Heavy Commercial Vehicles Market Size, Share & Industry Analysis, By Powertrain (ICE, BEV, HEV/PHEV, LPG & Others, and Fuel Cell), By Class (Class 7 and Class 8), By Type (Tractor Units (6x4 Axle, 6x6 Axle, and Others) and Rigid Trucks (Curtain-side Truck, Box Truck, Refrigerated Truck, Tipper Truck, Tanker Truck, Flatbed Truck, and Others)), By Application (Transportation, Construction, Mining, and Agriculture), and Regional Forecast, 2024 – 2032

The global heavy commercial vehicles market size was valued at USD 210.72 billion in 2023. The market is projected to grow from USD 211.67 billion in 2024 to USD 275.18 billion by 2032, exhibiting a CAGR of 3.3% during the forecast period. The Asia Pacific dominated the Heavy Commercial Vehicles Market Share with a share of 23.10 % in 2023

Heavy Commercial Vehicles (HCVs) specifically refer to large trucks designed for transporting substantial freight. These vehicles typically have a gross vehicle weight rating of over 26,000 pounds (11,793 kg). HCVs include various types of trucks, such as tractor-trailers, dump trucks, and tanker trucks. They are equipped with powerful engines, robust chassis, and specialized features to handle heavy loads and operate in demanding environments such as construction, mining, and long-haul transportation.

The increasing adoption of electrically powered and autonomous trucks is a significant trend driven by technological advancements and stringent emission regulations. However, a restraining factor is the high initial cost of these vehicles, which can deter small and medium-sized enterprises from acquiring these types of vehicles for their business needs. Despite this, the increased demand for efficient and reliable logistics solutions, spurred by the growth of e-commerce and global trade, which requires robust and high-capacity trucks.

The COVID-19 pandemic disrupted the market of heavy commercial vehicles by causing supply chain interruptions and production delays, reducing the availability of new trucks. Economic uncertainties led businesses to delay fleet expansions, dampening demand. However, the pandemic underscored the essential role of logistics, increasing reliance on trucks for the delivery of critical goods. This shift in demand for reliable freight transport emphasized the need for resilient logistics networks, spurring post-pandemic investments in advanced trucking technologies and aiding market retrieval.

Heavy Commercial Vehicles Market Trends

Electrification of Heavy Commercial Vehicles and Rising Emphasis on Green Logistic Solutions

Electrification is a key ongoing trend driving the growth of the Heavy Commercial Vehicles (HCV) market. Electric trucks offer significant reductions in emissions, helping companies meet stringent environmental regulations and contributing to sustainability goals. The lower operating costs associated with these types of electric vehicles, including reduced fuel and maintenance expenses, enhance their appeal to fleet operators.

Additionally, advancements in battery technology are extending the range and improving the efficiency of electric trucks, making them more viable for long-haul and heavy-duty applications. Government incentives and subsidies for the adoption of electric vehicles further encourage investment in this technology. The rising consumer and corporate emphasis on green logistics solutions is also propelling demand for electric commercial vehicles, positioning them as a critical component of future transportation strategies.

In May 2023, Volvo Trucks North America (VTNA) and Volvo Financial Services (VFS) launched Volvo on Demand, a collaborative initiative aimed at revolutionizing and leading the industry with the Truck-as-a-Service (TaaS) business model. Featuring 25 Class 8 Volvo VNR Electric trucks, Volvo on Demand offers an innovative solution to streamline the acquisition process and minimize the significant upfront investment associated with battery-electric vehicles.

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Heavy Commercial Vehicles Market Growth Factors

Rising E-commerce Boom and Online Shopping Amplify Product Demand

The rapid expansion of e-commerce has greatly accelerated the heavy commercial vehicles market growth. The rise in online shopping has heightened the demand for efficient and prompt delivery services, leading to increased reliance on heavy duty trucks for long-distance goods transport. This growing demand is spurring the expansion and modernization of fleets. The surge in online shopping drives demand for efficient, long-distance delivery solutions, leading to increased use of heavy trucks for transporting large volumes of goods.

E-commerce companies require robust logistics solutions, increasing demand for trucks capable of handling large volumes and various types of cargo. For instance, in May 2024, Amazon launched a fleet of heavy-duty all-electric trucks in Southern California as part of its strategy to decarbonize its delivery operations and achieve net-zero climate targets. This move is part of broader efforts aimed at reducing transportation emissions, which include enhancing fleet efficiency, increasing the use of low-carbon fuels, and scaling up electric and alternative fuel vehicles deployment. As e-commerce continues to expand, the heavy commercial vehicles market is expected to grow correspondingly to meet logistical needs.

