Commercial Vehicles Market Size, Share & Trends Analysis Report By Product (LCVs, Heavy Trucks, Buses & Coaches), By End Use (Industrial, Mining & Construction), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global commercial vehicles market size was estimated at USD 1.26 trillion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.2% from 2021 to 2028. The COVID-19 pandemic affecting the automotive industry, the market witnessed a decline in growth as a result of low automotive sales or new requirements. Implementation of vehicle scrappage programs; aggressive investments in infrastructure development and rural development; drafting of stringent regulatory norms for vehicle length, and loading limits, among other parameters, are anticipated to fuel the growth. The resumption of mining activities in some parts of the world, which has triggered the demand for tippers, is also expected to drive growth. The rising levels of disposable income in both developing and developed countries and the continued infrastructure development are also projected to bode well for the growth of the market.

Several government authorities worldwide have implemented various policies and drafted various regulations aimed at efficient management of the extent of goods being transported in a commercial vehicle. For instance, in the U.S., the Federal Motor Carrier Safety Administration (FMCSA) is accountable for preventing fatalities and injuries related to commercial vehicles. The FMCSA has drafted a regulation regarding the size of goods being carried in a vehicle. Such regulations are expected to trigger the demand for new commercial vehicles for the transportation of goods, thereby driving market growth over the forecast period.

Having realized the potential of connectivity and telematics to revolutionize transportation and logistics operations, several Original Equipment Manufacturers (OEMs) have introduced commercial vehicles featuring connectivity features, such as accident warnings, traffic data, weather reports, and updates on road works. Connected vehicles provide multiple benefits, such as enhanced safety by preventing unauthorized access to vehicles, thereby avoiding wear and tear, and vehicle abuse. The growing preference for connected commercial vehicles is anticipated to drive market growth over the forecast period.

Advancements in the development of electric and semi-autonomous commercial vehicles also bode well for the growth of the market. The adoption of Electric Vehicles (EVs) for commercial transportation is expected to increase gradually owing to the numerous benefits they can offer over ICE vehicles. Favorable policies to encourage the adoption of EVs, particularly in developed nations, are expected to drive the adoption of EVs for commercial purposes, thereby contributing to the market growth over the forecast period.

The outbreak of the COVID-19 pandemic has taken a severe toll on the global economy and adversely affected several industries and industry verticals, including the automotive industry. Production at several manufacturing facilities was halted with the restrictions enforced in various parts of the world to arrest the spread of the disease. This led to severe supply chain disruptions. The automotive industry is not an exception, with the demand for automobiles, including commercial vehicles, plummeting significantly.

Europe led commercial vehicle sales in the past. However, the adoption of commercial vehicles in Europe has been plummeting in line with the dwindling automotive sales in the region. At this juncture, Europe is poised for mixed recovery cycles in the wake of the restrictions still in place in some parts of the region and the economic stimulus packages being announced by governments in the region. According to the Organisation Internationale des Constructeursd'Automobiles (OICA), 2.5 million units of commercial vehicles were registered in Europe in 2020, down 14.9% year-on-year from 2.9 million units in 2019. The sales for commercial vehicles in the U.S. also dropped by around 10.3% year-on-year in 2020.

Product Insights

The Light Commercial Vehicles (LCVs) segment accounted for the largest revenue share of around 75% in 2020. The LCVs are considered a cost-effective option for the transportation of goods and passengers. LCVs offer numerous tax benefits and also aid in reducing emissions. Moreover, these vehicles are highly dynamic and can be modified for transporting both goods and passengers. They are also cost-effective, which is expected to bode well for the growth of the segment.

The buses and coaches segment is projected to register a CAGR of over 4% from 2021 to 2028. The growth of the segment can be attributed to the increased adoption of buses and coaches in the healthcare and tourism industries. Buses and coaches are the most cost-effective mode of transportation, thereby driving their sales. The growing adoption of electric buses in both developed and developing countries to curb vehicular emissions also bodes well for the growth of the buses and coaches segment.

