Truck & Bus Manufacturing in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS 33612CARevenue
$3.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
5,551
Businesses
73
Wages
$XXX.Xm
Truck & Bus Manufacturing in Canada industry analysis
Truck and bus manufacturing remains a staple in the Canadian economy since transporting people and goods is paramount to a healthy economy. Even so, the pandemic slashed demand for truck and bus manufacturers since lockdown restrictions limited manufacturing capabilities, international trade and downstream demand. Stay-at-home measures also drastically diminished the need for public transit and various private services, like leisure bus tours, rendering bus production unprofitable. Improving economic conditions following the pandemic has boosted growth prospects, but sky-high input costs and ballooning interest rates have remained major threats to profit and revenue expansion. Overall, revenue has plummeted at an expected CAGR of 10.1% to $3.2 billion through the current period, including a 3.9% drop in 2024, where profit fell to 6.0%.
Trends and Insights
- International trade plays a critical role in truck manufacturing. Exports account for the majority of revenue and trucking companies that assist in international trade are major buyers.
- Heavy-duty trucks account for the bulk of revenue. These trucks play an integral role in the Canadian economy, carrying the bulk of nationwide shipments despite airfreight and rail alternatives.
- The most successful facilities are near ports. Buyers often rely on heavy-duty trucks to distribute imports from ports throughout the country.
- Alternative shipping and transit options limit demand for trucks and buses. Rail infrastructure is often less comprehensive than highways, cementing the necessity of trucks and buses.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 10.1 % over the past five years, to reach an estimated $3.2bn in 2024.
Trends and Insights
Pandemic-related restrictions cut demand for transportation
- The COVID-19 pandemic caused key downstream industries to falter, limiting the need for freight trucking across multiple sectors, including construction, manufacturing, wholesale and retail markets.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The economy's recovery will create expansion opportunities
- An uptick in corporate profit will promote business activity, leading to a surge in freight trucking. Demand for trucking will also strengthen as consumer spending and confidence rally, providing a steady revenue stream, especially as wear and tear on existing trucks necessitate upgrades.
Biggest companies in the Truck & Bus Manufacturing in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
PACCAR of Canada Ltd. | 1,790.9 | 165.5 | 9.2 | |
AB Volvo | 235.5 | 4.5 | 1.9 | |
Vicinity Motor Corp. | 11.4 | N/A | N/A |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Passenger transport vehicles, Compression ignition trucks and Spark ignition trucks. Passenger transport vehicles is the largest segment of the Truck & Bus Manufacturing in Canada.
Trends and Insights
Compression ignition truck demand flourishes
- Compression ignition trucks permit air to go into the engine cylinder while spark ignition engines permit both air and fuel to go inside an engine's cylinder. Within the compression ignition product segment, load-bearing capabilities dictate production.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Car & Automobile Manufacturing in Canada
- SUV & Light Truck Manufacturing in Canada
Complementors
- Truck, Trailer & Motor Home Manufacturing in Canada
International industries
- Global Heavy-Duty Truck Manufacturing
- Truck & Bus Manufacturing in the US
- Snowplow Manufacturing in the US
- Motor Vehicle Manufacturing in Australia
- Motor Vehicle and Parts Manufacturing in New Zealand
Table of Contents
About this industry
Industry definition
The Truck and Bus Manufacturing industry in Canada primarily manufactures heavy-duty vehicles and heavy-duty vehicle chassis for highway use.
What's included in this industry?
Manufacturing heavy-duty trucksAssembling complete heavy-duty trucksAssembling complete busesAssembling heavy-duty motor vehicles for highway useCompanies
PACCAR of Canada Ltd.AB VolvoVicinity Motor Corp.Purchase this report to view all 3 major companies in this industry.
Related Terms
CLASS 6 TRUCKSCLASS 7 TRUCKSCLASS 8 TRUCKSGROSS VEHICLE WEIGHT RATING (GVWR)HEAVY TRUCKSPREBUY ACTIVITYIndustry Code
NAICS 336120 - Truck & Bus Manufacturing in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
International trade plays a critical role in truck manufacturing. Exports account for the majority of revenue and trucking companies that assist in international trade are ma...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Heavy-duty trucks account for the bulk of revenue. These trucks play an integral role in the Canadian economy, carrying the bulk of nationwide shipments despite airfreight an...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The most successful facilities are near ports. Buyers often rely on heavy-duty trucks to distribute imports from ports throughout the country.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Alternative shipping and transit options limit demand for trucks and buses. Rail infrastructure is often less comprehensive than highways, cementing the necessity of trucks a...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Many leading manufacturers double as automobile and light truck producers. Access to other segments within the company and brand recognition will help them succeed in this in...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of PACCAR of Canada Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of AB Volvo's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Vicinity Motor Corp.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for PACCAR of Canada Ltd., and factors influencing its performance in the industry
- Description and key data for AB Volvo, and factors influencing its performance in the industry
- Description and key data for Vicinity Motor Corp., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Companies must meet increasingly strict environmental and safety regulations. Manufacturers must adhere to a wide range of environmental and highway safety regulations.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Companies have endured climbing wage costs. Many manufacturers have invested in skilled labour to improve research and development teams and face periodic strikes from worker...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Truck & Bus Manufacturing industry in Canada in 2024?
The market size of the Truck & Bus Manufacturing industry in Canada is $3.2bn in 2024.
How many businesses are there in the Truck & Bus Manufacturing in Canada industry in 2024?
There are 73 businesses in the Truck & Bus Manufacturing industry in Canada, which has grown at a CAGR of 8.3 % between 2019 and 2024.
Has the Truck & Bus Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Truck & Bus Manufacturing industry in Canada has been declining at a CAGR of 10.1 % between 2019 and 2024.
What is the forecast growth of the Truck & Bus Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Truck & Bus Manufacturing industry in Canada is expected to grow.
What are the biggest companies in the Truck & Bus Manufacturing market in Canada?
The biggest companies operating in the Truck & Bus Manufacturing market in Canada are PACCAR of Canada Ltd., AB Volvo and Vicinity Motor Corp.
What does the Truck & Bus Manufacturing in Canada include?
Manufacturing heavy-duty trucks and Assembling complete heavy-duty trucks are part of the Truck & Bus Manufacturing industry.
Which companies have the highest market share in the Truck & Bus Manufacturing in Canada?
The company holding the most market share in Canada is PACCAR of Canada Ltd..
How competitive is the Truck & Bus Manufacturing industry in Canada?
The level of competition is moderate and steady in the Truck & Bus Manufacturing industry in Canada.
