ASEAN Commercial Vehicles Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

ASEAN Commercial Vehicles Market Analysis

The ASEAN Commercial Vehicles Market size is estimated at USD 59.63 billion in 2025, and is expected to reach USD 83.51 billion by 2030, at a CAGR of 6.97% during the forecast period (2025-2030).

The ASEAN commercial vehicles industry is experiencing significant transformation through strategic investments and technological advancements. Major manufacturers are making substantial commitments to the region, as evidenced by Isuzu's announcement in January 2024 to invest 120 billion yen over the next five years for electric pickup truck production in Thailand. This investment trend reflects the industry's shift toward sustainable manufacturing practices and the region's growing importance as a global automotive hub. The market has shown robust recovery, with new vehicle sales across the six largest ASEAN markets surging by 53% to 846,562 units in the third quarter of 2022, demonstrating strong market fundamentals and consumer demand.

The industry is witnessing a decisive shift toward sustainable technologies and alternative fuel solutions. In Indonesia, state electricity company PT PLN demonstrated this transition by establishing 54 public electric vehicle charging stations in 2023, with total electricity consumption at these stations reaching 2,464,825 kilowatt-hours, marking a significant 564% increase from the previous year. Manufacturers are increasingly focusing on developing electric and hybrid commercial transportation vehicles, with companies like Toyota and Mitsubishi Fuso announcing plans to introduce electric models specifically designed for the ASEAN market. This transformation is reshaping the industry's approach to product development and market strategies.

Manufacturing capabilities across the ASEAN region are evolving with increased localization and technological integration. Thailand's automotive sector exemplified this growth with commercial vehicle sales increasing by 31.4% to 51,076 units in September 2022, highlighting the region's manufacturing strength. Companies are establishing new production facilities and modernizing existing ones to accommodate advanced vehicle technologies, particularly in the electric vehicle segment. The integration of smart manufacturing processes and the development of local supply chains are enhancing the region's competitiveness in global markets.

The regulatory landscape is increasingly focusing on sustainability and infrastructure development, driving significant changes in the commercial fleet sector. Governments across ASEAN are implementing stricter emission standards and providing incentives for clean energy vehicles, while simultaneously investing in supporting infrastructure. The development of charging networks, implementation of smart traffic management systems, and establishment of industrial parks dedicated to automotive manufacturing are creating a more conducive environment for market growth. These initiatives are complemented by policies promoting local manufacturing and technology transfer, strengthening the region's position in the global automotive value chain.

ASEAN Commercial Vehicles Market Trends

Growth in E-commerce and Logistics to Fuel Market Demand

The ASEAN region is experiencing remarkable growth in e-commerce retail sales, with several countries leading global growth rates. Indonesia and Malaysia have shown impressive e-commerce sales growth rates of 20% and 18%, respectively, in 2023, while the Philippines leads the region with 24.1% growth. This surge in e-commerce activities has created an unprecedented demand for efficient logistics and delivery solutions, particularly affecting the commercial vehicles sector. The transformation of consumer behavior towards online shopping has expanded beyond traditional categories like clothing and electronics to include food and beverages, beauty products, and home goods, necessitating specialized logistics services and delivery transport vehicles.

The logistics sector is adapting rapidly to meet these evolving demands through strategic initiatives and fleet modernization. For instance, in November 2023, DHL Express expanded its electric vehicle fleet in Malaysia with 51 new vehicles, including 44 electric vans and seven electric bikes for pick-up and delivery services. This electrification initiative is expected to reduce total fuel costs by 74% and increase carbon efficiency by 63.5% compared to traditional internal combustion engine vans. Companies in the logistics space are implementing various strategies such as just-in-time delivery, consolidating storage facilities, and investing in smaller vehicles for last-mile deliveries, while also focusing on real-time tracking, streamlined systems, and reverse logistics to ensure efficient operations.

Government Stance Towards Revamping Road Network to Provide Market Growth

The ASEAN Road Network has emerged as a crucial infrastructure initiative spanning six countries and facilitating the transportation of over 15 million kilograms of goods. This well-connected trucking route serves as an effective alternative to conventional shipping methods, particularly during periods of disruption. The network's integration with the broader Asian Highway Network, which extends over 141,000 kilometers across 32 countries, has created substantial opportunities for commercial truck operations. This extensive infrastructure development has been further enhanced by bilateral government initiatives to expand cross-border trade and improve regional connectivity.

Recent developments in road infrastructure across ASEAN demonstrate the region's commitment to enhancing transportation networks. In Vietnam, the national expressway system has reached significant milestones, with the Red River Delta region accounting for 489 kilometers and the Northern Midlands and Mountains region contributing 396 kilometers of expressways. India's push to expand the Trilateral Highway to Cambodia, Laos, and Vietnam, potentially extending the route to 3,200 kilometers from the current 1,400 kilometers, represents a significant opportunity for cargo vehicle operators. These infrastructure developments are complemented by various government initiatives aimed at improving road quality and expanding transportation networks across the region.

