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, 2022 - 2030

Report Overview

The global commercial vehicles market size was estimated at USD 1,274.50 billion in 2021 and is projected to register a compound annual growth rate (CAGR) of 4.0% from 2022 to 2030. The COVID-19 pandemic affected the automotive industry, with the market witnessing a decline in growth as a result of low automotive sales or new requirements. Implementation of vehicle scrappage programs, aggressive investments in infrastructure 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.

The rise in awareness for an environmentally sustainable solution has motivated commercial vehicle manufacturers to develop vehicles that reduce carbon emissions. Manufacturers are working on innovative vehicle designs, reducing load factors & size, and customizing vehicles according to weight regulations.

Infrastructure conditions, driver technique, weather management, and national policy are additional influential factors considered by automakers for developing vehicles. Research & development for manufacturing such vehicles require lots of investment. Thus, there is a requirement for policy action and investment initiatives to be taken by the government, private and public sectors. Such initiatives will support manufacturers to reduce operation & production costs.

Furthermore, demand for small, medium and heavy commercial vehicles has increased for logistics and transportation in association with e-commerce. The logistics market has shifted from just being a service provider, to offering customer-centric solutions. Thus, the requirement for commercial vehicles has increased for transportation purposes.

A supportive regulatory framework and additional incentives from the government have raised the demand for commercial electric vehicles. There was an increase in the number of electric buses and heavy-duty truck registrations in North America, Europe, and the Asia Pacific region, in 2020. With the emerging economy in the Asia Pacific region, China dominates the overall electric bus and electric truck market.

According to IEA, more than 78k buses and 31k trucks have registered according to the local policies of the Chinese government, which is a significant contributor to the high sales of Electric Commercial Vehicles (ECVs). Further, European governments, Clean Bus Deployment Initiatives, and municipal level policies have resulted in 2.1k electric bus registrations. There was a 23% increase in the sale of electric trucks in 2020 than the previous year. Similarly, the increased growth of the ECV in California is due to government policies.

While various factors contribute to the growth of the commercial vehicle market, COVID-19 has posed a severe challenge. Global lockdown in 2020 stalled all the manufacturing and transportation activities. Disruption of the supply chain and economic slowdown impacted several sectors such as automobiles, transportation, and logistics. As the transportation and logistics sectors hold around 50% market share in the commercial vehicle market, less demand from this sector results in declining sales of commercial vehicles.

Product Insights

The light commercial vehicles (LCVs) segment accounted for the largest revenue share of 77.3% in 2021. 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 & coaches segment is expected to witness a CAGR of 3.4% from 2022 to 2030. 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 this segment.

End-Use Insights

The logistics segment accounted for the largest share of 26.7% of the overall commercial vehicles market volume in 2021. 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 during the projected 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 revenue-based CAGR exceeding 4.6% from 2022 to 2030 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

The Asia Pacific regional market is expected to advance at the fastest CAGR of 5.6% during the forecast period. This is in line with the growing regional 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.

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 regional 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.

Key Companies & Market Share Insights

The key players that dominated the global market in 2020 are putting a strong emphasis on providing advanced products based on the latest technologies, as part of their 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 in the global commercial vehicles market include

• 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 revenue and volume growth at global, regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global commercial vehicles market report on the basis of product, end-use, and region:

• Product Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • Light Commercial Vehicles (LCVs)

  • Heavy Trucks

  • Buses & Coaches

• End-Use Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • Industrial

  • Mining & Construction

  • Logistics

  • Passenger Transportation

  • Others

• Regional Outlook (Volume, Thousand Units; Revenue, USD Billion, 2018 - 2030)

  • North Americ

    •  U.S.

    • Canada

  •  Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • Netherlands

    • Belgium

    • Sweden

    • Denmark

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

    • Thailand

    • Australia

    • Malaysia

    • Taiwan

    • 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