Commercial Vehicle Financing Market Size (2024 - 2029)

Commercial Vehicle Financing Market Analysis

The Commercial Vehicle Financing Market size is estimated at USD 105.16 billion in 2024, and is expected to reach USD 145.23 billion by 2029, growing at a CAGR of 6.67% during the forecast period (2024-2029).

Over the long term, the increasing commercial vehicle sales worldwide, owing to the expanding road freight and e-commerce sector, will serve as the major determinant for the growth of the commercial vehicle financing market. Since medium- and heavy-duty commercial vehicles are significantly more expensive to purchase, fleet operators can avail themselves of financing solutions such as loans and leasing from banks and other financial institutions to fulfill their requirements.

• According to the International Organization of Motor Vehicle Manufacturers (OICA), new commercial vehicle sales in Mexico touched 647.4 thousand units in 2022 compared to 526.6 thousand units in 2021, representing a Y-o-Y growth of 8.6% between 2021 and 2022.
• Similarly, new commercial vehicle sales in Argentina touched 146.7 thousand units in 2022 compared to 140.7 thousand units in 2021, recording a Y-o-Y growth of 4.3% between 2021 and 2022.

Consumers increasingly prefer to purchase essentials from online mediums, which is leading to the expansion of the e-commerce market. Further, increasing cross-border trade activities also fosters the demand for road freight services; therefore, fleet operators are extensively focusing on deploying a higher number of commercial vehicles to cater to the surging demand, which, in turn, is positively impacting the demand for commercial vehicle financing solutions. Moreover, commercial vehicle manufacturing companies are strategizing to expand their financing services to customers to compete with existing banks and NBFCs in the ecosystem. These automakers tailor their financial products with higher repayment periods and lower interest rates to attract consumers.

• According to the Organization for Economic Co-Operation and Development (OECD), the amount of freight transported by road in France reached 168,345 million tonne-kilometers in 2022 compared to 168,101 million tonne-kilometers in 2021, representing a Y-o-Y growth of 0.14% between 2021 and 2022.
• Similarly, the amount of freight transported by road in Germany reached 303,948 million tonne-kilometers in 2022 compared to 307,202 million tonne-kilometers transported in 2021.

In recent years, various commercial fleet operators have opted for leasing services compared to loans, attributed to the benefit of leasing solutions in availing commercial vehicles for a specific period of time, which is less expensive than loan services. Therefore, with shifting consumer preference toward e-commerce purchases and the integration of electric commercial vehicles in the industry, which attracts a higher purchasing price compared to their counterparts, the commercial vehicle financing market is expected to witness surging growth between 2024 and 2029.

Commercial Vehicle Financing Industry Segmentation

Commercial vehicle financing refers to various financial products that enable people to purchase commercial vehicles using any arrangement other than a full-cash single lump payment for both new and used vehicles. The scope of the report considers financial products, including loans and leasing.

The commercial vehicle financing market is segmented by provider type, financing type, vehicle condition, vehicle type, and geography. By provider type, the market is segmented into banks, original equipment manufacturers (OEMs), non-banking financial companies (NBFCs), and others (credit unions, etc.). By financing type, the market is segmented into loans and leasing. By vehicle condition, the market is segmented into new commercial vehicles and used commercial vehicles. By vehicle type, the market is segmented into light commercial vehicles, medium and heavy-duty commercial vehicles, and buses and coaches. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.

The report offers market size and forecasts for commercial vehicle financing in value (USD) for all the above segments.