Commercial Vehicles Market Poised To Grow At A Robust Pace Owing To Rise In E-Commerce Sales
Commercial vehicles refer to motor vehicles that are primarily designed and used for the transport of goods or groups of people. They range from light commercial vehicles to medium and heavy trucks used for transporting cargo in bulk. Commercial vehicles include delivery trucks, box trucks, transit buses, recreational vehicles, school buses, shuttle buses, moving trucks and other vehicles used for commercial purposes. The global commercial vehicles market is estimated to be valued at US$ 1264.58 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Rise in E-commerce Sales: One of the key drivers propelling the growth of the commercial vehicles market is the rise in e-commerce sales globally. As e-commerce retail sales continue to surge, there is a substantial demand for delivery vehicles to ship products purchased online to customers' doorsteps swiftly and efficiently. Commercial fleet operators around the world are expanding their fleet size and upgrading their vehicles to cater to the rising freight transportation needs arising due to increased e-commerce shipments.
Shortage of Commercial Drivers: However, a critical challenge faced by the commercial transportation industry is the ongoing shortage of qualified commercial drivers. Truck driver turnover rates remain elevated as drivers leave the profession due to long hours, time away from home and non-competitive pay. The lack of adequate drivers is restricting fleet capacity expansion despite growing demand and tight capacity in the market. Companies are raising pay rates and offering better benefits and working conditions to attract and retain drivers but supply constraints persist.
SWOT Analysis
Strength: Commercial Vehicles Market has strong potential for growth in developing nations. Increase in construction, mining and infrastructure development activities in countries like India, China and African nations will propel market expansion. Rising demand for cost-effective transportation of goods and services across sectors will drive sales.
Weakness: Higher maintenance and fuel costs associated with commercial vehicles compared to passenger vehicles. Stringent emission norms imposed by various governments increases compliance burden on vehicle manufacturers.
Opportunity: Adoption of electric commercial vehicles provides opportunities for reducing dependence on fossil fuels. Developments in autonomous driving technologies and connectivity features in commercial vehicles will open new revenue avenues.
Threats: Trade tensions and economic uncertainties diminish spending power of businesses. Shortage of skilled workforce and rising labor costs pose operational challenges. Stringent safety regulations increase compliance costs.
Key Takeaways
The global Commercial Vehicles Market scope is expected to witness high growth.
Regional analysis: The Asia Pacific region currently dominates the global commercial vehicles market and is expected to maintain its position over the forecast period. Rapid industrialization, growing e-commerce sector and increasing construction activities in developing countries like China and India will propel demand.
Key players related content comprises Key players operating in the Commercial Vehicles Market are Schneider Electric SE, ABB Ltd., Siemens AG, Eaton Corporation, Honeywell International Inc., Rockwell Automation, Inc., UL LLC (Underwriters Laboratories), Emerson Electric Co., General Electric (GE), Littelfuse, Inc., DuPont de Nemours, Inc., Fluke Corporation, Omicron Electronics GmbH, Megger Group Limited, MSA Safety Incorporated.
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