Australia Commercial Vehicle Market Size, Share, Trends | 2025-2033

Australia Commercial Vehicle Market Overview

Market Size in 2024: USD 23.33 Billion

Market Size in 2033: USD 37.29 Billion

Market Growth Rate 2025-2033: 4.80%

According to IMARC Group's latest research publication, "Australia Commercial Vehicle Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Australia commercial vehicle market size was valued at USD 23.33 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 37.29 Billion by 2033, exhibiting a growth rate of 4.80% during 2025-2033.

How AI is Reshaping the Future of Australia Commercial Vehicle Market

• Revolutionizing Fleet Management and Operations: AI-powered telematics systems are transforming commercial fleet management by providing real-time monitoring of vehicle performance, driver behavior, and route optimization. These intelligent systems analyze vast amounts of data to improve fuel efficiency, reduce maintenance costs, and enhance operational safety—enabling logistics companies to achieve up to 20% improvement in fleet utilization while minimizing downtime through predictive maintenance algorithms that identify potential issues before they cause breakdowns.

• Enabling Autonomous Driving Technology: The applied AI in autonomous vehicles market is expanding by USD 2.86 billion from 2024 to 2029, with Australia actively developing regulatory frameworks to enable commercial deployment. The National Transport Commission is creating end-to-end regulations for safe autonomous vehicle operations, potentially allowing commercial deployment by 2026. Autonomous trucks promise significant benefits including reduced driver costs, improved safety through elimination of human error, and enhanced freight productivity—particularly valuable for long-haul interstate routes across Australia's vast geography.

• Enhancing Safety Through Advanced Driver Assistance: AI-driven safety technologies including collision prevention systems, adaptive cruise control, lane departure warnings, and blind spot detection are becoming standard features in commercial vehicles. These intelligent systems process data from multiple sensors and cameras in real-time, making split-second decisions that prevent accidents and protect drivers, cargo, and other road users—addressing the critical challenge of road safety while helping fleet operators reduce insurance costs and liability exposure.

• Optimizing Logistics and Last-Mile Delivery: Machine learning algorithms are revolutionizing logistics operations by analyzing traffic patterns, delivery windows, customer preferences, and historical data to optimize routing and scheduling. These systems dynamically adjust delivery routes based on real-time conditions, ensuring maximum efficiency for e-commerce and courier services experiencing explosive growth—with Australia's e-commerce revenue reaching USD 32.3 billion in 2024, up 15.5% from the previous year, driving unprecedented demand for intelligent delivery solutions.

• Accelerating Electric Vehicle Adoption: AI and IoT technologies are critical enablers of the electric commercial vehicle transition, optimizing battery management, predicting charging needs, and managing energy consumption patterns. Solutions like ZF's TempAI use machine learning for predictive thermal management in electric motors, extending battery life and improving performance. With Australia's electric truck market projected to grow from USD 17.1 million in 2024 to USD 133.0 million by 2033, AI-powered systems are essential for making electric commercial vehicles practical and cost-effective for Australian fleet operators.

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Australia Commercial Vehicle Market Trends & Drivers:

Australia's mining and construction sectors are driving substantial commercial vehicle demand, with these industries representing the largest users of heavy-duty trucks and specialized utility vehicles. In 2022-23, the Australian Bureau of Statistics reported that mining contributed USD 236 billion to GDP, growing by 23.2% year-over-year, while construction added USD 109 billion, increasing by 14.8%. These sectors require extensive transport support for equipment, raw materials, and labor across remote and urban project sites. Vehicles including dump trucks, cement mixers, and utility trucks are essential for daily operations. With Australia continuing major infrastructure investments and resource extraction activities, particularly in Western Australia and Queensland, the need for robust and specialized commercial vehicle fleets continues to expand.

E-commerce growth is fundamentally reshaping logistics and accelerating adoption of commercial delivery vehicles, particularly vans and light-duty trucks. Statista projects Australia's e-commerce revenue will reach USD 32.3 billion in 2024, up from USD 28 billion in 2023—representing a 15.5% annual increase. This expansion directly influences courier, express, and parcel service providers to increase fleet sizes and improve delivery frequency. Companies like Australia Post and Woolworths are trialing electric vans to reduce emissions in city routes. The growing volume of small, frequent shipments places continuous demand on light commercial vehicles, especially in dense urban areas where maneuverability, fuel efficiency, and cost-effectiveness are key considerations for fleet operators serving the booming online retail sector.

Freight transport remains vital to the Australian economy, with road freight accounting for over 75% of all domestic freight movement. The Bureau of Infrastructure and Transport Research Economics reports that New South Wales recorded 86 billion ton-kilometers of road freight in 2023-24—the highest in its history—while total Australian road freight volumes exceeded 230 billion ton-kilometers. As manufacturing, agriculture, and retail supply chains scale to meet domestic and export demands, logistics firms are investing in more trucks, trailers, and long-haul transport vehicles. Fleet expansions are particularly common along key interstate corridors including the Hume, Pacific, and Bruce highways. Australia's vast geography makes road transport the preferred choice in many regions, reinforcing demand for reliable, long-range commercial vehicles with advanced load capacity and fuel efficiency.

Australia Commercial Vehicle Industry Segmentation:

The report has segmented the market into the following categories:

Vehicle Body Type Insights:

• Buses

• Heavy-Duty Commercial Trucks

• Light Commercial Pick-Up Trucks

• Light Commercial Vans

Propulsion Type Insights:

• Hybrid and Electric Vehicles

o Fuel Category: BEV, FCEV, HEV, PHEV

• ICE (Internal Combustion Engine)

o Fuel Category: CNG, Diesel, Gasoline, LPG

Breakup by Region:

• Australia Capital Territory & New South Wales

• Victoria & Tasmania

• Queensland

• Northern Territory & Southern Australia

• Western Australia

Recent News and Developments in Australia Commercial Vehicle Market

• May 2025: Volvo Trucks received an order for 30 battery-electric trucks from logistics company Linfox in Australia, coinciding with Volvo starting production of electric trucks at its Brisbane facility. This milestone marks a significant step in Australia's commercial vehicle electrification efforts, demonstrating growing confidence in electric heavy-duty vehicle technology for logistics operations.

• March 2025: An Australian logistics provider rolled out a 20-strong electric truck fleet, powered at its hubs by rooftop solar and battery storage systems. This deployment demonstrates the viability of renewable energy integration with electric commercial vehicles, reducing operational costs while advancing sustainability goals—showcasing practical solutions for Australia's transition to zero-emission freight transport.

• November 2024: Western Australia received its first Volvo FM Electric heavy-duty truck, marking a milestone in efforts to decarbonize mining and transport sectors. Additionally, Australian trucking giants announced plans to roll out 54 additional electric trucks with new charging infrastructure, supported by government grants under the Driving the Nation Program, accelerating the transition to sustainable commercial transport.

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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