Commercial Vehicle Market Size

Commercial Vehicle Market Size

Commercial Vehicle Market size was valued at USD 8.8 trillion in 2022 and is estimated to register a CAGR of over 6% between 2023 and 2032, driven by stringent emission standards and fuel efficiency regulations across several economies worldwide. Governments around the world are increasingly implementing strict emission standards and fuel efficiency regulations to address environmental concerns. This has led to a growing demand for more fuel-efficient and environmentally friendly commercial vehicles.

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For an instance, between January and September 2023, data from the transportation ministry and the Korea Automobile Manufacturers Association revealed that 32.1 percent of new vehicle customers opted for eco-friendly models, including hybrids and electric units. This marks the first instance of the annual rate for new eco-friendly models surpassing 30 percent, with the rate standing at 20.4 percent in 2021 and increasing to 28.5 percent in 2022. Government and industry data indicate that one-third of all new vehicle purchases in the first nine months of 2023 were accounted for by eco-friendly cars.

The rise in E-commerce and Last-Mile Delivery demand will be a prominent factor driving the commercial vehicle market over the forthcoming years. The positive outlook of e-commerce has significantly increased the demand for last-mile delivery services. According to the US Department of Commerce, in 2022, e-commerce sales in the United States achieved a historic milestone by surpassing $1 trillion for the first time, reaching $1.03 trillion. The year-over-year growth of e-commerce stood at 7.7%, marking the slowest rate of growth since 2009. Despite this, the overall e-commerce penetration for the year experienced a modest increase from 21% in 2021 to 21.2%.

With more goods being ordered online, there is an increased need for efficient and reliable transportation of these goods from distribution centers to end consumers. This trend has driven demand for various types of commercial vehicles, including vans and trucks optimized for urban deliveries. On the other hand, fluctuating fuel prices could limit the adoption of commercial vehicles over the next ten years.

Commercial vehicles, especially trucks and buses, heavily rely on fuel for their operations. Fluctuating and unpredictable fuel prices can pose a challenge for both businesses and consumers in the commercial vehicle market. High fuel prices can increase operating costs for fleet owners, making it challenging to invest in or upgrade their commercial vehicle fleets. In such situations, there may be a tendency to delay purchases or opt for more fuel-efficient alternatives.