Market Challenges And Opportunities

Global Commercial Vehicles Market Drivers:

Rise in integration of safety features to boost the market growth

Due to growing road accidents, the demand for safety features in vehicles is increasing all over the world in order for preventing road accidents. For instance, as per the World Health Organization (WHO), road accidents cause nearly 1.24 million deaths of people and severe injuries in nearly 20 to 50 people every year. Due to this, manufacturers are increasingly integrating safety features in to vehicles. With integration of advanced safety technologies, the demand for commercial vehicles is rising all over the world. Thus, this factor is expected to fuel growth of the global commercial vehicles market over the forecast period.

Increasing growth of retail e-commerce industry to drive the market growth

Growth of retail e-commerce industry is leading to increasing sales of commercial vehicles. In recent years this industry has shown significant growth with enhanced living standard among people with middle-scale income, introduction of various e-commerce portals, and rollout of internet services all over the world. Due to this, purchasing goods has become easy for customers. With adoption of new approaches and novel business models based on the newest technology, the retail e-commerce industry is witnessing strong growth. As a result, the demand for commercial vehicles is increasing in this industry, which is further expected to propel growth of the global commercial vehicles market over the forecast period.

Global Commercial Vehicles Market Restraints:

Environmental impact of emissions to hinder the market pace

Due to emerging concerns around climate change and vehicles are one of the leading reasons behind air pollution due to emissions of hydrocarbons, carbon monoxide, and nitrogen oxide among other factors. Diesel engines emit nitrogen oxide that is one of the leading cause of death among people due to air pollution. Along with this, heavy and light duty commercial vehicles cause higher emission of nitrogen oxide, which further severely impacts the environment. Thus, this factor is expected to hinder growth of the global commercial vehicles market over the forecast period.

Stringent government regulations around emissions to hamper the market growth

Government of countries around the world are drafting stringent regulations for limiting the emissions caused due to vehicles. For instance, the European Union imposed stringent emission norms such as Euro 6/VI standard for controlling emissions from vehicles and improve the procedures of testing the fuel consumption as well as pollutant emissions of light duty vehicles. Such regulations are in turn likely to impact adoption of commercial vehicles, which is anticipated to impede growth of the global commercial vehicles market over the forecast period.

Restraints & Challenges:

Environmental impact of emissions
Stringent government regulations around emissions

Global Commercial Vehicles Market Opportunities:

Emergence of autonomous commercial vehicles to produce multiple growth opportunities in the global commercial vehicles market over the forecast period. These vehicles make use of combination of GPS, cameras, RADAR, and onboard computer for traveling to destinations without requiring human assistance. In order for these vehicles to be completely autonomous, they require ability of navigating with no or minimal human intervention to an already decided destination over roads with no modification for use of such vehicles. The demand for these vehicles is increasing rapidly, which in turn is creating growth opportunities in the market.

Rise in growth of production as well as sales of electric commercial vehicles is projected to offer lucrative opportunities in the global commercial vehicles market over the forecast period. The growing number of logistics, freight, and construction activities are driving the electric vehicle market. As government of several companies are imposing stringent emission norms, the demand for electric commercial vehicles is increasing, further driving their production and sales. These vehicles offer significant environmental benefits. Thus, the global commercial vehicles market is likely to witness growth opportunities in the coming future.