Global Commercial Vehicle Market Points Up Says News Report

According to a new report, the global commercial vehicles (CV) market is looking increasingly strong with further growth around the corner.

According to the authors, Global Industry Analysts, the CV industry is influenced by a number of factors including capital investments in the manufacturing industry, technology, price, competition and regulations.  Leading the charge is the United States, which according to the group “continues to remain the largest regional market for commercial vehicles in terms of sales.”

More specifically, the United States represents the largest and the fastest growing market worldwide with sales projected to grow at a compound annual growth rate (CAGR) of 5.9% over the analysis period. Asia-Pacific is forecast to emerge as the fastest growing hub for CV production led by shifting of automobile production bases to low cost Asian countries. The region is expected to witness strong demand for buses encouraged by rapid urbanization and increasing need for safe and efficient public transportation in populous countries such as China and India.

Additionally, the demand for commercial vehicles is also affected by fluctuations in international oil prices. Fuel price hikes have strongly impacted demand for medium-and high-load trucks in the US and Europe. Over the next few years, Asia-Pacific and Latin America are expected to drive significant demand for commercial vehicles. Rapid industrialization, development of road infrastructure, and steady rise in commercial activity, particularly with regard to logistics, distribution and public transportation will drive growth in these markets.

Increase in fuel and energy prices coupled with rising customer eco-awareness, is expected to step up innovation of low-emission and fuel efficient green vehicles. Regulations pertaining to low carbon emissions will also help direct OEMs focus towards manufacturing environment friendly vehicles that consume lesser fuel and emit lower emissions. Innovations in technology such as Exhaust Gas Recirculation (EGR), Selective Catalytic Reduction (SCR), Compression Ignition Technology and Telematics, which improves the efficiency of CVs will help drive long-term growth. Hybrid and electric trucks are expected to grow in popularity as a result of government incentives, and functional improvements in the design of electric motors and hybrid engines.

Further, growing need to transport temperature sensitive products like food/beverages, pharmaceuticals, chemicals, plants, flowers, among others, is helping fuel demand for refrigerated van, truck and trailers. Strong growth in industries like food and beverage, pharmaceuticals and chemicals is therefore creating opportunities for fleet expansion. The rise in home delivery of frozen and chilled food and beverages, for instance, is helping spur market opportunities for refrigerated transportation. Increased online delivery of food services offered by restaurants and supermarkets is a key reason cited for the increase in home delivery of food and beverages.

The complete report is entitled “Commercial Vehicles: A Global Strategic Business Report.” More details are available at: 
http://www.strategyr.com/Commercial_Vehicles_Market_Report.asp.

Category: Featured, General Update