Ottawa, March 28, 2024 (GLOBE NEWSWIRE) -- The global commercial vehicles market size was valued at USD 531.8 billion in 2023 and is projected to hit around USD 792.66 billion by 2032, According to Precedence Research. The commercial vehicles market is driven by increased awareness, government initiatives, and advanced technologies.
The commercial vehicles market deals with the manufacturing, distribution, repair, and other aspects of commercial vehicles, including buses, trucks, taxis, trailers, heavy equipment, and so on. Commercial vehicle growth is influenced by e-commerce, transportation adoption, industrialization, e-mobility adoption, and infrastructure development, supporting advancements in the automotive industry. Investments in e-commerce are driving demand for last-mile transportation and small commercial vehicles, leading to growth in the market. Truck sales are also growing due to higher budgetary allocations, potential vehicle scrappage programs, stricter regulatory norms, and the resumption of mining activities.
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Global Commercial Vehicle Market Revenue, By Region (US$ Bn)
| By Region | 2019 | 2020 | 2021 | 2022 | 2023 |
| North America | 244.8 | 209.5 | 217.9 | 226.7 | 236.1 |
| Europe | 81.4 | 70.5 | 72.1 | 73.4 | 75.6 |
| Asia Pacific | 150.0 | 136.3 | 142.0 | 148.0 | 154.5 |
| LAMEA | 63.6 | 57.2 | 59.8 | 63.0 | 65.6 |
Global Commercial Vehicle Market Revenue, By Power Source (US$ Bn)
| By Power Source | 2019 | 2020 | 2021 | 2022 | 2023 |
| Gasoline | 95.8 | 82.9 | 85.2 | 87.5 | 90.0 |
| Diesel | 302.8 | 262.4 | 268.9 | 275.7 | 282.9 |
| HEV/PHEV | 34.2 | 31.1 | 33.6 | 36.2 | 39.1 |
| BEV | 65.6 | 59.4 | 63.7 | 68.4 | 73.5 |
| Fuel Cell Vehicle | 10.9 | 9.9 | 10.7 | 11.6 | 12.6 |
| LPG & Natural Gas | 30.4 | 27.7 | 29.8 | 31.8 | 33.7 |
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Key Insights:
- North America led the market with the largest market share of 44.39% in 2023.
- Asia-Pacific is expected to grow at the fastest rate during the forecast period of 2024-2033.
- By product, the light commercial vehicles segment has held a major market share of 75.61% in 2023.
- By end-use, the transportation segment has accounted for around 76.94% of the market share in 2023.
- By end-use insight, the logistic segment is observed to grow at the fastest rate.
- By propulsion type, the IC engine segment has contributed the biggest market share of 75.22% in 2023.
- By power source, the diesel segment has recorded a major market share of 53.19% in 2023.
- By power source, the fuel cell segment is anticipated to grow at the fastest rate.
Regional Stance of Commercial Vehicles Market
The U.S. commercial vehicles market size is calculated at USD 213.35 billion in 2024 and is estimated to be worth around USD 342.1 billion by 2033, growing at a CAGR of 5.4% from 2024 to 2033.
North America leads the global commercial vehicles market due to high adoption rates, industrial growth, infrastructure development, and government regulations. The market size is expected to grow with the rising adoption of electric and battery-powered vehicles and government initiatives to curb carbon emissions. Economic growth, industrial expansion, e-commerce, government investments, regulatory compliance, technological advancements, urbanization, and population expansion are driving the demand for commercial cars, trucks, vans, logistics services, last-mile delivery vehicles, public transit, municipal services, and delivery infrastructure, with fleet modernization and replacement cycles crucial for productivity and safety.
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Asia Pacific is expected to experience the fastest growth in the commercial vehicles market due to rapid industrialization, urbanization, population growth, and government infrastructure investments, boosting demand for commercial vehicles for domestic and international transportation. India's infrastructure development, which includes roads, highways, ports, and logistics networks, has resulted in increased demand for commercial vehicles, heavy-duty mining and construction equipment.
The e-commerce boom has increased demand for commercial trucks, especially for last-mile deliveries. Industrial growth in sectors such as FMCG, autos, pharmaceuticals, and textiles has boosted production and distribution requirements, hence the commercial vehicles market. Government regulations, such as the "Make in India" program and incentives for electric and environmentally friendly automobiles, have helped the commercial vehicles industry. The growing demand for commercial vehicles has helped not only the car industry but also other sectors, such as vehicle makers, job development, and the automotive ecosystem.
Report Highlights of the Commercial Vehicles Market
Product Insights
The light commercial vehicles (LCVs) segment held the largest share of the commercial vehicles market in 2023. LCVs are highly versatile and can be used for a wide range of purposes such as transportation of goods, small-scale delivery services, and even passenger transportation. This versatility makes them attractive to a diverse range of businesses. LCVs generally have lower acquisition costs, operational expenses, and maintenance costs compared to larger commercial vehicles such as trucks and buses. This makes them more accessible to small and medium-sized enterprises (SMEs) and individual entrepreneurs.
