The commercial vehicles market comprises light commercial vehicles, heavy trucks, buses, and coaches that are utilized for transportation of goods and passengers. Light commercial vehicles include vans, pickup trucks, and SUVs that are used for delivery of goods. Heavy trucks include trailer trucks, tractor units, and garbage trucks. Buses include transit buses, shuttle buses, and motor coaches. The rising e-commerce industry is significantly contributing to the growth of the commercial vehicles market. The increasing number of online purchases and doorstep deliveries have boosted the demand for light commercial vehicles for last-mile deliveries. E-commerce giants are partnering with logistics companies and continuously adding delivery fleets to shorten the delivery timelines, which is propelling the sales of commercial vehicles.
The global commercial vehicles market is estimated to be valued at US$ 1264.58 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growth in e-commerce industry coupled with initiatives taken by various governments to promote electric commercial vehicles are the major drivers bolstering the commercial vehicles market. The rising proliferation of online shopping has tremendously increased the volume of goods transported, augmenting the demand for delivery vans and pickup trucks in the last-mile delivery sector. Furthermore, governments of various nations are offering subsidies and developing charging infrastructure to encourage commercial fleet owners and operators to replace their conventional vehicles with electric variants. For instance, the Government of India announced ₹10,000 crore ($1.39 billion) to boost electric vehicle financing and establish significant charging infrastructure under the Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India (FAME India) Phase II scheme. These factors are expected to propel the sales of commercial vehicles, especially electric LCVs and trucks over the forecast period.
Segment Analysis
The global commercial vehicles market can be segmented into lightweight commercial vehicles, medium commercial vehicles and heavy commercial vehicles. The heavy commercial vehicles segment is currently dominating the market and accounts for over 45% of the total market share. This is because heavy commercial vehicles like trucks and buses are extensively used for transportation of large volumes of goods and people over long distances. The growth of logistics, construction and transportation industries has propelled the demand for heavy commercial vehicles globally.
PEST Analysis
Political: Tax incentives and subsidies provided by various governments for adoption of electric commercial vehicles is boosting their sales. Stringent emission norms in regions like Europe is pushing manufacturers to develop more fuel efficient vehicles.
Economic: Rise in industrialization and infrastructure development projects is driving the demand for commercial vehicles from construction, mining and logistics sectors. Growth of e-commerce sector is increasing the demand for delivery vehicles.
Social: Increasing concerns about environmental pollution and need for sustainable transportation options is promoting use of electric vehicles for freight transport.
Technological: Advancements in battery technology, electric powertrains and charging infrastructure is facilitating the development of electric buses and trucks. Use of telematics solutions for fleet management and vehicle safety is also gaining traction.
Key Takeaways
The global commercial vehicles market share is expected to witness high growth over the forecast period of 2023 to 2030. The Asia Pacific region currently dominates the market owing to large vehicle production and sales in China, India and Japan. In China, commercial vehicle manufacturers like SAIC Motor, Dongfeng Motor and FAW Group are investing heavily in electric vehicles.
Key players operating in the commercial vehicles market are Schneider Electric SE, ABB Ltd., Siemens AG, Eaton Corporation, Honeywell International Inc., Rockwell Automation, Inc., UL LLC (Underwriters Laboratories), Emerson Electric Co., General Electric (GE), Littelfuse, Inc., DuPont de Nemours, Inc., Fluke Corporation, Omicron Electronics GmbH, Megger Group Limited, MSA Safety Incorporated. These players are focusing on developing telematics, fleet management and electric powertrain solutions to capitalize on the growing electrification of commercial vehicles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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