Market Research Report
Heavy-Duty Trucks Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||866630|
|Published||Content info||60 Pages
Delivery time: 2-3 business days
|Heavy-Duty Trucks Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: June 1, 2019||Content info: 60 Pages||
The global heavy-duty trucks market is expected to register a CAGR of around 4%, during the forecast period, 2019-2024.
The global heavy-duty trucks market has been segmented by tonnage type, application type, and geography.
Growth in Construction Activities to Drive the Demand for Heavy-duty Trucks
The heavy-duty commercial vehicle market is driven by logistics and the developments in the construction industry, which is expected to witness significant growth in the coming years, with good opportunities opening in infrastructure, residential, and non-residential sectors. Some of the major factors driving the market are increasing construction of multi-family houses (with the growing trend of nuclear families); and increasing investments in the construction of roads, highways, smart cities, metros, bridges, and expressways due to growing population and urbanization.
Asia-Pacific region is expected to be a major market propelling the global construction industry, with augmenting construction activities in countries, such as India and ASEAN countries.
ASEAN countries are expected to be a major market for propelling the heavy-duty truck industry, due to augmented demand for construction activities in Thailand, Vietnam, Indonesia, and other countries.
Thailand is one of the most significant hubs for contractors in Southeast Asia, with a huge construction sector base to invest in. With the rise in public infrastructure projects, such as the construction of transit lines and subway infrastructure, the demand for residential construction has been consistently increasing.
Additionally, the growing tourism industry, irrespective of political turmoil, is also increasing the demand for commercial buildings, such as shopping malls, restaurants, and hotels. For instance, the Thai Shopping Center Association is planning to invest in expanding the number of stores in the country in the next two years.
Moreover, with the allotment of Special Economic Zones (SEZ) in the country, a number of investors are getting attracted to the region, as the government is continually offering tax incentives and special funds for new construction activities.
The construction sector in Indonesia has a huge demand, owing to the increase in spending on infrastructure and population growth. The middle-income segment population has grown and is expected to grow further, during the forecast period.
Asia-Pacific Expected to Lead the Global Market
Asia-Pacific is expected to dominate the global heavy-duty trucks market and witness high growth rate in the coming years.
In the Asia-Pacific region, the demand is being driven by countries like China, India, and ASEAN countries. Some of the major factors driving the growth of the market in the region are increasing construction, mining, and logistics activities. 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 heavy-duty trucks market.
In China, the e-commerce business is continually growing. Local technology companies such as Alibaba Group, Tencent, and JD dominate a rapidly growing e-commerce ecosystem in the country. The rapid development of this industry combined with a large and growing digital consumer base has fueled tremendous growth both domestically and abroad via cross-border trade. Other factors driving the e-commerce business in the country are -
In India, e-commerce industry is likely to reach ~USD 125 billion by the financial year 2020, primarily due to increased internet penetration (cheap mobile data tariffs), convenience, promotional prices, improved supply side, and availability of numerous payment options. The country had over 500 million active internet users in 2018, of which 110 million shopped online at least once, and this trend is expected to increase in the coming years. This, in turn, is likely to increase the demand for heavy-duty trucks in the country.
The North American region is expected to witness slow growth rate in the demand for heavy-duty trucks. In the US, the market for heavy-duty trucks has been experiencing a sluggish growth rate in the last three years, for which the rate of success is expected to be tentative.
The growth in the heavy-duty trucks in the country is expected to remain below historical trends. The forecast for GDP growth is below the historic levels to some extent, in the range of 2.5% to 3%, primarily due to the result of slower-than-expected global growth.
As far as truck sales are concerned, the majority of high-performance trucks built in North America are sold in the United States alone.
The United States Environmental Protection Agency and the Department of Transportation's National Highway Traffic Safety Administration (NHTSA) have finalized the standards for medium- and heavy-duty vehicles, to improve fuel efficiency, as well as reduce carbon pollution to minimize the impacts of climate change.
Some of the major players dominating the market are Volvo Trucks, Daimler Trucks, Isuzu Motors Ltd., PACCAR Inc., Tata Motors, and FAW Group Corp.