Commercial vehicles such as trucks and vans are integral to the logistics and transportation of goods and services across industries. These heavy-duty automobiles provide efficient cargo handling and movement of materials over long distances. The versatility and load-carrying capacity of commercial vehicles have made them first preferences for transportation and delivery tasks in construction, retail, courier and postal services. The rising e-commerce industry has hugely contributed to the growth of the commercial vehicles market. With increasing online shopping and quick delivery expectations of customers, e-commerce companies rely on commercial vehicles for shipment of packages.
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.
Market key trends:
One of the key trends in the commercial vehicles market is adoption of electric commercial vehicles. Stringent emission norms and emphasis on reducing vehicular pollution globally has accelerated demand for electric commercial vehicles. Major commercial vehicle manufacturers are focussing on developing sophisticated electric trucks and vans with advanced batteries providing long driving range on a single charge. Government incentives and subsidies on purchase of electric commercial vehicles in several countries is a big boost to shift towards electrification. Growing investments by leading players as well as startups in electric commercial vehicle technologies will drive the market growth over the coming years.
Threat of new entrants: The threat of new entrants is moderate. While the market size is large, commercial vehicle manufacturing requires high capital investments and established supply chains.
Bargaining power of buyers: The bargaining power of buyers in the commercial vehicles market is high. Large fleet operators can negotiate on price and demand additional features.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While suppliers of components like engines have some market dominance, commercial vehicle OEMs can switch to alternative suppliers if needed.
Threat of new substitutes: The threat of substitutes is low at present. While electrified public transport is emerging, commercial vehicles provide unmatched freight delivery capabilities.
Competitive rivalry: Competition is high among the top commercial vehicle manufacturers. Companies compete on pricing, features, brand reputation, and service network.
The Global Commercial Vehicles Market Size is expected to witness high growth over the forecast period.
Regional Analysis: Europe is also a major commercial vehicles market led by Germany, France, and the UK. Strict emission regulations have pushed European manufacturers to invest heavily in alternative fuel vehicles. While diesel still accounts for the majority of sales, electric and CNG truck sales are rising steadily.
Key players operating in the commercial vehicles market include Schneider Electric SE, ABB Ltd., Siemens AG, Eaton Corporation, Honeywell International Inc., Rockwell Automation, Inc., Emerson Electric Co., and General Electric (GE). These companies provide a range of components and software solutions for commercial vehicle electrification, fleet management, and safety. They are focusing on partnerships with OEMs to enhance digital and electrical vehicle architectures.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it