Global commercial vehicle market is expected to witness significant growth over the next seven years owing to population expansion coupled with growing industrial sector in developing economies of Asia Pacific and Latin America. Rising transportation infrastructure spending owing to strong economic growth is anticipated to remain a key driving factor for industry growth over the forecast period.
Increasing incorporation of telematics & communication capabilities in commercial vehicles is anticipated to boost market growth. Growing food & beverage industry is another key factor driving industry growth over the next seven years owing to increasing food trucks and refrigerated vehicles demand.
More than quarter billion people were driving commercial vehicles in the year 2015 and is expected to growth more than half a billion by 2020. The industry is currently an important crossroad with globalization, technology development, regulations and emerging markets set to change the face of the industry over the next seven years. Rapid technological advancements along with favorable business environment in countries such as China, India and Brazil are further expected to fuel demand.
Commercial vehicles can be further segmented as light commercial vehicle, heavy trucks, buses and coaches. Major consumers for these vehicles includefreight and transportation sector which accounts for more than 45% of overall industry.
Modernization of the trucking industry along with structural shift towardshub &spoke model is anticipated to drive market growth significantly over the next seven years.Improvingroad infrastructure in countries such as Vietnam, Thailand, Argentina, UAE and Saudi Arabia is expected to further compliment commercial vehicles demand.Growing freight capacity coupled withincrease in exports from remote areas enabling the manufacturers to move their goods to ports is another key driving factor for market growth over the forecast period.
Improved safety features with vehicles along with globalization of vehicle concepts are anticipated to fuel commercial vehicles demand. Steady rise in logistics and public transportation industry is expected to further boost sales in developing region.
Industry participants are expected to face challenges such as low freight demand and truck rentals along with non-availability of cargos.Other factors including fuel prices, sudden transport strike and competition with alternate mode of transport such as railwaysare expected to hinder market growth over the next seven years.
The industry is segmented in various sectors includingagriculture, construction, industrial, lawn & garden, marine auxiliary, marine propulsion, medium & heavy vehicles, minivans & SUV’s, passenger cars, power generation, railway, and recreational products.
Growing end-use industries such as construction and agriculture are expected to boost market growth over the forecast period. Heavy commercial vehicles such as truck are major necessityfor the construction and agriculture industry as movement of raw products from urban to rural and vice-versa are done by these vehicles.
Regulations are made to drive changes in vehicles to meet the requirement. Also, to meet the demand, these regulations will carry somespecific changes to make the product to be adaptive and user-friendly. Increasing government pressure to reduce carbon imprints in the environment is expected to play a key role in shaping the industry over the forecast period.
Expandingits geographical footprint and reviewing its operational efficiency as here in this caseoriginal equipment manufacturers (OEMs) is useful to make the product geographically visible and cost effective. OEMs increase globalization and offer customized value added services. Suppliers offer innovating techniques to the producers which help in increasing the operational flexibility and ultimately results in entry to new products andservices.
Asia Pacific is anticipated to emerge as the leading regional market owing to rapidly growing industrial sector in countries such as China, India, Vietnam and Thailand. North America and Europe are anticipated to witness moderate growth rate over the next seven years due to mature end-use markets coupled with shift of production facilities to developing region such as Asia Pacific and Latin America.
Central & South America and Middle East & Africa are expected to exhibit high growth rates over the forecast period owing to untapped potential coupled with growing manufacturing sector in these regions. Countries such as Brazil and Saudi Arabia are witnessing surge in demand for commercial vehicle due to rapidly increasing population along with strong economic growth.
Key industry participants operating in the market includesHyundai Motor Company, Daimler AG, FAW Group Corporation, Iveco S.P.A., China National Heavy Duty Truck Group, Fiat Chrysler Automobiles N.V., Dongfeng Motor Corporation and Ford Motor Company. Other prominent players include Geely Automobile,AB Volvo, Chang’an Automobile Group, Chery, FCA, BMW,Fiat Motor industriesand General Automobiles.
Major companies are involved in continuous innovation and development of better vehicles which exhibit higher fuel efficiency and light weight in order to capture untapped potential. Government incentive and subsidies along with structural & functional improvements in design drive sales of hybrid and electric trucks is another key development in commercial vehicles market.
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