Canada Road Transportation Vehicle Market Size, Share, Opportunities, And Trends By Vehicle Type (Oil Fuel Based, Biofuel Based, Natural Gas Based, E Fuel Based, Hydrogen Based, Electric Vehicle), And By States - Forecasts From 2024 To 2029

The Canada road transport vehicles market is anticipated to expand at a high CAGR over the forecast period.

In Canada, they have more than a million kilometers of roads, roughly 38,000 of which make up the national highway system. Road transportation is the most important mode of passenger and goods transportation, which can be intercity and local transportation, intra-provincial transportation activities, and trade between the USA and Canada. Public transport is also a major part of road transport in Canada, like buses and cabs, which are used by the general public to travel every day.

Also, road transportation is an important part of trade as it allows manufactured goods, agricultural products, and natural resources to reach international and domestic markets. The U.S. is Canada’s top trading partner, with around $963 billion in total trade, which includes $600 billion exported and $363 billion imported, an increase of 24.1% from 2021. The USA was 63.4% of the total trade of Canada in 2022. Moreover, with the rise of technological advancements in the automotive industry, people are switching over to EVs for passenger and commercial vehicles, which is a major part of Canada’s transport vehicles market.

INTRODUCTION:

Canada’s road transport vehicles market encompasses commercial vehicles that travel on highways for the transportation of goods, including public transport vehicles like buses and cabs for day-to-day travel around the cities of Canada, and passenger vehicles for personal use. The rapid rise in trade and transport of goods and the growing popularity of e-commerce in Canada are anticipated to propel the market.

Moreover, the rising focus of Canadians to switch from fuel-based vehicles to a more efficient and eco-friendly option will drive market growth in the forecast period. Electric vehicles (EVs) are more efficient because they emit less harmful substances into the environment, and they are cheaper to recharge once they run out of power compared to fuel rates, which are rising continuously. For instance, in 2022, sales of EVs in Canada hit a six-month record, with nearly 56,000 units sold. This is a 35% increase compared to 2021.  In the 4th quarter of 2022, Quebec had the most ZEV registrations, with 12,153 new electric vehicles. Ontario came in second with 10,982 new registrations, followed by B.C. with 7558 registrations.

MARKET DRIVERS:

• The rapid rise in demand for EVs is predicted to propel the market:

The demand for commercial vehicles for goods transportation by road is a major part of the trade in Canada but using fuel-engine commercial vehicles is more costly and harmful to the environment. Therefore, commercial EVs are rising in demand as its eco-friendly and cost-effective. Furthermore, people are switching to EVs for personal use, which will drive Canada’s road transport vehicle market over the forecast period.

• The growing popularity of e-commerce is anticipated to grow in the market.

The reason for the majority growth in road transportation in Canada is because of the rapid growth of the popularity of e-commerce in the country over the years. People like to shop and order stuff at home without any hassle and delivered to their doorstep. This is a major reason for the increase in demand for commercial vehicles to transport goods within the country. Furthermore, Canada shares a border with the USA and does the majority of trade with them, so this rise in trade through roads across the border is predicted to help the market growth significantly.

MARKET RESTRAINT:

The rising cost of trade by commercial road vehicles in Canada, coupled with rapid growth in fuel prices, is a major hindrance in the growth of Canada’s road transport vehicle market. The price of moving and transporting goods has increased over the years, which can lead to people switching over more economical options over road transport, which slows the market. There is also no proper infrastructure for commercial and passenger EVs, like charging stations in underdeveloped regions in the country, which is anticipated to be a major market restraint in the forecast period.

PRODUCTS OFFERED BY KEY COMPANIES:

• VolksWagon: ID. Buzz is a 100% electric bus coming in late 2024 in Canada. This is more spacious and versatile, and it offers comfort and safety for the driver and other passengers in the vehicle. It has fast charging which can support long travel journeys. ID Buzz goes from 5 to 80% in about 30 minutes at a fast charging station. For this, the location must have a maximum power of up to 170 kW.
• Ford Canada: The Ford 2023 E-Transit Van has more performance, connectivity, technology, safety, and comfort for all business and personal requirements. It needs 45% fewer scheduled maintenance costs compared to the gas-powered 2022 Transit. It has an ideal range for businesses that drive in predictable routes in urban or suburban areas, coupled with an estimated range of 203 kilometers.

Segmentation:

• By Vehicle Type
  • Oil Fuel Based
  • Biofuel Based
  • Natural Gas Based
  • E Fuel Based
  • Hydrogen Based
  • Electric Vehicle
• By Province
  • Ontario
  • Quebec
  • British Columbia
  • Alberta
  • Others