Market Trends of Medium and Heavy Duty Commercial Vehicles
This section covers the major market trends shaping the Medium & Heavy Duty Commercial Vehicles Market according to our research experts:
Electric Commercial Vehicle to Witness Steady Sales
Across the globe, some countries have banned old commercial vehicles from running on public roads to tackle growing vehicle emissions. Thus, the possibility of freight businesses adopting new commercial vehicles that are eco-friendly, cost-effective, and align with the emission standards, will increase globally during the forecast period.
Major players are collaborating to develop and manufacture electric trucks. For instance, in October 2020, BYD Auto and Hino Motors announced jointly setting up a company to develop battery-powered trucks and buses. BYD Auto Industry Co., a unit of battery producer BYD Ltd and Hino Motors Ltd, said each would supply 50% of the investment for the company.
The heavy-duty commercial electric vehicle market, driven by logistics and the construction & e-commerce industry developments, is expected to witness significant growth in the coming years, with good opportunities opening in infrastructure, logistics, and transportation sectors.
Furthermore, government incentives and subsidies, along with structural & functional design improvements, drive the sales of hybrid and electric trucks.
Asia-Pacific is the Leading Market
The Asia-Pacific region is the leading regional segment of the market owing to several infrastructure investments and construction projects in progress and announced for the future. These projects are expected to significantly increase the demand for heavy-duty transportation trucks for material transport across and inside several countries of the region. The increase in spending on several infrastructure development projects in countries in the Asia-Pacific region drives the market growth.
In China, for a total of 11 provinces, including Yunnan, Sichuan, and Fujian, the total infrastructure investment amount for key projects announced in 2020 totaled CNY 27.68 trillion. Investments in infrastructure, like the Indonesian National Medium-term Development Plan (USD 460 billion) and Vietnam Socio-Economic Development Plan (USD 61.5 billion are expected to offer opportunities for commercial vehicles. In November 2020, Australia announced an investment of AUD 110 billion over 10 years into transport infrastructure development.
In March 2021, India announced INR 118,101 crores investment into the country's infrastructure development.
