Market Research Report
Medium and Heavy Duty Commercial Vehicles Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||938006|
|Published||Content info||70 Pages
Delivery time: 2-3 business days
|Medium and Heavy Duty Commercial Vehicles Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: May 1, 2020||Content info: 70 Pages||
The medium and heavy-duty commercial vehicles market is expected to register a CAGR of 5.1%, during the forecast period, 2020-2025.
Electric Commercial Vehicle to Witness Faster Growth
Across the globe, some of the countries have banned old commercial vehicles running on public roads to tackle the growing levels of vehicle emissions. Thus, the possibility of freight businesses, adopting new commercial vehicles that are eco-friendly, cost-effective, and align with the emission standards, will increase at the global level during the forecast period.
Analyzing the above situation and growing vehicle emission standards, the automakers continue to invest in R&D activities and plans to successfully develop and launch more electric commercial vehicles during the forecast period. For instance, Renault Trucks, after ten years of experimentation of its all-electric truck unveiled medium and heavy-duty electric vehicles in 2018 namely Renault Trucks D Wide Z.E and Renault Trucks D Z.E ideally suited for use in the cities of France. Renault is planning to launch Truck Models D and D Wide Z.E commercially in 2019.
The heavy-duty commercial electric vehicle market, which is driven by logistics and the developments in the construction & e-commerce industry, is expected to witness significant growth in the coming years, with good opportunities opening in infrastructure, logistic and transportation sectors.
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 climbing 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.
Furthermore, government incentive and subsidies, along with structural & functional improvements in design drives the sales of hybrid and electric trucks.
Heavy-duty Commercial Vehicle Segment is Projected to Grow at a Fast Pace in Asia-Pacific
The heavy-duty commercial vehicle segment of the market 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. The demand for downsized engines, along with the deployment trend of multi-axle vehicles, is anticipated to boost vehicle performance.
During 2018-19, 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. North American region and countries, such as India and Japan, witnessed positive sales for HCV, in 2019. In India, heavy truck sales reached an all time high at 351128 units in September 2019, 15% higher than previous year's 304313 units.
Mining industry is on the rise after a slump in 2015. The industry made a profit of USD 66 billion in 2018 compared to 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.
Owing to the growing tourism and increasing construction and logistics activities across several countries in the world, the demand for heavy-duty commercial vehicles is likely to increase during the forecast period. 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. Neom Project is a 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. Thus, to capture the growing demand for HCVs at the global level, during the forecast period, automobile manufacturers have initiated plans to expand their HCV business in the potential regions.
Owing to the growing 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.
The market studied is a moderately consolidated and is captured by major players, like Daimler AG, Toyota Motor Corporation, ISUZU and Mitsubishi Motor Corporation among others with Daimler AG leading the market.