The global commercial vehicles market size was valued at USD 531.8 billion in 2023 and is expected to reach USD 826.53 billion by 2033 and poised to grow at a compound annual growth rate (CAGR) of 4.50% during the forecast period 2024 to 2033.
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North America captured the maximum market value share in the global commercial vehicles market and is anticipated to grow at a considerable rate during the forecast period. The U.S. commercial vehicles market size is expected to be worth around USD 329.3 billion by 2033 and is growing at a compound annual growth rate (CAGR) of 4.89% from 2024 to 2033.
North America emerged as the market leader in the global commercial vehicles market owing to the high adoption rate of commercial vehicles in the U.S. Industrial growth, infrastructure development, and government regulations related to maximum loading capacity for commercial vehicles are some of the major factors that propel the market growth in North America.
Significant development in the industrial sector along with stringent government norms pertaining to load carrying capacity of commercial vehicles is the prime factor that triggers the growth of the region. Further, the rising penetration of electric vehicles and battery-powered vehicles as well as government initiatives to promote the adoption of these vehicles to curb carbon emission expected to propel the demand for commercial vehicles in the coming years.
Maximum Share Captured by North America
The rising demand for the long distance operation from fleet management in North America is significantly boosting the growth of the commercial vehicles market. Furthermore, the growing developments in the industrial sector and the strict regulations of the government pertaining to the load carrying capacity of the commercial vehicles have led to the growth of the market. The presence of unified supply network in North America and establishment of a strong connection between manufacturers and consumers via multiple transportation mediums such as maritime transport, air transport, truck transport, and rail transport are driving the growth of the North America commercial vehicles market. The easy availability of various financing options in North America is further boostingthe market growth. The aggressive investments in the infrastructural development in North America, presence of leading automotive manufacturers in the region, and favorable government support are the most prominent factors that has significantly driven the growth of the North America commercial vehicles market in the past years. Moreover, the demand for the light commercial vehicles is growing rapidly owing to the rising penetration of the online cab services and car rental services in North America.
Besides this, the Asia Pacific registered the highest growth rate over the analysis period. The attractive growth of the region is mainly because of escalating growth in industrial sector, highest adoption rate of electric vehicles in the region, and high yearly investment for infrastructure development.
This is attributed to the increasing road infrastructure along with rising manufacturing facilities due to cost-effective raw materials and labor, particularly in the developing countries such as India and China. In addition, the region is highly promising for the growth of smart mobility solutions owing to favorable policies by governments in the region expected to accelerate the market growth prominently.
Asia Pacific Forecast the Strongest Growth Rate during the Forecast Year (2024-2033)
Asia Pacific is expected to witness the fastest growth rate during the forecast period. Asia Pacific is witnessing rapid industrialization, rapid urbanization, presence of huge population, and aggressive investments by the government in the development of sophisticated infrastructure. The presence of huge industries in the region has significantly boosted the demand for the commercial vehicles in this region for transportation of goods to the domestic and international regions. Furthermore, China is one of the largest producer and consumer of electric vehicles across the globe.
The rising government initiatives to eliminate carbon emission from vehicles have significantly boosted the demand for the electric commercial vehicles in the region. The growing popularity of the car rental services in this region is expected to fuel the demand for the commercial vehicles during the forecast period. The countries like India, China, and South Korea are heavily investing in the adoption of sustainable public transport solutions in order to move closer towards achieving zero emission economy, which is a prominent factor boosting the growth of the commercial vehicles market in Asia Pacific.
Commercial vehicle is a type of motor vehicle used purposely for the transportation of goods or merchandise. Commercial vehicle growth is mainly influenced by the increase in e-commerce business as well as increasing adoption of commercial vehicles for transportation. Apart from this, increasing industrialization, adoption of e-mobility in commercial sectors, and infrastructure development that supports the advancement & development in automotive industry also triggers the market growth for commercial vehicles.
Commercial vehicle is a type of motor vehicle used for the transportation of goods, materials, and people. It is used across various industries including transportation & logistics, mining & construction, manufacturing industries, agriculture, and many others. Main products covered under the commercial vehicle market are light commercial vehicles, buses & coaches, and heavy trucks. Industrial growth and rising penetration of electric-powered vehicles in commercial vehicles are some of the prime factors that trigger the market pace of commercial vehicles during the forecast period.
