Asia Pacific Non-Passenger Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market is segmented by Vehicle type (Construction Equipment, Mining Equipment, Agricultural Machinery, Trucks, and Others) and by Geography

Market Snapshot

Study Period: 2018-2027
Base Year: 2021

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Market Overview

The Asia Pacific Non-Passenger vehicle market is expected to register a CAGR of around 6% over the forecast period.

The use of non-passenger vehicles is found in industries related to construction, mining, agriculture and logistics. Other type of non-passenger vehicles that are generally used are ambulances and fire-trucks. The Government of India’s focus on infrastructure development is a significant driver for the construction equipment industry. The government also reduced the Goods and Service Tax (GST) rates for some non-passenger vehicles in July 2018. GST rates for special purpose motor vehicles, work trucks (self-propelled, not fitted with lifting or handling equipment), trailers, and semi-trailers were revised to 18% from the previous 28%. Even the Chinese government’s funding for the Belt and Road (BRI) projects has led to higher demand for construction equipment in the country. China’s massive agricultural sector is set for a revival following the government’s commitment to introduce new measures to speed up mechanization for its farmers, boost domestic demand, and raise rural incomes. In December 2018, the government announced that it would grant subsidies to encourage the use of deeper ploughing machines and make it easier for farmers to borrow money to buy machinery.

Philippines launched a major infrastructure program which is now being called as the ‘Build, Build, Build’ flagship economic program. Spread across a span of six years with a total investment of nearly PHP 8.4 trillion, this program has identified 75 high-impact infrastructure projects to be completed.  As of April 2019, only two projects have been completed. Hence, there is a possibility that further works would be completed at a faster rate which would see more number of construction machinery pressed into action to cope up with the timeline. All these factors are expected to help the non-passenger market grow.

Scope of the Report

The Asia Pacific Non-Passenger Vehicle Market covers the latest trends in the different vehicle types, demand for these vehicles from the related industries, new product developments, and market share of major players. The scope of the report includes:

Vehicle Type
Construction Equipment
Mining Equipment
Agricultural Machinery
Medium & Heavy Duty Trucks
Others(Firetrucks, Ambulances, Recreational Boats)
Asia Pacific
South Korea
Rest of Asia-Pacific

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Key Market Trends

Growing Application of Technologies like Automation and Telematics in Non-Passenger Vehicles

The non-passenger vehicle industry is getting smarter. Digitalization, connectivity, and automation are driving the developments forward, leaving a substantial impact on the industry. Autonomous technology promises faster and safer operations, as well as improved cost containment from optimized fuel consumption and operations. Over the last 15 years, there has been good potential in the increased use of self-directed robots controlled by expert systems in construction. In the construction equipment industry, safety is a major reason for the growing adoption of automated equipment. Chronic exposure to vibration, shock, and dust causes health hazards. Accidents are prevalent around heavy equipment, so it is much safer to manage the project from a distance.

The use of computerized expert systems or telematics for agricultural equipment is a growing opportunity for the tractors industry. Telematics facilitates monitoring of farm machines and equipment remotely to detect anomalies and prevent breakdown of the machinery, thereby overcoming the losses due to delay in performing a particular procedure in a farm. Telematics is also finding its applications in ambulances, as every trip the ambulance makes is an emergency. According to a study, ambulances are 13 times more susceptible to accidents than an average passenger vehicle. Telematics have a great history of making drivers that bit safer on the road by improving their driving habits. Without sharp braking or acceleration, passengers are much more comfortable, and it is even helping them by not causing any additional stresses on their bodies during transit.

Trend 1

Growth in the Indian Agricultural Sector Expected to Drive the Market

India holds the second-largest agricultural land in the world. The agricultural sector is the backbone of Indian economy contributing majorly to the country’s GDP. As of February 2018, it was estimated that over 58% of rural Indians depend on agriculture for their livelihood and this sector contributes around 17-18% to the country’s GDP (Gross Domestic Product). Currently, Indian farmers are getting used to farm mechanization at a faster rate as compared to the past, and this is reflected by the increased sale of agricultural machinery. Indian tractor industries have emerged as the largest in the world accounting for about one-third of total global tractor production, as put by the Economic Survey 2017-18.

To supply farmers with agricultural implements and machines at cheaper rates, assistance in the form of subsidy @ 25% to 50% of the cost of equipment/machine with permissible ceiling limits is available to all categories of farmers for the purchase of various agricultural equipment under various schemes of the Department of Agriculture and Cooperation, such as Macro Management of Agriculture, National Food Security Mission, Rashtriya Krishi Vikas Yojana(RKVY), National Horticulture Mission, etc. All these initiatives are helping the agricultural machinery market grow in India.

Trend 2

Competitive Landscape

The competitive landscape for the market studied is either consolidated or fragmented depending upon the vehicle type. Construction, Agriculture, Mining and Trucking industry is mostly characterized by the presence of global companies. The global players are forming partnerships with the local companies to further expand in the largest construction and mining equipment market. For instance, in compliance with the China IV emission standards Volvo Construction Equipment and SDLG announced a new strategy to further extend their cooperation and consolidate their 15 metric ton and above excavators into one product line by December 2020 for the Chinese market.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Vehicle Type

      1. 5.1.1 Construction Equipment

      2. 5.1.2 Mining Equipment

      3. 5.1.3 Agricultural Machinery

      4. 5.1.4 Medium & Heavy Duty Trucks

      5. 5.1.5 Others(Firetrucks, Ambulances, Recreational Boats)

    2. 5.2 Geography

      1. 5.2.1 Asia Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Australia

        6. Rest of Asia-Pacific


    1. 6.1 Vendor Market Share**

    2. 6.2 Company Profiles*

      1. 6.2.1 JCB Limited

      2. 6.2.2 Caterpillar Inc.

      3. 6.2.3 Kubota Corporation

      4. 6.2.4 Isuzu Motors Limited

      5. 6.2.5 Mahindra & Mahindra

      6. 6.2.6 Escorts Group

      7. 6.2.7 Hyundai Construction Equipment

      8. 6.2.8 Volvo Construction Equipment

      9. 6.2.9 Deere & Co.

      10. 6.2.10 AGCO Corporation

      11. 6.2.11 CNH Industrial N.V.

      12. 6.2.12 Hitachi Construction Machinery Co., Ltd.

      13. 6.2.13 Kobelco Construction Machinery Co. Ltd.

      14. 6.2.14 Liebherr Group

      15. 6.2.15 Hino Motors

      16. 6.2.16 Iveco


**Subject to Availability

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Frequently Asked Questions

The Asia Pacific Non Passenger Vehicle Market market is studied from 2018 - 2026.

JCB Limited, Caterpillar Inc., Kubota Corporation, Mahindra & Mahindra, Isuzu Motors Ltd. are the major companies operating in Asia Pacific Non Passenger Vehicle Market.

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