The global commercial vehicles market size was estimated at USD 553.65 billion in 2024 and is anticipated to reach around USD 910.05 billion by 2034, growing at a CAGR of 5.20% from 2025 to 2034.
The global commercial vehicles market, encompassing various vehicles like LCVs, trucks, buses, and vans, is growing due to increasing demand for e-commerce logistics, infrastructure development, and urbanization. Technological advancements like telematics, electrification, and autonomous driving systems are transforming vehicle capabilities and operational efficiency. Stringent emission regulations and clean energy initiatives are accelerating the adoption of electric and hybrid commercial vehicles. Emerging markets in Asia-Pacific, particularly China and India, are experiencing significant growth due to industrialization and expanding transportation networks, while developed regions focus on fleet modernization and sustainability.
Commercial Vehicles Market Key Points
- North America dominated the market with highest market share of 44.43% in 2024.
- Asia-Pacific region is estimated to observe the fastest expansion during the forecast period.
- The light commercial vehicles segment contributed the highest market share of 75. 61% in 2024.
- The heavy trucks product segment is expected to grow at the fastest CAGR of 5.7% between 2025 and 2034.
- The IC engine has held largest market share of 73.39% in 2024.
- The diesel segment captured the biggest market share of 52.47% in 2024.
Regional Analysis
In 2024, the global commercial vehicles market is projected to reach approximately USD 553.7 billion, with North America leading the market at USD 246 billion, accounting for 44.43% of the total share. This dominance is fueled by a robust logistics and e-commerce infrastructure, particularly in the U.S., along with growing adoption of electric and autonomous trucks. Asia Pacific follows with a market value of USD 161.3 billion (29.13%), driven by rapid urbanization, industrial growth, and government support for fleet electrification in key countries like China and India.
Europe contributes USD 78.6 billion, representing 14.20% of the global share, where strict emission regulations and innovations in electric and hybrid vehicles are shaping the market. The LAMEA region (Latin America, Middle East, and Africa) holds a 12.24% share, totaling USD 67.8 billion. Growth in this region is supported by infrastructure development, rising logistics demand in Latin America, and investment in oil & gas and mining transport across the Middle East and Africa. Notably, countries such as Brazil, South Africa, and the UAE are emerging as key players, with increasing demand for durable and cost-effective commercial vehicle solutions.
Commercial Vehicles Market Trends:
- Electrification of Commercial Fleets:
- Major corporations are investing in electric heavy goods vehicles (HGVs) to reduce carbon emissions. For instance, Amazon placed the UK’s largest order for electric trucks, adding over 140 Mercedes-Benz electric HGVs and eight Volvo lorries capable of handling loads up to 40 tonnes.
- Advancements in Autonomous Trucking:
- The development of driverless trucks is set to revolutionize freight transport, addressing challenges such as driver shortages. Companies like Aurora Innovation are deploying autonomous trucks for freight haulage between Dallas and Houston, with McKinsey forecasting $616 billion in revenue from autonomous trucks by 2035.
- Collaborations Among Major Manufacturers:
- Hyundai Motor and General Motors are in discussions to share electric commercial van models and pickup trucks for the North American market. This collaboration aims to reduce development costs and counter rising competition from Chinese EV makers.
- Market Outlook Amid Economic Uncertainties:
- Volkswagen’s truck unit, Traton, forecasts a subdued commercial vehicle market in 2025 due to persistent economic weakness in Europe, particularly in Germany. They project sales development ranging from -5% to +5% and an operating return on sales between 7.5% and 8.5%.
- Rising Adoption of Alternative Fuels:
- In China, the rapid adoption of liquefied natural gas (LNG) trucks is reducing diesel demand, with LNG-powered trucks accounting for 42% of heavy truck sales in 2024. This shift aids in diversifying energy sources and reducing reliance on diesel.
- Price Adjustments by Manufacturers:
- In India, manufacturers like Mahindra and Mahindra announced price hikes of up to 3% for their SUVs and commercial vehicles starting in April, attributing the increase to rising commodity prices and higher import duties on raw materials.
