Commercial vehicles such as trucks and buses are widely used for transportation of goods and passengers across various industries. Trucks facilitate the movement of commodities between manufacturing units, warehouses, ports and other destinations, playing a vital role in the logistics and supply chain networks. Rapid growth of the e-commerce sector has increased the demand for delivery vans and light commercial vehicles for last-mile deliveries. Buses are commonly used for public transportation in cities and inter-city motor coach services. Various types of commercial vehicles available in the market include light commercial vehicles (LCVs), heavy trucks, buses and coaches. They are equipped with powerful engines and robust build quality suitable for heavy-duty applications.
The global commercial vehicles market is estimated to be valued at US$ 1264.58 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Growth in the logistics industry is expected to be a key driver for the commercial vehicles market over the forecast period. Efficient transportation of goods is imperative for smooth operations of supply chains. With rising industrial and commercial activity, the demand for logistics services is increasing tremendously. This has prompted logistics companies to expand and upgrade their fleets of trucks and vans. Another driver is increased government spending on infrastructure development such as roads, highways and urban transport systems. This encourages commercial vehicle manufacturers to cater to the rising demand.
The commercial vehicles market can be segmented by type into light commercial vehicles, heavy trucks, and buses & coaches. The light commercial vehicles segment is expected to dominate the market during the forecast period. Light commercial vehicles include vans, pickup trucks, and trucks used for the transportation of goods and materials over short distances. They provide high fuel efficiency and easy handling compared to heavy trucks. Economic growth and rising online shopping are contributing to the increasing demand for light commercial vehicles for last-mile delivery.
Political: Regulation regarding vehicular emissions are becoming more stringent to curb air pollution. This is promoting the adoption of electric commercial vehicles. However, lack of charging infrastructure can restrain the electric vehicle market growth.
Economic: Rising e-commerce and construction activities are fueling the demand for light commercial vehicles for transportation and logistics. However, fluctuating fuel prices and rising interest rates can increase the operating costs of commercial vehicles.
Social: Growing online shopping trends and demand for faster delivery are increasing the use of commercial vehicles for last-mile delivery. However, low demand during economic downturns can negatively impact the market.
Technological: Developments in electric powertrains, autonomous driving, and telematics solutions are driving innovations in commercial vehicles. Connected trucks using IoT are enabling fleet management and improving driver safety.
The Global Commercial Vehicles Market Size is expected to witness high growth.
Regional Analysis: North America region is currently dominating the market due to growing e-commerce sector and rising infrastructure development activities. Europe is also a major market for commercial vehicles due to stringent emission regulations promoting electric vehicles adoption.
Key players operating in the commercial vehicles market are Schneider Electric SE, ABB Ltd., Siemens AG, Eaton Corporation, Honeywell International Inc., Rockwell Automation, Inc., UL LLC (Underwriters Laboratories), Emerson Electric Co., General Electric (GE), Littelfuse, Inc., DuPont de Nemours, Inc., Fluke Corporation, Omicron Electronics GmbH, Megger Group Limited, MSA Safety Incorporated. Schneider Electric SE and ABB Ltd. are focusing on developing electric powertrain solutions to capitalize on the increasing demand for electric commercial vehicles.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it