The commercial vehicle sector is navigating a period of transformation, powered by advancements in alternative propulsion, digitalization, and the accelerating push for sustainable logistics. This outlook, grounded in MarketsandMarkets data, breaks down the market’s evolving trajectory, highlights high-growth technologies, and surfaces actionable takeaways for B2B strategists.

Executive Summary

• Global medium and heavy commercial vehicle (CV) sales are projected to rise from 3.3 million units in 2024 to 3.5 million units in 2025—a YoY growth of 4.4%.
• Asia Pacific dominates both volume and innovation, largely driven by China’s robust manufacturing, supply chain, and EV charging infrastructure.
• Hydrogen and battery-electric commercial vehicles will see accelerated adoption, catalyzed by investments from major players (Volvo, Stellantis, Tata Motors, Reliance, Cummins, MAN).
• Software-defined commercial vehicles (SDVs), telematics, and advanced fleet management systems are reshaping cost structures and operational efficiency.
• Strategic OEM partnerships, government policy, and rapid infrastructure rollout are key to capturing emerging growth in key segments and regions.

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Go to Market Insights

• Prioritize Asia Pacific expansion—especially China—for both supply chain resilience and access to a rapidly electrifying fleet market.
• Anchor GTM strategies in alternate energy propulsion—including hydrogen and battery-electric platforms. Partner with OEMs and tech leaders scaling fuel cell and BEV solutions.
• Adopt software and telematics innovations to deliver predictive maintenance, optimize fleet operations, and comply with digital logistics mandates.
• Leverage public incentives—such as India’s Green Hydrogen Mission and US freight corridor initiatives—to derisk investments in new powertrain and digital infrastructure.
• Develop battery and supply chain alliances to ensure competitive access to next-gen batteries, charging tech, and hydrogen solutions.

Key Takeaways

• Asia Pacific, led by China, will remain the growth engine for the global CV market due to its manufacturing strength, domestic demand, and infrastructure leadership.
• Hydrogen and battery-electric commercial vehicles are moving from pilot to scale, thanks to OEM innovation and supportive regulation.
• Telematics and software-defined gains will reshape fleet management, enabling cost reductions and new revenue streams.
• Early-mover advantage in digital and zero-emission vehicles is real—capitalize on public-private synergies and regional growth pockets to outpace the competition.

People also asked

People also asked: What is driving the growth of the global commercial vehicle market?

Growth is fueled by expanding urbanization, regulatory pressure for emissions reduction, the adoption of alternative propulsion (hydrogen, electric), and digitization of fleet management. The Asia Pacific region—especially China—leads growth via both production and new mobility innovation, according to MarketsandMarkets.

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How are alternative powertrains impacting commercial vehicle strategies?

Hydrogen and battery-electric vehicles are transforming fleet operations and long-term planning. MarketsandMarkets notes that both public policies (EU AFIR mandates, India’s Green Hydrogen Mission) and OEM launches (Volvo, Stellantis, Tata Motors) are hastening alternative powertrain adoption, with battery tech and charging infrastructure as growth catalysts.

Which OEMs are shaping future CV innovation?

Key players include Volvo, Daimler, PACCAR, TATA Motors, HINO, IVECO, MAN, Ashok Leyland, and technology partners like CATL, Bosch, and ZF. These groups are driving advances in electrification, fuel cells, and digital fleet management.

How significant will telematics and software-defined vehicles be for fleets?

Telematics is projected to more than double, reaching $12.8B by 2030, as operators invest in predictive, data-driven fleet control to manage costs, safety, and compliance. Software-defined vehicles (SDVs) further enable real-time diagnostics and tailored feature upgrades—key to digital transformation in transportation, per MarketsandMarkets.

Which regions offer the best near-term commercial vehicle opportunities?

Asia Pacific will continue to lead sales and tech innovation. Europe is following closely for above 250 kW electric vehicles and industrial vehicle modernization, and North America is accelerating charging infrastructure and telematics adoption. Strategic GTM action in these markets will position B2B companies for growth.

For bespoke insights and detailed market breakdowns by vehicle type, powertrain, and region, connect with MarketsandMarkets.com.