Commercial Vehicles Market: Global Industry Analysis by Market Share, Trend, Size, Competitive Landscape, Regional Outlook and Forecast (2025-2032)

The Commercial Vehicles Market size was valued at USD 848.63 Billion in 2024 and the total Commercial Vehicles revenue is expected to grow at a CAGR of 4.7% from 2025 to 2032, reaching nearly USD 1225.45 Billion.
Overview
Commercial vehicles are used for the transportation of goods or people. These vehicles include freight vehicles, company vans, minivans, pick-up trucks, and sports utility vehicles, heavy-duty trucks, buses, and coaches. Commercial vehicles are used for various applications such as passenger transportation, logistics, industrial, mining, and many more. In logistics operations, commercial vehicles are in high demand due to growing industrial activities in developing markets. However, the demand is expected to increase due to the growing economies of developing countries during the forecast period. The availability of freight and the degree of transportation and logistics operations fuel the growth of the Commercial Vehicles Market. Growing construction activities have also boosted demand for material and commodities transportation, resulting in a rise in commercial vehicle sales globally. The government has implemented rules to properly manage the number of items being transported in commercial vehicles.To know about the Research Methodology :- Request Free Sample Report
Commercial Vehicles Market Dynamics
Electrification of Fleets Trend Drive Market Growth

The commercial vehicles market is experiencing significant growth driven by the electrification of fleets. With increasing environmental regulations and a global push towards sustainability, companies are rapidly adopting electric commercial vehicles (ECVs). This shift is fueled by advancements in battery technology, leading to longer ranges and shorter charging times, making ECVs a viable alternative to traditional diesel-powered vehicles. The lower total cost of ownership (TCO) due to reduced fuel and maintenance costs is compelling fleet operators to transition to electric. Government incentives and subsidies further bolster this growth, providing financial support for the adoption of ECVs. As the infrastructure for electric vehicle charging continues to expand, the electrification of fleets is poised to be a cornerstone of growth in the commercial vehicles industry, paving the way for a cleaner, more sustainable future. India’s transport sector accounts for approximately 14% of the country’s total CO2 emissions (ICCT,), with freight vehicles (HCV and LCV) contributing 38% and intermediate para-transit vehicles contributing 15%. In alone, around 716,566 of commercial vehicles were sold in India (SIAM,) making it critical for businesses to convert their fleets to zero-emission electric vehicles.

The shift towards electric mobility for Mobility-as-a-Service (MaaS) fleets is a positive change. It allow transportation companies to meet customers' evolving needs and comply with regulations, all while reducing their carbon footprint. This help them improve their products, reduce risks, and lower their environmental impact. By adopting the right business models and growth strategies to transition to electric vehicles, the MaaS industry can rapidly position itself for long-term success. The drive towards successful fleet electrification is no longer a vision for the future; it is now a reality. As governments and organizations embrace electric fleets, various factors contribute to this transition, including power availability, infrastructure, and services supporting EV charging. Powering EVs requires significant investment in charging infrastructure. Fleet charging, which currently represents less than 10% of the total charging infrastructure in terms of volume, accounts for 15% of the total market value. With growing interest in fleet electrification, the fleet charging sector is expected to grow rapidly.

Electrification is the process of transitioning from fossil-fuel-powered vehicles to electric vehicles. By the year 2040, U.S. fleets operate more than 15 million EVs and in Europe vehicle manufacturers are targeting to stop production of internal combustion passenger vehicles by and all vehicles by 2030. Governments everywhere are passing laws that make electrification the standard within the next decade. These factors are expected to boost the Commercial Vehicles Market growth.

Technological Innovations Driving Efficiency and Safety and Boost the Market Growth

Technological advancements are another key growth driver in the Commercial Vehicles Market. The integration of advanced driver-assistance systems (ADAS), telematics, and connectivity features is revolutionizing the industry. ADAS technologies, including lane-keeping assist, adaptive cruise control, and automated emergency braking, enhance safety and reduce accident rates, thereby lowering insurance costs. Telematics systems provide real-time data on vehicle performance, fuel efficiency, and driver behavior, enabling fleet managers to optimize operations and reduce costs. Additionally, the adoption of IoT and AI in vehicle management is leading to predictive maintenance, minimizing downtime and maximizing fleet efficiency. These technological innovations are not only enhancing operational efficiency and safety but are also making commercial vehicles smarter and more reliable, driving substantial growth in the market.

Three Digital Technologies Shaping the Future of Commercial Vehicles

R&D, including new material discovery, novel technological approaches, as well as applied engineering, is key to addressing many of the performance and cost challenges faced by the industry to produce highly efficient affordable windows that can achieve mainstream market acceptance. These technologies are generally expected to offer significant energy savings compared to the current cost-effective technology, but they also have other energy and nonenergy benefits reduced peak load, time-shifted envelope-related thermal loads to match distributed renewable generation availability, reduced glare, increased thermal comfort, and improved occupant satisfaction and productivity. This factor is expected to drive the market growth and create lucrative opportunities for the Commercial Vehicles Industry.

For instance, the development of new A.C.E. technologies in commercial vehicles is a raft of international agreements and regulations. These pressures combine with the industry's ongoing efforts to improve safety, gain operational efficiency and reduce emissions while meeting the accelerated demand for transporting goods around the world. In June , environmental ministers from the E.U.'s 27 member states agreed to introduce a 100% CO2 emissions reduction target by 2035 for new cars and vans. An intermediate objective of 55% for cars and 50% for vans was set for 2030. As the demand for transporting goods continues to expand against the backdrop of significant driver shortages, it becomes even more important to have tools to maximize routing efficiencies and utilization. The traditional commercial vehicle value chain and corresponding models of engagement are being challenged to provide development and manufacturing solutions that support the mass adoption of advances in A.C.E. technologies. Such partnerships are expected to drive the Commercial Vehicles Market Growth.

The heavy-duty trucks are highly used to deliver items such as fertilizer, feed, and fuels; go into the fields as part of the harvest equipment; and haul the crops to markets, warehouses, or packing and processing plants. Most livestock is trucked to market. Key players operating in the global heavy-duty trucks used as major commercial vehicles are Dongfeng Motor Group Company Ltd., Daimler Group, Ford Motor Company, Eicher Motors Limited, Navistar, Paccar, Tata Motors, Scania AB, Volkswagen, Peterbilt Volvo Freightliner, Kenworth, and Oshkosh Corporation.



Expanding Infrastructure Projects to Fuel Commercial Vehicle Demand

The burgeoning expansion of infrastructure projects globally stands as a pivotal growth driver for the commercial vehicles market. Governments and private entities are investing heavily in the development of roads, bridges, airports, and other critical infrastructure. This surge in construction activities necessitates a robust fleet of commercial vehicles to transport materials and equipment efficiently. The rise in urbanization and the need for improved public transportation systems further bolster the demand for buses and commercial transit vehicles. This trend is particularly pronounced in emerging economies where infrastructure development is accelerating rapidly. The ripple effect of these investments not only drives immediate demand for commercial vehicles but also stimulates ancillary industries, creating a sustained growth trajectory for the Commercial Vehicles Market.

The manufacture of hybrid and electric vehicles is advancing due to a focus on pollution control and strict environmental restrictions, which is encouraging Commercial Vehicles Market growth. To comply with government regulations, consumers and manufacturers are forecasted to seek more environmentally friendly automobiles, putting a value on hybrid and electric vehicles, which are driving the market. In US the EV sales skyrocketed 81% in the latest month, while hybrid sales were up 32%. However, the vast majority of Ford's sales nearly 90% continued to be from traditional internal combustion engine vehicles. Hybrid vehicles continue to be a growth segment for Ford and sales have grown at a faster rate than the overall U.S. industry for much of the last year.

Global EV sales continued as expected by us at the beginning of . A total of 14.2 million new Battery Electric Vehicles (BEV) and Plug-in Hybrids (PHEV) were delivered during , an increase of +35 %. 10 million were pure electric BEVs and 4.2 million were Plug-in Hybrids (PHEV) and Range Extender EVs (EREV). China is, by far, the largest EV market with 8.4 million units in and 59 % of global EV sales. With 9.3 million EVs made, China's role as the largest EV production base is even stronger: 65 % of global EV sales in came out of China. 900 000 EVs were exported from China, most of them (530k) by Western brands. The largest exporters were Tesla, SAIC (MG, Maxus), Geely (Volvo, Polestar, Lynk, Smart) BYD, Renault (Dacia), BMW and Great Wall. All others exported below 20 000 units each.

E-Commerce Boom Boosts Commercial Vehicle Sales

The exponential growth of the e-commerce sector is significantly propelling the commercial vehicles market. With the increasing preference for online shopping, there is a heightened demand for efficient and timely delivery services. This surge in e-commerce activities necessitates a substantial increase in the number of delivery vans, trucks, and other commercial vehicles to meet customer expectations for swift and reliable deliveries. Companies are expanding their logistics and distribution networks, leading to higher procurement of commercial vehicles. Moreover, innovations in last-mile delivery solutions and the expansion of logistics services in rural and remote areas further amplify this demand. This e-commerce-induced growth is reshaping the commercial vehicle landscape, driving advancements in vehicle technology and fleet management systems to enhance operational efficiency.



