Commercial Vehicles Market

Global Commercial Vehicles Market:

The global commercial vehicles market size reached US$ 803.6 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,114.2 Billion by 2032, exhibiting a growth rate (CAGR) of 3.6% during 2024-2032. The emergence of autonomous and self-driving commercial vehicles and the rising focus on driver safety, along with comfort features, are propelling the market.

Commercial Vehicles Market Analysis:

• Major Market Drivers: The increasing trade and cross-border transportation activities, along with the expansion in the e-commerce sector, are primarily driving the growth of the market. Furthermore, the rising demand for efficient goods movement in urban areas is also positively influencing the market. 
• Key Market Trends: The inflating need for temperature-controlled transport in the food and pharmaceutical industries is one of the significant trends catalyzing the market growth. Additionally, the widespread adoption of electric and hybrid commercial vehicles is further bolstering the market expansion.
• Competitive Landscape: Some of the prominent companies in the market include AB Volvo, Ashok Leyland (Hinduja Group), Ford Motor Company, General Motors Company, Hyundai Motor Company, ISUZU Motors Limited, Mahindra & Mahindra Limited, Mercedes-Benz Group AG, Mitsubishi Motors Corporation, Robert Bosch GmbH, Tata Motors Limited, Toyota Motor Corporation, and Volkswagen AG, among many others.
• Geographical Trends: According to the report, Asia Pacific exhibits a clear dominance in the market, owing to rapid urbanization and trade activities. Furthermore, the elevating number of e-commerce, manufacturing, and infrastructure projects is augmenting the demand for diverse commercial vehicles, from delivery vans to heavy-duty trucks.
• Challenges and Opportunities: One of the main challenges in the market includes regulatory pressures for emission reductions. However, the implementation of stringent environmental regulations is expected to fuel the market in the coming years.
   

Commercial Vehicles Market Trends:

Demand for Electric Commercial Vehicles

The increasing usage of electric commercial vehicles, owing to the elevating levels of carbon emissions, is primarily driving the growth of the market. For instance, global EV sales witnessed a robust 10.82% growth in 2022 compared to 2021. Projections indicate that annual sales of electric passenger cars will surpass 5 million by the end of 2025, accounting for approximately 15% of total vehicle sales. Furthermore, various leading manufacturers and organizations, like the London Metropolitan Police & Fire Service, are actively pursuing their electric mobility strategies. For instance, they have set a target of a zero-emission fleet by 2025, with a goal of electrifying 40% of their vans by 2030 and achieving full electrification by 2040. Such initiatives are propelling the commercial vehicle market share. Besides this, the government authorities of various nations are also taking necessary steps to promote the production and adoption of commercial electric vehicles. For instance, in September 2021, the government of India introduced a Production Linked Incentive (PLI) scheme for electric vehicles. Under this scheme, a direct subsidy to EV buyers is also provided.

Expanding E-commerce Sector

The rising number of more diverse and faster shipping options is providing a thrust to the market. Commercial vehicles play a crucial role in the e-commerce sector by facilitating efficient logistics and delivery operations. They ensure timely and reliable transportation of goods, thereby supporting the rapid growth of online shopping and last-mile deliveries. In line with this, the shift towards online commerce is compelling logistics companies to enhance their distribution networks and integrate advanced technologies for real-time tracking and efficient handling of goods, which is bolstering the commercial vehicle market demand. For instance, logistics industry statistics stated that sales via online stores reached 22% of global retail sales in 2023, compared to 14.1% in 2019. Additionally, according to IMARC, the global e-commerce market size reached US$ 21.1 Trillion in 2023. Looking forward, IMARC Group expects the market to reach US$ 183.8 Trillion by 2032, exhibiting a growth rate (CAGR) of 27.16% during 2024-2032. Furthermore, commercial vehicles in e-commerce enable businesses to optimize their supply chains, reduce transportation costs, and scale operations effectively to meet fluctuating demand, thereby playing a pivotal role in the dynamic and competitive landscape of online retail.

Technological Advancements

Technological advancements in commercial vehicle manufacturing are revolutionizing the industry by integrating innovations, such as novel telematics for real-time fleet management, autonomous driving capabilities for enhanced safety and efficiency, and lightweight materials for improved fuel efficiency. Electric and hybrid technologies are rapidly evolving, which, in turn, is offering alternatives to traditional combustion engines. Additionally, advancements in battery technology and vehicle electrification are positively impacting the commercial vehicles market outlook. For instance, in May 2020, Kia Motors Europe unveiled its "Plan S," signaling a strategic shift toward electrification. In line with this, Kia has ambitious plans to introduce 11 EV models globally by 2025, spanning various segments like passenger vehicles, SUVs, and MPVs. The company aims to achieve annual global sales of approximately 500,000 EVs by 2026. Furthermore, in August 2023, Toyota Kirloskar Motor launched the all-new MPV Vellfire strong hybrid electric vehicle (SHEV) with enhanced safety features.

Global Commercial Vehicles Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the commercial vehicles market forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on vehicle type, propulsion type, and end use.

Breakup by Vehicle Type:

• Light Commercial Vehicle
• Medium and Heavy-duty Commercial Vehicle
   

Light commercial vehicle dominates the market

The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes light commercial vehicle and medium and heavy-duty commercial vehicle. According to the report, light commercial vehicle represented the largest market segmentation.

