ASEAN Commercial Vehicles Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 55.74 Billion |
| Market Size (2029) | USD 78.08 Billion |
| CAGR (2024 - 2029) | 6.97 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
ASEAN Commercial Vehicles Market Analysis
The ASEAN Commercial Vehicles Market size is estimated at USD 55.74 billion in 2024, and is expected to reach USD 78.08 billion by 2029, growing at a CAGR of 6.97% during the forecast period (2024-2029).
The ASEAN commercial vehicle market saw robust growth in 2023, driven by rising infrastructure development, an increase in e-commerce activities requiring more logistics vehicles, and economic recovery from the COVID-19 pandemic in the region. Rapid urbanization and the need for mass material movement improved the market conditions.
Over the long term, stringent vehicle emission regulations, advancements in vehicle safety, the introduction of driver-assist systems in new vehicles, and rapidly growing logistics in the retail and e-commerce sectors across ASEAN are primarily expected to drive demand for new and advanced commercial vehicles. LCV demand is expected to rise as the logistics and e-commerce industries expand rapidly.
Governments throughout the ASEAN region are putting pressure on vehicle manufacturers to reduce carbon emissions from diesel fuel combustion and address greenhouse gas emissions, compelling OEMs to invest in developing electric trucks.
As per regulations of the Pollution Control Department (PCD) in Thailand since 1998, all new heavy trucks must meet Euro 6 emission standards to curb vehicular pollution. This spurred purchases of newer, compliant commercial vehicles.
Overall, the ASEAN commercial vehicle market is projected to continue its growth curve during the forecast period owing to economic development, consumer spending, and ongoing policy adjustments related to emissions.
ASEAN Commercial Vehicles Market Trends
Light Commercial Vehicle Segment Dominates the Market
- Light commercial vehicles are mainly used to transport goods over short distances. The increased demand for goods via e-commerce is driving the use of LCV in logistics, paving the way for the market’s growth. Many e-commerce and logistics companies are expanding in the ASEAN region, driving the commercial vehicles market in the region. Thus, key players in the region are coming up with revised products at lower prices to improve sales.
- With urban areas across ASEAN nations grappling with narrow streets and traffic congestion, these compact vehicles have proven instrumental in navigating such infrastructural challenges seamlessly.
- Moreover, the cost advantages associated with LCVs, both in terms of acquisition and operational expenses, have rendered them an attractive proposition for small and medium-sized enterprises (SMEs) and start-ups operating in the region. Recognizing their potential, several ASEAN governments have proactively implemented policies, such as tax incentives and lending programs, to stimulate LCV adoption among businesses.
- Overall, LCVs emerge as the preeminent commercial vehicle type in the ASEAN region, aligning with the urban economic landscape and business models that favor smaller, more agile modes of transportation.
Indonesia to Register Highest CAGR
Indonesia has emerged as the leading nation in the ASEAN commercial vehicle market in recent years. This growth can be attributed to several key factors.
The nation's robust economic growth and increasing infrastructure development have fueled significant demand for commercial vehicles across various segments. The government's ambitious infrastructure push, including the construction of new toll roads, ports, and transportation hubs, has necessitated the deployment of a vast array of heavy-duty trucks and construction vehicles.
Furthermore, Indonesia's burgeoning logistics and e-commerce sectors have driven substantial demand for light commercial vehicles (LCVs) to facilitate last-mile deliveries. Additionally, Indonesia's commercial vehicle market has also benefited from favorable government policies aimed at promoting domestic manufacturing and vehicle adoption.
Moreover, Indonesia has also pledged to the Major Economies Forum on Energy and Climate (MEF) objective of achieving 30% of global medium and heavy-duty vehicle sales as zero-emission vehicles (ZEVs) by 2030. This commitment reflects the country’s focus on sustainability and carbon neutrality in its transportation sector.
The key players operating in the Indonesian market are increasingly launching innovative and advanced commercial vehicles to cater to the country's requirements.
- In August 2023, Mitsubishi Fuso Truck and Bus Corporation announced the launch of its all-electric eCanter trucks in Indonesia. The eCanter, with its locally emission-free and nearly noiseless electric drivetrain, is expected to contribute to a better quality of life in Jakarta.
ASEAN Commercial Vehicles Industry Overview
The ASEAN commercial vehicle market is moderately consolidated, with few players having a significant hold of the market. Some of the key players in the ASEAN commercial vehicles market are Toyota Motor Corporation, ISUZU, Mitsubishi Motor Corporation, and Hino Motors. The market studied is highly driven by factors like joint ventures, partnerships, and growing demand from the industrial sector and government development initiatives across ASEAN countries.
For instance, in September 2022, Nex Point PLC (NEX) announced a collaboration with Energy Absolute (EA) PCL to establish Thailand's first commercial EV manufacturing and assembly plant, Absolute Assembly Co. Ltd (AAB), with an annual production capacity of up to 9,000 cars. The company received orders to produce 3,195 electric buses, with 200 units successfully delivered.
ASEAN Commercial Vehicles Market Leaders
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Isuzu Motor Ltd
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Mitsubishi Motor Corporation
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Hyundai Motor Corporation
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Hino Motor Ltd.
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IVECO (CNH Industrial NV)
*Disclaimer: Major Players sorted in no particular order
ASEAN Commercial Vehicles Market News
- January 2024: Mitsubishi Fuso Truck and Bus Corporation announced the official launch of the all-electric eCanter truck sales in Hong Kong. The vehicle is available for purchase in three models with seven variants, covering a gross vehicle weight (GVW) of 5 to 8.55 tons.