Product Analysis
The commercial vehicles market is segmented into Light Commercial Vehicles (LCVs), Buses & Coaches, and Heavy Trucks. LCVs include pickup trucks, small vans, and mini trucks, primarily used for last-mile delivery, small-scale logistics, and urban transportation. The rise of e-commerce and demand for efficient intra-city logistics have significantly boosted the LCV segment. Buses & Coaches serve public transport, tourism, and school transportation needs. This segment is witnessing a surge in demand for electric and smart buses due to sustainability goals and smart city initiatives. Heavy Trucks, on the other hand, are used extensively in long-haul freight, construction, and industrial operations. Increasing infrastructure projects and rising logistics activities, especially in emerging economies, are driving the demand for heavy-duty trucks.
Commercial Vehicle Market Revenue, By Product, 2022 to 2024 (USD Billion)
| By Product | 2022 | 2023 | 2024 |
| LCVs | 387.1 | 402.1 | 418.0 |
| Buses & Coaches | 16.2 | 16.9 | 17.6 |
| Heavy Truck | 107.9 | 112.8 | 118.0 |
End-use Analysis
Based on end-use, the market is categorized into Industrial, Transportation, and Others. The Industrial segment encompasses construction, mining, agriculture, and manufacturing industries, where commercial vehicles are used for raw material handling, equipment transport, and on-site mobility. Growth in infrastructure development and industrial expansion is a key driver for this segment. The Transportation segment includes goods and passenger movement, supported by logistics providers, fleet operators, and public transport agencies. With increasing globalization and trade, demand for efficient transport services has surged. The Others category includes specialized vehicles used in sectors like defense, emergency services, mobile medical units, and more, which require customized or purpose-built commercial vehicles.
Commercial Vehicle Market Revenue, By End-use, 2022 to 2024 (USD Billion)
| By End-use | 2022 | 2023 | 2024 |
| Industrial | 119.4 | 122.7 | 126.0 |
| Transportation & Logistics | 391.8 | 409.2 | 427.6 |
Power Source Analysis
The commercial vehicles market is further segmented by power source into Gasoline, Diesel, Hybrid Electric Vehicles (HEV) / Plug-in Hybrid Electric Vehicles (PHEV), Battery Electric Vehicles (BEV), Fuel Cell Vehicles, and LPG & Natural Gas. Diesel remains the dominant fuel type for heavy trucks and industrial applications due to its fuel efficiency and torque output. However, strict emission regulations are pushing fleet operators to consider alternatives. Gasoline is mainly used in lighter vehicles and is being replaced gradually due to lower fuel economy. HEVs and PHEVs offer a transitional solution with reduced emissions and better fuel efficiency, while BEVs are fully electric and ideal for urban delivery and public transport due to their zero-emission profile. Fuel Cell Vehicles, though still in early adoption stages, show promise for long-range heavy-duty operations, especially where fast refueling is required. LPG and Natural Gas powered vehicles are gaining traction in specific markets like India and parts of Europe, where regulatory and cost incentives support cleaner fuel adoption.
Commercial Vehicle Market Revenue, By Power Source, 2022 to 2024 (USD Billion)
| By Power Source | 2022 | 2023 | 2024 |
| Gasoline | 87.5 | 90.0 | 92.7 |
| Diesel | 275.7 | 282.9 | 290.5 |
| HEV / PHEV | 36.2 | 39.1 | 42.2 |
| Battery Electric Vehicle (BEV) | 68.4 | 73.5 | 79.1 |
| Fuel Cell Vehicle | 11.6 | 12.6 | 13.6 |
| LPG & Natural Gas | 31.8 | 33.7 | 35.6 |
Commercial Vehicles Market Recent Activities
- GM and Hyundai Discussions: General Motors and Hyundai are in talks to collaborate on electric commercial vans and pickup trucks for the North American market. This potential partnership aims to reduce development costs and counter rising competition from Chinese EV manufacturers.
- Einride’s IPO Plans: Swedish driverless truck startup Einride is considering a U.S. stock market listing, potentially valuing the company at over $5 billion. Einride seeks to capitalize on the growing interest in autonomous and AI technologies within the commercial vehicle sector.
- Rampini’s Hydrogen Fuel Cell Division: Italian bus manufacturer Rampini has introduced a new division, H2EU Power, dedicated to developing hydrogen fuel cell systems for commercial vehicles.
- California’s Zero-Emissions Regulations: Heavy-duty truck manufacturers and dealers are facing challenges due to shifting regulations on zero-emissions vehicles in California. The state plans to phase out most diesel trucks by 2035-2045, causing regulatory confusion and commercial pressure.
Source: https://www.precedenceresearch.com