The light commercial vehicle segment, encompassing vans, minitrucks, and pickups, is witnessing heightened demand due to the growth of e-commerce, urban deliveries, and last-mile logistics. As consumer preferences shift towards online shopping, there is an increase in the need for efficient vehicles that can navigate urban environments and accommodate smaller loads. For instance, according to a data report, this segment reached 6,042,081 units in 2023, showcasing a remarkable growth trajectory. Moreover, the versatility and maneuverability of light commercial vehicles make them vital for urban logistics and local transportation, driving their market growth. Additionally, various leading market players are also introducing light commercial vehicles to attract a wider consumer base, which is anticipated to augment the commercial vehicles market size in the coming years. For instance, in May 2022, Tata Motors announced plans to deliver 20,000 light electric trucks to six major e-commerce players.

Breakup by Propulsion Type:

• IC Engine
• Electric Vehicle
   

IC engine accounted for the largest market share

The report has provided a detailed breakup and analysis of the market based on the propulsion type. This includes IC engine and electric vehicle. According to the report, the IC engine represented the largest market segmentation.

The IC engine segment, which includes vehicles powered by conventional gasoline or diesel engines, continues to meet the diverse needs of industries requiring long-haul transportation, heavy loads, and extensive travel ranges. However, advancements in engine efficiency and emissions regulations are shaping the evolution of this segment toward more sustainable and eco-friendly solutions.

Breakup by End Use:

• Industrial
• Mining and Construction
• Logistics
• Passenger Transportation
• Others
   

Logistics dominates the market

The report has provided a detailed breakup and analysis of the market based on the end use. This includes industrial, mining and construction, logistics, passenger transportation, and others. According to the report, logistics represented the largest market segmentation.

The logistics segment caters to the increasing need for efficient and timely movement of goods. With the rise of e-commerce and global trade, commercial vehicles in this category, including delivery vans and long-haul trucks, ensure seamless supply chains and effective distribution networks. According to the report by IMARC, the global logistics market size reached US$ 5.4 Trillion in 2023. Looking forward, IMARC Group expects the market to reach US$ 7.9 Trillion by 2032, exhibiting a growth rate (CAGR) of 4.1% during 2024-2032. Moreover, as per the commercial vehicles market statistics, the elevating levels of globalization of trade among companies are compelling logistics providers to navigate a complex web of customs regulations and trade agreements, which is acting as another significant growth-inducing factor for the market. In line with this, government authorities across the world are launching favorable policies to support the growth of international trade. For instance, the UK government teamed up with Amazon Marketplace, where international customers can discover a wide range of items from small UK businesses and artisans as well as prominent British brands.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The expansion of e-commerce, manufacturing, and infrastructure projects has led to significant demand for diverse commercial vehicles, from delivery vans to heavy-duty trucks. This is augmenting the market in Asia Pacific. Additionally, China witnessed about 2.90% rise in electric car sales in 2022 compared to 2021, while Japan experienced an 11.11% increase during the same period. Factors driving this trend include the rising environmental concerns, stringent regulations, and the advantages of EVs, such as fuel efficiency, lower maintenance costs, zero carbon emissions, etc. Government subsidies further bolster the adoption of EVs in Asia Pacific nations. Moreover, regulatory authorities in the region are projected to invest US$ 26 Trillion in infrastructure by 2030, thereby significantly bolstering the transportation of construction materials and machinery.

Competitive Landscape:

Top companies are strengthening the market through their strategic initiatives and innovative approaches. These industry leaders consistently invest in research and development to design and manufacture vehicles that align with evolving customer needs, regulatory requirements, and technological advancements. They focus on incorporating cutting-edge technologies such as electric and hybrid powertrains, autonomous driving capabilities, and advanced telematics to enhance vehicle performance, safety, and efficiency. By leading the charge in adopting sustainability practices and developing eco-friendly commercial vehicles, these companies are catering to the increasing demand for environmentally conscious transportation solutions. Moreover, top companies are forging collaborations with technology partners, suppliers, and competitors to drive innovation and accelerate the development of next-generation vehicles. Their commitment to quality, safety, and customer satisfaction ensures continuous improvement and market-driven innovation that strengthens the market's growth trajectory. Through innovation, sustainable practices, and strategic partnerships, these companies shape and propel the market toward a dynamic and transformative future.

The commercial vehicles market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include: 

• AB Volvo
• Ashok Leyland (Hinduja Group)
• Ford Motor Company
• General Motors Company
• Hyundai Motor Company
• ISUZU Motors Limited
• Mahindra & Mahindra Limited
• Mercedes-Benz Group AG
• Mitsubishi Motors Corporation
• Robert Bosch GmbH
• Tata Motors Limited
• Toyota Motor Corporation
• Volkswagen AG
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global Commercial Vehicles Market News:

• June 2024: Mahindra announced its plans to launch light commercial vehicles, which will include five ICE offerings and two EV offerings.
• June 2024: Tata Motors, one of the renowned Indian automobile manufacturers, introduced Tata Motors Fleet Verse, marking its debut as a robust digital marketplace tailored for the company's commercial vehicles.
• April 2024: Daimler India Commercial Vehicles (DICV), the wholly-owned subsidiary of Germany's Daimler Truck AG (Daimler Truck), developed an all-electric next-generation eCanter.

Global Commercial Vehicles Market Report Scope:

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 commercial vehicles market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global commercial vehicles market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists 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 commercial vehicles industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.