Australia Commercial Vehicle Market

Australia Commercial Vehicle Market Overview:

The Australia commercial vehicle market size reached USD 23.33 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 37.29 Billion by 2033, exhibiting a growth rate (CAGR) of 4.80% during 2025-2033. Rising construction and mining activities, growing freight and logistics needs, and the surge in e-commerce and last-mile delivery are driving growth in the Australia commercial vehicle market share. Additional contributors include fleet replacement, expanding regional trade, and infrastructure investments. Demand is also boosted by rural transport needs, rising adoption of electric vehicles, improved telematics, favorable financing, and strong uptake from agriculture and utilities—all supporting the robust expansion of the Australia commercial vehicle market share.

Australia Commercial Vehicle Market Trends:

Expansion in Mining and Construction Activities

The mining and construction industries are among the largest users of commercial vehicles in Australia, and their continued growth has led to a steady rise in demand for heavy-duty trucks and specialized utility vehicles. In 2022–23, the Australian Bureau of Statistics reported that the mining industry contributed USD 236 billion (AUD 352.4 billion) to the GDP, growing by 23.2% year-over-year, while the construction sector added USD 109 billion (AUD 163 billion), increasing by 14.8% (ABS). These sectors require extensive transport support for equipment, raw materials, and labor across remote and urban project sites. Vehicles such as dump trucks, cement mixers, and utility are essential for daily operations. With Australia continuing to invest in infrastructure and resource extraction, particularly in Western Australia and Queensland, the need for robust and specialized commercial vehicle fleets is projected to increase, which is further driving the Australia commercial vehicle market growth.

Growth in E-Commerce and Last-Mile Delivery Networks

The growth of e-commerce in Australia is reshaping logistics and accelerating the adoption of commercial delivery vehicles, particularly vans and light-duty trucks. As online shopping becomes more prevalent, businesses are investing in scalable last-mile delivery networks to meet rising customer expectations. According to Statista, e-commerce revenue in Australia is expected to reach USD 32.3 billion in 2024, up from USD 28 billion in 2023, representing a 15.5% annual increase. This expansion has directly influenced courier, express, and parcel (CEP) service providers to increase fleet size and improve delivery frequency. Companies like Australia Post and Woolworths are also trialing electric vans to reduce emissions in city routes. The growing volume of small, frequent shipments places continuous demand on light commercial vehicles, especially in dense urban areas where maneuverability, fuel efficiency, and cost-effectiveness are key considerations for fleet operators.

Increasing Freight Transport Demand

Freight transport is a vital component of the Australian economy, and its growth is closely linked with rising commercial vehicle usage. Road freight in particular accounts for over 75% of all domestic freight movement. According to the Bureau of Infrastructure and Transport Research Economics (BITRE), New South Wales recorded 86 billion ton-kilometers of road freight in 2023–24, the highest in its history (BITRE). Across Australia, total road freight volumes exceeded 230 billion ton-kilometers. As manufacturing, agriculture, and retail supply chains scale up to meet domestic and export demands, logistics firms are investing in more trucks, trailers, and long-haul transport vehicles. Fleet expansions are particularly common along key interstate corridors such as the Hume, Pacific, and Bruce highways. Furthermore, Australia’s vast geography makes road transport the preferred choice in many regions, reinforcing the need for reliable, long-range commercial vehicles with advanced load capacity and fuel efficiency.

Australia Commercial Vehicle Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on vehicle body type and propulsion type.

Vehicle Body Type Insights:

• Buses
• Heavy-Duty Commercial Trucks
• Light Commercial Pick-Up Trucks
• Light Commercial Vans

The report has provided a detailed breakup and analysis of the market based on the vehicle body type. This includes buses, heavy-duty commercial trucks, light commercial pick-up trucks, and light commercial vans.

Propulsion Type Insights:

• Hybrid and Electric Vehicles
  • Fuel category
    • BEV
    • FCEV
    • HEV
    • PHEV
• ICE
  • Fuel category
    • CNG
    • Diesel
    • Gasoline
    • LPG

A detailed breakup and analysis of the market based on the propulsion type have also been provided in the report. This includes hybrid and electric vehicles [fuel category (BEV, FCEV, HEV, and PHEV)] and ICE [fuel category (CNG, Diesel, Gasoline, and LPG)].

Regional Insights:

• Australia Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia

The report has also provided a comprehensive analysis of all the major regional markets, which include Australia Capital Territory & New South Wales, Victoria & Tasmania, Queensland, Northern Territory & Southern Australia, and Western Australia.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Australia Commercial Vehicle Market News:

• In 2025, United H2 Limited announced the acquisition of GoZero Group, an Australian electric bus and commercial vehicle manufacturer, in a deal valued at USD 248 million. GoZero's subsidiaries include Nexport and BusTech, and the acquisition aims to bolster hydrogen and electric vehicle capabilities in Australia.
• In 2024, BHP began a 12-month trial of a battery-electric Toyota HiLux at its Port Hedland site in Western Australia. This initiative, part of a broader collaboration with Toyota, aims to electrify BHP's fleet of 5,000 vehicles and reduce operational emissions by 30% by 2030.

Australia Commercial Vehicle Market Report Coverage:

Key Questions Answered in This Report:

• How has the Australia commercial vehicle market performed so far and how will it perform in the coming years?
• What is the breakup of the Australia commercial vehicle market on the basis of vehicle body type?
• What is the breakup of the Australia commercial vehicle market on the basis of propulsion type?
• What is the breakup of the Australia commercial vehicle market on the basis of region?
• What are the various stages in the value chain of the Australia commercial vehicle market? 
• What are the key driving factors and challenges in the Australia commercial vehicle market?
• What is the structure of the Australia commercial vehicle market and who are the key players?
• What is the degree of competition in the Australia commercial vehicle market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Australia commercial vehicle market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Australia commercial vehicle market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Australia commercial vehicle industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.