by The Commercial Vehicles Market is estimated to be valued at US$ 1264.58 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Commercial vehicles refer to vehicles that are intended for the transportation of goods and materials. They include light commercial vehicles, heavy trucks, buses and coaches. Commercial vehicles play a vital role in the movement of goods and services across industries. They offer reliability, cargo capacity and versatility for different transportation needs.
Market key trends:
One of the key trends driving growth in the commercial vehicles market is electrification. Rising emission regulations along with growing focus on lowering carbon footprint is pushing OEMs to develop electric commercial vehicles. Major commercial vehicle manufacturers have unveiled plans to introduce electric versions of trucks and buses over the coming years. For instance, Ashok Leyland is aiming to have 10-15% of total annual production of buses to be electric by 2025. Daimler has piloted electric heavy-duty trucks and plans to launch several models by 2025. The adoption of electric powertrains is expected to disrupt the commercial vehicles landscape over the long-run and support market growth. Government incentives and growing charging infrastructure will further encourage fleet electrification.
Porter’s Analysis
Threat of new entrants: The Global Commercial Vehicles Market Size is a competitive industry with presence of major players which makes it difficult for new players to enter the market. However, with growing market demand and rising innovating, entry barriers are reducing.
Bargaining power of buyers: Buyers have moderate bargaining power as there are several commercial vehicles manufacturers to choose from. However, buyers do not have strong influence over prices due to high production and R&D costs involved.
Bargaining power of suppliers: Parts suppliers have moderate bargaining power due to availability of substitutes and necessity of commercial vehicles manufacturing. However, regulations and certifications provide some control to OEMs over suppliers.
Threat of new substitutes: Threat of substitutes is low as commercial vehicles have certain advantages over other modes of transportation for goods movement. However, growth of rail and air cargo is a threat.
Competitive rivalry: Intense competition exists among major commercial vehicles manufacturers to gain higher market share.
SWOT Analysis
Strength: Global presence of key players, large R&D investments, partnerships and collaborations.
Weakness: Vulnerable to economic cycles, price competition from local players, high production costs.
Opportunity: Growing e-commerce sector, infrastructure development in emerging economies, autonomous vehicles.
Threats: Stringent emission and safety regulations, rising fuel prices and taxes, trade barriers.
Key Takeaways
The global commercial vehicles market is expected to witness high growth, exhibiting CAGR of 18% over the forecast period, due to increasing demand for goods transportation across sectors. Asia Pacific dominates the market with over 50% share due to presence of developing economies with rising consumption. China is the largest producer and consumer of commercial vehicles globally.
Regional analysis: North America is the second largest market for commercial vehicles majorly driven by the U.S. followed by Europe. However, Asia Pacific is identified as the fastest growing region with India and China being the major economies propelling demand.
Key players operating in the commercial vehicles market are Ashok Leyland, General Motors Company, Bosch Rexroth AG, Xiamen Golden Dragon Bus Co., Ltd., Daimler AG, Volvo Group, Volkswagen AG, Mahindra and Mahindra Ltd., Toyota Motor Corporation, and Tata Motors Ltd. Focus on expanding production facilities, mergers, collaborations and new product launches are the key strategies adopted by these players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
