LCV Marke Outlook, Strategies, Industry, Growth Analysis, Future Scope, key Drivers Till 2023
Light commercial vehicles are vehicles which carry mass varying between 3.5 tons to 7 tons, as per local regulations or standards. They are mainly used for carrying goods and are ideal for intra-city operations due to their compact size. Market Research Future (MRFR) has published an exhaustive report on global LCV vehicles market after a thorough analysis of the key trends and patterns governing the market over the forecast period of 2019-2025. MRFR has projected a CAGR of 4.5% during 2019-2025.
A combination of factors is stimulating the growth of the market. A prominent factor is the expanding e-commerce sector. Increasing spending capabilities of consumers and subsequent growth of the e-commerce industry has generated high demand within the light commercial vehicles market for transportation purpose. Rising trading activities across the globe along with the expanding transportation industry, whose growth is fueled by escalating expenditure on commutation has also reflected positively on the growth of the market.
To prevent road injuries and fatalities, the governments in various countries have limited the amounts of goods being carried in commercial vehicles. Enactment of such regulations has led to a surge in demand for light commercial vehicles.
Increasing penetration of downsized engines in light commercial vehicles has added fuel to the growth of the market. Downsizing helps in a considerable reduction in fuel usage and also enhances the efficiency of the vehicles.
Within the context of urbanization and rise in consumption of goods, automotive manufacturers are keener on producing light commercial vehicles. Electric and autonomous vehicles seem to be inevitable in the future of light commercial vehicles which is likely to catapult the growth of the market in the coming years. Additionally, various developed countries have implemented regulations which encourage the adoption of electric vehicles for commercial purpose. Automakers are aiming to produce light commercial vehicles in electric format to comply with new emission standards which are likely to create growth opportunities for the market. However, the growth of the market
Segmentation
The global light commercial vehicles market has been segmented based on type and fuel type.
By type, the light commercial vehicle market has been segmented into trucks, buses, vans, coaches, and others. The trucks and vans segments are estimated to garner the maximum growth over the forecast period.
By fuel type, the light commercial vehicle market has been segmented into diesel, gasoline, and electric. The diesel light commercial vehicle segment is likely to witness maximum growth in terms of both value and volume.
Regional Analysis
By region, the light commercial vehicles market has been segmented into North America, Rest-of-the-World (RoW), Europe, and Asia Pacific (APAC).
The growing e-commerce industry in North America has uniquely positioned the region for exponential growth. Expanding e-commerce industry is employing light commercial vehicles for delivery of products which has generated demand for light commercial vehicles. Moreover, persistent investment in infrastructure development and various policies restricting the use of heavy commercial vehicles for the prevention of road accidents has also favored the market growth in North America.
The APAC light commercial vehicles market is anticipated to exhibit considerable growth over the forecast period. The surge in the automobile production, growing logistics sector, and growing e-commerce industry is favoring the growth of the market in the APAC.
Competitive Landscape
Volvo Group (Sweden), General Motors (US), Groupe PSA (France), Tata Group (India), Daimler AG (Germany), Hyundai Motor Company (South Korea), Dongfeng Motor Corporation (China), Volkswagen Group (Germany), Groupe Renault (France), and Ford Motor Company (US) are the notable players in the light commercial vehicles market.
Industry Updates
May 2019 - Ashok Leyland, Indian commercial vehicle manufacturer, announced that the company is planning to invest USD 286 million for rolling out emission norm compliant light commercial vehicles.