Light Commercial Vehicle Market: Introduction
- According to the OICA (International Organization of Motor Vehicle Manufacturers), light commercial vehicles are considered to be special vehicles that are described in terms of gross vehicle weight. Primarily, these vehicles have a maximum mass varying between 3.5 tons and 7 tons. Light commercial vehicles are basically used to transport goods over short distances, and the gross weight and purpose of use differentiates between heavy and light commercial vehicles.
Key Drivers of Light Commercial Vehicle Market
- Several stringent regulations related to carbon emissions are a key factor boosting the light commercial vehicles market. Significant rise in adoption of artificial intelligence, sensor technologies, maps, and advanced computing capabilities in vehicles is also projected to propel the market.
- Environmental concerns are at the top of the automotive industry’s agenda. Almost all the van fleet across the globe is powered by diesel, something that should not be downplayed. Moreover, heavy investment from players in the industry is also anticipated to fuel the market during the forecast period. For instance, in 2015, Europe introduced the EURO 6 emission standard for all trucks and vans that are sold after September 2016. This emission standard is playing a vital role in enhancing air quality and helping to address environmental concerns. According to stats, CO2 emissions in Europe reduced by over 10% in the last five years. Moreover, increase in the adoption and acceptability of electric commercial vehicles, as well as an expansion in global e-commerce is also boosting the light commercial vehicle market.
Challenges of Light Commercial Vehicle Market
- Increase in car special consumption tax rates, rise in exchange and interest rates, restrictions imposed by the supervisory agency and banking regulatory on credit transactions, a slowing of economic growth, and weak private sector consumption and investment are key factors hampering the light commercial vehicle market
- Current challenges associated with electric vehicles, such as insufficient charging infrastructure and the risk of fire, are estimated to hinder the light commercial vehicle market
Opportunities for Global Light Commercial Vehicle Market
- An increase in the number of e-commerce and building activities has resulted in a major increase in demand for material transportation. Consistent rise in e-commerce operations has fueled the sales of commercial vehicles all across the globe. This is projected to drive the light commercial vehicle market in the next few years.
- Advances in the development of semi-autonomous and electric commercial vehicles are also boosting the market. The adoption of electric vehicles for commercial transportation is expected to rise at a steady pace due to the numerous advantages they have over ICE vehicles. Policies encouraging the deployment of electric vehicles, particularly in industrialized countries, are expected to increase the commercial acceptability of electric vehicles. Consequently, these factors are estimated to propel the light commercial vehicle market during the forecast period.
Light Commercial Vehicle Market, by Region
- The market in Asia Pacific is anticipated to expand during the forecast period due to an increase in demand for warehousing, transportation, and logistics solutions. Easy availability of cost-effective labor and raw materials, strengthening road infrastructure, and rising number of manufacturing facilities among developing countries, such as India, are several factors that are projected to boost the light commercial vehicle market across the region.
- North America accounts for a major share of the global light commercial vehicle market. It is anticipated to maintain its leading position during the forecast period. The highly integrated supply chain network across the region connects consumers and manufacturers through multiple transportation modes, which include air, rail, and express delivery services.
Key Players Operating in Global Light Commercial Vehicle Market
- Ashok Leyland
- Bosch Rexroth AG
- Daimler
- Volkswagen AG
- Toyota Motor Corporation
- Mahindra and Mahindra
- TATA Motors
- AB Volvo
- Golden Dragon
- General Motors
- Other Major Players
Light Commercial Vehicle Market, by Vehicle Type
- Pickup Truck
- Mini Vans
- Three-Wheeler Vehicles
- Others
Light Commercial Vehicle Market, by Propulsion Type
Light Commercial Vehicle Market, by Region
- North America
- Europe
- Germany
- U.K.
- France
- Russia
- Spain
- Sweden
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- ASEAN
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- Turkey
- South Africa
- Rest of Middle East & Africa
