Global Light Commercial Vehicle Market 2024–2033

Light Commercial Vehicle Market: Overview

A motor vehicle with a minimum of four wheels that are used to transport products is referred to as a light commercial vehicle (LCV). LCVs are used to distinguish between light commercial vehicles and large trucks since they have a defined mass specified in tons (metric tons). This limit, which ranges between 3.5 and 7 tons, is determined by national and professional criteria.

LCVS is used more widely throughout a variety of businesses, and as a result of this expanded use across a variety of industries, there is a rising need for effective and potent light commercial vehicles. The light commercial vehicle is made up of several small systems, including chassis, interior and exterior, steering, and other components. Light commercial vehicle manufacturing has increased in the Asia-Oceania area as a result of the region’s dramatic improvements in commerce and transportation.

Light Commercial Vehicle Market: COVID–19 Impact Analysis

Global economies have been significantly impacted by the COVID-19 pandemic. For several industries, COVID-19 has created a number of difficulties. Because of the rapid global spread of COVID-19, the supply chain and logistics industries suffered a great deal from the COVID-19 epidemic.

Governments all across the world have implemented strong social exclusion policies, partial to total lockdown operations, and other measures to prevent the spread of COVID-19. Automobile manufacturers and their subcontractors experienced production and demand interruptions as a result of lockdown measures.

Additionally, constraints were loosened in various industries and nations at varying rates, which led to a scarcity of inputs in the intricate value chains of the vehicle industry.

Light Commercial Vehicle Market: Growth Drivers

Electrification and the use of cutting-edge technologies will help the industry to accelerate the market’s growth

Environmental problems are brought on by the increased air pollution that conventional automobiles’ fuel emissions create on a global scale. This has prompted manufacturing firms to switch to renewable energy sources. In order to promote zero-emission public transportation and maintain a clean, breathing environment for citizens, public transportation agencies in various locations are electrifying their vehicles.

To reduce the growing pollution levels, governments have implemented strict laws. They have also launched a number of initiatives to encourage the electrification of automobiles. The logistics industry is concentrating on electric cars as well by creating the necessary infrastructure.

The OEMs are also aiming to lower battery prices to promote the usage of electric vehicles globally. A number of significant players are moving toward electric automobiles to meet rising demand. Moreover, due to their numerous benefits, including long battery lives, expanded range, energy economy, and improvements in electrical systems, electric cars are also becoming more and more popular on the international market.

The industry is boosted by the use of ADAS, which includes lane departure warning systems, driver monitoring systems, and blind spot detection systems. These benefits of electric vehicles and technological improvements are driving the market demand for light commercial vehicles in the electric version.

The growth of the automobile industry has fueled the expansion of the market

Due to technical improvements and the introduction of automobiles with efficient fuel consumption technologies, the automotive sector has experienced tremendous development in recent years. The development and introduction of cutting-edge commercial vehicles by several organizations to various regions throughout the world have aided in the expansion of the worldwide market.

Key manufacturers have also been updating their current lineup of light commercial vehicles, which is anticipated to provide profitable chances for the industry. Therefore, over the projected period, the advancements & technical advancements in the automotive sector support the growth of the worldwide light commercial vehicle market.

Light Commercial Vehicle Market: Segmentation Analysis

The light commercial vehicle market is segmented into vehicle type and propulsion type. Based on vehicle type, the market for light trucks segment is dominating during the forecast period. Almost all industries employ light vehicles. It is used by the industrial sector to move completed items and raw materials between their storage facilities and consumer outlets. The primary end-use markets for light vehicles are the public, private, and industrial sectors.

The development of sensor technologies, artificial intelligence, maps, and advanced processing capabilities is expected to lead to a major increase in the market for light commercial trucks. Additionally, a factor in the market expansion for light commercial trucks is the growing prevalence of smaller engines in these vehicles. Furthermore, the primary market factors that will have a beneficial effect on the market’s growth rate are the expansion of infrastructure and an increase in industrialization.

The market’s growth rate will be further accelerated by a number of reasons, including an increase in disposable income, the introduction of automobiles with efficient fuel consumption technologies, and expanding urbanization.

By propulsion type, the I.C. engine segment is anticipated to dominate the market during the forecast period. The segment is hopeful for a number of reasons owning to accessible energy, which is still crucial, especially in emerging nations like India. The only dependable source of energy up to this point has been the combustion of fossil fuels.

The I.C. engine is the main component of vast transportation networks and infrastructure, thus replacing it would be extremely expensive. EVs require a very complex charging infrastructure that is quite expensive, which many nations now lack.

Due to strict laws surrounding fuel efficiency requirements, the EV industry is anticipated to have promising development as demand increases. Additionally, manufacturers are consistently focused on lowering the price of the battery to enhance EV sales, driving the expansion of the global market. Commercial EVs offer a longer

driving range and create no noise or air pollution in comparison to traditional internal combustion engines. They are also more suited for autonomous driving; hence the EV category is anticipated to have the greatest CAGR throughout the course of the projected period.

Report Scope

Feature of the Report	Details
Market Size in 2023	USD 9.1 Trillion
Projected Market Size in 2032	USD 17.6 Trillion
Market Size in 2022	USD 8.2 Trillion
CAGR Growth Rate	9.5% CAGR
Base Year	2023
Forecast Period	2024-2033
Key Segment	By Vehicle Type, Propulsion Type and Region
Report Coverage	Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope	North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options	Request tailored purchasing options to fulfil your requirements for research.

Key Insights:

• Based on vehicle segmentation, the light trucks segment is estimated to hold the largest market share during the forecast period.
• Based on propulsion segmentation, the I.C. engine light commercial vehicle segment is the leading revenue-generating category during the forecast period and EV is expected to grow at a significant rate.
• On the basis of geography/region, the North America region was the leading revenue generator in 2021.

Recent Development

• March 2021: The new Traffic van from Renault is now available for pre-order, with deliveries starting at the end of 2021. The van’s entirely rebuilt interior, and cabin is anticipated to provide the highest level of functionality and mobile connectivity. For long-haul travel reasons, the vehicle also has updated ADAS features.
• March 2021: The new AVTR family of vehicles, made by a modular truck platform, was introduced by Ashok Leyland Ltd. Customers may modify their trucks using this platform to meet their needs.

Regional Landscape

Throughout the projection period, North America is expected to continue to be among the most alluring markets and this region is accounted for the majority revenue share in the market. Due to the region’s rising need for commercial trucks, North America now maintains the greatest share of the industry.

This is clear from the fact that, per OICA, the COVID-19 epidemic caused North America’s output of commercial vehicles to fall by 20.3%. However, as soon as lockdowns were released, there was an increase in new orders. Additionally, this region saw an increase in demand from e-commerce logistics operations. On the worldwide market, the area is predicted to develop strongly.

Competitive Landscape

Our report offers both quantitative and qualitative insights into the WebRTC market and major development initiatives adopted by the key players. Further, it offers competitive details and market share analysis. The report further includes relevant financial information, products and services offered, SWOT analysis, and recent developments of the players profiled.

List of the prominent players in the global light commercial vehicle market:

• Ashok Leyland
• Ford Motor Company
• General Motors
• Honda Motor Company
• Hyundai Motor Company
• Isuzu Motors
• Renault Group
• Gaz Group
• Tata Motors
• Toyota Motors
• Others

The global Light commercial vehicle market is segmented as follows:

By Vehicle Type

• Pickup Trucks
• Light Trucks
• Others

By Propulsion Type

• Internal Combustion Engine (ICE)
• EV

By Application

•  Commercial Use
•  Industrial Use

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America