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 vehicles.
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 vehicles 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 vehicles 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 vehicles 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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Market

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Analyst Opinion

The Commercial Vehicles market in South Korea is experiencing steady growth due to changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In South Korea, customers have shown a growing preference for commercial vehicles that are fuel-efficient, environmentally friendly, and technologically advanced. This shift in preference can be attributed to increasing awareness about the impact of vehicles on the environment and the need for more sustainable transportation solutions. Customers are also seeking vehicles that offer superior safety features and comfort, as well as those that provide efficient cargo space and versatility.

Trends in the market: One of the key trends in the South Korean Commercial Vehicles market is the increasing demand for electric and hybrid vehicles. With the government's push towards reducing carbon emissions and promoting clean energy, there has been a significant rise in the adoption of electric and hybrid commercial vehicles. This trend is expected to continue as the government provides incentives and subsidies to encourage the use of eco-friendly vehicles. Additionally, there is a growing trend towards the integration of advanced technologies such as telematics and connectivity features in commercial vehicles. These technologies enhance the efficiency, safety, and productivity of the vehicles, making them more attractive to customers.

Local special circumstances: South Korea has a well-developed infrastructure and a strong automotive industry, which provides a favorable environment for the growth of the Commercial Vehicles market. The country has a robust network of roads and highways, making it easier for businesses to transport goods and services. Additionally, the presence of major automotive manufacturers in South Korea ensures a steady supply of commercial vehicles and promotes healthy competition in the market. Furthermore, the government's support for the automotive industry through policies and incentives has played a significant role in the growth of the Commercial Vehicles market.

Underlying macroeconomic factors: The growth of the Commercial Vehicles market in South Korea is also influenced by underlying macroeconomic factors. The country's strong economy and increasing disposable income have led to an uptick in demand for commercial vehicles. As businesses expand and the e-commerce sector continues to thrive, the need for efficient transportation solutions has grown. Furthermore, South Korea's aging population has created opportunities for commercial vehicles in the healthcare sector, as there is a higher demand for medical transportation services. In conclusion, the Commercial Vehicles market in South Korea is witnessing growth driven by changing customer preferences, emerging trends, and local special circumstances. The increasing demand for fuel-efficient and technologically advanced vehicles, the rise of electric and hybrid vehicles, and the integration of advanced technologies in commercial vehicles are some of the key trends shaping the market. With a well-developed infrastructure, a strong automotive industry, and government support, South Korea provides a favorable environment for the growth of the Commercial Vehicles market.

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.