S&P Global Mobility: US Commercial Truck Market Beats Growth Expectations; New Insights on the Commercial Vehicle Upfit Market Now Available

Rhea-AI Summary

S&P Global Mobility introduces a new upfit solution offering insights into commercial vehicle registrations, revealing a 14% year-over-year growth in the US commercial vehicle market with over 1.6M new vehicles registered in 2023. The analysis highlights that over 45% of upfitted vehicles are being used as service/utility vehicles or dry freight vans. The solution incorporates data from WorkTruckCert and other resources, providing statistical analysis and aggregated modeling for identifying end use. Subscribers can access the datasets through TIPNet to gain a deeper understanding of the upfitting industry and make informed business decisions.

Insights

Market Research Analyst

The growth in the US commercial vehicle market as highlighted by the 14% year-over-year increase is a significant indicator of economic activity, particularly in sectors reliant on transportation and logistics. The surge in registrations for class 1-8 GVW vehicles suggests a robust demand for commercial transport, which can be linked to increased consumer spending, construction and e-commerce activities. The data provided by S&P Global Mobility offers granular insights into the types of vehicles being utilized, with a notable 45% being upfitted for service/utility or dry freight purposes. This trend reflects the evolving needs of the market and the customization required to meet specific industry demands.

Businesses operating within the commercial vehicle industry or those considering fleet expansion can leverage this proprietary methodology to fine-tune their operational strategies. By understanding the competitive landscape and the specific applications of commercial vehicles, companies can optimize their investments and improve logistical efficiencies. The impact of this analysis extends to manufacturers, upfitters and fleet operators, who can all benefit from the detailed make and model level data to anticipate market trends and align their offerings accordingly.

Financial Analyst

The availability of this new upfit solution and the detailed analysis of vehicle registrations dating back to 2007 presents an opportunity for investors to assess the health of the commercial vehicle sector. The historical data, combined with the current growth trends, can serve as a leading indicator for the performance of companies within this space. Companies that manufacture, upfit, or distribute commercial vehicles may see their stock valuations influenced by the increased demand signaled by these registration trends.

Investors should consider the potential for increased revenue streams for businesses that cater to the service/utility and dry freight segments, as these areas are experiencing a high volume of upfitting. Furthermore, the proprietary nature of S&P Global Mobility's methodology could provide a competitive edge to subscribers, potentially affecting market share and profitability for those who can act on the insights provided. This could, in turn, influence investor sentiment and stock performance for companies that are quick to adapt to the data-driven insights.

Economist

The data on commercial vehicle registrations can be seen as a proxy for broader economic trends. A 14% increase in vehicle registrations may imply an underlying strength in the economy, as it suggests businesses are investing in capital goods and expanding their operational capacities. The specific increase in upfitted vehicles for service and utility functions indicates a growing service sector, which is a substantial component of the US economy. This sector's expansion could signal a healthy business environment and potentially forecast continued economic growth.

However, it is crucial to monitor whether this growth aligns with overall economic indicators such as GDP, employment rates and industrial production. If the increase in commercial vehicle registrations outpaces other economic indicators, it could suggest an overinvestment in the sector, which might lead to a surplus of capacity and subsequent market corrections. Conversely, if the growth is in line with or lagging behind other indicators, it could suggest that the sector is responding appropriately to economic conditions.

New upfit solution from S&P Global Mobility offers new insights into commercial vehicle registrations

SOUTHFIELD, Mich., March 5, 2024 /PRNewswire/ -- The US commercial vehicle market in 2023 experienced substantial growth and is up 14% year-over-year, according to new analysis from S&P Global Mobility.  More than 1.6M new vehicles in the class 1-8 GVW have been registered in 2023. More importantly, new analysis and insights into the commercial vehicle upfit market show that over 45% upfitted vehicles are currently being used as service/utility vehicles or as dry freight vans, according to new commercial vehicle registrations in 2023.

Over 45% upfitted vehicles are being used as service/utility vehicles or dry freight vans, S&P Global Mobility says

S&P Global Mobility has added a new, proprietary methodology to incorporate data from WorkTruckCert and other resources into S&P Global Mobility's commercial vehicle solutions. This allows for statistical analysis and aggregated modeling to identify the end use for a commercial vehicle. More than 5 million vehicle registrations have been analyzed, covering new registrations dating back to 2007 and including commercial vehicles dating back to model year 2000, primarily straight trucks and incomplete pickups, in GVWs 2-8.  The data attributes available capture details at the make and model level, fleet name, city, state and zip, among others.

"This solution is the first of its kind in the US market to provide this type of analysis and insight to the trucking industry using this level of detail," said Mark Hazel, associate director, commercial vehicle reporting at S&P Global Mobility. "We're excited to share the findings and analysis from these new offerings with the industry and look forward to additional insights we might glean."

The datasets are now available to subscribers within TIPNet from S&P Global Mobility and provide users a deeper look into the upfitting industry, helping them make more informed business decisions and better understand the competitive landscape. 

S&P Global Mobility will be participating with an exhibit at the upcoming Work Truck Show hosted by NTEA in Indianapolis this week.  Please stop by booth #6431 for a demonstration of this new solution or to speak with our team. In addition, Hazel will present some additional detail on these findings during an industry partner update on Wednesday, March 6 at 8:00 a.m. in room 130 during the show.  In addition, Andrej Divis from the S&P Global Mobility forecasting team will co-present a work truck industry and economic overview during a separate presentation with NTEA on Tuesday, March 5 at 1:30 pm in Room 133.

About S&P Global Mobility

At S&P Global Mobility, we provide invaluable insights derived from unmatched automotive data, enabling our customers to anticipate change and make decisions with conviction. Our expertise helps them to optimize their businesses, reach the right consumers, and shape the future of mobility. We open the door to automotive innovation, revealing the buying patterns of today and helping customers plan for the emerging technologies of tomorrow.

S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/mobility.

Media Contact:

Michelle Culver
S&P Global Mobility
248.728.7496 or 248.342.6211
Michelle.culver@spglobal.com

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SOURCE S&P Global Mobility

FAQ

How much did the US commercial vehicle market grow year-over-year according to S&P Global Mobility's analysis?

The US commercial vehicle market experienced a 14% year-over-year growth according to S&P Global Mobility's analysis.

What percentage of upfitted vehicles are being used as service/utility vehicles or dry freight vans?

Over 45% of upfitted vehicles are currently being used as service/utility vehicles or dry freight vans, as per S&P Global Mobility's analysis.

What data sources are incorporated into S&P Global Mobility's new solution for commercial vehicle analysis?

S&P Global Mobility's new solution incorporates data from WorkTruckCert and other resources for statistical analysis and aggregated modeling.

Where can subscribers access the datasets related to the upfitting industry?

Subscribers can access the datasets through TIPNet from S&P Global Mobility to gain insights into the upfitting industry.

What industry event will S&P Global Mobility be participating in to showcase the new solution?

S&P Global Mobility will be participating at the upcoming Work Truck Show hosted by NTEA in Indianapolis to showcase the new solution.