Heavy Commercial Vehicle Market Size, Share & Trends Analysis 2020-2027
The global Heavy Commercial Market was valued at USD 269.67 billion at the end of 2019 and is expected to grow at a CAGR of 5.5% over the forecast period. As per the OICA standards any vehicle weighing more than 7 tonnes, comes under the category of Heavy Commercial vehicle which is mainly used in the transportation of people, goods, and materials. Rapid industrialization, up-gradation of roads, manufacturing of highways, development of logistics, and growth of public transportation in most parts of the world are some of the major drivers which are expected to grow the Heavy commercial vehicle market in the upcoming years.
Governments across the globe have stringent laws for passenger safety and good transport making the transport safer. This promotes various manufacturers to upgrade the existing products in the heavy commercial vehicle segment and increase their market share. Strict laws are already in place in the US which regulates the size of goods & materials being carried in the vehicle. Such increased rules and regulations are expected to increase the utilization of commercial vehicles and thereby increasing its market share.
Increasing in innovations of telematics services in heavy commercial vehicles is further expected to boost its demand. Telematics is often used to get updates on road networks, get weather reports, updates on traffic data, etc. which are sold as value addition in the heavy commercial vehicles. These features in coordination with technology have better connect in transition and also prevents unauthorized access with good security. Combinedly, all these features offer the amalgamation of technology and automobile which is expected to increase its market share largely as the adoption of such vehicles is expected to increase in the upcoming years.
The global heavy commercial vehicle market is segmented on the basis of the type of fuel that is used to run these vehicles. As per the international standards, these vehicles are bifurcated on the basis of fuel as Gasoline and Diesel. Gasoline as a fuel is very popular in the western hemisphere whereas, for European and APAC regions, heavy commercial vehicles are driven by diesel which is less costly than gasoline and also provides better performance.
Application type overview
The heavy commercial vehicle market is segmented on the basis of its application type, which is on the area of usage for these vehicles. These are buses, trailers, tractor, construction equipment, and truck. The application type is largely dependent upon the usage of vehicles. Buses and trucks have the largest market share in heavy commercial vehicles due to its wide applications across the globe, followed by tractors and trailers which are largely used in farming, construction, and logistics for transporting containers from one place to another.
The heavy commercial vehicles are bifurcated largely on the basis of the presence of axles within them, these are mainly, 2 axels, 3-4 axles, 5 axles, and above 5 axles. The presence of axels largely depends on the application types, mostly multi-axels are used in the transportation of heavy goods and are used in most industrial equipment and containers. The multi-axels also find the application in modern buses with upgraded facilities like washrooms and extended space for luggage. The 5 and more axles are widely used transporting huge fan blades for windmills and can be seen frequently in coastal areas.
The North American and European region holds the large market share in terms of heavy commercial vehicles utility, owing to the developed roadways infrastructure and proper rules and regulations for the transit of such vehicles. The APAC and Latin American region closely follow the above regions with government initiatives in upgrading the existing infrastructures and promotion of goods transport the region is expected to grow at a steady CAGR in the upcoming years. A recent example is the development projects undertaken in Pakistan occupied Kashmir by China to build the CPEC corridor and an initiative by the Government of India to start the development projects in Goa for coal transport.
Daimler AG, Toyota Motor Corporation, Ford Motor Corporation, Dongfeng Motor Corporation, and Scania AB are some of the major players in the heavy commercial vehicle segment. This research report forecasts revenue growth, market drivers, upcoming trends, and competitor’s analysis at Global, regional, and local levels and provides appropriate industry trends. For the purpose of this research study, UpGraph Research and Consultancy have segmented the global heavy commercial vehicle market research report based on the below segments.
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