Asia Pacific Specialty Vehicle Market

Market Overview

The Asia Pacific Specialty Vehicle Market size is expected to reach a valuation of USD 47.58 billion by 2030, growing at a CAGR of 3.50% during the forecast period (2022–2030).

The specialty vehicle market is expected to be led by Asia-Pacific. The growth of the specialty vehicles market in the region is being fuelled by technological improvements. During the COVID-19 pandemic, a number of Chinese enterprises delivered ambulances to local authorities and other countries.

In the industry, the term "specialty vehicle" is widely used. A specialist vehicle is one that is built to accomplish a certain professional goal. They can be built from the ground up or modified from an existing vehicle. Ambulances are one of the most well-known types of specialized vehicles. Although a family vacation in an RV may appear to be a "specialty," recreational vehicles are rarely referred to as such. The specialty vehicle business is highly fragmented due to a large number of local and international operators. As a result, there's a lot of competition out there. Some of the market participants polled are heavily investing in innovative product development that benefits both end-users and the environment. Nissan, for example, debuted their fully electric ambulance in Japan in May 2020, with the goal of eliminating pollution, noise, and vibration from the electric powertrain, which would benefit both patients and paramedics who must handle sensitive equipment in the back of a moving vehicle. Through 2030, the global specialized vehicle market is expected to increase at a 3.21% compound annual growth rate (CAGR), bringing in USD 128.65 billion in revenue. In 2020, the COVID-19 outbreak, which disrupted transportation operations and disrupted the supply chain, caused a market collapse.

Market Dynamics

Market Driving Factors

• More Use for Fire Extinguisher Vehicles: The fire truck market is predicted to rise due to rising fire safety awareness in Asia Pacific countries, as well as increased demand for improved firefighting equipment. Increased populations in nations such as India, Japan, and China have resulted in a considerable increase in fire incidents and casualties in residential and commercial settings, driving up demand for specialty vehicles in Asia.

• Large Logistics Sector of Asia: The logistics industry is undoubtedly one of Asia's most crucial sectors in today's economic climate, since it is the lifeblood of transportation and supply chain. According to the data, the logistics market in the Asia Pacific region is the largest in the world, with a value of around 3.9 trillion US dollars. In addition, the Asia-Pacific area has the most post offices in the world. The importance of the region in supplying most of the necessary commerce commodities globally possibly explains the region's dominant position in the logistics business. Due to Asia's enormous logistics business, a lot of specialty vehicles, mostly trucks, are employed, which is a big market driver.

Market Restraining Factors

• Fluctuating, Growing Petroleum Prices: Inflationary pressures are being exacerbated by rising gasoline prices, giving Asian governments a problem. As oil recovered from the depths of the pandemic, retail gasoline prices in Australia have climbed by 80% since early May 2020, while they have risen by 37% in The large state-owned fuel sellers in India are expected to raise prices dramatically. As electric technology has not yet penetrated the market, the ever-increasing prices of petroleum may act as a possible limit on industry growth.

Key Market Opportunities

• Opportunity due to the Pandemic and Natural Disasters: Mobile vaccine vehicle units will be necessary in some areas of the region. These units can provide improved vaccine storage facilities, depending on the demands of the region, because some tiny rural communities lack adequate healthcare services. As the region prepares for a pandemic, spending on mobile ICUs and ambulances is expected to rise quickly during the projected period, which shall provide lucrative opportunities for the key players in the Asian Market.
• In recent years, the number of natural disasters has increased. To fight the problem and preserve lives, governments are including special disaster management specialty vehicles in their strategies. In Hyderabad, India, the Minister of Municipal Administration and Urban Development (MAUD) presented eight new trucks for the Disaster Response Force in November 2019.

Regional Analysis

By 2030, the Asia Pacific Specialty Vehicle Market is anticipated to be worth USD 47.58 billion, with a CAGR of 3.50% over the forecast period (2022–2030). Asia-Pacific is likely to lead the specialty vehicle market. Technological advancements are fuelling the expansion of the region's specialty vehicle market. Several Chinese companies supplied ambulances to local governments and other countries during the COVID-19 outbreak.

China has the highest market share in the Asia-Pacific region, with a CAGR of 3.36% expected to generate market revenue of USD 30.19 billion by 2030. Several Chinese companies dispatched ambulances not just to local authorities but even to neighboring nations during the COVID-19 outbreak. In April 2020, JAC Motors, for example, delivered over 300 ambulances to Kazakhstan's Ministry of Health in phases. In January 2020, the Brilliance Auto Group workshop, a production hub for ambulances in northeast China's Liaoning province, delivered 400 ambulances in just a few weeks. Aside from that, in February, 30 specially designed ambulances were delivered.

Specialized vehicles are mostly employed in India's construction and logistics industries, as well as in rubbish collection vehicles. During the projection period, the specialized vehicle market is projected to be driven by the rise of the country's construction industry, which will be aided by the active participation of the private sector. The growth of the logistics sector of India is likely to increase demand for special pneumatically driven bulk carriers and tank truck trailers, which will drive the bulk carrier market.

In 2019, Japan was the world's fifth-largest oil user and fourth-largest crude oil importer. In 2019, Japan was the world's largest importer of liquefied natural gas (LNG) and third-largest importer of coal, after only China and India. As Japan lacks international oil and natural gas pipelines and relies solely on LNG and crude oil tanker exports, the downstream sector employs a large number of Speciality Vehicles for Petroleum transportation.

Segmental Analysis

In the Asia Pacific Specialty Vehicle Market, ambulances, fire extinguishing trucks, mobile gasoline transportation tankers, and other specialty vehicles are categorized by type. The other type segment has the most market share and is predicted to increase at a significant CAGR over the next several years. Recreational vehicles (motorhomes, caravans, etc.), semi-trailers (Refrigerated, Flat body, Low boy, Curtain, etc.), patrol vehicles, prisoner transportation vehicles, and vehicles converted or specifically built to meet company demands are among the vehicle types valued to the market.

The specialty vehicle market, which is predicted to develop at a significant CAGR, was led by medical and healthcare applications. Ambulance demand increased during the COVID-19 pandemic, according to major automakers. To address this need, several manufacturers have launched ambulance vehicles to the market.

In June 2020, Mahindra & Mahindra, for example, launched the Supro BSVI-compliant ambulance in two configurations. A variety of government and non-governmental organizations are present. Supro has received queries from businesses interested in acquiring the ambulance, and the company is trying to expand its manufacturing capacity to meet the rising demand.

Recent Developments

• The Gujarat government has received 150 traveler ambulances from Force Motors to help with the rising number of coronavirus patients in the state. Force motors were chosen by the government over others because its factory-built ambulance conforms with all current regulations.