Light Commercial Vehicles Market is projected to be worth USD 7,94,860.1 Million by 2030, registering a CAGR of 5.67% during the forecast period (2022-2030)
Light Commercial Vehicles Market is projected to be worth USD 7,94,860.1 million by 2030, registering a CAGR of 5.67% during the forecast period 2022 - 2030.
Light Commercial Vehicles Market are uses for carrying goods that weigh in tons and quintals and this particular factor differentiates between light and heavy commercial vehicles. Light commercial vehicles are a special type of vehicle that is identified in terms of gross vehicle weight. These vehicles can transport goods up to the maximum weight of 7 tons. The popularity of light commercial vehicles is due to the use of downsized engines used it in that is making use of smaller combustion engines over the large ones and reducing the number of the cylinder to generate the same power reduces the amount of friction in the engine which in turn increases its efficiency. The new emission standards have been set by the governments of different countries due to which all the LCV manufacturing industries are trying to clear their past inventory stock and start making new ones keeping in mind the new emission standards.
Light commercial vehicles market share is expected to grow from USD 11.83 billion units in 2017 to USD 14.4 billion units by the end of 2025.
The coronavirus pandemic has given a very harsh time to most of the manufacturing, developing, production, and logistic units of the market. Due to this pandemic transportation sector has also witnessed huge losses and the reason attribute to it was that during the lockdown the transportation of every item or goods was stopped intrastate as well as interstate. The import and export activities were also restricted. But after some time when the treasury of food grains and pulses were empty, there was the need to supply that particular area with specific items. Transportation was then allowed keeping in mind every minute factor. Most of the time LCV were only used for transportation as they can carry double the weight of other transportation means. During this situation, a time came when there was a shortage of ventilators oxygen cylinders, and many other medical machinery and kits, at this point of time to the LCV industry came into play and everything was transported through LCVs. So no doubt the light commercial vehicles industry was affected very seriously but it will recover its losses at a faster rate than it incurred losses.
The government is making strict rules related to emissions keeping in mind the environmental safety norms. So all the light commercial vehicle manufacturers are trying to update their technologies to cope up with new stringent emission regulations. Secondly rise in global oils price will drive this market to develop and rise at a very fast pace. The consumption of fuel in the case of light commercial vehicles is very less as compared to other vehicles and on the same note if we differentiate between them then the load carried by the LCVs is 3-4 times of load carried by ordinary vehicles. This factor will lead to an increase in demand for light commercial vehicles in the market and it will drive the manufacturers to increase their manufacturing speed and it will lead to light commercial vehicle market growth. The most driving factor will be the use of downsized engines in light commercial vehicles which helps in using small engines with fewer cylinders to provide more fuel efficiency.
Up to now, we know that there are several advantages offered by the use of light commercial vehicles. But the use of downsized engines that is the main reason for the popularity of LCVS are very expensive to develop as the manufacturing units have to convert a small engine with more fuel capacity according to its need to generate the power that a normal average engine would produce using the same amount of fuel. The rising demand for downsized engines and the high cost of developing such engines will, in turn, increase the price of LCVS and that is the only factor that will hinder the market growth.
In the era of today’s world, every automobile market whether they are cars or bikes or scooters or even man-powered bicycles is getting powered by electricity. As the price of fossil fuels is increasing day by day so there is an emerging need of building electric automobiles. The automobile sector has been successful to an extent in achieving that aim. Now as the demand for transportation activities are increasing so the companies have to bear a huge amount only in transportation. The LCVs manufacturing is joining hands with electrical automobile companies to bring in the electric light commercial vehicles. Key players of light commercial vehicles are head-on-head trying to achieve this aim before anyone else. So soon the electric and technologically advanced light commercial vehicle will enter the market.
Light commercial vehicle market share is expected to observe significant growth owing to the performance of different market segments. Among all segments, the truck segment is expected to dominate the market during the forecast period. As the trucks can load the most amount of weight in comparison to others so it will lead to an increase in light commercial trucks specifically. Also in terms of CAGR, the vans segment and terms of value and volume diesel segment are expected to grow at the fastest pace. For an amplifying use the market is segmented into the following on different bases:
The light commercial vehicle industry movements are continuously working in 3 major regions of the world Europe, Asia Pacific, North America, and the rest of the world. North America is anticipated to be the largest market and may witness significant growth over the forecast period with a CAGR of approx. 2.9%. The reason behind this is that the e-commerce industries are growing domestically which is leading to the powerful growth of the transportation industry. And with the rising automobile production in India and China, the Asia-Pacific region is expected to witness significant growth in the global market. Also the changing strict regulations of government-related emissions, all key players are coming out with their best models that can cope up with those regulations.
To get a detailed and acute idea about the light commercial vehicles market insights, it is very crucial to create a competitive environment amongst the different key players at different market locations all around the globe. Prime players of light commercial vehicles market include:-
The light commercial vehicle market report presents a shift analysis that covers market drivers, opportunities, and restraints that are available in the global market. The report takes into account the impact of covid-19 on the key players of the light commercial vehicle industry. The report also informs us about the segmentation of the market on a different basis and how a competitive environment is created among the key players around the globe. At last, the report shows some recent developments in the light commercial vehicle market.
|Market Size||2030: USD 7,94,860.1 Million|
|CAGR||5.67% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||type and fuel type|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Daimler AG (Germany), Volvo Group (Sweden), Dongfeng Motor Corporation (China), Volkswagen Group (Germany), Tata Group (India), Ford Motor Company (US), Groupe PSA (France), General Motors (US), Hyundai Motor Company (South Korea), and Groupe Renault (France)|
|Key Market Opportunities||growth of electric era of electric automobiles|
|Key Market Drivers||
The light commercial vehicles market is poised to register 5.67% CAGR.
Increasing demand for downsized vehicles, implementation of emission laws, and rising fuel prices are few of the driving factors of the light commercial vehicles market.
A rise in price of these vehicles is expected in the coming years, which might challenge the growth of the market.
The type-based segments of the light commercial vehicles market are trucks, vans, coaches, buses, and others
The players anticipated to catalyze growth of the light commercial vehicles market are Daimler AG (Germany), Dongfeng Motor Corporation (China), Volvo Group (Sweden), Volkswagen Group (Germany), Ford Motor Company (US), Tata Group (India), Groupe PSA (France), Hyundai Motor Company (South Korea), General Motors (US), and Groupe Renault (France).