Commercial Vehicles - South Korea

South Korea

In 2024, it is projected that South Korea's Commercial Vehicles market will reach a unit sales of 270.50k.
The market is expected to grow at an annual growth rate (CAGR 2024-2029) of -0.54%, resulting in a projected market volume of 263.30k by 2029.
This indicates the potential growth of the Commercial Vehicles market in South Korea.
Additionally, the production of Commercial Vehicles market in South Korea is expected to reach 318.60k by 2029, further highlighting the potential for market expansion.
From an international perspective, it is noteworthy that the in the United States is projected to have the highest sales volume of 11,630.00k in 2024.
South Korea's Commercial Vehicles market is witnessing a surge in demand for electric buses, reflecting the country's commitment to reducing carbon emissions.

Definition

A commercial vehicle is a motor vehicle that is used for business or commercial purposes rather than personal use. These vehicles are designed and used for transporting goods and passengers or providing services in exchange for compensation. The specific definition of a commercial vehicle can vary from one jurisdiction to another, and it may encompass a wide range of vehicles, depending on their size, purpose, and usage.

Structure

The Commercial Vehicles market is structured into three markets:

Light Commercial Vehicles (LCVs): This market focuses on vehicles designed for the transportation of goods or provision of services on a relatively small scale. LCVs typically include vans, mini trucks, and small cargo vehicles used by businesses and individuals for local deliveries, trade, and various commercial applications. Light commercial vehicles are defined as vehicles meant for carrying goods or passengers with a gross vehicle weight rating (GVWR) of up to 3.5 tons with some variation based on specific vehicle models, designs, and regional regulations.
Buses: Buses are motor vehicles designed for the transportation of passengers, varying in size and capacity and ranging from small minibuses to large coaches. This market considers medium and heavy buses and coaches (MHBCs). The gross vehicle weight rating (GVWR) of MHBCs typically exceeds 3.5 tons.
Trucks: The Trucks market is dedicated to heavy-duty vehicles used for the transportation of goods over long distances. Trucks are motor vehicles designed to transport cargo, ranging from small delivery trucks to heavy-duty freight carriers. Only heavy commercial vehicles (HCVs) are considered in this market. HCVs are typically defined as vehicles with a GVWR of 16 tons or more.

Additional Information

The market includes the production and sales of commercial vehicles within a specific region, regardless of the brand or model. Private vehicles, recreational vehicles, construction, and agricultural vehicles, as well as specialty vehicles such as ambulances and fire engines, are not included in the Commercial Vehicles market.

Notable key players in the Commercial Vehicles market include industry giants such as Daimler AG, Volvo Group, and PACCAR Inc., as well as various regional manufacturers and specialized vehicle manufacturers. These companies play a pivotal role in shaping the market landscape and driving innovation within the industry.

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Analyst Opinion

The global commercial vehicle market is set for significant growth, driven by increasing industrial activity, the surge in e-commerce, and the growing demand for efficient transportation solutions. This market is highly competitive, with numerous global players vying for substantial market supremacy. The demand for sophisticated and innovative commercial vehicles is expected to increase as companies recognize the importance of well-coordinated logistics.

The North American commercial vehicle market is a highly competitive industry, featuring key players like Daimler Trucks North America, PACCAR, and Navistar International Corporation. The driving forces behind market growth include the surge of e-commerce, the demand for secure freight transportation, and the need for agile management of supply chains. Europe's commercial vehicle market is multifaceted, home to established heavyweights such as the Volvo Group and MAN Truck & Bus, as well as up-and-coming contenders. The region's commitment to sustainable transport solutions, incorporating electric and hybrid vehicles, is set to shape the future of the market. Strict emission standards and environmental worries drive innovation and technological progress. The African commercial vehicle market is currently small but possesses rapid expansion potential. Anticipated factors promoting demand comprise escalating trade activities, urbanization, and the development of the e-commerce industry. To guarantee sustainable growth, it is vital to address challenges such as inadequate infrastructure and logistics systems. The Middle East's strategic global trade hub location and burgeoning e-commerce market make it enticing for commercial vehicle firms. Nonetheless, operational difficulties can arise from infrastructure gaps and limited access to financing. South America, especially Brazil and Argentina, offers great potential for the commercial vehicle market. The region is undergoing a transition towards technology and automation in logistics, which is increasing the need for sophisticated commercial vehicles. Additionally, there is a rising concern for sustainability and environmentally friendly transport solutions.

In 2020, the COVID-19 pandemic caused significant disruption to commercial vehicle manufacturing and sales. However, the market proved to be robust in 2021, with heightened demand resulting from the economic recovery, infrastructure initiatives, and the continuous expansion of e-commerce. The market's adaptability and innovation in confronting difficulties underscores its potential for continual expansion in the foreseeable future.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on unit sales and production of commercial vehicles.

Modeling approach:

Market sizes are determined through a combined Top-Down and bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey). In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending per capita on transportation and consumer price index for purchase of vehicles. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, linear regression, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.