Grand View Research has produced a new outlook report on the global commercial vehicle market.
Within the report, Grand View estimates the global CV market will reach $1.82 trillion by 2028 with a compounded annual growth rate (CAGR) or 5.2 percent. Grand View cites infrastructure development, the growth of the construction and mining industries, and the subsequent need for the development of road infrastructure to drive the growth. Additionally, the unabated growth of the e-commerce industry, which has drastically transformed the logistics industry, is also expected to drive the demand for commercial vehicles. Finally, advancements in technology and the continued integration of telematics and communication capabilities into commercial vehicles also bodes well for the growth of the market over the forecast period.
Grand View says key insights and findings discussed in detail in its report include:
- The light commercial vehicles (LCVs) segment is estimated to register the highest CAGR of around 5 percent over the forecast period. The growth can be attributed to the dynamic nature of these vehicles. LCVs can be modified and used for the transportation of goods as well as passengers
- Logistics was the largest segment in 2020 and is anticipated to reach $530.85 billion over the forecast period. The growing trade activities in developing economies coupled with the strengthening logistics infrastructure are some of the prime factors that are expected to drive the segment growth
- North America accounted for the largest market share in 2020. As a result, easy availability of convenient financing options, a strong emphasis by the governments in the region to ensure in-house automotive production, and aggressive investments in infrastructure development are some of the factors that are expected to contribute to the growth of the regional market
Grand View notes the outbreak of the COVID-19 pandemic took its toll on the demand for commercial vehicles in 2020. The lockdowns imposed in various parts of the world as part of the efforts to arrest the spread of coronavirus affected several industries and industry verticals, including manufacturing, automotive, entertainment and hospitality. Nevertheless, the market is looking forward to some respite in the short term as various governments are gradually relaxing the restrictions and allowing businesses to operate with mandates, such as social distancing; and the demand for cars from the middle-class population is growing.
Finally, the company states North America accounted for a market share of around 50 percent in 2020 and is estimated to register a CAGR of over 3 percent over the forecast period. Apart from the growing purchasing power of the population in North America, the region also is witnessing continued investments in infrastructure development. At the same time, the governments of North American countries are particularly focusing on having in-house automotive production. Digitization of trucks in line with the growing preference for connected trucks is expected to offer new business opportunities for key OEMs, including Volkswagen (MAN & Scania), Daimler AG, and Volvo. These OEMs are expected to invest aggressively in telematics solutions, thereby contributing to the growth of the regional market over the forecast period, Grand View states.
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