Rapid Urbanization and Infrastructure Development to Fuel Market Growth

The ASEAN region is witnessing unprecedented urbanization rates, with Thailand's urban population reaching 52.89% in 2022, marking a steady increase from previous years. This rapid urbanization has created increased demand for efficient transportation solutions, particularly in the commercial truck sector. The transformation of urban landscapes has necessitated the development of sophisticated logistics networks and freight vehicle fleets to support growing urban populations and business activities. For instance, in January 2024, Indonesia's state electricity company PT PLN (Persero) expanded its electric vehicle infrastructure by building 54 new public charging stations, bringing the total to 624 stations nationwide.

The infrastructure development landscape is particularly dynamic in the Philippines, with 68 ongoing infrastructure projects, 52 under project preparation, and 40 in pre-project preparation stages as of March 2023. This extensive infrastructure development is complemented by significant investments in sustainable transportation solutions. For example, in August 2023, Mitsubishi Fuso Truck and Bus announced plans to manufacture the eCanter, a small electric truck, at its Kawasaki plant for export to Indonesia, demonstrating the industry's commitment to meeting the growing demand for sustainable commercial vehicles in urbanizing areas.

Increased Demand for Public Transportation to Fuel Buses Demand

The public transportation sector in ASEAN is undergoing significant transformation, driven by urbanization and environmental concerns. In January 2024, Hanoi's Department of Transport announced the implementation of electric buses on several routes, including Bus No.5 between Linh Dam urban area and Phu Dien, and Bus No.15 connecting Gia Lam train station to Ni Street. This initiative aligns with the city's ambitious goal to ensure that at least 50% of its vehicles run on electricity or green energy by 2030, with a complete transition to electric and green energy buses and taxis planned by 2050.

The commitment to sustainable public transportation is evident across the region through substantial investments and initiatives. In December 2023, Energy Absolute (EA) secured a USD 110 million loan facility to invest in leasing up to 1,200 electric public buses in Thailand, aimed at replacing combustion engine buses. These buses will enhance public services of Thai Smile Bus Co and its subsidiaries, covering 123 routes in Bangkok and surrounding areas. Similarly, Singapore's Land Transport Authority has made significant strides by investing 164 million SGD in electric buses and charging infrastructure in December 2023, marking the largest single procurement in this sector and bringing the total investment in the electrification project to SGD 212.5 million.

Segment Analysis: By Vehicle Type

Light Commercial Vehicles Segment in ASEAN Commercial Vehicles Market

Light Commercial Vehicles (LCV) dominate the ASEAN commercial vehicles market, commanding approximately 50% market share in 2024. This segment is also emerging as the fastest-growing, with a projected growth rate of nearly 7% from 2024 to 2029. The segment's prominence is primarily driven by the rapid expansion of e-commerce and logistics sectors across the ASEAN region. As urbanization accelerates and new retail platforms emerge, the demand for efficient and robust logistics solutions has surged significantly. Light vehicles, particularly vans, have become increasingly vital across various economic sectors, including construction, postal and courier services, law enforcement, and passenger transport. Environmental regulations are also playing a crucial role in shaping this segment, with governments across the region intensifying efforts to curb carbon emissions from diesel fuel combustion, thereby urging vehicle manufacturers to invest in electric trucks. Major players like Daimler, Nissan, Ford, and Renault are witnessing increased demand, particularly due to the booming e-commerce sector's reliance on pickup trucks and vans for logistics and consumer delivery services.

Medium and Heavy-duty Commercial Vehicles Segment in ASEAN Commercial Vehicles Market

The Medium and Heavy-duty Commercial Vehicles (M&HCV) segment maintains a significant presence in the ASEAN commercial vehicles market, driven by robust economic growth and increasing industrialization across member countries. This segment has become increasingly crucial for sectors such as construction, manufacturing, and mining, which heavily rely on M&HCVs for transportation and logistics. The rising demand for raw materials and the need to transport finished goods efficiently are directly influencing the segment's growth. Furthermore, substantial investments in infrastructure development across the ASEAN region, including road construction, urban development, and public works projects, require heavy-duty vehicles for the transportation of materials and machinery. The segment is also witnessing significant innovations in sustainable transportation solutions, with several manufacturers introducing electric and hybrid variants of their heavy-duty vehicles. The bus sector within this segment is experiencing particular growth due to changing consumer preferences and increasing demand for cost-effective public transportation solutions, especially in rapidly urbanizing areas and growing tourism sectors across ASEAN countries.