Although the market experiences sluggish growth in the recent past, it predicted to recover the overall sales performance in commercial vehicles, especially in the developing countries. Digitization along with the rising infrastructure spending anticipated to boosts the commercial vehicles market growth in the coming years. Initially the market development was closely related to the growth of global economy; however, this interrelation is crumbling rapidly. Demand for specific transport solutions by consumers, integration of telematics services, and rising popularity of shared mobility are some of the major trends that are shaping the commercial vehicle market growth. Further, governments across several nations have implemented various policies and regulations for effectively managing the size of goods that can be carried in a commercial vehicle. For instance, the Federal Motor Carrier Safety Administration (FMCSA) in the United States was established to prevent fatalities and injuries related to commercial vehicles. In wake of same, the body has regulated the maximum size of goods that can be carried in these vehicles. In in turn, is expected to flourish the sale of commercial vehicles in the near future.
The outbreak of COVID-19 has shown effects in terms of flight cancellations, travel bans, and quarantines, which totally disrupted supply chain and temporarily stopped logistics activities across the globe due to imposed lockdowns all over the world. According to the industry experts operating in the global commercial vehicle industry, the automotive industry faced a negative growth in between 5% and 10% in first six months of 2020 due to several challenges such as transportation bans and the supply chain disruption.
With lockdown and quarantine protocols penetrating the advent of the new normal, customers and businesses are largely going digital, thus impacting in more product purchases through online sales channels. The robust growth of the online sector has contributed immensely to the logistics sector, owing to the significant rise in goods and services delivery, which is benefitting commercial vehicle market recovery over the foreseeable future.
In 2023, Light Commercial Vehicles (LCVs) led the global commercial vehicles market with significant revenue share and predicted to retain its position during the forecast period. Dynamic nature of the vehicle that enables the incorporation of advanced technologies contributes prominently towards the growth of the segment. Further, advent of vehicle electrification and battery-powered engines expected to fuel the demand for light commercial vehicles in the coming years. Growth in the industrial sector also escalates the demand for LCV prominently. Presently, advent of smart industries has upended the fleet management systems. Need for real-time monitoring, tracking, and effectively managing the product delivery systems have triggered the need for smart and effective vehicle. This is attributed to significantly boost the sale of LCV in the near future.
Attractive revenue share of LCVs is majorly because of high adoption of small and medium sized vehicles for transportation of goods across various industrial sectors such as e-commerce business, mining & construction, production sites, and many others.
However, the heavy trucks segment is expected to account for the highest growth over the next decade owing to heavy investments of OEMs in the market, rising demand for powerful automobiles with higher Power Sources of carrying to manage weights and strong suspension systems, increasing need for fuel-efficient trucks, and the strict regulations and laws in relation with carbon footprint and emissions.
Commercial Vehicle Market Revenue, By Product, 2020 to 2023 (USD Billion)
By Product 2020 2021 2022 2023 LCVs 359.5 372.9 387.1 402.1 Buses & Coaches 15.0 15.6 16.2 16.9 Heavy Truck 98.8 103.2 107.9 112.8
By propulsion type, IC engine capture the largest revenue share in the global commercial vehicles market; however, electric vehicle projected to grow at the fastest rate during the forecast time period. The accelerating growth of the electric vehicle in commercial vehicles market is mainly due to various government initiatives to propel the adoption of electric vehicles across every sectors. In addition, environment-friendly properties of electric vehicle also help to curb the rate of pollution across various regions.
In 2023, transportation segment accounted for significant market value share and predicted to exhibit lucrative growth rate of nearly 4.86% over the forecast period. Rising expenditure on commutation to improve accessibility and affordability is one of the prime factors that escalate the growth of the segment. Further, emerging trend of shared mobility along with norms related to traffic of fleet on road are the other prominent reasons that trigger the growth of passenger transportation in the coming years.
On the other hand, logistics segment witnessed prominent demand in the past few years owing to the growth in trade activities worldwide. Moreover, the segment captured remarkable revenue share in 2021 due to increasing penetration of e-commerce and retail business. Shifting consumer trend for online purchasing have flourished the growth of e-commerce sector, thereby boosting the market growth for logistics segment.
