Commercial Vehicle Market Size Industry Analysis Report, Regional Outlook, Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI4790
Commercial Vehicle Market size is expected to grow rapidly due to the increasing demand for domestic & international logistics services across the globe. High usage of e-commerce platforms to order basic to luxury goods allows the movement of goods across various locations in bulk carrying vehicles. Additionally, the growing consumer awareness about home delivery of products and ease of using e-commerce sites will support high investments in the logistics sector. Transportation of goods through small commercial vehicles for last-mile deliveries is a major trend. For instance, in 2018, TATA Motors in India reported that the growth in e-commerce has increased the sale of small commercial vehicles by 25% year-on-year.
Increasing policies related to the scrapping of old commercial vehicles plying on the road will create a demand for new products in the commercial vehicle market. For instance, in April 2020, the Indian government implemented a new commercial vehicle scrappage policy that will provide vehicle owners with financial incentives to scrap outdated models and replace them with newer vehicles. The adoption of such policies will increase the sales of heavy commercial vehicles and reduce air pollution caused due to old commercial vehicles. Under the Paris Climate Agreement Treaty, countries must replace polluting commercial vehicles with newer models of BSVI vehicles that can reduce the emission of nitrogen oxide and particulate matter into the air.
Policies related to increase in maximum weight limit for heavy commercial vehicles will create a hindrance in commercial vehicle sales. For instance, in 2018, India adopted the Axle Load Norms, which increased the carrying weight limit of medium and heavy commercial vehicles. According to the Society of Indian Automobile Manufacturers, the adoption of this law resulted in a 22% decline in sales of Medium and Heavy Commercial Vehicles (MHCV). Furthermore, the emergence of the COVID-19 pandemic will also result in market decline owing to a halt in the interstate movement of non-essential goods and passengers to control the spread of the virus.
The rising adoption of advanced technologies, such as IoT, cloud computing, and electric commercial vehicle, will create a huge opportunity for the market growth. Connected commercial vehicles will aid to tackle traffic on the highway and communicate with warehouses efficiently. For instance, in February 2020, Tata Elxsi announced its partnership with Tata Motors to develop a unified connected commercial vehicle platform. The partnership will aid Tata Motors in providing connected vehicle features in the BS-VI range of passenger & commercial vehicles.
The Light Commercial Vehicle (LCV) segment will experience a high demand during the forecast timeline owing to the rapid adoption of LCVs for last-mile delivery services. These vehicles are purchased to carry goods from warehouses to consumers. According to the European Automobile Manufacturer Association, the sales of LCVs have increased by over 11% since 2013. LCVs have the advantage of moving goods quickly in congested cities compared to other commercial vehicles. Additionally, the industry is experiencing development due to the emergence of technically advanced LCVs and environmental-friendly engines, further gaining high consumer attraction. Commercial vehicle market players are investing in research activities to develop LCV engines with parts that minimize emission levels and fuel consumption.
The logistics application segment will witness a high demand owing to the rapid increase of e-commerce purchases. Increasing trade & import-export activities across various countries will propel the logistics industry. Huge investments for the development of smart & connected commercial vehicles to track the movement of goods and easy driver communication have developed the market. Passenger transportation will also create a demand for commercial vehicles. Countries across the globe are spending heavily to increase the availability of public transport for commutation. Passenger commuting through commercial vehicles decreases the number of personal vehicles working on the road and helps in reducing air pollution.
The North America commercial vehicle market share will create the highest demand for commercial vehicles through 2026 owing to the continuous investments in improving public transport services. The region is investing heavily in connected commercial vehicles aiding the logistics and transportation industries with efficient transportation services. Various federal standards for commercial vehicles, such as the Federal Motor Carrier Safety Administration, are creating awareness on the usage of electric commercial vehicles for transportation of goods and people, driving the industry growth. Increasing trade between neighbouring countries in the Asia Pacific region, laws related to the scrapping of old commercial vehicles, and increasing passenger transport connectivity will drive the Asia Pacific market growth.
The commercial vehicle market is fragmented with various regional & international players operating in this market. Some of the key players include Tata Motors, Ashok Leyland, Mahindra & Mahindra, Volvo Car Corporation, General Motors, Volkswagen AG, Dongfeng Motor, Isuzu, Mercedes-Benz, Daimler AG and Renault Trucks. Market players have relied upon product innovations and strategic collaborations with various companies and governments to provide passenger commercial vehicles. For instance, in February 2020, Mahindra & Mahindra launched a new engine for 16-tonne and 18-tonne trucks, which will help the company to fill the gap in the medium and heavy commercial vehicle segment. The new engine complies with BS-VI emission norms, which will be fitted in the company’s Blazo X range of heavy commercial vehicles.
Market, By Product
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Passenger Buses & Coaches
Market, By End-use
- Mining & Construction
- Passenger Transportation
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- South Africa
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