RESTRAINING FACTORS

High Initial Cost May Hamper Market Growth of Heavy Commercial Vehicles

High initial costs are a significant barrier of the heavy commercial vehicles market. The substantial investment required for purchasing heavy trucks, especially those with advanced features or new technologies, can be prohibitive for many businesses. This financial barrier limits the ability of smaller companies or startups to acquire modern, efficient trucks, slowing overall market expansion of heavy commercial vehicles. Additionally, high costs can lead to prolonged depreciation periods, reducing the appeal of new truck investments. As a result, companies may delay or avoid upgrading their fleets, opting to maintain older, less efficient vehicles instead. This reluctance to invest in new trucks directly impacts market growth.

Heavy Commercial Vehicles Market Segmentation Analysis

By Powertrain Analysis

ICE Segment Led owing to Proven Reliability in Heavy Commercial Vehicles

Based on powertrain, the market is divided into ICE, BEV, HEV/PHEV, LPG & others, and fuel cell.

The ICE segment captured the largest share of the market in 2023. The existing fleet supports the dominance of the ICE segment by perpetuating demand for diesel trucks. Many businesses continue to replace aging ICE trucks with new models, driven by the extensive infrastructure and proven performance of diesel engines. This reliance on familiar technology ensures that ICE trucks remain the preferred choice in the heavy commercial vehicle market, fueling the growth of the segment.

The fuel cell segment is expected to register the fastest-growth during the forecast period from 2024 to 2032. Government incentives and environmental regulations drive the heavy commercial vehicle market by enforcing stricter emissions standards and promoting alternative fuel vehicles. This compels manufacturers and fleet operators to adopt cleaner technologies, such as electric trucks or fuel cells. For instance, under the Medium- Heavy-duty Zero-Emission Vehicles (iMHZEV) Program, the Government of Canada provides a maximum incentive of USD 200,000 for Class 8 Fuel Cell Electric Vehicles.

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By Class Analysis

Class 8 Segmental Dominates owing to Shift Toward Clean Transportation

Based on class, the market is segmented into Class 7 and Class 8.

The Class 8 segment held the dominant share of the market in 2023 and is expected to experience high growth rate during the forecast period. In May 2024, at the Advanced Clean Transportation (ACT) Expo, Hexagon Purus, in collaboration with Hino Trucks, unveiled Tern, and a new zero-emission truck brand. The debut model, the RC8, is a cutting-edge battery-electric Class 8 tractor designed specifically for the U.S. market. This advanced semi-tractor leverages Hexagon Purus' extensive expertise in zero-emission drivetrains for heavy-duty trucks, offering a preferred choice for fleets transitioning to electric vehicles on practical routes. Thus, innovation, catering to fleets transitioning to cleaner and practical solutions.

The Class 7 segment held a sustainable share of the market in 2023, driven by the need for versatile trucks that balance payload capacity and maneuverability. These trucks are crucial for regional and urban freight operations. Moreover, the increasing demand for efficient logistics solutions and infrastructure improvements further fuels the growth of Class 7 trucks.

By Type Analysis

Rigid Trucks Hold Leading Position Owing to Replacement of Older Vehicles

Based on type, the market is divided into tractor units and rigid trucks.

The rigid trucks segment dominated the market in 2023 by securing the largest share. The segment is also expected to witness a high growth rate during the forecast period from 2024 to 2032. Companies often replace older vehicles with newer, more efficient rigid trucks to improve operational efficiency, fuel efficiency, reduce maintenance costs, and comply with environmental regulations. For instance, In June 2024, Lannutti Group, an Italian transport and logistics company, ordered 1,500 Volvo FH Aero trucks as part of its fleet renewal for long-haul operations.

The tractor units segment held a substantial share of the market in 2023. The demand for freight transportation fuels growth in the market by increasing the need for trucks that efficiently transport goods over long distances. Thus, rising trade volumes, economic activity, and logistics requirements continue to drive demand for the segment.

By Application Analysis

Construction Segment Leads Market with Rapid Growth Expected Due to Infrastructure Development

By application, the market is divided into transportation, construction, mining, and agriculture.

The construction segment dominated the market in 2023, holding the largest share and is estimated to have the fastest-growth during the forecast period. Infrastructure development drives the growth of the segment, as large-scale projects, such as roads, bridges, and buildings require heavy-duty trucks for transporting materials and equipment. This demand for robust and reliable construction trucks supports the segment’s expansion.

The mining segment held a substantial share of the market in 2023 due to the rising demand for minerals and resources. This necessitates the use of heavy-duty trucks capable of transporting large quantities of extracted materials from mining sites to processing facilities, boosting the demand for specialized mining trucks.

REGIONAL INSIGHTS

By region, the market for heavy commercial vehicles is analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Asia Pacific held the largest heavy commercial vehicles market share in 2023 due to Infrastructure development in emerging countries. Large-scale projects, such as road construction, port development, and urban infrastructure, require heavy trucks for transporting construction materials and machinery. For instance, the budget allocation for infrastructure-related ministries increased significantly from approximately INR 3.7 Lakh Crore (USD 44.22 Billion) in 2023 to INR 5 Lakh Crore (USD 59.76 Billion) in 2024, creating attractive investment opportunities for the private sector in various transport sub-segments.