End-use Insights

The logistics segment accounted for the largest share of around 25% of the overall market in 2020. Continued growth in global trade and the strengthening of the logistics infrastructure are some of the prime factors that are expected to drive the growth of the logistics segment over the forecast period. The unabated growth of the e-commerce industry also bodes well for the growth of the logistics segment.

The passenger transportation segment is estimated to register a CAGR exceeding 5% from 2021 to 2028. The increase in the adoption of public transportation is anticipated to drive the demand for commercial vehicles. Public transportation is often well developed in urban areas and individuals find it effective as compared to commuting by cars in terms of time and cost. The accessibility and affordability of passenger transport coupled with the rising total cost of ownership of personal vehicles in developed and developing economies are essential contributors to the passenger transportation market.

Regional Insights

North America accounted for the largest revenue share of the commercial vehicles market in 2020 and is anticipated to continue leading over the forecast period registering a CAGR exceeding 4%. The highly unified supply chain network in North America connects manufacturers and consumers efficiently through multiple transportation modes, including freight rail, air, and express delivery services; maritime transport; and particularly truck transport; thereby driving the growth of the market. Easy availability of convenient financing options, a strong emphasis by the governments in the region to ensure in-house automotive production, and aggressive investments in infrastructure development are some of the factors that are expected to contribute to the growth of the regional market.

The Asia Pacific regional market is expected to experience significant growth over the forecast period in line with the growing demand for transportation, warehousing, and unified logistics solutions. The strengthening road infrastructure, easy availability of cost-effective labor and raw materials, and subsequently the rising number of manufacturing facilities coming up, especially in developing economies, such as China and India, are some of the factors that are expected to contribute to the growth of the regional market.

Key Companies & Market Share Insights

The key players that dominated the global market in 2020 include Tata Motors, Volkswagen AG, Ashok Leyland, AB Volvo, and General Motors. Most of these vendors are putting a strong emphasis on providing advanced products based on the latest technologies as part of the efforts to enhance their respective product offerings in the market. The companies are also pursuing strategic initiatives, such as regional expansion as well as strategic acquisitions, mergers, partnerships, and collaborations to cement their position in the market.

Organic growth remains the key strategy for most of the incumbents of the market. As such, market players are focusing on expanding their product offerings by developing and launching new and innovative products. For instance, in March 2021, Volvo Trucks announced the commencement of production of the new generation of heavy-duty trucks, namely Volvo FH, FM, FH16, and FMX. The new-generation, heavy-duty trucks would be manufactured at the company’s manufacturing plants in Russia, Belgium, and Sweden. Some of the prominent players operating in the global commercial vehicles market are:

• Ashok Leyland

• Bosch Rexroth AG

• Daimler

• Volkswagen AG

• Toyota Motor Corporation

• Mahindra and Mahindra

• TATA Motors

• AB Volvo

• Golden Dragon

• General Motors

Commercial Vehicles Market Report Scope

Segments Covered in the Report

This report forecasts the volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global commercial vehicles market report based on product, end use, and region:

• Product Outlook (Volume, Thousand Units; Revenue, USD Billion, 2016 - 2028)

  • Light Commercial Vehicles (LCVs)

  • Heavy Trucks

  • Buses & Coaches

• End-use Outlook (Volume, Thousand Units; Revenue, USD Billion, 2016 - 2028)

  • Industrial

  • Mining & Construction

  • Logistics

  • Passenger Transportation

  • Others

• Regional Outlook (Volume, Thousand Units; Revenue, USD Billion, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • Netherlands

    • Belgium

    • Sweden

    • Denmark

    • Rest of Europe

  • Asia Pacific

    • Greater China

    • India

    • Japan

    • South Korea

    • Indonesia

    • Thailand

    • Australia

    • Malaysia

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East and Africa

    • South Africa

    • Turkey

    • Rest of Middle East and Africa