The commercial vehicles market is estimated to be valued at US$ 1264.58 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Commercial vehicles include light commercial vehicles (LCVs), heavy trucks, buses, and coaches. They are widely used for transportation of goods and passengers across various industries such as logistics, construction, mining, transportation and travel & tourism. Increasing demand for last-mile delivery and growth of e-commerce is driving demand for light commercial vehicles.
Market Dynamics:
The commercial vehicles market is driven by increasing demand from logistics industry owing to growth of e-commerce sector globally. E-commerce sector is witnessing strong growth with rising internet penetration and changing customer preferences towards online shopping. This is increasing demand for delivery vans and light trucks from logistics companies for last-mile delivery. Moreover, growing construction activities around the world is also fueling demand for heavy trucks and dump trucks for transportation of construction materials. However, high operating costs of commercial vehicles and stringent emission norms are expected to hinder the market growth over the forecast period.
SWOT Analysis
Strength: Global Commercial Vehicles Market Size has strong potential for growth due to rising manufacturing and logistics activities worldwide. Increasing investments in infrastructure development and expanding economies are further fueling market growth. Commercial vehicles offer cost-effective cargo transportation over long distances.
Weakness: High maintenance and fuel costs associated with commercial vehicles reduce profit margins for fleet owners. Stringent emission norms require advanced emission control technologies, raising production costs. Lack of standardization in vehicle specifications across countries adds to supply chain complexities.
Opportunity: Advancements in powertrain technologies present opportunities for reducing fuel consumption and transitioning to cleaner fuels. Electrification of commercial vehicles is gathering pace with the development of electric buses and trucks. Growing e-commerce is generating significant demand for last-mile delivery vehicles.
Threats: Fluctuating fuel prices and economic slowdowns impact commercial vehicles sales. Electric vehicles still face range and charging infrastructure challenges. Trade barriers and changing policies pose uncertainties. Emergence of shared mobility solutions can negatively impact private vehicle ownership.
Key Takeaways
The global Commercial Vehicles Market is expected to witness high growth, exhibiting a CAGR of 18.% over the forecast period, due to increasing manufacturing and logistics activities across developing regions of Asia Pacific and Latin America.
Regional analysis: Asia Pacific dominates the global commercial vehicles market with over 45% share in 2023. China, India, and Japan are leading markets in the region on account of robust industrialization and strong government support for infrastructure investments. Middle East & Africa region is emerging as the fastest growing market for commercial vehicles due to economic diversification drive of Gulf countries.
Key players: Key players operating in the Commercial Vehicles market are Ashok Leyland, General Motors Company, Bosch Rexroth AG, Xiamen Golden Dragon Bus Co., Ltd., Daimler AG, Volvo Group, Volkswagen AG, Mahindra and Mahindra Ltd., Toyota Motor Corporation, and Tata Motors Ltd. These companies are focusing on developing electric commercial vehicles to comply with stringent emission regulations.
*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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