North America Specialty Vehicle Market

Market Overview

The North America Specialty Vehicle Market size is expected to reach a valuation of USD 39.29 billion by 2030, growing at a CAGR of 3.35% during the forecast period (2022–2030).

The market in question had a drop in 2020, owing to the COVID-19 pandemic, which halted transportation activity and damaged the supply chain. The United States is expected to be the fastest-growing market in North America, with a substantial CAGR, owing to increased demand for specialist vehicles from a variety of industries.

In the industry, the term "specialty vehicle" is widely used. A specialist vehicle is defined as a vehicle that is built to serve a professional purpose. They can be built from the ground up or adapted from a pre-existing vehicle. Ambulances are one of the most well-known types of specialist vehicles. While a family vacation in an RV may appear to be a "specialty," recreational vehicles are rarely referred to as such. The specialty vehicle sector is highly fragmented due to the large number of domestic and international participants. As a result, there is a lot of competitive rivalry. Some of the market participants polled are heavily investing in innovative product research and development, which can benefit both end-users and the environment. Nissan, for example, debuted their fully-electric ambulance in Japan in May 2020, with the goal of eliminating pollutants, noise, and vibration from the electric powertrain, benefiting both patients and paramedics who must handle sensitive equipment in the back of a moving vehicle. By 2030, the global specialty vehicle market is expected to increase at a CAGR of 3.21 percent, bringing in USD 128.65 billion in revenue. The market in question had a drop in 2020, owing to the COVID-19 pandemic, which halted transportation activity and damaged the supply chain.

Market Dynamics

Key Market Drivers

• Excessive Use in Oil and Gas Industry: A flammable raw material is always dangerous. Petroleum, forestry, and surface and underground mining are just a few of the industries that require highly specialized vehicles. They must be durable and dependable. Specialized tankers are frequently used by oil and chemical firms to transport flammable liquids and gasoline from extraction sites to refineries, and ultimately from refineries to end customers. As the petroleum sector is so extensive in the North American region, it generates a lot of demand for these vehicles, which might propel the market forward.

• Rental services for recreational vehicles are in high demand: The growing popularity of recreational vehicle (RV) travel and camping activities among consumers has resulted in a steady increase in wholesale exports. The growing popularity of RV travel and camping is predicted to boost the industry's future growth.

• Domestic leisure trips were 1,821.2 million in 2018, according to the US Travel Association, and are predicted to exceed 1,900 million by 2022. In recent years, even countries like Canada and Mexico have seen an upsurge in regional travellers. Visitors to the country and residents travelling to other regions of the country choose to take road journeys during their vacations and holidays, bolstering the RV industry

Key Market Restraints

• Alternatives Increased Use: The increased use of alternate modes of transportation in the United States, such as Uber and Taxis, as well as the installation of ride-sharing systems, has resulted in a decrease in ambulance use. This is one of the most significant challenges facing the ambulance services sector, which is influencing the specialty vehicle industry in many North American countries such as Canada and Mexico.

Key Market Opportunities

• Expansion of Tourism: The tourist industry in North America is rapidly expanding and generating significant revenues. In recent years, North America has experienced double-digit yearly increase in volume and value, with receipts expanding at a higher rate than other regions. North American visitors stayed in the country for an average of 50 % more nights than other countries, resulting in a larger average daily expenditure. The demand for recreational vehicles (RVS) is expanding in the region as a result of rising tourism, and this trend is projected to continue.

Regional Analysis

By 2030, the North America Specialty Vehicle Market is estimated to be worth USD 39.29 billion, increasing at a CAGR of 3.35 percent over the forecast period (2022–2030). The COVID-19 epidemic, which interrupted transportation operations and affected the supply chain, caused a decline in the market in 2020. Due to increased demand for specialised vehicles from a number of industries, the United States is predicted to be the fastest-growing market in North America, with a significant CAGR.

In North America, the United States leads the specialty vehicle industry, which is predicted to increase at a CAGR of 3.33 percent through 2030, generating market revenue of USD 33.56 billion. For the past few years, the US government has been investing in new fire trucks across the country. For example, in February 2020, the Los Angeles Fire Department (LAFD) placed an order with Rosen Bauer for a new electric fire truck, with a delivery date of 2021. With two battery packs and a backup diesel engine, the truck is a range-extended electric vehicle. The battery packs, on the other hand, have a total capacity of 100 kilowatt-hours, or enough power for two hours of all-electric operation.

The need for fire vehicles in North American countries such as Canada and the United States is increasing due to the rapid increase in the number of fire incidents. The National Fire Protection Association (NFPA) reported that state fire departments in the United States responded to 1.3 million fire incidents in 2019.

A substantial increase in government spending on technologically superior fire extinguisher trucks in Canada will expand the fire truck market. The rising frequency of fire occurrences in the region is driving fire departments and governments to invest in technologically advanced fire engines.

Segmental Analysis

Ambulances, fire extinguishing trucks, mobile gasoline carrying tankers, and other speciality vehicles are divided in North America Specialty Vehicle Market segments based on type. The other type segment has the greatest market share and is predicted to increase at a significant CAGR. Vehicle types evaluated in the market include recreational vehicles (motorhomes, caravans, etc.), semi-trailers (Refrigerated, Flat body, Low boy, Curtain, etc.), vehicles used for patrol, prisoner transportation, and vehicles tailored or expressly produced to meet company requests.

For applications, Medical and healthcare dominated the specialty vehicle market, which is predicted to increase at a significant CAGR. Major automakers in the industry saw an increase in demand for ambulances during the COVID-19 pandemic. 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. Several government and non-governmental organizations are present. Supro has received requests from companies interested in acquiring the ambulance, and the company is looking to expand production capacity to meet the rising demand.

Recent Developments

• March 2022– REV Group has been on a tear recently, surpassing the market by a large margin. Despite a dismal first quarter for fiscal year 2021, the company's year-ahead forecast is positive. The stock appears to be fairly valued, indicating that there is still possibility for expansion.

• 2021, August Wrightspeed and Matthews Specialty Vehicles have established a partnership to develop, convert, and deploy battery-powered and range-extended electric buses, trucks, and specialty vehicles with industry-leading performance, efficiency, and total cost of ownership (TCO). Allen Global Enterprises (AGE) has received its first order to design and manufacture 30 tactical Mobile Detection Systems (MDS) vehicles, which the company is now working on. Over the next five years, Wrightspeed and Matthews expect to produce 5,000 vehicles as part of their strategic cooperation.