Commercial Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Commercial Vehicles Market is segmented by Vehicle Type (Light Commercial Vehicles and Medium- and Heavy-duty Commercial Vehicles), and Geography.

Market Snapshot

Study Period:

2018 - 2026

Base Year:


Fastest Growing Market:

Asia Pacific

Largest Market:

North America


5.63 %

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Market Overview

The commercial vehicles market (henceforth, referred to as the market studied) is estimated to register a CAGR of over 5.63% during the forecast period, 2020-2025.

  • 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 2019. 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 for the market studied. The implementation of stringent emission regulations has led automobile manufacturers (OEMs) to shift toward electric vehicles. Moreover, various other players, such as Daimler, Toyota, and Volvo, are shifting toward electric vehicles, which is likely to result in growth opportunities in the market studied in the coming years.

Scope of the Report

A commercial vehicle refers to any type of motorized vehicle that is used for the transportation of goods. The commercial vehicles market study includes analysis of the vehicle type (light commercial vehicle, medium- and heavy-duty commercial vehicle), propulsion type (IC engine driven and electric commercial vehicles), and geography.

By Vehicle Type
Light Commercial Vehicles
Medium- and Heavy-duty Commercial Vehicle
Propulsion Type
IC Engine
Electric Vehicle
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
Rest of the World
South America
Middle-East and Africa

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Key Market Trends

Heavy-duty Commercial Vehicle Segment is Projected to Grow at a Fast Pace

The heavy-duty commercial vehicle segment of the market studied was valued at USD 268.65 billion in 2018, and it is projected to register a CAGR of 5.35%, during the forecast period.

The heavy-duty commercial vehicles (HCV) include vehicles with a gross vehicle weight rating greater than 16 metric ton, such as heavy trucks and buses.

During 2017-2018, China, Europe, and ASEAN countries, have seen a decline in the sales of HCVs. The fall in the sales of HCVs in the aforementioned regions in 2018 is due to few factors: slow economic growth, fluctuations in the growth of tourism and logistics sectors, and stringent trade policies. The North American region and countries, such as India and Japan, witnessed positive sales for HCV, in 2018.

Mining industry is on the rise after a slump in 2015. The industry made a profit of USD 66 billion in 2018 compared to a profit of USD 61 billion profit in 2017. Since mining industry is a major deployer of heavy-duty trucks, the improving condition of the industry is expected to boost the sales of heavy-duty trucks.

The demand for downsized engines, along with the deployment trend of multi-axle vehicles, is anticipated to boost vehicle performance. Volvo Trucks and Buses, Paccar, and ISUZU are some of the prominent players in the industry, capturing significant market share.

Owing to the growing tourism and increasing construction, mining, and logistics activities across several countries in the world, the demand for heavy-duty commercial vehicles is likely to increase during the forecast period. Thus, automobile manufacturers have initiated plans to expand their HCV business in the potential regions to capture the increasing demand for HCVs at the global level, during the forecast period. Owing to the increasing demand for operational efficiencies and achievement of economies of scales by companies in various sectors, commercial vehicle leasing and rental market is also on the rise.

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Asia-Pacific likely to Exhibit the Highest Growth Rate during the Forecast Period

Some of the major factors driving the growth of the market include increasing environmental concerns (owing to rising exhaust emissions), enactment of stringent emissions and fuel economy norms, and increasing government initiatives, in terms of subsidies and benefits for increasing the adoption rate of electric vehicles, and to replace heavy-duty diesel and gasoline-run vehicles with zero-emission electric vehicles.

Transit agencies across various countries have been significantly promoting the adoption of electric buses for public transportation. Although the penetration is very low in geographies, such as North America, adoption rate is picking up in Asia-Pacific and Europe. According to UITP, the share of electric buses among the entire bus sale will be 10% in 2019 and is expected to cross 20% market share in 2020.

The heavy-duty commercial electric vehicle market, which is driven by logistics and the developments in the construction and e-commerce industry, is expected to witness significant growth in the coming years, with good opportunities opening in infrastructure and logistic sectors. Electric vans are expected to hold a substantial market share in the future.

The commercial vehicle industry is heavily driven by construction industry. Neom project is a very ambitious venture of Saudi Arabia that aims at developing a smart futuristic city with a total area of 26500 square kilometers and a total length of 460 kilometers. The project has a gigantic cost of around USD 500 billion. China’s One Belt One Road initiative is a highly ambitious project that serves the purpose of constructing a unified market with geographies around world through road, rail and sea routes. Projects worth USD 120.7 billion are under construction in Africa.

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Competitive Landscape

The market studied is captured by major players, like Daimler AG, Toyota Motor Corporation, ISUZU, Mitsubishi Motor Corporation, and Hino Motors, among others, with Daimler AG leading the market.

ISUZU captures the major market share in Thailand, with the LCV segment dominating the market, followed by Toyota and other companies. Various initiatives taken by companies have led them to strengthen their presence in the market.

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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 Porter's Five Forces 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 By Vehicle Type

      1. 5.1.1 Light Commercial Vehicles

      2. 5.1.2 Medium- and Heavy-duty Commercial Vehicle

    2. 5.2 Propulsion Type

      1. 5.2.1 IC Engine

      2. 5.2.2 Electric Vehicle

    3. 5.3 Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.3.2 Europe

        1. Spain

        2. United Kingdom

        3. Germany

        4. France

        5. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. South America

        2. Middle-East and Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Isuzu Motors Ltd

      2. 6.2.2 Ford Motor Company

      3. 6.2.3 Fiat Chrysler Automobile

      4. 6.2.4 Hyundai Motor Co. Ltd

      5. 6.2.5 IVECO SpA (Industrial Vehicle Corporation)

      6. 6.2.6 Hino Motors Limited

      7. 6.2.7 Diamler AG

      8. 6.2.8 Volvo Group

      9. 6.2.9 Mitsubishi Motor Corporation

      10. 6.2.10 Toyota Motor Corporation

      11. 6.2.11 Scania AB

  7. *List Not Exhaustive


** Subject to Availability

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