Europe holds the second-largest market share in 2023. Major companies such as Daimler AG and Volvo, headquartered in Europe, give the region a competitive edge in the commercial vehicle industry. Technological advancements by these companies drive market growth. In January 2024, Volvo launched a heavy-duty truck platform for Europe, North America, Australia, and other parts of the world.

North America held a substantial market share in 2023. In the U.S., significant investments in the military industry, including the transportation of military supplies, make heavy-duty trucks vital for military applications. Additionally, long-haul transportation across borders with Canada and Mexico contributes to the region's market growth over the forecast period.

South America held a decent market share in 2023. The robust agricultural and mining sectors in Brazil, Argentina, and Chile rely heavily on trucks to transport commodities from production sites to processing facilities and export terminals, fueling market development in the region.

The Middle East & Africa also held a notable market share in 2023. The oil and gas division, especially in the Gulf Cooperation Council (GCC) countries, requires heavy trucks for transporting equipment, materials, and refined products, driving demand for heavy-duty trucks in the region.

KEY INDUSTRY PLAYERS

Major Players are Focusing on Partnerships to Develop More Efficient and Sustainable Truck Models

The global market is highly competitive, with several key players leading the industry. Leading manufacturers such as Daimler AG, Volvo Group, and PACCAR Inc. dominate the market through their extensive product portfolios and robust global distribution networks. Emerging market players from Asia, such as Tata Motors and BYD Auto, are gaining market share by leveraging innovation and competitive pricing strategies.

Technological advancements, notably in electric and autonomous trucks, are significantly shaping market dynamics. Strategic partnerships, mergers, and acquisitions are prevalent as companies strive to expand their market presence and expand their capabilities. Additionally, stringent environmental regulations are driving manufacturers to develop more efficient and sustainable truck models, further intensifying market competition over the forecast period.

List of Top Heavy Commercial Vehicles Companies:

• Volvo Group (Sweden)


• Daimler AG (Germany)


• PACCAR Inc. (U.S.)


• MAN SE (Germany)


• Tata Motors (India)


• Ashok Leyland (India)


• BharatBenz (India)


• Eicher Motors Limited (India)


• Ford Motor Company (U.S.)


• General Motors (U.S.)


• Scania AB (Sweden)


• Hyundai Motor (South Korea)


• Dongfeng Motor Corporation (China)


• Shaanxi Automobile Group (China)


• CNHTC (China National Heavy Duty Truck Group) (China)


• FAW Group (China)


• Isuzu Motors (Japan)


• Volkswagen Truck & Bus (Germany)

KEY INDUSTRY DEVELOPMENTS:

• May 2024: Penske Truck Leasing, Daimler Truck North America (DTNA), and Carrier Transicold formed a strategic partnership and introduced an all-electric refrigerated medium-duty truck, tailored for leasing customers transporting temperature-sensitive cargo. This innovative vehicle integrates a Class 7 Freightliner eM2 battery-electric box truck with Carrier Transicold’s Supra e11 eCool electric refrigeration unit, housed within a 26-ft. refrigerated body. The offering is designed specifically for regional and local fleets that are aiming to meet regulatory requirements or transition to cleaner, more sustainable solutions for the distribution of food and other perishable products.


• February 2024: Hexagon Agility secured orders for Class 8 series trucks equipped with the new Cummins X15N CNG engine. According to Kenworth and Cummins, trucks with the X15N engine were planned to enter serial production by mid-2024, with first deliveries in early Q3. The X15N, Cummins' natural gas engine, offers diesel-like performance for long-haul applications while cutting emissions. Running on RNG/CNG, it meets EPA and CARB regulations for 2024 and 2027, with power up to 500 hp and torque up to 1850 lb.-ft, making natural gas competitive with diesel in heavy-duty trucks.


• September 2023: Gatik AI enhanced its product lineup by introducing Class 7 autonomous trucks in northwest Arkansas, as part of an expanded partnership with Tyson Foods. This multiyear collaboration aims to foresee autonomous refrigerated box trucks operating 18 hours a day, dedicated to transporting food products to Tyson Foods’ distribution and storage facilities in the Rogers and Springdale regions.


• July 2023: Nikola Corporation, a global leader in zero-emissions transportation and energy solutions through its HYLA brand, signed a deal with J.B. Hunt Transport Services Inc., a major supply chain solutions provider in North America. Under this agreement, J.B. Hunt Transport Inc., a subsidiary of J.B. Hunt would acquire 13 Nikola zero-emission Class 8 trucks as part of its commitment to sustainability and reducing carbon emissions.


• January 2024: The Council and the European Parliament reached an agreement on CO2 emission standards for Heavy-Duty Vehicles (HDVs). This agreement aimed to further reduce CO2 emissions in the road transport sector and set new targets for 2030, 2035, and 2040. The updated regulations would assist the EU meet its 2030 climate goals and achieve climate neutrality by 2050.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and top applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation