SAN FRANCISCO, July 7, 2021 /PRNewswire/ -- The global commercial vehicles market size is expected to reach USD 1.82 trillion by 2028, according to a new report by Grand View Research, Inc. The market is anticipated to register a CAGR of 5.2% from 2021 to 2028. Continued infrastructure development, and the growth of the construction and mining industries, and the subsequent need for the development of road infrastructure are expected to drive the growth. The unabated growth of the e-commerce industry, which has drastically transformed the logistics industry, is also expected to drive the demand for commercial vehicles. Advanced in technology and the continued integration of telematics and communication capabilities into commercial vehicles also bodes well for the growth of the market over the forecast period.
Key Insights & Findings:
The Light Commercial Vehicles (LCVs) segment is estimated to register the highest CAGR of around 5% over the forecast period. The growth can be attributed to the dynamic nature of these vehicles. LCVs can be modified and used for the transportation of goods as well as passengers
Logistics was the largest segment in 2020 and is anticipated to reach USD 530.85 billion over the forecast period. The growing trade activities in developing economies coupled with the strengthening logistics infrastructure are some of the prime factors that are expected to drive the segment growth
North America accounted for the largest market share in 2020. As a result, easy availability of convenient financing options, a strong emphasis by the governments in the region to ensure in-house automotive production, and aggressive investments in infrastructure development are some of the factors that are expected to contribute to the growth of the regional market
The market is evolving consistently in line with the advances in technology and changing preferences of end users. The need to ensure safety and convenience while traveling is driving technological advancements. The introduction of truck platooning has particularly enhanced the safety of trucks. Platooning envisages driving trucks closer to each other at a constant speed with reduced acceleration and braking, thereby controlling fuel consumption. Truck platooning can potentially reduce CO2 emissions by up to 10%. Platooning can also help increase safety by implementing automatic braking. As such, platooning also helps ensure efficient use of roads, reducing traffic jams, and delivering goods faster than ever.
Customers willing to invest in commercial vehicles are also scouting for additional services, such as financing services, rental services, and leasing services. The growing demand for individualized solutions is another trend increasingly being adopted in the market. Large enterprises, along with medium-sized companies, are also opting for customized financial deals, especially in leasing solutions. At the same time, the focus of safety in commercial vehicles is gradually shifting from reducing the impact of an accident to preventing an accident. Hence, customers are opting for vehicles equipped with new-age safety features that can potentially help prevent accidents.
The outbreak of the COVID-19 pandemic took its toll on the demand for commercial vehicles in 2020. The lockdowns imposed in various parts of the world as part of the efforts to arrest the spread of coronavirus affected several industries and industry verticals, including manufacturing, automotive, entertainment, and hospitality. The global automotive production volumes declined over the year in 2020, mainly due to the dwindling production volumes in North America and Europe, among other regions, as production facilities were shut temporarily as part of the lockdown procedures. According to the OrganisationInternationale des Constructeursd'Automobiles (OICA), global commercial vehicle production dropped by more than 15% over the year from 91,786,861 units in 2019 to 77,621,582 units in 2020. Nevertheless, the market is looking forward to some respite in the short term as various governments are gradually relaxing the restrictions and allowing businesses to operate with mandates, such as social distancing; and the demand for cars from the middle-class population is growing.
North America accounted for a market share of around 50% in 2020 and is estimated to register a CAGR of over 3% over the forecast period. Apart from the growing purchasing power of the population in North America, the region is also witnessing continued investments in infrastructure development. At the same time, the governments of North American countries are particularly focusing on having in-house automotive production. Digitization of trucks in line with the growing preference for connected trucks is expected to offer new business opportunities for key OEMs, including Volkswagen (MAN & Scania), Daimler AG, and Volvo. These OEMs are expected to invest aggressively in telematics solutions, thereby contributing to the growth of the regional market over the forecast period.
Grand View Research has segmented the global commercial vehicles market on the basis of product,end useand region:
Electric Truck Market – The global electric truck market size was valued at USD 1.48 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 43.3% from 2020 to 2027.
Electric Passenger Cars Market – The global electric passenger cars market size was valued at USD 120.81 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 32.5% from 2021 to 2028.
Car Care Products Market – The global car care products market size was valued at USD 10.36 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.3% from 2021 to 2028.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.