End-use Insight
The transportation segment dominated the commercial vehicles market in 2023. One of the primary elements driving the segment's growth is increased spending on transportation to improve accessibility and affordability. Furthermore, the increasing trend of shared mobility, as well as norms linked to fleet traffic on the road, are the other major reasons that would trigger the rise of passenger transportation in the upcoming year. Transportation is also rising due to the development of national socioeconomic complexes, urban infrastructure, social systems, government, cross-sectoral coordination, resource management, and emergency response. It also fulfills a wide range of human and business demands, such as social connection, recreation, work commuting, and the separation of work and home activities.
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The logistics segment is expected to grow at the fastest rate during the forecast period. Logistics reduces operational costs by automating activities, controlling inventory levels, and implementing well-planned strategies. Agile logistics strategies ensure responsiveness and support expansion. Risk management and advanced technologies like AI, IoT, Big Data, and Machine Learning help monitor inventory and prevent equipment failure, which are the main driving factors of this segment. Route planning and quality assurance are also advantages. Automation eliminates manual errors, streamlines processes, and reduces costs. Overall, logistics management is essential for enhancing customer experience, reducing operational costs, and promoting sustainability.
Propulsion Type Insight
The IC engine segment dominated the global commercial vehicles market. Internal combustion engines (IC) offer a high power-to-weight ratio, making them ideal for applications requiring high power output in limited space. They can operate on various fuels like gasoline, diesel, and propane and are cost-effective due to their low manufacturing and maintenance costs.
The electric vehicle segment is expected to grow the fastest during the forecast period. Electric vehicles offer several advantages over petrol and diesel vehicles, including lower running costs, low maintenance costs, zero tailpipe emissions, lower tax and financial benefits, and convenience. Electric vehicles use electricity to charge their batteries, making them more efficient and cost-effective. Renewable energy sources like solar panels can further reduce electricity costs. Maintenance requirements are also lower due to fewer moving parts in electric vehicles. Electric vehicles also have zero tailpipe emissions, reducing their carbon footprint. Tax and financial benefits include lower registration fees, road tax, and government policies and incentives. They can be charged at home, making it convenient to plan journeys and avoid lateness. Additionally, electric vehicles have no engine under the hood, making them safe for pedestrians.
Power Source Insight
The diesel segment dominated the commercial vehicles market in 2023. Diesel engines are efficient, consuming up to 30% less fuel and emitting 20% less CO2 than petrol engines, which puts them in a lower tax band. They are powerful for towing caravans or trailers, have a longer life span, and depreciate at a slower rate.
The fuel cell vehicle segment is expected to grow at the fastest rate. Hydrogen fuel cells (HFCs) are a renewable, zero-emission power source that removes the costs involved with handling and storing harmful materials. They are dependable and efficient and can boost warehouse productivity by up to 15%. HFCs are designed to suit a variety of customer power requirements, including on-road electric cars and material-handling fleets. They offer cheaper operational expenses than batteries and internal combustion generators because they eliminate the need for battery replacement, charging, and management. Furthermore, HFCs have simple maintenance and require fewer site visits, resulting in up to 84% cheaper operational expenses.
Browse More Insights:
Electric Vehicle Charger Market: The global electric vehicle (EV) charger market size was valued at USD 9 billion in 2022 and it is expected to worth around USD 105.84 billion by 2032 with a remarkable CAGR of 28% from 2023 to 2032.
Zero Emission Vehicle (ZEV) Market: The global zero emission vehicle (ZEV) market size was exhibited at USD 202 billion in 2022 and is projected to hit around USD 1,255.92 billion by 2032, growing at a CAGR of 20.1% from 2023 to 2032.
Automotive E-axle Market: The global automotive E-axle market size surpassed USD 11.93 billion in 2023 and is anticipated to hit around USD 278.88 billion by 2033, poised to grow at a CAGR of 37.10% from 2024 to 2033.
Electric Car Market: The global electric car market size was exhibited at USD 120 billion in 2022 and is projected to hit around USD 431.38 billion by 2032 with a registered CAGR of 13.7% from 2023 to 2032.
Vehicle-to-Grid Technology Market: The global vehicle-to-grid technology market size was valued at USD 3.78 billion in 2023 and it is expected to be worth around USD 45.09 billion by 2033, recording a CAGR of 28.13% from 2024 to 2033
Electric Powertrain Market: The global electric powertrain market is expected to reach at a compound annual growth rate (CAGR) 15.2% during forecast period 2023 to 2032 and predicted to hit over USD 390.31 billion by 2032.
Electric Passenger Cars Market: The global electric passenger cars market size was valued at USD 215.81 billion in 2022 and it is projected to hit around USD 3,737.49 billion by 2032, poised to grow at a CAGR of 33% from 2023 to 2032.
Commercial Vehicles Market Dynamics
Drivers
Rise in e-commerce sector
The commercial vehicles market is experiencing growth due to the e-commerce industry's rapid expansion, particularly in the last-mile delivery market. Companies are growing their supply chain and logistics networks in response to the growing trend of online shopping to reach consumers even in the most remote areas of the nation. Due to the need for speedy and effective distribution, delivery vans and smaller commercial vehicles are in high demand. Personalization and low cost also contribute to the growth of e-commerce, as it eliminates the need for physical stores and provides a passive experience for commercial activities.
Advanced technologies
Commercial vehicles are increasingly using technologies like exhaust gas recirculation systems, waste heat recovery systems, and ranking steam cycles to improve performance and emission standards. Tata Motors is a leading manufacturer that uses EGR and SCR effectively. Shaft generators are used on highways to produce electricity at constant speeds. Advanced steering systems, such as electric-powered systems, path relaxation, dynamic steering control, and Model Predictive Control (MPC), are being integrated to enhance automatic steering capabilities and provide a comfortable ride. These technologies are expected to lead to more efficient and environmentally friendly vehicles.
Heavy trucks are increasingly using dual-clutch transmission systems to avoid acceleration losses and improve fuel efficiency. Rankin cycle and Regen EBD are also being used to reduce fuel consumption. Braking systems are becoming obsolete due to new technologies aiming for electrification, improved personnel safety, and overall vehicle efficiency.
Restraint
Lack of skilled drivers
The commercial vehicle market is facing a shortage of qualified drivers due to an aging workforce, strict regulations, and demanding job demands. Compensation issues are a major contributor to this shortage, as companies face increased operational costs due to higher wages. These expenses are then passed on to customers through higher shipping rates, resulting in a logistics market where profit margins are squeezed. Delivery delays also disrupt supply chains and inventory management, further affecting the market. This compensation challenge creates a domino effect, causing a ripple effect throughout the logistics industry.
Opportunity
Switch towards electric vehicles
The commercial electric vehicle (EV) sector is experiencing significant growth due to government initiatives, e-commerce, and demand for last-mile delivery services. Companies are incorporating electric vans and three-wheelers into their fleets to reduce emissions and costs. Public transportation is also adopting electric buses to provide cleaner, quieter options. A robust charging infrastructure is crucial for widespread adoption. Companies are investing in the sector, and partnerships between automakers, technology providers, and energy companies are driving innovation. As the ecosystem evolves, more commercial EV options are expected.
Electric vehicles (EVs) offer lower maintenance costs due to their mechanical design, requiring fewer oil changes, exhaust system repairs, and timing belt replacements, which makes them the most prominent in the commercial vehicles market. As fuel prices rise, commercial EVs become a viable alternative. EVs also produce no emissions, reducing greenhouse gas emissions and improving air quality. Wider adoption can lead to improved public health, reduced dependence on imported fossil fuels, and less noise pollution in urban areas. Tax incentives can offset the higher upfront cost of EVs.
Recent Developments
- In March 2024, Daimler India Commercial Vehicles (DICV) focused on segment-selective strategies, introducing 14 new products for 2024, including rigid, heavy-duty trucks, Automated Manual Transmission (AMT) trucks, and construction and mining truck heavy-duty ranges, as part of a new strategy.
- In March 2024, Tata Motors announced a 2% price increase for its commercial cars to mitigate the impact of previous input expenses. The rise will apply to the entire range of commercial vehicles, and it represents Tata Motors' second price increase in 2024. The previous hike was an average of 0.7% for its passenger vehicles, including electric vehicles, beginning February 1, 2024.
- In February 2024, VE Commercial Vehicles unveiled its first product in the small commercial vehicle segment at Bharat Mobility Global Expo 2024, spanning 2T to 3.5T GVW, with customer trials scheduled for April 2024.
Market Top Players:
- Bosch Rexroth AG
- Ashok Leyland
- Daimler
- Toyota Motor Corporation
- Volkswagen AG
- Mahindra and Mahindra
- VOLVO
- TATA Motors
- General Motors
- Golden Dragon
Market Segmentation:
By Product
- Light Commercial Vehicles (LCVs)
- Buses & Coaches
- Heavy Trucks
By End-use
- Industrial
- Transportation
- Others
By Propulsion Type
- IC Engine
- Electric Vehicle
By Power Source
- Gasoline
- Diesel
- HEV / PHEV
- Battery Electric Vehicle (BEV)
- Fuel Cell Vehicle
- LPG & Natural Gas
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
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