The global specialty vehicle market size is predicted to grow at a CAGR of 3.21%, generating a revenue of USD 128.65 billion by 2030. The term "specialty vehicle" is frequently used in the industry. Any vehicle that is designed to serve a professional purpose is referred to as a specialty vehicle. They can be custom-built or modified from an existing vehicle. One of the most well-known forms of specialty vehicles is ambulances. While a family vacation in an RV may appear to be a "specialty," the term typically does not refer to recreational vehicles.
Since there are so many domestic and international participants in the specialty vehicle industry, it is highly fragmented. As a result, competitive rivalry is intense. Some of the surveyed market participants are substantially investing in new product R&D, which can help both end-users and the environment. For example, Nissan unveiled its fully-electric ambulance in Japan in May 2020, intending to eliminate emissions, noise, and vibration from the electric powertrain, which will benefit both patients and paramedics who must handle sensitive equipment in the back of a moving vehicle.
The specialty vehicle market is segmented based on type, application, and region.
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The demand for specialty vehicles is being driven by a rise in government spending on law enforcement and healthcare facilities worldwide. The US spent 16.9% of GDP on healthcare in 2018, about twice as much as the typical OECD (Organization for Economic Cooperation and Development) country. Switzerland, the second-highest-ranking country, spent 12.2% of its GDP. New Zealand and Australia, on the other hand, invested only 9.3% of their GDP, less than half that of the United States.
The rise in law enforcement spending is primarily due to an increase in riots and protests worldwide. Protests took place in every continent and 114 countries in 2019, from Hong Kong to Haiti, Bolivia to the United Kingdom. Since 2009, the number of mass protests has climbed by 11.5% each year on average worldwide. Hong Kong Police displayed armored trucks in August 2019 to combat protests on Hong Kong's roads. These bulletproof trucks, which are outfitted with sound and water cannons, are expected to be used in future Hong Kong rallies.
Consumers' growing interest in recreational vehicle (RV) travel and camping activities has led to a consistent rise in wholesale shipments. The popularity of RV travel and camping is expected to help the industry thrive in the future.
According to the US Travel Association, domestic leisure visits totaled 1,821.2 million in 2018 and are expected to reach 1,900 million by 2022. Even countries like Canada and Mexico have seen an increase in regional travelers in recent years. Visitors to the country and inhabitants traveling to different parts of the country choose road trips during their vacations and holidays, strengthening the RV sector.
Specialty vehicle manufacturers are faced with silo business options that can be heavily modified when it comes to extending their business. These antiquated systems are expensive to maintain and restrict automakers and specialty vehicle manufacturers from embracing new technology. Furthermore, stringent EDI (Electronic Data Interchange) requirements make it essential for internal and external communication. One of the biggest challenges for manufacturers in the specialty vehicle sector is keeping up with the changing demand. Automobile and specialty vehicle manufacturers must implement measures to improve manufacturing efficiency and transparency.
Industrial demands today include self-monitoring capabilities for preventative maintenance and servicing and the ability to support multi-mode manufacturing and Just in Time manufacturing. Due to shifting platforms, new service model requirements, and growing material and production prices, manufacturers must focus on decreasing costs and delivering attractive services. In the specialty vehicle industry, customers' purchasing habits are changing considerably, particularly when it comes to product customization. As the need for customization grows, OEMs are confronted with more alternatives and complexity.
In some places of the world, mobile vaccine vehicle units will be essential. Since some small rural communities lack sufficient healthcare facilities, these units can provide better vaccine storage facilities, depending on the region's needs. Spending on mobile ICUs and ambulances is predicted to climb rapidly during the projection period as the globe prepares for a pandemic.
The number of natural disasters has been on the rise in recent years. Governments are responding by incorporating special disaster management specialty vehicles into their plans to combat the issue and save lives. For example, in November 2019, the Minister of Municipal Administration and Urban Development (MAUD) in Hyderabad, India, unveiled eight new trucks for the Disaster Response Force (DRF).
