We are members of Food Shippers of America – Global Study Shows Demand for Transportation, Logistics is Driving Trucking

Increased demand for transportation and logistics services is driving the commercial vehicle market, according to a report just released by Global Industry Analysts Inc. (GIA).

Headquartered in San Jose, Calif., GIA said the global market for commercial vehicles is projected to reach 29.1 million units by 2020, driven by economic growth and growing commercial, business, and industrial activity, and the ensuing rise in demand for transportation and logistics services.

The research report, titled, “Commercial Vehicles: A Global Strategic Business Report,” reviews the commercial vehicles market, industry overview, trends, growth drivers and issues, and recent industry activity. The report provides market estimates and projections for commercial vehicles in volume sales and production in units for major geographic markets.

From enabling commercial transport between cities, states and national borders, commercial vehicles support business, commercial and trade activity. The growth in the market is reliant on the level of transportation and logistics activity, which in turn is dependent on economic growth and health of commercial, business and industrial activity.

Government spending on infrastructure projects such as power generation, road construction, mining, mega and smart cities, will also help drive demand for a range of commercial vehicles used for transportation, the report states.

The commercial vehicles market is influenced by a medley of factors including capital investments in the manufacturing industry, technology, price, competition and regulations. Factors such as production capacity, demand and supply dynamics and industry rationalization strategies also influence sales and manufacturer prospects in this market.

Changing societal priorities, against a backdrop of new environmental and economic realities drives the automotive industry’s current transition both in terms of design and manufacturing. Stricter regulations surrounding environmental and occupant protection is stimulating technology transformation in this industry. Fuel-efficient vehicles, sophisticated safety features such as driver assistance systems, and stability control, and intelligent navigation technologies, are all poised to remain focal areas in the future.

Increases in fuel and energy prices, coupled with rising customer eco-awareness will fuel innovation of low-emission and fuel efficient green vehicles. Low carbon emission laws will also help OEMs focus on developing 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 improve the efficiency of commercial vehicles, 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.

As stated by the new market research report on commercial vehicles, the United States represents the largest and the fastest growing market worldwide with a compound annual growth rate of 5.9 percent over the analysis period.

Key players covered in the report include AB Volvo Group, UD Trucks Corp., BAIC Group, Chrysler Group, China National Heavy Duty Truck Group, Daimler AG, Dongfeng Motor Corp., FAW Group Corp., Fiat Chrysler Automobiles, Iveco S.p.A, Ford Motor Co., General Motors Corp., Hyundai Motor Co., Isuzu Motors Ltd., MAN Truck & Bus AG, Mitsubishi Fuso Truck and Bus Corp., Navistar International Corp., Nissan Motor Co. Ltd., Paccar Inc., Scania AB, Tata Motors Ltd., Toyota Motor Corp., Hino Motors Ltd., and Volkswagen AG.

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