Comprehensive Analysis of the Commercial Vehicles Market: Key Insights, Trends, and Leading Players

By /

The commercial vehicles market is projected to experience significant growth, expanding from USD 1.458 trillion in 2025 to USD 2.121 trillion by 2034, with a compound annual growth rate (CAGR) of 3.75%. Several key factors are driving this growth, including the increasing focus of automotive companies on a wide range of commercial vehicles, the rapid adoption of electric trucks, and government initiatives aimed at improving public transportation infrastructure. The integration of Advanced Driver Assistance Systems (ADAS) and telematics solutions in commercial vehicles presents numerous opportunities for market expansion.

Key Market Highlights:

  • North America generated the highest revenue in the commercial vehicles market.

  • The Asia Pacific region is anticipated to witness a significant CAGR during the forecast period.

  • The Light Commercial Vehicles (LCVs) segment led the market in terms of product type.

  • The buses and coaches segment is expected to grow at a robust CAGR in the forecast period.

  • The logistics segment is expected to continue dominating the market, while the passenger transportation segment is projected to grow notably in the coming years.

Download a Sample of Our Market Intelligence: https://www.towardsautomotive.com/download-sample/1427

Key Market Trends:

1. Popularity of Light Commercial Electric Vehicles (LCEVs)

The demand for Light Commercial Electric Vehicles (LCEVs) is increasing rapidly in developing nations, driven by the growing concern over reducing vehicular emissions and the rise in the number of EV startups. For example, in April 2025, FLYNT launched a range of electric light commercial vehicles, boosting the popularity of LCEVs across industries.

2. Strategic Partnerships

Several commercial vehicle manufacturers are forming partnerships to enhance the development of software-defined vehicle (SDV) platforms for commercial vehicles. For instance, in June 2025, Volvo Group partnered with Daimler Truck to launch the ‘Coretura AB’ SDV platform, which aims to enhance the capabilities of commercial vehicles.

3. Expanding Production Facilities

To meet rising demand, major players in the commercial vehicles market are expanding their production capacities. For example, Isuzu Motors announced the opening of a new production facility in the U.S. in February 2025 to enhance its manufacturing capacity for commercial vehicles.

Product Insights:

Light Commercial Vehicles (LCVs)

The LCVs segment dominates the commercial vehicles market due to their increasing adoption in industries such as construction, healthcare, retail, and more. The rapid growth of electric light commercial vehicles (LCEVs) is contributing to the market’s positive trajectory. For instance, in March 2025, Jupiter Electric Mobility launched the JEM TEZ e-LCV, which boasts a 190 km range and a payload capacity of 1.05 tons.

Buses and Coaches

The buses and coaches segment is expected to grow at a robust CAGR, primarily driven by the increasing adoption of electric buses for sustainable urban transportation. For example, in February 2025, NueGo launched an electric luxury bus service in India, contributing to the growth of electric buses across the region.

End-Use Insights:

Logistics Segment:

The logistics sector remains the dominant end-user in the commercial vehicles market, with the growing adoption of electric vehicles (EVs) and partnerships among automotive brands and logistics companies driving the market expansion. For example, in May 2025, Volvo Trucks partnered with Linfox to deliver 30 electric trucks to Brisbane, Australia.

Passenger Transportation:

The passenger transportation segment is projected to grow with a notable CAGR during the forecast period, driven by investments in luxury buses and autonomous vehicles for ride-hailing services. For example, in June 2025, YoloBus launched a luxury bus service in Lucknow, India, enhancing regional transportation.

Geographical Insights:

North America:

North America leads the commercial vehicles market due to the high demand for electric trucks in the U.S. and Canada. The region also benefits from government initiatives to strengthen public transportation infrastructure and the presence of key market players like General Motors, Paccar, and Navistar.

Asia Pacific:

Asia Pacific is expected to grow at a significant rate, driven by the rising sales of luxury buses in countries like India, China, and Japan, and the expansion of the logistics sector. For example, Mahindra launched the Furio 8 LCV in India in June 2025, and the region’s major player, China, continues to expand rapidly.

Invest in Our Premium Strategic Solution: https://www.towardsautomotive.com/price/1427

Top Companies in the Commercial Vehicles Market:

  1. Toyota Motor Corporation

    • About: Toyota Motor Corporation is a Japanese multinational automotive manufacturer, renowned for its diverse range of vehicles, including trucks and commercial vehicles.

    • Products: Toyota offers a variety of commercial vehicles, including light trucks, heavy-duty trucks, and buses.

    • Market Cap: USD 247 billion (as of August 2025)

  2. Mahindra and Mahindra

    • About: An Indian multinational corporation, Mahindra and Mahindra is one of the key players in the commercial vehicles market in India and globally.

    • Products: Mahindra’s commercial vehicle offerings include light commercial vehicles (LCVs), medium-duty trucks, and electric vehicles.

    • Market Cap: USD 30 billion (as of August 2025)

  3. Ashok Leyland

    • About: Ashok Leyland is an Indian commercial vehicle manufacturer and a subsidiary of Hinduja Group, known for its wide range of heavy-duty trucks and buses.

    • Products: Ashok Leyland produces LCVs, buses, and trucks, including the popular Saathi series.

    • Market Cap: USD 10 billion (as of August 2025)

  4. Daimler AG

    • About: Daimler AG, a German multinational automotive corporation, is known for its luxury cars and heavy-duty commercial vehicles.

    • Products: Daimler manufactures trucks, buses, and vans under various brands, including Mercedes-Benz.

    • Market Cap: USD 74 billion (as of August 2025)

  5. Volkswagen AG

    • About: Volkswagen is a leading German automaker with a strong presence in the global commercial vehicle market.

    • Products: Volkswagen produces a wide range of vehicles, including trucks, buses, and vans.

    • Market Cap: USD 93 billion (as of August 2025)

FAQs:

  1. What are the primary drivers of growth in the commercial vehicles market?

    • The key drivers include the growing demand for electric vehicles, the adoption of advanced technologies like ADAS and telematics, and government initiatives for public transportation infrastructure development.

  2. What are light commercial vehicles (LCVs) used for?

    • LCVs are primarily used in industries like construction, logistics, healthcare, and retail due to their versatility, fuel efficiency, and relatively lower operating costs.

  3. How is the adoption of electric vehicles affecting the commercial vehicle industry?

    • The shift to electric vehicles is significantly influencing the market, as companies adopt LCVs and buses with electric drivetrains to reduce emissions and operational costs, especially in the logistics and public transportation sectors.

  4. Which region is expected to witness the highest growth in the commercial vehicles market?

    • The Asia Pacific region is expected to see significant growth, driven by increasing vehicle sales, the rise of EV startups, and government initiatives promoting electric trucks and buses.

  5. Which are the leading companies in the commercial vehicles market?

    • Leading companies in the market include Toyota Motor Corporation, Mahindra and Mahindra, Ashok Leyland, Daimler AG, and Volkswagen AG, which are focused on technological innovation and expansion into new markets.

Source : https://www.towardsautomotive.com/insights/commercial-vehicles-market-sizing

Access our exclusive, data-rich dashboard dedicated to the respective market built specifically for decision-makers, strategists, and industry leaders. The dashboard features comprehensive statistical data, segment-wise market breakdowns, regional performance shares, detailed company profiles, annual updates, and much more. From market sizing to competitive intelligence, this powerful tool is one-stop solution to your gateway.

Access Now: https://www.towardsautomotive.com/contact-us

Become a Valued Research Partner with Us – Schedule a meeting: https://www.towardsautomotive.com/schedule-meeting

Request a Custom Case Study Built Around Your Goals: sales@towardsautomotive.com

About Us

Towards Automotive is a leading research and consulting firm specializing in the global automotive industry. We deliver actionable insights across key segments such as electric vehicles (EVs), autonomous driving, connected cars, automotive software, aftermarket services, and more. Our expert team supports both global enterprises and start-ups with tailored research on market trends, technology, and consumer behavior. With a focus on accuracy and innovation, we empower clients to make informed decisions and stay competitive in a rapidly evolving landscape.

Stay Connected with Towards Automotive:

Get ahead of the trends – follow us for exclusive insights and industry updates:

Tumbler | Bloglovin | Medium | Hashnode | Pinterest

Scroll to Top