(MENAFN- Comserve) Shibuya-ku, Tokyo, Japan, Japan, Sep 01, 2021, 08:35 /Comserve / -- Commercial Vehicles Market With Top Countries Data, Industry Analysis , Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast
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 face by Italy and the United Kingdom in Western Europe and in countries, including Poland in Central Europe, where the trucking industry prominently supports the European goods movement.
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Major economies of Asia-Pacific, such as China, Japan, India, and South Korea, are projected to witness a decline of 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. 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.
Increasing number of construction and e-commerce activities resulted in 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 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.
Key Market Trends
Electric Commercial Vehicles Segmented Is Expected To Witness High Growth
The demand for electric vehicles has increased due to increasing freight and logistics and construction activities across the world. Other factors, such as stringent emissions regulations, electrification, and 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 around the world, 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,
During January 2020, Peterbilt Motors Company and Dana Incorporated have 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 across the world 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 to be 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.
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, the 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 2021.
The 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.
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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.
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.
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Driver
4.2 Market Restraint
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
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