The Global Commercial Vehicle Market Size Was Valued At USD 821.28 Billion In 2021. The Market Is Projected To Grow From USD 955.57 Billion In 2022 To USD 1,712.44 Billion By 2030, Exhibiting A CAGR Of 8.7% During The Forecast Period.

Commercial Vehicle Market Overview:

The COVID-19 pandemic has been unprecedented and shocking. Demand for commercial vehicles is lower than expected in all regions compared to levels before the pandemic. Based on our research, the world market was 10.2% smaller in 2020 than it was in 2019.

Commercial vehicles have four wheels and are used to move goods from one place to another. The weight difference between small cars and big trucks is measured in tons (metric tons). Depending on national and professional standards, this limit can be anywhere from 3.5 to 7 tones. Buses and coaches are used to transport people. They have more than eight seats, including the driver's seat, and can carry more weight than light vehicles (range from 3.5 to 7 tons).

The market is made up of different types of cars, such as small cars, big cars, and buses. A Light Commercial Vehicle (LCV) is a vehicle used for business that doesn't weigh more than 3.5 metric tons. A heavy commercial vehicle is a truck that is made to haul cargo and carry different kinds of payloads. A bus is a type of public transportation that can carry a lot more people than the average car or van. Several governments are working to make freight vehicles and use them on the road. Freight vehicles are always getting better when it comes to technology, and some of these technologies quickly become required. For example, the European Union requires all heavy vehicles weighing more than 15,400 pounds to have Advanced Driver Assistance Systems (ADAS), Automatic Emergency Braking (AEB), and Lane Departure Warning (LDW) installed.

Market Dynamics:

Latest Trends:

Cloud computing is being used more and more in the auto industry. Cloud computing is an important part of making freight vehicles, and its services range from running systems to designing them to managing them. The functions of cloud computing can lower costs, which can help reduce waste and keep costs down. With cloud computing, it's possible to talk to vehicles from far away and get and store data. Telematics is also a useful way to record and analyse information about how vehicles work. Telematics are being quickly added to the commercial fleets of many companies. As part of its "Connect" plan to connect its entire fleet by 2023, Europcar, for example, will strengthen its partnership with Geotab and Telefónica in 2020.

Driving Factors:

Globally, environmental crises are caused by the rising pollution in the air that is caused by the fuel that traditional cars use. This has pushed manufacturing companies to switch to energy sources that are better for the environment. Freight vehicles in many public transportation systems are being made electric to promote zero-emission public transportation and keep the air clean and easy to breathe for residents.

Governments have put in place strict rules to stop the rise in emissions and have taken a number of steps to encourage the use of electric vehicles. The logistics industry is also putting a lot of thought into electric vehicles by building infrastructure for them. The OEMs are also working to make batteries less expensive so that more people around the world will buy electric cars. Toyota, Daimler, and Volvo are among the big names that are moving toward electric vehicles to meet the growing demand. Also, electric vehicles are becoming more popular around the world because their batteries last longer, they can go farther, they use less energy, and their electronic systems are getting better. Also, there is a trend toward automation in freight vehicles, which is driving the market.

Adopting Advanced Driving Assistance Systems (ADAS) like lane departure warning systems, driver drowsiness detection systems, driver monitoring systems, and blind spot detection systems helps the market. Also, connectivity and telematics are changing operations in a big way, which is why manufacturers are putting more connected services in vehicles. These services improve safety and stop unauthorised access to vehicles, which keeps freight vehicles from being mishandled and worn down. This is likely to help the growth of the market over the next few years. Valeo and Wabco, for example, signed a Memorandum of Understanding (MoU) to develop ADAS technologies for freight vehicles together. The association is working on a radar solution to help drivers see what's in their blind spots, which is required by German law.

The main reasons for the growth of freight vehicle sales around the world are the rapid growth of population and urbanisation, the development of infrastructure, and the growth of the industrial sector. The industrial sector is growing, especially in economies that are still on the way up. This is creating jobs in areas like construction, mining, and tourism. The number of commuters has gone up because there are more jobs, which has put a lot of pressure on public transportation.

E-commerce and digital transformation are also very important to the growth of the transportation and logistics sector. Infrastructures are being built faster because industrialization is growing. Also, governments are putting a lot of money into building roads to help the transportation and logistics industries in their regions.

Tourism is also growing because the transportation system is getting better and there are more and better roads. Since a few years ago, the demand for rental cars has been fueled by the trend of weddings and other events that take place in faraway places. The growth of cities has helped the mining and building industries. Freight vehicles with the latest technology are in high demand because of new housing projects, smart city plans, and the growing need for flyovers and bridges.

In the Union Budget for 2020-21, the Indian government set aside USD 24.27 billion for infrastructure, mostly for highways, renewable energy, and transportation. Japan and India have said they will work together to build infrastructure in India's north-eastern states. They have also set up an India-Japan Coordination Forum to work on infrastructure projects in the north-eastern states.

Restraining Factors:

As the auto industry moves toward electric cars and more advanced technology, the high cost of production and the complicated workings of advanced systems are likely to slow the growth of the market. The companies that make freight trucks spend a lot of money on research to come up with new technologies for them. The cost of making a car goes up because lithium-ion batteries are expensive, software has to be installed, and a lot of money has to be spent on capital.

