The global market for light commercial vehicles (LCVs) is gaining significant momentum worldwide. The growth of this market can be attributed to stringent government regulations concerning vehicle emissions. Additionally, the increasing use of downsized engines in electric LCVs and rising crude oil prices are driving market expansion, leading to increased investments in electric vehicles. Initiatives such as eco-strategies, green revolution plans, and innovations are further boosting market demand.
Market Research Future (MRFR) recently conducted research and predicts a 4.5% Compound Annual Growth Rate (CAGR) for the global light commercial vehicles market during the assessment period (2019 – 2025). The market is expected to see growth in motor vehicle production, expanding the customer base seeking quality and profitability. LCVs play a vital role in the logistics and transportation industry.
Engaging potential buyers through digital channels is expected to have a significant influence on market growth. Conversely, the rising demand for downsized engines is a primary factor that may hinder market growth due to increased overall LCV prices. However, stringent emission regulations are expected to support market growth throughout the review period. Additionally, the booming eCommerce industry is projected to further substantiate market growth.
Global LCV Market – Segmentation: The market is segmented into three main dimensions:
- By Type: Vans, Trucks, Buses, Coaches, and others.
- By Fuel Type: Electric, Diesel, and Gasoline.
- By Region: Americas, Europe, Asia Pacific, and the Rest-of-the-World.
Light Commercial Vehicles (LCV) Market – Regional Analysis:
North America dominates the global light commercial vehicles market, driven by the rapidly growing electric vehicle industry and the increasing demand for lightweight, energy-efficient automobiles in the region. The thriving eCommerce industry in North America is another factor fueling market growth, leading to strong growth in the transportation industry.
The Asia Pacific region holds the second-largest market share in the global light commercial vehicle market. This substantial market share is attributed to stringent government regulations against commercial vehicle emissions. Additionally, the rising demand for lightweight, fuel-saving commercial vehicles is boosting market sales. The region’s growing automotive industry and the availability of innovative technologies further contribute to market growth.
Europe holds the third-largest share in the global light commercial vehicles market. Factors such as a well-established automotive industry and innovations in electric vehicles are driving market growth. Substantial research and development investments by industry players to drive product and technology developments are also contributing to the market’s growth.
Global Light Commercial Vehicles Market – Competitive Analysis:
The LCV market is highly competitive and fragmented, with several established players forming a competitive landscape. Industry players use various strategies such as mergers & acquisitions, innovation, brand reinforcement, and expansion to gain a larger competitive share. LCV manufacturers aim to provide an extended range of heavy-duty LCVs. As the market witnesses expected innovations and improvements in products, services, and technology, competition is likely to intensify.
Major Players:
Leading players in the global light commercial vehicles market size include Volvo Group (Sweden), Dongfeng Motor Corporation (China), Daimler AG (Germany), Tata Group (India), Ford Motor Company (US), Volkswagen Group (Germany), General Motors (US), Groupe Renault (France), Groupe PSA (France), and Hyundai Motor Company (South Korea), among others.
Industry News:
On December 13, 2020, Toyota Motor Corporation (Japan) announced the development of fuel cell commercial vehicles. Toyota is actively promoting hydrogen commercial vehicle development in Japan and the United States. Trials of light and heavy-duty hydrogen trucks have commenced in both countries. In Japan, the company, along with its subsidiary Hino Motors and three major retail chains, is testing fuel cell light commercial vehicles. In the United States, Toyota is progressing with near-production heavy-duty FC trucks.
