Commercial Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Commercial Vehicles Market is Segmented by Vehicle Type (Light Commercial Vehicles and Medium- and Heavy-duty Commercial Vehicles), Propulsion Type (IC Engine and Electric Vehicle), Application Type (Freight and Logistics, Industrial, and Other Applications), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Report Offers Market Size and Forecast of the Commercial Vehicle Market in Value (USD million) for the Above-mentioned Segments.

Commercial Vehicle Industry Overview

Commercial Vehicle Market Summary
Study Period: 2018 - 2028
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 5.32 %

Major Players

Commercial Vehicle Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Commercial Vehicle Market Analysis

The commercial vehicles market was valued at USD 719 billion in 2020 and is estimated to register a CAGR of over 5.32% during the forecast period, 2021-2026.

Recent COVID-19 has led to declining sales due to low industrial activities and growth. North America has witnessed a production decline of approximately 30% in Class 4-8 commercial vehicle production due to an economic slump, combined with a decline in new orders.

Europe has become the epicenter of COVID-19 impact, with approximately 50,000 units of lost production in March and April due to stringent plant closures, workplace controls across the region, supply chain challenges, and stay-at-home orders. Compared to the previous year, the European region's production of commercial vehicles declined by approximately 20% by the end of 2020. The sharpest decline in demand is anticipated to be faced by Italy and the United Kingdom in Western Europe and countries, including Poland, in Central Europe, where the trucking industry prominently supports the European goods movement.

Major economies of Asia-Pacific, such as China, Japan, India, and South Korea, are projected to decline approximately 25% in 2020.

The expansion of the industrial sector in the emerging markets and the development of commercial operations in logistics led to significant demand for commercial vehicles in 2019. Moreover, this demand is anticipated to continue to increase, owing to recovering economies across both developing and developed regions, which is expected to drive market growth in the coming years.

The increasing number of construction and e-commerce activities increased the demand for material transportation, which 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 increasing number of construction and e-commerce activities led to an increase in demand for material transportation, which is likely to drive the growth of the market studied in the near future. Also, the shift toward electric vehicles is expected to provide growth opportunities for the market studied.

The shift toward electric vehicles is expected to provide growth opportunities for the market studied. The implementation of stringent emission regulations 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.

Commercial Vehicle Industry Segments

A commercial vehicle refers to any motorized vehicle that is used for the transportation of goods. The commercial vehicles market has been segmented by vehicle type, propulsion type, application type, and geography. By vehicle type, the market has been segmented into light commercial vehicles and medium- and heavy-duty commercial vehicles. By propulsion type, the market has been segmented into IC engines and electric commercial vehicles. By application type, the market has been segmented into freight and logistics, industrial, and other applications. By geography, the market has been segmented into North America, Europe, Asia-Pacific, and the Rest of the World, with country-level analysis. For each segment, the market sizing and forecasting are based on value (USD million).

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

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Commercial Vehicle Market Trends

This section covers the major market trends shaping the Commercial Vehicle Market according to our research experts:

Electric Commercial Vehicles Segment Is Expected to Witness High Growth

The demand for electric vehicles increased due to the increasing freight, logistics, and construction activities worldwide. Other factors, such as stringent emissions regulations, electrification, alternative fuels, the driver shortage, autonomous vehicles, and last-mile delivery, are expected to fuel the growth for electric trucks over the forecast period.

Green transportation is swiftly growing worldwide, owing to which the goods transportation companies are also converting their existing fleet into electric propulsion-based vehicles. As the demand for electric trucks is growing, vehicle manufacturers are planning to launch more electric trucks. For instance,

In January 2020, Peterbilt Motors Company and Dana Incorporated announced their collaboration on electric powertrain development for Peterbilt Model 220EV battery electric vehicles. The 220EV features a range between 100 to 200 miles. Using the vehicle's DC fast-charging system, the high-energy-density battery packs can recharge in an hour, making the 220EV ideal for local pickup and delivery, as well as short regional haul operations.

In December 2018, Daimler Trucks North America (DTNA) delivered the first Freightliner eM2 medium-duty electric truck to Penske Truck Leasing, which announced plans to put additional eM2 units into targeted service in its logistics, truck leasing, and truck rental fleets.

In May 2020, BYD Europe announced its plans to launch an e-truck range in the European market. It plans to introduce a full range of battery electric vehicles (BEV) in the commercial vehicle sector, including a panel van, 7.5 metric ton, and 19 metric ton rigid distribution trucks, which are underway.

In February 2020, Volvo Trucks displayed its North American Class 8 battery-electric project trucks in Fontana, California. In Europe, Volvo Trucks recently started the sales of electric trucks for urban transport and demonstrated electric concept trucks for construction operations and regional distribution.