The diesel segment accounts for the highest revenue share in 2023. The robust growth of this segment is owing to factors which include a rise in demand for passenger vehicles and increasing concerns about fuel efficacy. The rapid economic development along with the urbanization trends watching individuals migrating from rural areas to urban areas is also one of the major factors driving the growth of this segment in the years to come.
The fuel cell vehicle segment is projected to grow at the fastest rate over the next decade, with a CAGR of 8.46%. Hydrogen fuel cell vehicles possess a high potential to alleviate emissions in relation to the transportation sector. This vehicle does not produce any CHG emissions during the operation, unlike diesel or gasoline vehicles. These benefits are expected to have a positive impact on overall fuel cell vehicle share. In addition, research and development activities in hydrogen and fuel cells are further expected to propel the fuel cell vehicle market.
Commercial Vehicle Market Revenue, By Power Source, 2020 to 2023 (USD Billion)
By Power Source 2020 2021 2022 2023 Gasoline 82.9 85.2 87.5 90.0 Diesel 262.4 268.9 275.7 282.9 HEV / PHEV 31.1 33.6 36.2 39.1 Battery Electric Vehicle (BEV) 59.4 63.7 68.4 73.5 Fuel Cell Vehicle 9.9 10.7 11.6 12.6 LPG & Natural Gas 27.7 29.8 31.8 33.7
The global commercial vehicles market is matured market with major revenue share occupied by some of the prominent market players that include Volkswagen AG, Tata Motors, Volvo Car Corporation, Ashok Leyland, and General Motors. Original Equipment Manufacturers (OEMs) in the market have established partnership with the raw material suppliers in aspect to speed up its supply chain functions, as suppliers provide more than 50% of the components of the commercial vehicles.
Some of the prominent players in the commercial vehicles market include:
This research study encompasses comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative intelligences, and prognoses of the market. This report presents breakdown of market into major and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2020 to 2033. This report comprises market division and its revenue valuation by categorizing it depending on product, end-use, and region:
By Product
By End-use
By Propulsion Type
By Power Source
By Geography
Report Overview
The Global Commercial Vehicle Market size is expected to be worth around USD 1.9 Trillion by 2032 from USD 1.4 Trillion in 2022, growing at a CAGR of 3.40% during the forecast period from 2023 to 2032.
The global market for commercial vehicles serves as a dynamic and important component of the automotive industry by covering a diverse range of vehicles designed for different applications.
In recent years, technological advancements, evolving environmental concerns, and shifting consumer preferences have collectively shaped the growth of the global commercial vehicles market, prompting manufacturers to innovate and adapt to meet the demands of an ever-changing landscape.
Actual Numbers Might Vary in the Final Report
Key Takeaways
The Commercial Vehicle Market anticipates a slight decline, projected to decrease from USD 1.9 trillion in 2023 to USD 1.4 trillion in 2033, indicating a Compound Annual Growth Rate (CAGR) of 3.40%.
Driving Factors
Expanding Economies and Changing Consumer Preferences Drive Demand for Commercial Vehicles
The expansion of economies, particularly in emerging markets, drives demand for commercial vehicles. Rapid industrialization, infrastructural development, and urbanization led to an increased need for the transportation of goods, spurring demand for commercial vehicles. The surge in e-commerce activities and changing consumer preferences toward online shopping have necessitated efficient last-mile delivery solutions. This has led to higher demand for smaller commercial vehicles optimized for urban deliveries.
Many businesses are replacing outdated fleets with newer, more fuel-efficient, and technologically advanced commercial vehicles. Modern vehicles offer enhanced reliability, reduced operational costs, and compliance with stricter emission norms. Governments globally are imposing stricter emission standards to curb pollution and promote environmental sustainability. This has driven manufacturers to develop electric, hybrid, and alternative-fuel commercial vehicles, accelerating innovation in the sector.
In the year 2022, approximately 24.1 million vehicles were sold on a global scale, reflecting a substantial level of market activity and consumer demand. In the year 2022, the United States emerged as the global leader in commercial vehicle sales, achieving a remarkable milestone of over 11 million units sold, while China, the second largest market for such vehicles, recorded a substantial sales figure of approximately 3.3 million units.
