Global Commercial Vehicles Market by Product (Buses & Coaches, Heavy Trucks, LCVs), by End Use (Industrial, Mining & Construction) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global commercial vehicle market was valued at USD 1.26 trillion in 2020. It is expected to grow at a compound annual rate (CAGR of 5.2%) between 2021 and 2028. Due to the COVID-19 pandemic that afflicted the automotive industry, the market saw a decrease in growth due to low sales and new requirements. The growth is expected to be fueled by the implementation of vehicle scrappage programs, aggressive investments in infrastructure and rural development, and the drafting of strict regulatory norms regarding vehicle length and loading limits. Growth is also expected to be driven by the resumption in some areas of the world of mining activities, which has led to a demand for tippers. Market growth is also expected to be aided by the increasing disposable income of both developed and developing countries, and continued infrastructure development.

Many governments around the world have established policies and developed regulations to manage the volume of goods transported by commercial vehicles. The Federal Motor Carrier Safety Administration (FMCSA), in the United States, is responsible for preventing injuries and fatalities related to commercial vehicles. The FMCSA has created a regulation governing the dimensions of goods that can be carried in a vehicle. These regulations will likely drive market growth in the future by increasing demand for commercial vehicles that can transport goods.

Many Original Equipment Manufacturers (OEMs), realizing the potential of connectivity to revolutionize logistics and transportation, have launched commercial vehicles with connectivity features such as traffic data, weather reports, accident warnings, weather reports, and updates about road works. The many benefits of connected vehicles include enhanced safety, preventive maintenance, vehicle abuse prevention, and a reduced risk of theft. Market growth is expected to be driven by increasing demand for connected commercial vehicles over the forecast period.

The market's growth is also expected to be helped by the advancements in electric and semi-autonomous commercial vehicle technology. Because of the many benefits they offer over ICE vehicles, Electric Motor Vehicles (EVs), their adoption for commercial transportation will increase slowly. Market growth is expected to be driven by favorable policies that encourage the adoption EVs, especially in developed countries.

The global economic impact of the COVID-19 pandemic was severe. It adversely affected many industries and verticals, including the automotive sector. The restrictions in place around the globe to stop the spread of the disease led to the suspension of production at many manufacturing plants. This caused severe disruptions in the supply chain. This isn't the only problem in the automotive industry. The demand for automobiles and commercial vehicles has dropped significantly.

In the past, Europe was the leader in commercial vehicle sales. The decline in automotive sales has seen the European market adopt fewer commercial vehicles. Europe is now poised to experience mixed recovery cycles due to the restrictions in certain parts of the region as well as the economic stimulus packages announced by the governments of the region. According to the Organisation Internationale des Constructeursd'Automobiles (OICA), 2.5 million units of commercial vehicles were registered in Europe in 2020, down 14.9% year-on-year from 2.9 million units in 2019. In 2020, the U.S. sales of commercial vehicles also fell by 10.3%.

Product Insights

In 2020, the Light Commercial Vehicles segment was responsible for 75% of all revenue. LCVs can be used to transport goods and passengers at a very affordable cost. LCVs have many tax advantages and help reduce emissions. These vehicles can also be modified to transport goods or passengers. These vehicles are also very cost-effective, which will be a boon for the segment's growth.

From 2021 to 2028, the buses and coaches market is expected to grow at a CAGR exceeding 4%. This segment's growth can be attributed largely to increased use of coaches and buses in the tourism and healthcare industries. The most economical mode of transportation, buses and coaches, drives their sales. It is encouraging to see the bus and coach segment grow due to the growing use of electric buses in developing and developed countries.

End-use Insights

In 2020, the logistics segment held 25% of the total market. The growth of global trade and strengthening of the logistic infrastructure are two of the key factors expected to drive the segment's growth over the forecast period. The steady growth of the eCommerce sector is a positive sign for the future growth of this segment.

From 2021 to 2028, the passenger transport segment will experience a CAGR of more than 5%. Commercial vehicles will be in demand due to the increase in public transport use. People find public transportation more efficient than driving to work. Both the accessibility and affordability for passenger transport and the rising cost of owning a vehicle in both developed and developing countries are key factors driving the growth of the passenger transportation market.

Regional Insights

North America was the market's largest contributor to the total revenue in 2020. It is expected to lead the way over the forecast period, with a CAGR of more than 4%. North America's highly integrated supply chain network connects consumers and manufacturers through multiple transport modes. This includes freight rail, air and express delivery services, maritime transport, and truck transport. The market is growing because of this. The region's growth is expected to be aided by its easy access to financing options, strong government emphasis on in-house production and aggressive infrastructure investments.

Due to the increasing demand for transport, warehousing and unified logistic solutions, the Asia Pacific region market will experience significant growth in the coming years. A strengthening of road infrastructure, the easy availability of cost-effective labor, raw materials, as well as the rising number manufacturing facilities, particularly in developing countries like China and India, will all contribute to the region's growth.

Market Share Insights & Key Companies

In 2020, the major players in the global market were Tata Motors (Tata Motors), Volkswagen AG, Ashok Leyland and General Motors. As part of their efforts to improve their product offerings, most vendors place a strong emphasis upon providing innovative products that are based on the most recent technologies. To cement their market position, the companies are also taking strategic initiatives such as regional expansion, strategic mergers, partnerships and collaborations.

For most market players, organic growth is still the main strategy. Market players are now focusing on expanding product lines by launching innovative products and developing new products. Volvo Trucks, for example, announced in March 2021 that production of the new generation heavy-duty trucks, the Volvo FH, FH16 and FH16 models, was now underway. The company's production plants in Russia, Belgium and Sweden will manufacture the new-generation heavy-duty trucks. The following are some of the major players in the global market for commercial vehicles:

• Ashok Leyland

• Bosch Rexroth AG

• Daimler

• Volkswagen AG

• Toyota Motor Corporation

• Mahindra and Mahindra

• TATA Motors

• AB Volvo

• Golden Dragon

• General Motors

Up Market Research published a new report titled “Commercial Vehicles Market research report which is segmented by Product (Buses & Coaches, Heavy Trucks, LCVs), by End Use (Industrial, Mining & Construction), By Players/Companies Golden Dragon, Bosch Rexroth AG, Daimler, Volkswagen AG, AB Volvo, General Motors, TATA Motors, Mahindra and Mahindra, Ashok Leyland, Toyota Motor Corporation”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Commercial Vehicles Market Report Segments:

The market is segmented by Product (Buses & Coaches, Heavy Trucks, LCVs), by End Use (Industrial, Mining & Construction).

Commercial Vehicles Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Commercial Vehicles Market

Overview of the regional outlook of the Commercial Vehicles Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Commercial Vehicles Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Commercial Vehicles Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Buses & Coaches

                2. Heavy Trucks

                3. LCVs

                1. Industrial

                2. Mining & Construction

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Commercial Vehicles Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
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• Understanding Competition Scenario
• Product & Brand Management
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Reasons to Purchase the Commercial Vehicles Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.