Automotive & Transportation

Commercial Vehicle Market Analysis by Fuel Type (Internal Combustion Engines (ICE), and Electric Vehicle); and by Vehicle Type (Light Commercial, Heavy Commercial, and Buses) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033

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Report ID: 4429 | Published On: Jan 30, 2023

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Inflation and Looming Recession to Haunt Businesses:

In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.


In The News

  • Volvo Group - revealed an extended range for Volvo’s battery electric trucks, new fully electric rear axle, which is spaced up for more batteries.

  • Tata Motors Limited - unveiled an extensive and comprehensive range of 21 new commercial vehicles across all segments. These cutting-edge vehicles add to Tata Motors'established "Power of 6" benefit proposition to address specific usage and applications while delivering higher productivity and lower total cost of ownership. They were designed and engineered to cater to the evolving needs of cargo and people transport across segments and applications (TCO).


Global Commercial Vehicle Market Definition

Any vehicle used to move goods or people for the benefit of a person or business is considered a commercial motor vehicle (CMV). Pickup trucks, box trucks, semi-trucks, vans, coaches, buses, taxicabs, trailers, and travel trailers are a few examples of CMVs. If a car is registered to and has a firm on the title, it is classified as "commercial" in the US.

For any particular business, commercial motor vehicles transport both people and things where they need to go. Transport itself may be used to transfer items from one place of business to another or directly to a client; it may also be used to convey people to personal destinations or to workplaces. The majority of other vehicles on the road lack the size, maneuverability, and power of CMVs designed for big freight, which may include towed trailer units. Moreover, they also have sophisticated gearing. It takes significant expertise and awareness to operate these vehicles, as well as operating and safety training for any added equipment. As a result, driving a commercial vehicle calls for a unique driver's license and particular marks, such as a DOT number designating oversight by the United States Department of Transportation (DOT).

Extremely heavy and passenger-carrying vehicles are also considered to be commercial motor vehicles. The USDOT classifies a vehicle as commercial if it is intended to carry more than 15 passengers, weighs more than 10,000 pounds with a towed unit or units, or has a combined weight of more than 26,001 pounds. Furthermore, any automobiles used to transport hazardous products are regarded as CMVs.


Global Commercial Vehicle Market: Key Insights

Base Year

2022

Forecast Year

2023-2033

CAGR

~8%

Base Year Market Size (2022)

~ USD 950 Billion

Forecast Year Market Size (2033)

~ USD 2 Trillion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)


Global Commercial Vehicle Market Size, Forecast, and Trend Highlights Over 2023 – 2033

The global commercial vehicle market is estimated to garner a revenue of ~USD 2 trillion by the end of 2033 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 950 billion in the year 2022. The growth of the market can primarily be attributed to the growing penetration of commercial vehicles as well as the rising production of commercial vehicles worldwide. It was found that the commercial vehicle production globally, increased to ~23 million units in 2021. Further, the expansion of the global market can also be majorly ascribed to the increasing individual disposable income, which is in turn influence the purchase of vehicles for commercial purposes, and the growing demand and sales of vehicles all over the globe.

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A commercial vehicle is a specific kind of motor vehicle that is used to convey commodities or merchandise. The expansion of e-commerce and the rising use of commercial vehicles for transportation both have a significant impact on the commercial vehicle market. Along with this, the market growth for commercial vehicles is also influenced by rising industrialization, e-mobility acceptance in commercial sectors, and infrastructure development that supports these developments in the automotive industry. A commercial vehicle is also generally used to move people, materials, and goods. It is utilized in many different industries, including mining, construction, manufacturing, transportation and logistics, agriculture, and many more. Heavy trucks, buses & coaches, and light commercial vehicles are the main products included in the commercial vehicle market. Some of the key reasons driving the market pace of commercial vehicles during the projection period are industrial growth, and the increasing penetration of electric-powered vehicles in commercial vehicles.


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Global Commercial Vehicle Market: Growth Drivers and Challenges

Growth Drivers

  • Rising Rate of Urbanization – resulting in the development of more roads to accommodate an ever-growing number of vehicles, is responsible for the growth of the global commercial vehicles market. The speedy rate of urbanization is expected to boost the growth of the global commercial vehicle market in the projected period. It was found that, ~56.5% of the global population lives in urban areas in 2021, which is expected to further increase to ~67% by 2050.

  • Upsurge in the Demand for Light Commercial Vehicles – for instance, it was observed that light commercial vehicles contributed more than 78% to the global commercial vehicle production in 2021.

  • Growing Production of Heavy Trucks – it was estimated that in the United States more than 280,000 heavy trucks were produced in 2021, which was ~20% more than the production volume of 2020.

  • Increasing Number of Commercial Drivers – for instance, in United States, more than 900,000 truck drivers were employed in 2020.

  • Rising Penetration of Supply Chain Management Software – for instance, the global supply chain management software industry accounted for ~USD 15 billion in 2019.