Following the emergence of the COVID-19 pandemic, demand for specialized vehicles increased in many regions of the world, particularly in developing and underdeveloped countries where healthcare systems were already vulnerable before the pandemic. The spread of the new virus raised the dire need for ambulances and other mobile intensive care unit vehicles in rural and urban areas, where the administration could see the flaws in the healthcare system.
Governments are devoting significant funds to improving healthcare infrastructure and specialty vehicles to address these challenges and deal more effectively with similar circumstances in the future. For example, the Indian government boosted healthcare spending by 137% in February 2021.
Based on type, the specialty vehicle market share is segmented into ambulances, fire extinguishing trucks, mobile fuel carrying tankers, and others. The other type segment had the largest share and is expected to grow at a CAGR of 3.39%, generating market revenue of USD 79.75 billion by 2030. Recreational vehicles (motorhomes, caravans, etc.), semi-trailers (Refrigerated, Flat body, Low boy, Curtain, etc.), vehicles used for patrol, prisoner transportation, and vehicles customized or specially manufactured to satisfy company demands are among the vehicle types analyzed in the market.
Various local governments have begun to use fuel-efficient vehicles for daily municipal use in recent times. Consider the following example: Electric truck manufacturer SEA Electric delivered the first 100% electric tipper truck to the ACT Government in December 2020. The company's 100% electric SEA-Drive 100-10 power system, which has a 100kWh battery capacity and a range of up to 275 kilometers, was used to power the electric tipper truck.
Based on application, in the specialty vehicle market, the medical and healthcare dominated the market and is expected to grow at a CAGR of 2.69%, generating market revenue of USD 43.92 billion by 2030. During the COVID-19 pandemic, major automakers in the market saw a rise in demand for ambulances. Several manufacturers have introduced ambulance vehicles to the market to meet this need.
For example, Mahindra & Mahindra announced the Supro BSVI-compliant ambulance in two variants in June 2020. There are several government and non-governmental organizations. Supro has received inquiries from businesses interested in purchasing the ambulance, and the company wants to expand its capacity to meet the growing demand.
Based on regions, the specialty vehicle market share is divided into five regions- North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
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The US dominated the specialty vehicle market in North America and is expected to grow at a CAGR of 3.33%, generating market revenue of USD 33.56 billion by 2030. The government of the US has been investing in new fire trucks for the previous few years throughout the country. For example, the Los Angeles Fire Department (LAFD) ordered a new electric fire truck from Rosen Bauer in February 2020, with a delivery date of 2021. The truck is a range-extended electric vehicle with two battery packs and a backup diesel engine. On the other hand, the battery packs have a total capacity of 100 kilowatt-hours, which is enough for two hours of all-electric operation.
In Europe, France held the largest market share. The rest of Europe also has a significant demand for specialty vehicles. In addition to major commercial vehicle manufacturers, some local enterprises are creating mobile medical vehicles. For example, the Gruau Group designed a mobile dentistry unit with a radiology information system and a built-in Laval in March 2020. This is the first time a 3.5-ton truck has been used to create a mobile office. Every year, the firm produces almost 54,000 vehicles based on customer requests.
China holds the largest market share in the Asia-Pacific region and is projected to grow at a CAGR of 3.36%, generating market revenue of USD 30.19 billion by 2030. During the COVID-19 pandemic, a number of Chinese enterprises sent ambulances not only to local authorities but also to neighboring countries. JAC Motors, for example, provided more than 300 ambulances to Kazakhstan's Ministry of Health in stages in April 2020. In January 2020, the Brilliance Auto Group workshop in northeast China's Liaoning province, a production center for ambulances, delivered 400 ambulances in just a few weeks. Aside from that, 30 specially built ambulances were delivered in February.
South America held the largest share of specialty vehicles and is projected to grow at a CAGR of 2.48%, generating market revenue of USD 7.72 billion by 2030. The local government in the country is changing its municipal operations, resulting in a demand for new vehicles in the coming months. For example, Rio de Janeiro's public sanitation firm, Cedae, was privatized in December 2020. The company's sewage collection, distribution, and sanitation operations in Rio de Janeiro and 34 other municipalities will be privatized in four blocks across Brazil.