Advanced driver assistance systems like adaptive cruise control, driver monitoring, park assist, driver drowsiness detection, blind spot detection, and automatic emergency braking are made up of sensors, cameras, radars, mapping, and other software systems. These very high-tech systems come with a lot of technical challenges and problems. As these systems run on batteries, the constant use of battery power may cause battery problems. Relying on these systems may also increase the chance that they won't work or will stop working. Also, the electronic parts of these systems can break down and show wrong information. Also, the high risk of cyber security threats and the difficulty for the driver to use the system may make the cars, their passengers, and the driver vulnerable. Any problems or mistakes made on purpose or by accident in these high-tech systems could be dangerous or even life-threatening for the people who use them.

So, the growth of the global commercial vehicle market is likely to be slowed by systems that are hard to understand, systems that are expensive to replace and keep up, and a lack of skilled workers.

Segmentation Analysis:

By Vehicle Type Analysis:

The market is split into three groups based on the type of vehicle: light commercial vehicle, heavy vehicle, and buses. Light commercial vehicles make up a big part of the global market because they are most often used for logistics operations in a smaller range. It is expected to keep making up most of the market around the world. During the forecast period, the heavy vehicle segment is also expected to grow at an exponential rate. During the time frame of the forecast, it is expected to have the highest CAGR (11.8%). During the time frame of the forecast, the bus market is also expected to grow by a factor of ten. It will probably have the second-highest CAGR. The growing number of people living in cities and their needs, as well as the growth of infrastructure in developing Asian countries like India and China, all help the global market grow.

By Fuel Type Analysis:

I.C. engine and Electric Vehicle are the two types of fuel that make up the market (EV). The I.C. engine segment has the largest share of the market for commercial vehicles around the world. The EV segment, on the other hand, is expected to grow quickly because of rising demand and strict regulations about fuel economy standards. Also, to boost sales of EVs, manufacturers are always working to lower the price of the battery, which is helping the global market grow. Unlike traditional I.C. engines, Commercial EVs don't make noise or pollute the air. They also have a longer range. Also, they work better with self-driving cars. So, the EV segment is likely to have the highest CAGR over the next few years.

Regional Insights:

In 2021, the size of the market in North America was $485.31 billion USD. North America has the largest share of the market. This is because the number of freight vehicles needed in North America is growing. This is clear because, according to the OICA, the COVID-19 pandemic caused a 20.3% drop in the number of freight vehicles made in North America. But when the lockdowns were lifted, there was a rush of new orders. Also, fleet management in this area was asking for more and more long-distance operations. On the world market, it is expected that the region will grow well. As the number of people and things that need to be moved keeps going up, it is likely that this number will go up a lot in the future.

In 2021, the Asia-Pacific market was worth USD 207.67 billion. By 2029, it is expected to be worth USD 433.69 billion, which is an 8.9% CAGR. Since more cars are being made each year in the region's countries, it is likely that the region will be the second largest automotive hub in the world. During the period of the forecast, the market in the region is likely to grow thanks to the growing use of important government programmes, electric vehicles, and self-driving cars. India and China, for example, spend a lot of money on infrastructure and the startup ecosystem. This is something that will help the market in this area grow. Also, the growth of businesses in developing countries in this region, like mining and logistics, will help the market grow.

Europe is the third largest market in the world. The CAGR for the area is expected to stay the same. The growth of the market can be sped up if fleet operators switch from trucks that run on fossil fuels to ones that run on electricity. A survey done in 2018 found that about 40% of fleet owners said they would like to buy electric or hybrid trucks when they buy new ones. This number jumped to around 60% in 2021, and fleet operators expect that by 2025, almost half of the trucks in their fleets will be electric. By 2030, buyers expect electric freight vehicles to have a 60% market share, making them more popular than trucks that use fossil fuels. Because of this, these things will help the global market grow.

Compared to other regions, the rest of the world doesn't contribute much to the market. This is because there aren't as many automotive OEMs, people don't use technology as much, and there aren't as many vehicles of all kinds. But it is expected to grow at a CAGR of 8.6% in the coming years.

Scope Analysis

Recent Development:

• June 2022 - Ashok Leyland announced the launch of the ecomet STAR 1115 CNG truck. Additionally, the truck's CNG cylinder capacity ranges from 360 to 480 liters, providing a maximum single fill range.
• June 2022: Volvo's Commercial Trucks division announces testing of a truck powered by a hydrogen fuel cell. The fuel cells are provided by CellCentric (a joint venture between Volvo and Daimler Trucks). Volvo claims the truck can refuel in less than 15 minutes and provide a range of 1,000 km.
• June 2022: Ford announces a manufacturing facility in Ohio dedicated to the electric commercial vehicle segment. Ford also announced plans to invest $3.7 billion adding more than 6,200 new manufacturing jobs at its plants in Ohio, Michigan and Missouri.
• December 2021 – Viaduct partnered with Paccar to collect and interpret connected data. The collaboration will integrate Paccar's telematics, diagnostics and repair data pipeline with Viaduct's connected vehicle data and analytics platform.
• March 2020 - Hino Indonesia (HMMI) announced that it had achieved a total production of 500,000 vehicles at a lorry event in Jakarta. This marked a milestone in the company's production history.

Market Segmentation

By Vehicle Type:

• Light Commercial Vehicle
• Heavy Vehicle
• Buses
• Others

By Fuel Type:

• C. Engine
• Electric Vehicle (EV)
• Other

By Companies:

• Daimler AG (Germany)
• PACCAR Inc. (U.S.)
• Hino (Japan)
• Scania (Sweden)
• Tata Motors (India)
• Navistar International Corp (U.S.)
• BYD Auto Co., Ltd. (China)
• AB Volvo (Sweden)
• Toyota Motor Corporation (Japan)
• Others