Restraining Factors
Fossil Fuel Dependency and High Capital Investments Pose Challenges for Commercial Vehicle Manufacturers
Commercial vehicles are heavily dependent on fossil fuels, primarily diesel. Fluctuations in fuel prices can significantly impact the operational costs for fleet operators and transportation companies, potentially leading to a delay in fleet expansion or adoption of fuel-efficient technologies.
Establishing or expanding commercial vehicle manufacturing facilities demands significant capital investments. The lengthy lead time from planning to production can expose manufacturers to risks associated with changing market dynamics, technological shifts, and evolving customer preferences.
Growth Opportunities
The Surge in Electric and Alternative Fuel Commercial Vehicles Amidst Global Sustainability Initiatives
The shift towards sustainability and environmental concerns has led to a growing interest in electric and alternative fuel commercial vehicles. Governments and industries worldwide are investing in the development and adoption of electric trucks, vans, and buses.
As battery technology improves and charging infrastructure expands, the demand for electric commercial vehicles is expected to rise, presenting a significant growth opportunity for manufacturers and suppliers in the sector.
Advancements in autonomous driving technology and vehicle connectivity are reshaping the commercial vehicle landscape. The integration of AI-driven systems and IoT capabilities allows for enhanced safety, efficiency, and fleet management. Companies are investing in developing self-driving commercial vehicles for various applications, including long-haul trucking, delivery services, and public transportation.
Latest Trends
Clean Technologies Reshaping Commercial Vehicle Landscape
Internet of Things (IoT) technology is integrating into commercial vehicles to improve fleet management, real-time tracking, predictive maintenance, and operational efficiency. Telematics solutions became indispensable tools for fleet operators. E-commerce growth was driving demand for last-mile delivery solutions, leading to smaller electric delivery vans and innovative logistics strategies to meet consumer expectations for faster and more efficient deliveries.
Governments worldwide are implementing stricter emissions regulations to curb pollution from commercial vehicles. This prompted manufacturers to invest in cleaner technologies and alternative fuels to comply with these regulations.
Type Analysis
Light Commercial Vehicles Dominate Global Commercial Vehicles Market
Based on type the global commercial vehicles market is segmented into light commercial vehicles, medium commercial vehicles, and heavy commercial vehicles. The light commercial vehicles segment dominated the market with the largest market share of 75% in 2022 and is expected to remain dominant in the market during the forecast period.
The rise in urbanization has led to an increased demand for efficient and flexible transportation solutions, particularly for last-mile delivery of goods and services. LCVs, with their smaller size and flexibility, are well-suited for navigating congested urban areas and fulfilling the demands of e-commerce and rapid delivery services. The medium commercial vehicles segment is the second largest segment in the global market, with a market share of 18%.
Drive by Type
The Internal Combustion Engine (ICE) Segment is Dominant in the Market
Based on drive type, the global commercial vehicle market is segmented into internal combustion engines, electric vehicles, and hybrid vehicles. The internal combustion engine (ICE) segment is the dominant segment in the global commercial vehicle market, accounting for a market share of more than 60% in 2022. This segment includes vehicles powered by traditional gasoline or diesel engines.
ICE vehicles offer extended range and quick refueling times, making them suitable for long-haul transportation applications with heavy payloads. Unfortunately, their emissions and higher operating costs have led to an increased interest in cleaner alternatives. Electric vehicle (EV) sales have steadily been on the rise in commercial vehicle markets worldwide, particularly all-electric models.
End-Use Analysis
Logistics Segment Dominates Global Commercial Vehicles Market
Based on end-use, the global commercial vehicle market is classified into industrial, mining & construction, logistics, passenger transportation, and other end-uses. The logistics segment is the dominant segment in the global commercial vehicle market, accounting for a market share of 26% in 2022. With the growth of international trade and e-commerce, the demand for efficient logistics solutions has surged.
Commercial vehicles play a crucial role in transporting goods across supply chains, making the logistics segment a key driver of the market. Logistics companies are continually looking for ways to optimize operations and reduce costs. Commercial vehicles equipped with advanced technologies, including route optimization, real-time tracking, and fuel efficiency enhancements, contribute significantly to increased logistics efficiency.
The mining and construction segment involves heavy-duty vehicles designed for earthmoving, excavation, and transportation of materials in mining and construction sites. These vehicles include dump trucks, excavators, bulldozers, and loaders. This segment constitutes approximately 15% to 20% of the global commercial vehicles market due to the specialized nature and significant investment required for these vehicles.
Global Commercial Vehicles Market Segments Includes:
Regional Analysis
North America Dominates the Global Commercial Vehicle Market
North America is the largest market for commercial vehicles, accounting for the largest share of 30% of the global market. North America, particularly the United States and Canada, boasts a dynamic and varied economy. These nations are well known for their thriving manufacturing, trade, logistics, and transport sectors; such economic success drives demand for various commercial vehicles such as trucks, buses, vans, and specialized models tailored specifically for industries like construction, agriculture, transportation, etc.
Also, technological progress in North America, including advancements in autonomous driving, AI, and IoT is driving the market growth. In 2022, commercial vehicle sales in the USA claimed the top spot globally, with 11,371,749 units sold. Canada secured the second position, recording 1,304,482 commercial vehicle sales. Meanwhile, Mexico ranked third with 647,480 units sold. These statistics are available and tracked from 2005 to 2022, showcasing the sales trends over this period.
Europe is the second largest market for commercial vehicles, followed by Asia Pacific. Europe is home to a wide range of industries, including manufacturing, agriculture, construction, and services. These industries require efficient transportation and logistics solutions, leading to substantial demand for commercial vehicles tailored to different needs.
For instance, in the first half of 2023, new van sales in the EU surged by 11.2% to reach 730,969 units, benefitting from improved supply chain conditions. Notably, Spain and Germany played a significant role in this growth, with van sales rising by 26.6% and 15.5%, respectively. In France, sales experienced a more modest increase of 3.6%, totaling 189,948 units.
The key players in the global commercial vehicle market are focusing on innovation, mergers and acquisitions, and expansion to new markets to maintain their competitive edge in the market. The global commercial vehicle market is characterized by a diverse range of key players that contribute to its growth and innovation.
Prominent companies such as Daimler AG, Volvo Group, Scania AB, MAN SE, Paccar Inc., and Navistar International Corporation hold significant market shares due to their extensive product portfolios, technological advancements, and established global presence. These industry key players are known for their diverse offerings, including trucks, buses, and vans, catering to various segments of the commercial vehicles market.
Report Scope:
Report FeaturesDescriptionMarket Value (2022)US$ 1.4 TrillionForecast Revenue (2032)US$ 1.9 TrillionCAGR (2023-2032)3.4%Base Year for Estimation2022Historic Period2016-2022Forecast Period2023-2032Report CoverageRevenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent DevelopmentsSegments CoveredBy Type: Light Commercial Vehicles, Medium Commercial Vehicles, and Heavy Commercial Vehicles; By Drive Type: Internal Combustion Engine, Electric Vehicles, and Hybrid Vehicles; By End-Use: Industrial, Mining and construction, Logistics, Passenger Transportation, and Other End-UsesRegional AnalysisNorth America: The US and Canada; Europe: Germany, France, The UK, Italy, Spain, Russia & CIS, and the Rest of Europe; APAC: China, Japan, South Korea, India, ASEAN, and the Rest of APAC; Latin America: Brazil, Mexico, and Rest of Latin America; Middle East & Africa: GCC, South Africa, United Arab Emirates, and Rest of Middle East & AfricaCompetitive LandscapeDaimler AG, Volvo Group, Scania AB, MAN SE, Paccar Inc., Navistar International Corporation, Ashok Leyland, Tata Motors, Isuzu Motors Ltd., Ford Motor Company, General Motors, Dongfeng Motor Corporation, FAW Group Corporation, Sinotruk, IVECO S.p.A., Mitsubishi Fuso Truck and Bus Corporation, Hino Motors, Ltd., Hyundai Motor Company, and Other Key PlayersCustomization ScopeCustomization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements.Purchase OptionsWe have three licenses to opt for: Single User License, Multi-User license (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)