Asia Pacific Non Passenger Vehicle Market Size

APAC Non Passenger Vehicle Market Analysis

Currently, Asia Pacific Non-Passenger Vehicle Market is valued at USD 541.12 Billion and is expected to reach USD 726.25 Billion in the next five years registering a CAGR of around 6%, during the forecast period.

The outbreak of the coronavirus disease (COVID-19) acted as a massive restraint on the automotive parts and components market in 2020, as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. However, government incentives, growing regional demand, and easy availability of raw materials are expected to drive market growth during the forecast period.

Over the long term, increasing investments in production capacity by major industry players, massive government spending on infrastructure, electrification of the equipment, and growing urbanization as well as rising demand for construction equipment like excavators, backhoe loaders, and road machinery is creating demand in the automotive and transportation industry with a surge in sales of construction equipment.

Factors like increasing regulations on vehicle emissions, advancement in vehicle safety, the introduction of driver-assist systems in vehicles, and rapidly growing logistics in the retail and e-commerce sectors have been significantly driving the demand for the new and advanced commercial vehicles in the market.

The demand for LCVs is likely to increase, as the logistics and e-commerce industries are growing rapidly. Additionally, the rapid urbanization has created new retail and e-commerce platforms, which require efficient logistics, leading to the growth of the light commercial vehicles (LCV) market.

Governments across the world and in Asia-Pacific are putting pressure on vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, in turn, pushing them to invest in developing electric trucks (e-trucks). Meanwhile, low-emission zones are driving fleets to replace diesel trucks with cleaner options.

Key players in the market are expanding their production capacity and launching new products to cater to the increased demand for construction equipment. For instance,In August 2022 Sany Heavy Industry started operations at their first manufacturing facility in Indonesia with the rollout of locally produced SY315CKD excavator. The factory is built in 100000 square meter area with an investment of USD 30 million.In May 2022, JCB launched 19C-1E India's first fully electric excavator at Excon 2022.