at existing factories.
- In January 2023, Paccar Inc. announced that they would invest $300 million into producing electric trucks in the United States, using this investment to establish a battery factory as well as upgrade production lines at existing factories.
Report Scope:
Report Features Description Market Value (2022) US$ 1.4 Trillion Forecast Revenue (2032) US$ 1.9 Trillion CAGR (2023-2032) 3.4% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Type: Light Commercial Vehicles, Medium Commercial Vehicles, and Heavy Commercial Vehicles; By Drive Type: Internal Combustion Engine, Electric Vehicles, and Hybrid Vehicles; By End-Use: Industrial, Mining and construction, Logistics, Passenger Transportation, and Other End-Uses Regional Analysis North America: The US and Canada; Europe: Germany, France, The UK, Italy, Spain, Russia & CIS, and the Rest of Europe; APAC: China, Japan, South Korea, India, ASEAN, and the Rest of APAC; Latin America: Brazil, Mexico, and Rest of Latin America; Middle East & Africa: GCC, South Africa, United Arab Emirates, and Rest of Middle East & Africa Competitive Landscape Daimler AG, Volvo Group, Scania AB, MAN SE, Paccar Inc., Navistar International Corporation, Ashok Leyland, Tata Motors, Isuzu Motors Ltd., Ford Motor Company, General Motors, Dongfeng Motor Corporation, FAW Group Corporation, Sinotruk, IVECO S.p.A., Mitsubishi Fuso Truck and Bus Corporation, Hino Motors, Ltd., Hyundai Motor Company, and Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User license (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
Q: List the segments encompassed in this report on the Commercial vehicle market?Market.US has segmented the Commercial vehicle market by geographic (North America, Europe, APAC, South America, and Middle East and Africa). By Product Type, the market has been segmented into Light Commercial Vehicles (LCVs), Heavy Trucks, and Buses & Coaches. By End-Use, the market has been further divided into, Industrial, Mining & Construction, Logistics, Passenger Transportation, and Other End-Uses
Q: List the key industry players of the Commercial vehicle market?Ashok Leyland, Bosch Rexroth AG, Daimler, Volkswagen AG, Toyota Motor Corporation, Mahindra and Mahindra, TATA Motors, AB Volvo, and Other Key Players engaged in the Commercial Vehicle market
Q: Which region is more appealing for vendors employed in the Commercial vehicle market?APAC is expected to account for the highest revenue share of 37.2%. Therefore, the Commercial Vehicle Technology industry in APAC is expected to garner significant business opportunities over the forecast period.
Q: Name the key areas of business for Commercial vehicle?India, China, The US, Canada, UK, Japan, & Germany are key areas of operation for the Commercial Vehicle Market.
Q: Which segment accounts for the greatest market share in the Commercial vehicle industry?With respect to the Commercial vehicle industry, vendors can expect to leverage greater prospective business opportunities through the light commercial vehicles (LCVs) segment, as this area of interest accounts for the largest market share.
- Daimler AG
- Volvo Group
- Scania AB
- MAN SE
- PACCAR Inc. Company Profile
- Navistar International Corporation
- Ashok Leyland
- Tata Motors
- Isuzu Motors Ltd. Company Profile
- Ford Motor Company
- General Motors
- Dongfeng Motor Corporation
- FAW Group Corporation
- Sinotruk
- IVECO S.p.A.
- Mitsubishi Fuso Truck and Bus Corporation
- Hino Motors, Ltd.
- Hyundai Motor Company
- Other Key Players
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