- November 2023: Toyota Motor Thailand Co. Ltd launched the new IMV series model IMV 0 in Thailand. IMV has contributed to the Thai economy, with domestic sales totaling more than 2.7 million units and exports totaling more than 4 million units.
ASEAN Commercial Vehicles Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Higher Infrastructure Spending and Trade Activities
4.2 Market Restraints
4.2.1 Complying to the Stringent Vehicle Emission Regulations is a Challenge
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value and Volume)
5.1 By Vehicle Type
5.1.1 Light Commercial Vehicles
5.1.2 Medium-duty Commercial Vehicles
5.1.3 Heavy-duty Commercial Vehicles
5.2 By Propulsion
5.2.1 Internal Combustion Engine
5.2.2 Battery Electric Vehicle
5.2.3 Plug-in Hybrid Electric Vehicle
5.2.4 Fuel Cell Electric Vehicle
5.3 By Country
5.3.1 Indonesia
5.3.2 Thailand
5.3.3 Vietnam
5.3.4 Singapore
5.3.5 Malaysia
5.3.6 Philippines
5.3.7 Rest of ASEAN
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Isuzu Motors Limited
6.2.2 Mitsubishi Motors Corporation
6.2.3 Honda Motor Co. Ltd
6.2.4 Daihatsu Motor Co. Ltd
6.2.5 Ford Motor Company
6.2.6 UD Trucks Corp.
6.2.7 Scania
6.2.8 FCA US LLC
6.2.9 Hyundai Motor Company
6.2.10 IVECO
6.2.11 Hino Motors Ltd
6.2.12 Tata Motors
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 LCV Demand is Expected to Rise as the Logistics and E-Commerce Industries Expand Rapidly
8. ANALYSIS OF REGIONAL REGULATORY COMPLIANCES REGARDING COMMERCIAL VEHICLES
ASEAN Commercial Vehicles Industry Segmentation
A commercial vehicle is licensed to transport goods or materials rather than passengers. Light to medium-sized commercial vehicles are used to transport relatively light goods.
The ASEAN commercial vehicles market is segmented by vehicle type, propulsion, and country. By vehicle type, the market is segmented into light commercial vehicles, medium-duty commercial vehicles, and heavy-duty commercial vehicles. By propulsion, the market is segmented into internal combustion engines, battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. By country, the market is segmented into Indonesia, Thailand, Vietnam, Singapore, Malaysia, Philippines, and the rest of ASEAN. The report offers market size and forecasts for all the above segments in value (USD) and volume (units).
| By Vehicle Type | |
| Light Commercial Vehicles | |
| Medium-duty Commercial Vehicles | |
| Heavy-duty Commercial Vehicles |
| By Propulsion | |
| Internal Combustion Engine | |
| Battery Electric Vehicle | |
| Plug-in Hybrid Electric Vehicle | |
| Fuel Cell Electric Vehicle |
| By Country | |
| Indonesia | |
| Thailand | |
| Vietnam | |
| Singapore | |
| Malaysia | |
| Philippines | |
| Rest of ASEAN |
ASEAN Commercial Vehicles Market Research Faqs
How big is the ASEAN Commercial Vehicles Market?
The ASEAN Commercial Vehicles Market size is expected to reach USD 55.74 billion in 2024 and grow at a CAGR of 6.97% to reach USD 78.08 billion by 2029.
What is the current ASEAN Commercial Vehicles Market size?
In 2024, the ASEAN Commercial Vehicles Market size is expected to reach USD 55.74 billion.
Who are the key players in ASEAN Commercial Vehicles Market?
Isuzu Motor Ltd, Mitsubishi Motor Corporation, Hyundai Motor Corporation, Hino Motor Ltd. and IVECO (CNH Industrial NV) are the major companies operating in the ASEAN Commercial Vehicles Market.
What years does this ASEAN Commercial Vehicles Market cover, and what was the market size in 2023?
In 2023, the ASEAN Commercial Vehicles Market size was estimated at USD 51.85 billion. The report covers the ASEAN Commercial Vehicles Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the ASEAN Commercial Vehicles Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key growth drivers in the ASEAN Commercial Vehicles Market?
Key factors driving the ASEAN Commercial Vehicles Industry are a) Economic growth in the region b) Increasing demand for transportation due to urbanization c) Governmental policies supporting vehicle modernization
What are the major challenges faced by the ASEAN Commercial Vehicles Industry?
Challenges faced by the ASEAN Commerical Vehicles Industry include a) Regulatory changes b) Environmental concerns c) Fluctuating raw material prices d) Need for technological integration
ASEAN Commercial Vehicles Industry Report
The ASEAN commercial vehicle market is experiencing significant growth, driven by economic expansion, rapid urbanization, and industrialization. The market segmentation includes light commercial vehicles and medium and heavy-duty commercial vehicles, with varied demand based on utility and operational needs. Technological advancements in tire manufacturing are enhancing performance and longevity, while infrastructure improvements and expanding road networks are boosting demand for durable, high-quality tires suited for diverse terrains and long-distance travel.
The rise of the e-commerce and logistics sectors is propelling the market, necessitating efficient last-mile delivery solutions that depend on commercial vehicles. Despite challenges such as environmental regulations, counterfeit products, and fluctuating raw material costs, the market outlook remains positive with opportunities for continued growth and innovation.
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ASEAN Commercial Vehicles Market Report Snapshots
