The commercial vehicles market is estimated to register a CAGR of over 5% during the forecast period, 2019-2024.
The expansion of the industrial sector in the emerging markets and the development of commercial operations in logistics led to a significant demand for commercial vehicles, in 2018. Moreover, this demand is anticipated to continue to increase, owing to improving economies across both developing and developed regions. This is expected to drive the growth of the market in the coming years.
The increasing number of construction and e-commerce activities resulted in an increase in demand for material transportation, which, in turn, resulted in increased sales of commercial vehicles, worldwide. This is likely to drive the growth of the commercial vehicles market in the near future.
The shift toward electric vehicles is expected to provide growth opportunities in the market. The implementation of advances in technology and stringent emission regulations have led to automakers (OEMs) shifting toward electric vehicles. Moreover, various other players are shifting toward electric vehicles, which may result in growth opportunities in the market, in the years to come.
Key Market Trends
Heavy Duty Commercial Vehicle Segment Projected to Grow at a High Pace
Currently, the heavy-duty commercial vehicle segment has the highest share out of all the segments. Heavy-duty commercial vehicles (HCV) include vehicles with a gross vehicle weight rating greater than 16 metric ton, such as heavy trucks and buses. The demand for heavy-duty commercial vehicles is likely to increase in the coming years, owing to increasing tourism, construction, mining, and logistics activities, worldwide.
Countries, such as North America, India, and Japan, witnessed positive sales for HCV, in 2018. Automotive companies are now targeting potential regions, such as Asia-Pacific, Europe, and North America, in order to expand the sales of heavy-duty commercial vehicles. Thus, the increasing focus on this segment shall lead to its expected high CAGR.
North America is Expected to See the Highest Growth
In the commercial vehicles market, the growth of the North American region is expected to be more during the forecast period. The sales of commercial vehicles have been rising significantly from 2016-2018. Moreover, in 2018, the commercial vehicles sales increased to 7.8%, when compared to that of 2017. This was majorly due to the significant increase of 30% in heavy commercial vehicle (such as trucks and buses) sales in 2018 from 2017.
The rising concerns about environmental pollution have led to the US government consistently working and supporting various measures aimed at the growth of the electric vehicle industry in the North American region. The rising demand for commercial electric vehicles has led to a drastic increase in competition among commercial vehicle manufactures, and hence, to sustain in the market, players have started shifting their commercial vehicle production plans to electric vehicles. Thus, such developments are expected to drive the growth of the commercial vehicles market in the North American region.
The market is captured by major players, like Daimler AG, Toyota Motor Corporation, ISUZU, Mitsubishi Motor Corporation, and Hino Motors, among others. Daimler AG is the leading player in the commercial vehicles market. Others companies, like UD Trucks, BAIC, Renault Trucks, etc., are operating in the market, capturing minimal shares.
ISUZU captures the major market share in Thailand, with the LCV category dominating the market, followed by Toyota and other companies. Various initiatives taken by companies have led them to strengthen their presence in the market. For example, in 2018, Isuzu Motors Limited established a new factory to produce a new series of diesel engines for light-duty trucks. The location is on the premises of its Tochigi Plant.
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