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

However, there are certain risks associated with the adoption of e-trucks. New vehicles must prove dependable and perhaps require customers and dealers to equip them with adequate knowledge regarding their operations. Furthermore, the inadequate charging infrastructure for electric trucks is expected to hinder the market's growth.

Commercial Vehicle Market, Share (%) By Propulsion Type, 2020

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 the increasing environmental concerns (owing to the rising exhaust emissions), enactment of stringent emissions and fuel economy norms, and the increasing government initiatives in terms of subsidies and benefits to increase the adoption rate of electric vehicles and 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, the adoption rate is picking up in Asia-Pacific and Europe. According to the UITP, the share of electric buses among the entire bus sale will be 10% in 2019, and it is expected to cross 20% market share in 2021.

The commercial electric vehicle market, driven by logistics and developments in the construction and e-commerce industry, is expected to witness significant growth in the coming years, with good opportunities opening in the 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 the 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 26,500 square kilometers and a total length of 460 kilometers. The project costs around USD 500 billion. China’s One Belt One Road initiative is a highly ambitious project that serves to construct a unified market with geographies worldwide through road, rail, and sea routes. Projects worth USD 120.7 billion are under construction in Africa.

Commercial Vehicle Market: Growth Rate by Region (2021 - 2026)

Commercial Vehicle Market Competitor Analysis

The market studied is captured by major players, like Daimler AG, Toyota Motor Corporation, ISUZU, Mitsubishi Motor Corporation, and Hino Motors, 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 by companies have led them to strengthen their presence in the market.

Commercial Vehicle Market Top Players

  1. Diamler AG

  2. Dongfeng Motor Corporation

  3. Ford Motor Corporation

  4. Toyota Motor Corporation

  5. Scania AB

*Disclaimer: Major Players sorted in no particular order

Commercial Vehicle Market Concentration

Commercial Vehicle Market Recent Developments

  • In January 2020, Isuzu Motors Limited and Honda R&D Co., Ltd, an R&D subsidiary of Honda Motor Co., Ltd., signed an agreement to undertake joint research on heavy-duty trucks, utilizing fuel cells as the powertrain.
  • In March 2020, BYD received an order from the South American public transport provider, Transcarsell. The company from Ecuador ordered 20 electric trucks from BYD for delivery by 2021, the first of which is scheduled for August 2020.
  • In June 2020, Volkswagen AG signed a contract with Ford for joint projects on commercial vehicles, EVs, and autonomous driving. Both players will collaborate on commercial vehicles, including City Van, created and built by Volkswagen Commercial Vehicles, the 1-ton cargo van engineered by Ford, and the Volkswagen medium pickup, built on the Ford Ranger platform from 2022.
  • In April 2021, Toyota further expanded its electric line-up choice with its new PROACE and PROACE Verso Electric, thus, adding a powerful new dimension to its Toyota Professional range of light commercial vehicles.
  • In February 2021, Daimler Truck AG and Cummins Inc. announced global plan for developing medium-duty commercial vehicle engine systems. This partnership focuses on identifying potential synergies in areas such as powertrain components and engine system components.
  • In January 2021, Alexander Dennis Limited (ADL) and BYD UK jointly announced that ADL and BYD would commence the design and assembly of chassis for the BYD ADL partnership's electric single and double deck buses for the British market.

Commercial Vehicle Market Report - Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Driver

    2. 4.2 Market Restraint

    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 By Propulsion Type

      1. 5.2.1 IC Engine

      2. 5.2.2 Electric Vehicle

    3. 5.3 By Application Type

      1. 5.3.1 Freight and Logistics

      2. 5.3.2 Industrial

      3. 5.3.3 Other Applications

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.4.2 Europe

        1. Spain

        2. United Kingdom

        3. Germany

        4. France

        5. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.4.4 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

    3. *List Not Exhaustive

**Subject to Availability
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Commercial Vehicle Market Research FAQs

The Commercial Vehicle Market is studied from 2018 - 2028.

The Commercial Vehicle Market is growing at a CAGR of 5.32% over the next 5 years.

The Commercial Vehicle Market is valued at 982 Billion USD in 2018.

The Commercial Vehicle Market is valued at 1600 Billion USD in 2028.

Asia Pacific is growing at the highest CAGR over 2018 - 2028.

North America holds highest share in 2021.

Diamler AG, Dongfeng Motor Corporation, Ford Motor Corporation, Toyota Motor Corporation, Scania AB are the major companies operating in Commercial Vehicle Market.

Commercial Vehicle Industry Reports

In-depth industry statistics and market share insights of the Commercial Vehicle sector for 2020, 2021, and 2022. The Commercial Vehicle research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Commercial Vehicle report PDF.

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