Truck Market in Vietnam to Grow by USD 1.50 Billion (2024-2028), Driven by Industrialization and Urbanization, with AI Impacting Market Trends - Technavio

NEW YORK, Nov. 19, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The truck market in vietnam size is estimated to grow by USD 1.50 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  8.05%  during the forecast period. Rise in industrialization and urbanization of Vietnam economy is driving market growth, with a trend towards emergence of alternative fuel trucks. However, high manufacturing cost of trucks  poses a challenge.Key market players include 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.

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Market Driver

The Vietnamese Trucks Market is witnessing significant trends in various sectors. Chassis, engine, cab, and pickup trucks are in high demand for warehouses and retail outlets serving consumers. Livestock and farm equipment require medium and heavy-duty trucks for transportation. Fleet owners and logistics companies are adopting telematics, GPS tracking, and connectivity solutions for efficient fleet management. E-commerce sectors, online shopping, and hyperlocal delivery services are driving the demand for light-duty trucks. Truck manufacturers focus on emission norms, fuel efficiency, safety, and electrification. Heavy-duty trucks are essential for infrastructure projects like roads, bridges, ports, and cold chain logistics. Electric vehicles (EVs) and hydrogen-based solutions are gaining traction in the transportation industry. AI and IoT are enhancing vehicle performance, trailer tracking, and maintenance costs. The market includes OEMs, e-commerce companies, and e-commerce delivery services. The focus is on sustainability, efficiency, and profitability. Electric trucks, fuel-efficient trucks, and hydrogen-powered models are the future. The market caters to logistics, construction, mining, agriculture, and infrastructure projects. 

The truck market in Vietnam is witnessing a shift towards environmentally friendly commercial vehicles due to increasing emission regulations. These regulations aim to reduce greenhouse gas (GHG) and pollutant emissions from trucks. In response, manufacturers are exploring alternative fuel solutions such as bio-fuel, electric, and hybrid trucks. An electric truck uses an electric motor or a generator powered by an electric drive system, which operates on battery packs and does not consume fossil fuels. The trend towards eco-friendly trucks is expected to gain momentum as governments worldwide continue to enforce stricter emission norms. 

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 Market Challenges

• The Vietnamese Trucks Market faces several challenges in the rapidly evolving transportation industry. Key players include fleet owners, logistics companies, e-commerce sectors, and truck manufacturers. Challenges include emission norms, fuel efficiency, safety, and electrification. Heavy-duty, medium-duty, and light-duty trucks cater to various sectors like construction, mining, agriculture, infrastructure projects, and e-commerce delivery. Truck manufacturers focus on developing powerful vehicles with improved suspension systems and fuel-efficient engines. Cab design, telematics, GPS tracking, and connectivity solutions are essential for fleet management. Maintenance costs and operational expenses impact profitability. Driver shortages and the shift towards electric trucks pose challenges. E-commerce companies seek sustainable and efficient solutions for last-mile delivery. The emergence of hydrogen-based society and carbon neutrality goals influences the market. Mullen Automotive and other OEMs invest in electric vehicle (EV) technology, including battery design and charging infrastructure. Logistics, cargo supply chain systems, and vehicle safety remain critical concerns. The market also explores AI and IoT for trailer tracking and predictive maintenance. The role of e-commerce in the trucks market continues to grow, with a focus on hyperlocal delivery and cold chain logistics.
• Medium- and heavy-duty truck manufacturing is a capital-intensive process. Precision is crucial during production of components like suspension and braking systems, hauling and steeling cylinders, which increases costs. Raw materials, such as stainless steel, cast iron, hardened steel, and metal alloys, significantly contribute to manufacturing expenses. Steel price hikes further escalate these costs. Adoption of new technologies also adds to expenses. These elevated manufacturing costs squeeze OEM profit margins.

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Segment Overview 

This truck market in Vietnam report extensively covers market segmentation by 

1. Vehicle Category
• 1.1 Less than 10 T
• 1.2 More than 10 T
2. Type 
• 2.1 Domestic
• 2.2 Imported
3. Product Type
• 3.1 Manual
• 3.2 Automatic
4. Geography 
• 4.1 APAC

1.1 Less than 10 T-  Light-duty trucks, which include compact trucks, pickup trucks, and passenger and cargo vans, are essential commercial vehicles in Vietnam, particularly for intra-city and inter-city transport. These trucks, with a gross vehicle weight under 10 tons, are widely used due to their maneuverability in space-strapped urban areas. In Vietnam, the rising traffic congestion and entry restrictions for heavier vehicles have led to increased adoption of light-duty trucks. The home delivery sector's growth is another significant factor driving demand. Dealers serve as the primary distribution channel for these trucks, and vans are the most popular choice for goods distribution from central hubs. Economic uncertainty and competition pressure compel fleet owners to minimize operational costs, further fueling demand for light-duty trucks. Consequently, the less than 10-ton segment is expected to grow in the Vietnamese truck market during the forecast period.

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Research Analysis

Trucks are essential vehicles in Vietnam's thriving economy, serving various sectors such as logistics, construction, and agriculture. The market for trucks in Vietnam is vast, with a focus on pickup trucks, warehouses, and retail outlets catering to consumers' needs. The demand for trucks is driven by the country's extensive road network and the transportation of goods, including cargo and fuel. Manufacturers prioritize fuel efficiency, safety, and electrification in their designs, addressing the increasing concerns of consumers and governments. Powerful engines and suspension systems are also essential features for handling the rough terrain and heavy loads common in Vietnam. The logistics and e-commerce sectors are significant consumers of trucks, requiring efficient and reliable vehicles for the timely delivery of goods. Trailer tracking and cargo management systems are essential for optimizing supply chain operations and reducing vehicle emissions. Safety is a top priority, with vehicle safety regulations becoming increasingly stringent to protect drivers and other road users. The future of the truck market in Vietnam lies in the adoption of advanced technologies and the development of sustainable transportation solutions.

Market Research Overview

The Trucks Market in Vietnam is witnessing significant growth due to the increasing demand for transportation of goods, particularly in sectors like construction, mining, agriculture, and logistics. The market caters to various types of trucks, including heavy duty, medium duty, and light duty, with tonnage capacities ranging from a few tons to several tons. Consumers, fleet owners, logistics companies, and e-commerce sectors are the primary buyers of trucks in Vietnam. The market is also witnessing a shift towards electric vehicles (EVs) and hydrogen-based solutions as part of the global move towards carbon neutrality and sustainability. Truck manufacturers are focusing on fuel efficiency, safety, electrification, and telematics to meet the evolving needs of consumers and businesses. These solutions include GPS tracking, connectivity solutions, trailer tracking, and maintenance cost optimization. The logistics industry is undergoing a digital transformation, with the adoption of AI and IoT for fleet management, route optimization, and real-time cargo tracking. Emission norms and vehicle safety regulations are also driving the market, with manufacturers investing in advanced suspension systems, energy storage, and battery design. The market is expected to grow further with the expansion of infrastructure projects, such as highways, bridges, ports, and cold chain logistics, and the increasing popularity of e-commerce and hyperlocal delivery services. The use of EVs, hydrogen-based vehicles, and alternative fuels is also gaining momentum, with companies like Mullen Automotive and OEMs investing in the development of electric heavy-duty trucks.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Vehicle Category
• Less Than 10 T
• More Than 10 T
• Type
• Domestic
• Imported
• Product Type
• Manual
• Automatic
• Geography
• APAC

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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