Commercial Vehicles Market Size, Status and Forecast 2030

 

Commercial Vehicles Industry Overview

The global commercial vehicles market size was estimated at USD 1.35 trillion in 2022 and is projected to register a compound annual growth rate (CAGR) of 3.7% from 2023 to 2030.

Implementation of vehicle scrappage programs, aggressive investments in infrastructure development and rural development, and drafting of stringent regulatory norms for vehicle length and loading limits, among other parameters, are anticipated to fuel the growth. The resumption of mining activities in some parts of the world, which has triggered the demand for tippers, is also expected to drive growth.

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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 environmentally sustainable transportation solutions has motivated commercial vehicle manufacturers to develop vehicles that reduce carbon emissions. Manufacturers are working on innovating vehicle design, 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 requires a significant 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 in reducing operational & production costs.

Furthermore, the demand for small, medium-, and heavy commercial vehicles has increased for logistics and transportation purposes 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. Supportive regulatory frameworks and additional incentives from governments have raised the demand for commercial electric vehicles. There has been an increase in electric buses and heavy-duty truck registrations in North America, Europe, and the Asia Pacific regions.

With the emerging economies in the Asia Pacific region, China dominates the overall electric bus and electric truck market. According to IEA, with more than 78k buses and 31k trucks registered, local policies of the Chinese government are a significant contributor to high sales of Electric Commercial Vehicles (ECVs). Thus, with the rapid increase in the adoption of electric vehicles, electric commercial vehicles are also expected to witness considerable traction over the forecast period.

While various factors contribute to the growth of the commercial vehicle market, COVID-19 has posed a severe challenge. Global lockdowns stalled all manufacturing and transportation activities. Disruption of the supply chain and economic slowdowns impacted several sectors such as automobile, transportation, and logistics. As the transportation and logistics sectors hold around 50% share in the market for commercial vehicles, less demand from this sector resulted in declining sales of commercial vehicles.

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Key Commercial Vehicles Company Insights

The key players that dominated the global market in 2022 include Tata Motors, Volkswagen AG, Ashok Leyland, AB Volvo, and General Motors. Most of these vendors are putting a strong emphasis on providing advanced products based on the latest technologies, as part of the efforts to enhance their respective product offerings in the market. The companies are also pursuing strategic initiatives, such as regional expansions as well as strategic acquisitions, mergers, partnerships, and collaborations, to cement their position in the market.

Organic growth remains a key strategy for most of the market incumbents. As such, market players are focusing on expanding their product offerings by developing and launching new and innovative products. For instance, in August 2022, Mahindra and Mahindra launched the New Jeeto Plus CNG, CharSau, which leads the segment in terms of range, mileage, maneuverability, and payload, leading to higher profits for inter- and intra-city applications. This last-mile transportation solution offers a range of stand-out features suitable for India's small and medium-scale business and trading needs. Some prominent players in the global commercial vehicles market include.

·         Ashok Leyland

·         Bosch Rexroth AG

·         Daimler

·         Volkswagen AG

·         Toyota Motor Corporation

·         Mahindra and Mahindra

·         TATA Motors

·         AB Volvo

·         Golden Dragon

·         General Motors

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