Challenges

  • Huge Initial Investment - The term "initial investment" refers to the total sum that a buyer is required to pay in accordance with the conditions of the business opportunity contract, either before or at the time the goods or services are delivered, or within six months of the buyer starting to operate the business opportunity. The high costs included in various stages is expected to pose as a challenge as it becomes difficult for the population with middle income or startups to incorporate pressure sensitive adhesives in use of varied processes.
  • High Cost of Maintenance
  • Complex Mechanism


Market Segmentation

The global commercial vehicle market is segmented and analyzed for demand and supply by fuel type into internal combustion engines (ICE), and electric vehicle. Out of the two types of commercial vehicle, the electric vehicle segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the rising pollution, along with the surge in the demand of electric vehicles worldwide. In addition, the rising support from the governments to produce zero-emission vehicles is also projected to fuel the segment growth. For instance, as per a study, nearly 60% of companies are fearing to lose customers within the next 3 years if they will be unable to meet the consumer's demand for deliveries with little or zero CO2 emissions. Medium and heavy trucks were responsible for 22% of the global CO2 emissions. Any vehicle used to move goods or people for the benefit of a person or business is considered a commercial motor vehicle (CMV). Pickup trucks, box trucks, semi-trucks, vans, coaches, buses, taxicabs, trailers, and travel trailers are a few examples of CMVs.

The global commercial vehicle market is also segmented and analyzed for demand and supply by vehicle type into light commercial, heavy commercial and buses. Amongst these three segments of vehicle type, the light commercial segment is expected to garner a significant share. The segmental growth can be attributed to the fact that the light commercial vehicles are easy to maintain, that is, the maintenance cost for these vehicles are lower in comparison to the other vehicle types. Moreover, the demand and the production of light vehicles are also significantly increasing all over the world. In addition, the LCVs, or light commercial vehicles, weigh between 3.5 and 7 tons. Vehicles such as, mini trucks, pickup trucks, and minivans within the above-mentioned weight range fall under the LCV category. These trucks can be used to carefully package and deliver a variety of items, including fruits, vegetables, white goods, market loads, beverages, and much more. These cars are fuel-efficient and have a good payload or capability for hauling loads. They are therefore useful for small and mid-sized enterprises as transportation and logistics solutions.

Our in-depth analysis of the global commercial vehicle market includes the following segments:

      By Fuel Type

  • Internal Combustion Engines (ICE)
  • Electric Vehicle

     By Vehicle Type

  • Light Commercial
  • Heavy Commercial
  • Buses


Global Commercial Vehicle Market Regional Synopsis

The North American commercial vehicle market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The growth of the market can be attributed majorly to the presence of a strong transportation network in the region, rising demand of commercial vehicles, along with growing penetration of electric vehicles. For instance, in 2019, there were more than 150,000 thousand units of commercial vehicles in use in United States.  Further, the presence of a large industrial sector in the region which requires heavy transportation works, along with the availability of supportive policies by the regulatory bodies that promote the market players to opt for the expansion of their corresponding businesses so as to develop fuel efficient transportation options, are also estimated to contribute to the market growth in the region. In addition, the region's expanding automotive industry and rising commercialization of automotive products are also anticipated to fuel the market growth during the forecast period.

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Top Featured Companies Dominating the Global Commercial Vehicle Market

    Volvo Group

    • Company Overview
    • Business Strategy
    • Key Product Offerings
    • Financial Performance
    • Key Performance Indicators
    • Risk Analysis
    • Recent Development
    • Regional Presence
    • SWOT Analysis
    • Tata Motors Limited
    • Daimler Truck AG
    • Toyota Motor Corporation
    • Mahindra & Mahindra Limited
    • Paccar Inc.
    • Hino Motors, Ltd.
    • Volkswagen AG
    • Scania CV AB
    • Robert Bosch GmbH

     


Key Questions Answered in the Report

1) What are the major factors driving the growth of the commercial vehicle market?

Ans: Increasing demand of commercial vehicles including light commercial vehicles and heavy commercial vehicles along with rising urbanization are some of the major factors anticipated to drive the growth of the market.

2) What would be the CAGR of commercial vehicle market over the forecast period?

Ans: The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2033.

3) What are the challenges affecting the commercial vehicle market growth?

Ans: The requirement of huge initial investment along with high cost of maintenance later are some of the factors estimated to hamper the market growth.

4) Which region will provide more business opportunities for growth of commercial vehicle market in future?

Ans: The market in North America is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.

5) Who are the major players dominating the commercial vehicle market?

Ans: The major players in the market are Volvo Group, Tata Motors Limited, Daimler Truck AG, Toyota Motor Corporation, Mahindra & Mahindra Limited, Paccar Inc., Hino Motors, Ltd., Volkswagen AG, Scania CV AB, Robert Bosch GmbH.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the commercial vehicle market?

Ans: The market is segmented by fuel type, vehicle type, and by region.

8) Which segment captures the largest market size in fuel type segment in the commercial vehicle market?

Ans: The electric vehicle segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.

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