ASEAN Commercial Vehicles Market Geography Segment Analysis

ASEAN Commercial Vehicles Market in Thailand

Thailand stands as the dominant force in the ASEAN commercial vehicles market, commanding approximately 40% of the total market share in 2024. The country has developed a robust automotive manufacturing industry, supported by significant foreign investment and a well-established local supply chain. Thailand's economic growth has been a substantial driver for the commercial vehicle market, with sectors like construction, logistics, and agriculture witnessing significant expansion. The country's strategic position as a global manufacturing center for various light commercial vehicles brands has strengthened its market leadership. Light commercial vehicles are crucial in urban logistics and distribution, while medium trucks serve inter-city transport needs, and heavy commercial vehicles support long-haul and industrial transportation. The rapid urbanization in Thailand has escalated the need for efficient transportation and logistics solutions, particularly in urban and suburban areas. Furthermore, Thailand's position as a tourism epicenter across ASEAN has led to the establishment of an organized public transportation system, contributing to the sustained demand for commercial vehicles.

ASEAN Commercial Vehicles Market in Singapore

Singapore's commercial vehicles market is experiencing remarkable growth, projected to expand at approximately 11% CAGR from 2024 to 2029. The city-state's status as a global logistics and trade hub serves as a primary driver for its commercial vehicle market, ensuring a steady demand for vehicles essential for transport and logistics operations. Singapore's stable and growing economy, characterized by a strong focus on trade, manufacturing, and services, directly influences the demand for commercial vehicles. The country's commitment to environmental sustainability is evident in its push towards greener vehicles, with a noticeable shift towards electric and hybrid commercial vehicles supported by government incentives. Singapore's sophisticated infrastructure and advanced transportation network create an ideal environment for the adoption of modern commercial vehicle technologies. The government's proactive approach to urban planning and sustainable transportation solutions has positioned Singapore as a model for future mobility solutions in the ASEAN region. Additionally, the city-state's strategic location and role as a major transshipment hub continue to drive the demand for efficient commercial vehicle solutions.

ASEAN Commercial Vehicles Market in Philippines

The Philippines' commercial vehicles market plays a critical role in the nation's economy, particularly given its archipelagic nature and growing urbanization. The country's steadily growing economy, driven by sectors such as agriculture, manufacturing, and services, necessitates robust logistics and transportation networks. The government's focus on infrastructure development, including road networks and public transportation systems, directly impacts the commercial vehicle market. The future of the commercial vehicle market in the Philippines is being shaped by an increased focus on sustainable and environmentally friendly transportation solutions. The expansion of e-commerce, particularly in the post-pandemic era, has significantly increased the need for efficient logistics services, directly affecting the demand for light and medium trucks for delivery purposes. The country's commitment to modernizing its public transportation system has created new opportunities for commercial vehicle manufacturers, especially in the commercial bus segment. Furthermore, the Philippines' growing manufacturing sector and increasing foreign investments have contributed to a robust demand for commercial vehicles across various industries.

ASEAN Commercial Vehicles Market in Indonesia

Indonesia's commercial vehicles market demonstrates strong potential, driven by its large population and growing economy. Infrastructure development, particularly in transport and logistics, fuels the demand for commercial vehicles across various segments. The government's investment in road and public works projects necessitates a robust fleet of commercial vehicles, while the rise of e-commerce and urbanization accelerates the need for efficient transportation and delivery services. Indonesia's focus on environmental sustainability, particularly in supporting electric vehicles, positions it as a key player in the evolving ASEAN commercial vehicle landscape. The country's strategic initiatives to develop a reliable network for public buses have created significant opportunities for manufacturers. Additionally, Indonesia's commitment to developing domestic manufacturing capabilities has attracted significant investments from global automotive companies. The country's vast geographical spread and increasing inter-island trade activities continue to drive the demand for commercial vehicles, particularly in the medium and heavy-duty segments.

ASEAN Commercial Vehicles Market in Other Countries

The commercial vehicles market in other ASEAN countries, including Vietnam and Malaysia, demonstrates diverse growth patterns influenced by their unique economic and infrastructural developments. Vietnam's robust economic growth, fueled by industrialization and urbanization, has led to increased demand for commercial vehicles, particularly in the manufacturing and logistics sectors. Malaysia's market is characterized by its focus on sustainable transportation solutions and the development of electric vehicle infrastructure. These markets are experiencing transformation driven by factors such as rapid urbanization, infrastructure development, and increasing foreign direct investment. The governments in these countries are implementing supportive policies to encourage the adoption of modern commercial vehicles, particularly focusing on environmentally friendly options. The integration of these markets within the broader ASEAN economic community continues to create new opportunities for growth and development in the commercial vehicles sector.