Commercial Vehicles Market – 8.33% CAGR for Electric & Hybrid Variants Forecast to 2031, Says a 2026 Mordor Intelligence Report
Hyderabad, March 02, 2026 (GLOBE NEWSWIRE) -- According to a newly published report by Mordor Intelligence, the commercial vehicles market size is expected to reach USD 1.20 trillion by 2031, registering a 4.48% CAGR during 2026-2031. Growth is being shaped by stricter CO₂ regulations, falling battery costs, and gradual progress in charging infrastructure. While hybrid and battery-electric trucks are expanding faster than the overall market, diesel-powered vehicles still dominate due to limited megawatt charging and battery-swap networks. Asia-Pacific continues to anchor global demand, supported by incentives in China and India, while Europe is investing in clean transport corridors despite grid connection delays. Competition is intensifying as established OEMs such as Daimler Truck, Volvo Group, and PACCAR face growing pressure from BYD and SAIC, particularly in battery and energy-service innovation.
Commercial Vehicles Market Trends and Growth Drivers
Rapid expansion of e-commerce and third-party logistics (3PL) networks is driving strong demand for last-mile delivery fleets
Surging parcel deliveries have pushed logistics providers to accelerate the shift toward electric light-duty vans, particularly in cities enforcing zero-emission rules. Companies such as Amazon and DHL are expanding their electric fleets to meet urban sustainability goals. Restrictions on diesel vehicles in cities like London, Paris, and Beijing are further encouraging this transition. Although adoption has been slower in the United States due to longer delivery routes and limited charging access, pilot projects in Los Angeles and New York City show that depot-based charging can effectively support daily operations. Overall, demand for electric light commercial vehicles continues to strengthen.
Falling battery pack costs per kWh are accelerating total cost parity for heavy-duty trucks, making electrification increasingly viable
Battery prices have continued to ease, with improvements in LFP chemistry making electric heavy-duty trucks more commercially attractive. This has narrowed the cost gap with diesel models, particularly for fleets running high daily utilization. Models like the eActros from Daimler Truck highlight the potential for lower operating energy costs in markets with stable electricity rates, while Volvo Group has steadily reduced the battery share in overall vehicle production costs. Adoption remains slower in North America due to higher power tariffs and diesel tax dynamics, whereas supportive policies in China are helping fleets transition more quickly to electric trucks.
“This analysis reflects observable shifts in fleet investment, regulatory direction, and regional demand patterns shaping the commercial vehicle market. Mordor Intelligence applies validated data triangulation and transparent assumptions, enabling independently reviewed, cross-market comparisons beyond single-source estimates common in alternative industry reports.” Says, Jayveer V, Senior Research Manager, Mordor Intelligence.
Commercial Vehicles Market Share by Region
Asia-Pacific remains the powerhouse of the Commercial Vehicles Market, driven largely by China’s strong electric vehicle manufacturing base led by companies such as BYD, SAIC, and Foton Motor. Policy support in China and India, along with metro-focused electrification programs, is accelerating adoption, while Japan and South Korea are advancing hydrogen truck trials. In Southeast Asia, new assembly investments are rising, though charging networks are still developing.
Across Europe, countries like Germany, France, and the United Kingdom are tightening urban emission rules and funding charging infrastructure, pushing fleet electrification forward despite grid constraints. Meanwhile, Russia continues to rely heavily on diesel vehicles, with climate and geopolitical factors slowing its transition.
Commercial Vehicles Market Segmentation Insights
By Vehicle Type
By Propulsion Type
By Gross Vehicle Weight Rating (Tonnage Class)
By End-Use Industry
For a full breakdown of market dynamics, segmentation insights, and competitive landscape, access the details of the Mordor Intelligence report
https://www.mordorintelligence.com/industry-reports/commercial-vehicle-market?utm_source=globenewswire
Commercial Vehicles Companies
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https://www.mordorintelligence.com/industry-reports/electric-truck-market?utm_source=globenewswire
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