Global Purpose-Built Vehicles Market 2023-2030

Global Purpose-Built Vehicles Market 2023-2030

Global Purpose-Built Vehicle Market Size, Share &Trends Analysis Report by Type (Fully Autonomous and Partially Autonomous), and by Application (Car, And Taxi) Forecast Period (2023-2030)

The global purpose-built vehicle market is anticipated to grow at a considerable CAGR of 6.1% during the forecast period (2023-2030). Purpose-built vehicle are the vehicles manufactured according to the need and demand of the consumer. The growing adoption of customized vehicles is coupled with the increasing disposable income is the key factor supporting the growth of the market globally. Companies offering mobility services like Uber in the United States or Didi Chuxing in China require a fleet that enhances the passenger ride. The major features include specific passenger experiences, flexibility of use and low prices. The new purpose-built vehicles are designed to meet the requirements for mobility on demand.

Segmental Outlook

The global purpose-built vehicle market is segmented on the type, and Application. Based on the type, the market is sub-segmented into fully autonomous and partially autonomous. Based on the application, the market is sub-segmented into car, and taxi. Among the type segment, the partially autonomous sub-segment is anticipated to hold a considerable share of the market owing to increasing government approvals in several countries. For an instance, in June 2023, Mercedes-Benz receive the approval from the California Department of Motor Vehicles to sell or lease vehicles with an automated driving system. Which is not a fully autonomous system. Drivers can’t nap in the car or ride in the backseat without anyone behind the steering wheel.

The Taxi Sub-Segment is Anticipated to Hold a Considerable Share of the Global Purpose-built vehicle Market

Among the Application, the taxi sub-segment is expected to hold a considerable share of the global purpose-built vehicles market. The segmental growth is attributed to the growing demand for customized vehicles in industries and large organizations providing pickup and drop services to its clients and top employees and also for delivery of goods, also Purpose-built taxi provide unique passenger ride experiences. It is a means of transport that is optimized for operational use and moves passengers or cargo safely and efficiently which is the major reason for adoption of customized vehicles.

Regional Outlook

The global purpose-built vehicle market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, Asia-pacific is anticipated to hold a prominent share of the market across the globe, owing to increasing demand for customized vehicle and per capita income in the region lead to increase in disposable income. Owing to which major businesses of the automotive industry are focusing on investing in effective purpose-built vehicle manufacturing units for their organizations.

The North America Region is Expected to Grow at a Significant CAGR in the Global Purpose-built vehicle Market

Among all regions, the North America region is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to Developing automotive technology, start-ups and new market entrants are disrupting the segment with innovative product and business model. Also, expansion of the sharing economy is one of them. Mobility services such as car-sharing and ride-hailing are expanding as consumers consciousness changes from owning a car to using mobility.

Hence, there is considerable shift of the automobile manufacturing companies towards the adoption of the purpose-built vehicle market solutions. For an instance, in April 2023,Kia announced its dedicated plant for the production of battery-electric purpose-built vehicles (PBV).Kia will invest around one trillion won (approximately USD 758 million) to secure 99,000 acres of land, with the company planning to start mass-production in the second half of 2025. It plans to produce 150,000 units in the first full year, with the potential to expand in line with future market conditions.

Market Players Outlook

The major companies serving the purpose-built vehicle market include, Audi AG, Mercedes-Benz AG, Volvo Car Group, Robert Bosch GmbH, Hyundai Motor Company, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in August 2023, Qualcomm Technologies, Inc. announced a technology collaboration with Hyundai Motor Group in the area of purpose-built vehicles (PBVs). Designed to serve as a future mobility solution from the Group, the PBVs are engineered to provide transportation services, as well as additional services that cater to the diverse needs of individuals, such as comfort, logistics, commercial activities, and healthcare. As a part of the technology collaboration, the Group will incorporate the latest Snapdragon® Automotive Cockpit Platforms in its PBV infotainment system to provide a holistic, seamlessly connected and smart user experience.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global purpose-built vehicle market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.