Commercial Vehicle Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Commercial Vehicle Market size was estimated at USD 232.7 billion in 2023 and is projected to reach USD 700.2 billion in 2030 at a CAGR of 5.8% during the forecast period 2024-2030.

The global commercial vehicle market is experiencing robust growth, driven by increasing trade and cross-border transportation. This surge is closely linked to the expansion of e-commerce and last-mile delivery services, which are significantly enhancing the demand for efficient goods movement, particularly in urban areas. Additionally, the ongoing development of infrastructure and road networks further supports market growth, providing the necessary foundation for logistics and transportation operations.

The rise in industrialization and manufacturing activities presents numerous opportunities for the commercial vehicle market, as these sectors heavily rely on transportation for goods delivery. Aging commercial vehicle fleets are creating replacement demand, while the need for temperature-controlled transport in food and pharmaceutical industries is also stimulating growth. Furthermore, the increasing adoption of electric and hybrid commercial vehicles is reshaping the market landscape, as sustainability becomes a priority.

The commercial vehicle segment encompasses a wide range of vehicles, including freight trucks, vans, buses, coaches, and specialized vehicles like refrigerated trucks and tankers. These vehicles play a vital role in various applications such as logistics, passenger transport, and industrial operations. As developing economies continue to grow, demand for commercial vehicles is expected to rise, supported by increased construction activities and the need for efficient material transportation.

Infrastructure development projects worldwide are poised to further boost the commercial vehicle market, as significant investments in building, mining, and urban transport rely heavily on medium and heavy-duty trucks for moving large volumes of supplies. This convergence of factors positions the commercial vehicle sector as a cornerstone of global trade and economic development, solidifying its importance in facilitating the movement of goods and supporting economic growth.

Delvens Industry Expert's Standpoint

the global commercial vehicle market is at a pivotal moment, driven by multiple converging trends that enhance both demand and innovation. The rapid expansion of e-commerce is reshaping logistics, necessitating efficient last-mile delivery solutions, while urbanization increases the demand for versatile commercial vehicles. Additionally, the shift towards sustainability is prompting a significant rise in electric and hybrid commercial vehicles, addressing environmental concerns and regulatory pressures. Experts highlight that infrastructure development plays a crucial role, as governments worldwide invest in building and upgrading transport networks, creating a solid foundation for commercial vehicle utilization. The increasing complexity of supply chains further emphasizes the need for specialized vehicles, including refrigerated and temperature-controlled options, especially in the food and pharmaceutical sectors. Moreover, the aging fleet replacement demand cannot be overlooked, as businesses seek to enhance efficiency and compliance with stricter safety regulations. Overall, the integration of advanced technologies, such as telematics and driver assistance systems, is set to transform operations, improve safety, and optimize logistics. With these factors at play, the commercial vehicle market is positioned for sustained growth, driven by innovation and a commitment to meeting evolving industry needs.

Market Portfolio

Key Findings

• On the basis of Product, Light Commercial Vehicles (LCVs) dominate the global commercial vehicles market, holding a significant revenue share and expected to maintain this position in the forecast period. Their adaptability to advanced technologies, coupled with the rise of vehicle electrification and battery-powered engines, is driving demand. Growth in the industrial sector further fuels LCV popularity, particularly with the emergence of smart industries that require efficient fleet management, real-time tracking, and effective delivery systems. The high adoption of small and medium-sized vehicles for transporting goods across various sectors, including e-commerce, mining, and construction, significantly contributes to the robust sales of LCVs.

• On the basis of Propulsion Type, Internal combustion (IC) engines currently dominate the global commercial vehicles market, capturing the largest revenue share. However, electric vehicles (EVs) are projected to experience the fastest growth during the forecast period. This surge in EV adoption is driven by various government initiatives aimed at promoting environmentally friendly transportation across sectors. Additionally, the eco-friendly attributes of electric vehicles significantly contribute to reducing pollution levels in many regions. As industries increasingly prioritize sustainability and regulatory compliance, the shift toward electric propulsion is expected to reshape the commercial vehicle landscape, fostering a cleaner and more efficient future.

• On the basis of End-use, The transportation segment holds a significant share of the market and is expected to grow at an attractive rate of nearly 4.86% during the forecast period. Key drivers include increased spending on commuting to enhance accessibility and affordability, along with the rise of shared mobility and traffic management regulations. Conversely, the logistics segment has seen substantial demand in recent years, largely due to the expansion of global trade. In 2021, this segment achieved remarkable revenue growth, fueled by the rising penetration of e-commerce and retail. The shift toward online purchasing continues to bolster the logistics market, supporting overall growth.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America dominated the global commercial vehicle market, driven by rising demand for long-distance fleet operations, robust industrial growth, and strict government regulations on load capacity. The region benefits from a unified supply network, easy financing options, and significant infrastructure investments, further fueling the growth of light commercial vehicles.

Regional Analysis

North America to Dominate the Market

North America held the largest share of the global commercial vehicle market, primarily due to increasing demand for long-distance fleet operations and advancements in the industrial sector. Stringent government regulations regarding load-carrying capacity have also contributed to market growth. The region's unified supply network facilitates strong connections between manufacturers and consumers across various transportation modes, including maritime, air, truck, and rail. Furthermore, the availability of diverse financing options has boosted market accessibility. Significant investments in infrastructure development, along with the rise of online cab and car rental services, are driving the demand for light commercial vehicles in North America.

Competitive Landscape

• Daimler AG
• Ford Motor Company
• Volkswagen AG
• Volvo Group
• PACCAR Inc.
• MAN SE
• Scania AB
• Tata Motors Limited
• Isuzu Motors Ltd.
• Hino Motors, Ltd.
• CNH Industrial N.V.
• Mercedes-Benz Trucks
• Navistar International Corporation
• Renault Trucks
• Ashok Leyland Limited

Recent Developments

• February 2024 - VE Commercial Vehicles Ltd, a joint venture between Sweden’s Volvo Group and Eicher Motors, entered the small commercial vehicle (SCV) market by launching an electric product in the fast-growing 2-3.5 GVW (gross vehicle weight) pick-up segment market.

• February 2024 - NITI Aayog proposed financial and non-financial incentives along with VAT reduction and accelerated depreciation to encourage the use of LNG-fueled commercial vehicles. They have also suggested setting up a demand aggregator for buying LNG trucks. The aim is to lower carbon dioxide emissions and increase the share of natural gas in the energy mix.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
• Gain authentic and granular data access for the Global Commercial Vehicle Market to understand the trends and the factors involved in changing market situations.
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope