Commercial Vehicle Market Size & Share by Fuel Type (Internal Combustion Engine (ICE), Electric Vehicles); Vehicle Type (Light Commercial, Heavy Commercial, Buses) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4429
  • Published Date: Aug 29, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Commercial Vehicle Market size is expected to cross USD 50 trillion by the end of 2035, expanding around 8% CAGR during the forecast period i.e., 2023 – 2035. In the year 2022, the industry size of commercial vehicle was USD 2 trillion in the year 2022. The growth of this market can be ascribed to the growing penetration of commercial vehicles worldwide. It was found that commercial vehicle production globally increased to 23 million units in 2021. Furthermore, the expansion of the global market can also be majorly ascribed to the increasing individual disposable income, which in turn influences the purchase of vehicles for commercial purposes, and the growing demand and sales of vehicles all over the world.

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.


Commercial Vehicle Market
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Commercial Vehicles Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Rate of Urbanization – Escalating urbanization is resulting in the development of more roads to accommodate an ever-growing number of vehicles, which is responsible for the growth of the global commercial vehicle market. The speedy rate of urbanization is expected to boost the growth of the global market in the projected period. It was found that 55% of the global population will live in urban areas in 2021, which is expected to further increase to ~68% by 2050.
  • Upsurge in the Demand for Light Commercial Vehicles – The demand for light commercial vehicles is expected to grow owing to their ability to use less fuel and at the same time offer great performance.  For instance, it was observed that light commercial vehicles contributed more than 78% to global commercial vehicle production in 2021.
  •  Growing Production of Heavy Trucks – Owing to the increasing e-commerce sector and logistics industry the production of heavy trucks is also expanding as a result driving the market growth. It was estimated that in the United States, more than 320,000 heavy trucks were produced in 2021, which was around 11% more than the production volume of 2020.

Challenges

  • High 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 are expected to pose a challenge as it becomes difficult for the population with middle-income or startups to incorporate pressure-sensitive adhesives in the use of varied processes.
  • High Cost of Maintenance
  • Complex Mechanism

Commercial Vehicle Market: Key Insights

Base Year

2022

Forecast Year

2023 - 2035

CAGR

~8%

Base Year Market Size (2022)

~USD 2 trillion

Forecast Year Market Size (2035)

~USD 50 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 the Middle East and Africa)
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Commercial Vehicle Segmentation

Fuel Type (Internal Combustion Engine (ICE), Electric Vehicles)

The electric vehicle segment is estimated to hold 60% share of the global commercial vehicle market during the projected time frame. The growth of the segment can be attributed to the rising pollution, along with the surge in the demand for 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 fear losing customers within the next 3 years if they are 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.

Vehicle Type (Light Commercial, Heavy Commercial, Buses)

The light commercial vehicle market is predicted to witness the largest revenue by the end of 2035. The segmental growth can be attributed to the fact that light commercial vehicles are easy to maintain, that is, the maintenance cost for these vehicles is 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

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

 

  Fuel Type

  • Internal Combustion Engine (ICE)
  • Electric Vehicles

 

  Vehicle Type

  • Light Commercial
  • Heavy Commercial
  • Buses

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Commercial Vehicle Industry- Regional Synopsis

North America Market Forecasts

The commercial vehicle market in the North America is set to account for the largest share of 34% during the time period between 2023 – 2035. The growth of the market can be attributed majorly to the presence of a strong transportation network in the region, along with the rising demand for commercial vehicles. For instance, in 2019, there were more than 150,000 thousand units of commercial vehicles in use in the 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.

APAC Market Statistics

The commercial vehicle industry in the Asia Pacific region is expected to grow substantially during the anticipated timeframe.  Some of the aspects that will likely contribute to the expansion of the regional market include the improving road network and the simple accessibility of affordable labor and material costs. In addition, the subsequent rise in the number of production facilities, particularly in developing nations like China and India is further set to boost the market’s growth in the region.

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Commercial Vehicle Market Size
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Companies Dominating the Commercial Vehicle Landscape

top-features-companies
    • 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
    • Mahindra & Mahindra Limited
    • Paccat Inc.
    • Hino Motors Ltd.
    • Volkswagen AG
    • Scania CV AB
    • Robert Bosch GmbH
    • Ashok Leyland

In-the-news

In The News

  • Volvo Group revealed an extended range for Volvo’s battery electric trucks, a 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 added 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).

Author Credits:  Harshita Srivastava, Saima Khursheed


  • Report ID: 4429
  • Published Date: Aug 29, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing rate of urbanization and the rise in demand for light commercial vehicles are some of the major factors anticipated to drive the growth of the commercial vehicle market.

The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Tata Motors Limited, Daimler Truck AG, Mahindra & Mahindra Limited, Paccat Inc., Hino Motors Ltd., Volkswagen AG, Scania CV AB, and others.

The light commercial vehicle segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in North America is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Commercial Vehicle Market Report Scope
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