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The Vietnam - truck market size is estimated to grow at a CAGR of 8.05% between 2023 and 2028. The market size is forecast to increase by USD 1.50 billion. The accelerated growth of the market is due to various factors, including the rise in industrialization and urbanization of Vietnam's economy, the increasing incorporation of lighter materials in truck manufacturing, and the increasing prominence of electric HD trucks.
The report includes a comprehensive outlook on the Vietnam Truck Market, offering forecasts for the industry segmented by Vehicle Category, which comprises less than 10 T, and more than 10 T. Additionally, it categorizes Type into domestic, and imported, and covers Product Type, including manual, and automatic. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing incorporation of lighter materials in truck manufacturing is the key factor driving market growth. Vehicle makers in Vietnam are focusing on increasing the fuel efficiency of their vehicles to comply with fuel efficiency standards. Moreover, when lighter materials are used for manufacturing, more engine power can be allocated to pulling or towing. Many market players are offering trucks with aluminum metal. The aluminum F-150 truck is about 700 lbs. lighter than the steel variant and offers increased mileage.
Moreover, the aluminum variant has greater towing capabilities using a V6 engine instead of a V8 engine. The use of aluminum has increased the efficiency of the vehicle without compromising its performance. Therefore, such a proposition is expected to be followed as a trend in the truck market in Vietnam by other major vehicle manufacturers and will propel the growth of the market during the forecast period.
Adoption of autonomous technologies in electric trucks is the primary trend shaping market growth. The development of EVs has always complemented the technological advancements of autonomous trucks. This is primarily because several technologies are common between electric and autonomous vehicles. Unlike conventional trucks, electric trucks are lighter, and autonomous technology can control them easily due to the low number of moving parts. Moreover, electric trucks are already equipped with telematics technology, which would aid in accelerating the development of autonomous electric trucks.
Autonomous trucks are equipped with GPS and gyro sensors that sense rotational motion to assess the best way to manage the power system of the trucks. The system efficiently calculates the ways to limit the impact of tailgating and other driving habits. As the fuel efficiency of heavy-duty trucks depends significantly on driving skills, the AI system allows vehicles to achieve better fuel efficiency regardless of drivers' driving skills. Hence, the adoption of AI is becoming a crucial trend in making trucks more efficient. This is expected to remain a positive trend in the growth of the truck market in Vietnam during the forecast period.
The high manufacturing cost of trucks is a challenge that affects market growth. Components such as suspension systems, braking systems, and hauling and steering cylinders require a high level of precision during manufacture, which increases manufacturing expenses. Raw materials such as stainless steel, cast iron, hardened steel, and other metal alloys are also involved in the manufacturing of these trucks. A rise in the prices of these raw materials, such as steel, also causes the manufacturing costs of trucks to rise.
In addition, the adoption of new technologies also increases manufacturing costs. On the other hand, inflated manufacturing costs have reduced the profit margins for OEMs. Moreover, medium and heavy-duty trucks require continuous maintenance and repairs, which further increases the total cost of ownership. These factors increase manufacturing costs, which will be a challenge for the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Vietnam Truck Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The less than 10 T segment is estimated to witness significant growth during the forecast period. The trucks under the gross vehicle weight (GVW) of less than 10-ton segments include various types of light-duty trucks, such as compact trucks, pickup trucks, and passenger and cargo vans. Light-duty trucks is a commercial carrier of people and goods. These trucks are basically used for intra-city and inter-city transport.
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The less than 10 T segment was the largest segment and was valued at USD 2.32 billion in 2018. Moreover, the rise in the use of light-duty trucks in urban cities is attributed to the growth in the home delivery sector. In addition, economic uncertainty and high competition are compelling fleet owners to reduce their operational costs, which is a strong factor driving the demand for trucks under the less than 10-ton segment. Hence, the growing demand for light-duty trucks in logistics operations is driving the growth of the less than 10 T segment in the truck market in Vietnam during the forecast period.
The Vietnam truck market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Vietnam Truck Market Scope |
|
Report Coverage |
Details |
Page number |
146 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.05% |
Market Growth 2024-2028 |
USD 1.50 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.15 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Beijing Automotive Group Co. Ltd., Daimler Truck AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Isuzu Motors Ltd., Kamaz Export, Kia Motors Corp., Mazda Motor Corp., Mitsubishi Corp., Nissan Motor Co. Ltd., Scania AB, Stellantis NV, Tan Chong Motor Holdings Berhad, Tata Motors Ltd., Toyota Motor Corp., and Vtruck |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Category
7 Market Segmentation by Type
8 Market Segmentation by Product Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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