Commercial Vehicles - Canada

Canada

In the Commercial Vehicles market , in Canada is expected to witness a projected unit sales of 1,327.00k vehicles by the year 2024.
The market is anticipated to display an annual growth rate (CAGR 2024-2029) of -0.33%, leading to a projected market volume of 1,305.00k vehicles by 2029.
This suggests the potential for significant growth in the Commercial Vehicles market sector.
Moreover, the production of Commercial Vehicles market in Canada is predicted to reach 939.30k vehicles units by 2029, further emphasizing the market's growth prospects.
In terms of international sales, the in the United States is projected to dominate the market with sales of 11,630.00k vehicles units in 2024.
Canada's commercial vehicle market is experiencing a surge in demand for electric and hybrid vehicles, driven by 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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Market

Region

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Analyst Opinion

The Commercial Vehicles market in Canada has been experiencing steady growth in recent years. Customer preferences in the Canadian market have been shifting towards more fuel-efficient and environmentally friendly commercial vehicles.

This trend is driven by increasing awareness of the environmental impact of traditional vehicles and government regulations promoting the use of cleaner technologies. Customers are also looking for vehicles with advanced safety features and connectivity options to improve efficiency and productivity. In terms of trends, there has been a growing demand for electric and hybrid commercial vehicles in Canada.

This can be attributed to the government's efforts to reduce greenhouse gas emissions and promote sustainable transportation. Electric and hybrid vehicles offer lower operating costs and reduced environmental impact, making them an attractive choice for businesses. Additionally, advancements in battery technology have improved the range and performance of electric vehicles, further driving their adoption in the commercial sector.

Another trend in the Canadian market is the increasing popularity of light commercial vehicles. These vehicles are versatile and can be used for a wide range of applications, making them a preferred choice for businesses in various industries. The demand for light commercial vehicles is driven by factors such as urbanization, e-commerce growth, and the need for efficient last-mile delivery solutions.

Local special circumstances in Canada also contribute to the development of the commercial vehicles market. The country's vast geography and harsh weather conditions create unique challenges for businesses, particularly in remote areas. This has led to a demand for commercial vehicles that are capable of operating in rugged terrain and adverse weather conditions.

Additionally, the country's strong resource sector, including mining and forestry, requires specialized commercial vehicles to meet the specific needs of these industries. Underlying macroeconomic factors play a significant role in the development of the commercial vehicles market in Canada. Economic growth, consumer confidence, and government policies related to infrastructure development and trade all impact the demand for commercial vehicles.

A strong economy and favorable business environment encourage businesses to invest in new vehicles to support their operations and expansion plans. Similarly, government initiatives to improve transportation infrastructure and facilitate trade can drive demand for commercial vehicles. In conclusion, the Commercial Vehicles market in Canada is evolving to meet changing customer preferences and market trends.

The demand for fuel-efficient and environmentally friendly vehicles, such as electric and hybrid commercial vehicles, is on the rise. Light commercial vehicles are also gaining popularity due to their versatility and suitability for various applications. Local special circumstances, such as the country's geography and resource sector, further contribute to the development of the market.

Finally, underlying macroeconomic factors, including economic growth and government policies, play a significant role in shaping the demand for commercial vehicles in Canada.

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.