Top Manufacturers of Global Commercial Vehicle Sales by Quarterly in 2023 (in Unit Sales)



Company Name
Category
Quarter-I
Quarter-II
Quarter-I
Quarter-II


Tata Motors
M&HCV
xx
xx
xx
39,549


I&LCV
xx
xx
xx
15,027


Passenger Carrier
xx
xx
xx
10,456


SCV cargo and pickup
xx
xx
xx
47,113


Diamler
 -
xx
131,888
xx
xx


Other
-
xx
xx
xx
xx



The growing electric vehicles market due to the increasing freight, logistics, and construction activities is expected to drive the market during the forecast period. The implementation of strict regulations to decrease excessive emissions has pushed vehicle manufacturers to design and construct low-emission fleets to replace diesel trucks with cleaner options. Thus, Electric commercial vehicles have become a far more appealing choice due to their better range, battery life, dependability, and cost. As a result, the growing electric Commercial Vehicles Market is expected to drive the growth of the market.

High Operating Costs to Restrain the Market Growth

One significant restraining factor in the commercial vehicles market is the high operating costs associated with these vehicles. Commercial vehicles, including trucks and buses, typically require substantial investment in fuel, maintenance, and insurance. Fuel prices are a critical component, as fluctuations significantly impact operating budgets. Additionally, commercial vehicles often face higher maintenance costs due to the demanding nature of their usage, requiring frequent servicing and replacement of parts. Insurance premiums for commercial vehicles are also considerably higher compared to personal vehicles, reflecting the increased risk associated with their operation. These cumulative costs is prohibitive for small and medium-sized enterprises, limiting their ability to invest in new or upgraded vehicles. As a result, the high operating costs serve as a substantial barrier, is expected to hinder market growth and deterring potential entrants from investing in commercial vehicle fleets.
Commercial Vehicles Market Segment Analysis
By Type

Based on type, the light commercial vehicles (LCVs) segment held the commercial vehicles market in 2024. LCVs are favored as a cost-effective solution for transporting goods and passengers. They offer significant tax benefits and help reduce emissions. Additionally, LCVs are highly versatile and is adapted for various purposes, making them suitable for transporting both goods and passengers. Their cost-effectiveness is anticipated to further drive the segment's growth. The light truck segments in India are classified in the 3.5T to 7T gross weight category that continues to play a crucial role in logistics/cargo shipments for small or medium fleet operators. These trucks are deployed in last-mile and regional logistics needs are also a significant source of employment to first-time truck buyers and transport entrepreneurs. The annual volumes of LCV sales in the overall truck market make them attractive to truck makers that are eyeing to expand into this extensive truck category.

The buses and coaches segment is projected to experience a compound annual growth rate (CAGR) of 3.1% from 2025 to 2032. This Commercial Vehicles Market growth is primarily driven by the increasing use of buses and coaches in the healthcare and tourism sectors. Buses and coaches are the most economical mode of transportation, boosting their demand and sales. Furthermore, the rising adoption of electric buses in both developed and developing countries to reduce vehicular emissions supports the positive outlook for the buses and coaches segment.

By End User:

Based on end user, the logistics segment held the largest Commercial Vehicles Market share in 2024. The segment's growth is driven by advancements in global trade and the strengthening of logistics infrastructure. Additionally, the rapid expansion of the e-commerce industry positively impacts the logistics sector. The passenger transportation segment is expected to achieve a compound annual growth rate (CAGR) of over xx% during the forecast period. The rising adoption of public transportation is fuelling the demand for commercial vehicles. Public transport is particularly effective in urban areas, offering time and cost efficiency compared to personal car use. The accessibility and affordability of public transportation, along with the increasing total cost of ownership of personal vehicles, are key factors supporting the growth of the passenger transportation market.
Commercial Vehicles Market Regional Analysis
North America dominated the largest market share in 2024. The rising demand for long-distance operations from fleet management in North America is significantly boosting the commercial vehicles market. Additionally, advancements in the industrial sector and stringent government regulations on load-carrying capacity have contributed to market growth. The presence of a unified supply network and the strong connection between manufacturers and consumers through multiple transportation mediums—maritime, air, truck, and rail are key drivers. The availability of various financing options further supports market expansion. Aggressive investments in infrastructure development, the presence of leading automotive manufacturers, and favorable government support have significantly propelled the North American commercial vehicles market in recent years. Moreover, the growing demand for light commercial vehicles, driven by the increasing penetration of online cab and car rental services, is accelerating market growth. For instance, the American-based auto industry is a vibrant player in today’s global economy. More countries are now importing auto-related products from the United States. Exports of cars and parts amounting to nearly $97 billion were shipped from U.S. ports in 16 percent more than America exported just 15 years ago. Today, the U.S. exports vehicles or parts to 206 Countries around the world. such factors are expected to support this regional market growth. New R&D initiatives are transforming the industry to better respond to the opportunities of the 21st century. International automakers now have almost 70 U.S.-based R&D facilities that employ more than 7,000 workers.

Additionally, the US target for commercial trucks and buses is 30% zero-emission vehicles for new sales in 2030 and 100% in 2040. Accordingly, the Joint Office of Energy and Transportation and EPA just last week released the National Zero Emission Freight Corridor Strategy, which helps to prioritize where and when to deploy zero-emission vehicle infrastructure to meet these targets. Additionally, Inflation Reduction Act incentives support the deployment of as many as 1.1 million class 4-8 zero-emission vehicles through 2030, which would represent about 10% of the stock of these vehicles. The ICCT estimated that nearly 600,000 chargers providing 69,000 MW of nameplate capacity would serve them, although the stock of chargers needs to continue to grow beyond 2030. This factor is expected to create a lucrative opportunity for Commercial Vehicles Market growth.

Asia Pacific regional market is projected to experience significant growth during the forecast period, driven by increasing demand for transportation, warehousing, and unified logistics solutions. Strengthening road infrastructure, availability of cost-effective labor and raw materials, and the rise in manufacturing facilities, particularly in developing economies like China and India, are key factors contributing to this growth.
Global Commercial Vehicles Market Scope: Inquire before buying



Global Commercial Vehicles Market


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 848.63 Bn.


Forecast Period 2025 to 2032 CAGR:
4.7%
Market Size in 2032:
USD 1225.45 Bn.


 Segments Covered:
by Type
Light Commercial Vehicles (LCVs)
Heavy Trucks
Buses & Coaches


by Fuel Type
I.C. Engine
Electric Vehicle (EV)


by End Use
Industrial
Mining & Construction
Logistics
Passenger Transportation
Others



Commercial Vehicles Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Commercial Vehicles Key players
North America Commercial Vehicles Manufacturer
1. General Motors (USA)
2. GMC (USA)
3. Tesla (USA)
4. Rivian (USA)
5. Ford Motor Company (USA)
6. Others
Europe Commercial Vehicles leading companies
7. Daimler (Germany)
8. AB Volvo (Sweden)
9. Volkswagen AG (Germany)
10. Bosch Rexroth AG (Germany)
11. Others
Asia Pacific Commercial Vehicles keyplayers
12. Toyota Motor Corporation (Japan)
13. Mahindra and Mahindra (India)
14. Isuzu Motors Ltd (Japan)
15. Ashok Leyland (India)
16. Golden Dragon (China)
17. SML Isuzu Limited (India)
18. Tata Motors (India)
19. Force Motors Limited (India)
20. VE Commercial Vehicles Limited (India)
21. Scania Commercial Vehicles India Private Limited (India)

Frequently Asked Questions:
1] What is the growth rate of the Global Commercial Vehicles Market?
Ans. The Global Commercial Vehicles Market is growing at a significant rate of 4.7 % during the forecast period.

2] Which region is expected to dominate the Global Commercial Vehicles Market?
Ans. North America is expected to dominate the Commercial Vehicles Market during the forecast period.

3] What is the expected Global Commercial Vehicles Market size by 2032?
Ans. The Commercial Vehicles Market size is expected to reach USD 1225.45 Bn by 2032.

4] Which are the top players in the Global Commercial Vehicles Market?
Ans. The major top players in the Global Commercial Vehicles Market are Tata Motors, Daimler, AB Volvo and others.

5] What are the factors driving the Global Commercial Vehicles Market growth?
Ans. The rapid urbanization leads to increased demand for transportation of goods and people within and between cities. This drives the need for commercial vehicles such as trucks, vans, and buses to facilitate transportation and logistics.

6] What was the Global Commercial Vehicles Market size in 2024?
Ans: The Global Commercial Vehicles Market size was USD 848.63 Billion in 2024.