The commercial vehicles market has been forecast to hit global sales of 25.9 million units by 2018, driven by improving commercial and industrial activity and the resulting increase in demand for logistics and distribution services.
The commercial vehicles (CVs) industry is influenced by a medley of factors including capital investments in the manufacturing industry, technology, price, competition and regulations. Several factors, both general and market-specific, tend to influence the industry performance.
Economic factors include changes in government policies, fluctuation in exchange rates, varying inflation levels and automobile infrastructure, among others.
Additionally, the demand for commercial vehicles is also affected by fluctuations in international oil prices.
According to a recent market report, 'Commercial Vehicles: A Global Strategic Business Report,' over the next few years, Asia-Pacific and Latin America are expected to drive significant demand for commercial vehicles.
Rapid industrialisation, development of road infrastructure, and steady rise in commercial activity, particularly with regard to logistics, distribution and public transportation will drive growth in these markets.
The United States continues to remain the largest regional market for commercial vehicles in terms of sales.
The increase in fuel and energy prices coupled with rising customer eco-awareness, is expected to step up innovation of low-emission and fuel efficient green vehicles. Regulations pertaining to low carbon emissions will also help direct OEMs focus towards manufacturing environment friendly vehicles that consume lesser fuel and emit lower emissions.
Innovations in technology such as Exhaust Gas Recirculation (EGR), Selective Catalytic Reduction (SCR), Compression Ignition Technology and Telematics, which improves the efficiency of CVs will help drive long-term growth.
Hybrid and electric trucks are expected to grow in popularity as a result of government incentives, and functional improvements in the design of electric motors and hybrid engines.
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