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2021

Light Commercial Vehicle (LCV) Market

Light Commercial Vehicle (LCV) Market Size, Share, Competitive Landscape and Trend Analysis Report by Vehicle Type, Propulsion Type and Application : Global Opportunity Analysis and Industry Forecast, 2021-2030

AT : Electric and Hybrid Vehicles

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Author's: Abhay Singh | Lalit Janardhan Katare
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Light Commercial Vehicle (LCV) Market Statistics 2030 -

The global light commercial vehicle (LCV) market was valued at $463.00 billion in 2020, and is projected to reach $786.50 billion by 2030, registering a CAGR of 5.3%.

Light commercial vehicle (LCV) is a motor vehicle with at least four wheels and is used for the carriage of goods. LCVs have a specific mass given in tons (metric tons) and are used to differentiate between the light commercial vehicles and heavy trucks. This limit depends on national and professional definitions and varies between 3.5 and 7 tons. LCVs have a wider application in different industries, and due to this increased application across different industries, the demand for efficient and powerful light commercial vehicles has increased. Numerous companies have introduced their products across different parts of the globe, which has created a positive impact on the growth of the global market.

Global-Light-Commercial-Vehicle-(LCV)-Market

Factors such as development of the automotive industry, increase in industrial activities, and development of the e-commerce industry accelerate the growth of the global light commercial vehicle (LCV) market across the globe. However, implementation of stringent emission norms and the availability of alternate vehicles are the factors that are expected to hamper the market growth during the forecast period. On the contrary, factors such as increase in government initiatives for promotion of e-mobility and rise in demand for electric trucks from the logistics sector are expected to create a positive impact on the global market during the forecast period.

The global light commercial vehicle (LCV) market report is segmented into vehicle type, propulsion type, application, and region. Depending on vehicle type, the market is segregated into pickup trucks, light trucks, and others. By propulsion type, it is categorized into internal combustion engine (ICE) and electric & hybrid. The applications covered in the study include commercial use and industrial use. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

The key players operating in the global light commercial vehicle (LCV) market include Ashok Leyland, Ford Motor Company, Gaz Group, General Motors, Honda Motor Company, Hyundai Motor Company, Isuzu Motors, Renault Group, Tata Motors, and Toyota Motors. 

Development of the automotive industry

The automotive industry has registered a significant growth in the recent years, due to technological advancements and the introduction of vehicles with efficient fuel consumption technology. Numerous companies such as Ashok Leyland and Tata Motors have been developing and introducing their advanced commercial vehicles to different markets across the globe, which has supplemented the growth of the global market. For instance, in September 2020, Ashok Leyland planned to introduce a new range of light commercial vehicles (LCVs) through which the company aimed to de-risk business from future downturns. 

Moreover, key players have been upgrading their existing light commercial vehicle line-up, which is expected to provide lucrative opportunities for the market. For instance, in February 2021, Nissan unveiled the latest upgrade to its light commercial vehicle line-up, the new NV300 Combi., which includes improved safety and powertrain & engines to provide better performance. Hence, such developments & technological upgradations in the automotive industry supplement the growth of the global light commercial vehicle market during the forecast period.

Light Commercial Vehicle (LCV) Market
By Vehicle Type
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Others is projected as the most lucrative segments

Development of the e-commerce industry

E-commerce refers to the buying and selling of goods by using internet. Therefore, freight transporters carry out shipping of products from retailers to consumers. In addition, the e-commerce industry utilizes third-party logistics service to manage and oversee the supply chain of e-commerce companies, which allows these companies to focus on marketing and other business operations. These third-party logistic suppliers such as FedEx, XPO Logistics, and DHL utilize several light commercial vehicles to deliver the product to the nearest product delivery station. These companies have a larger fleet of LCVs due to the fact that smaller LCVs are more fuel-efficient as compared to heavy commercial vehicles when commuting within a city. Moreover, due to numerous benefits provided by different vehicle manufacturers to freighttransporters, adoption of efficient light commercial vehicles in e-commerce industry is increasing at a significant rate, thereby driving the growth of the light commercial vehicle market. 

Light Commercial Vehicle (LCV) Market
By Propulsion Type
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Electric & Hybrid is projected as the most lucrative segments

Implementation of stringent emission norms

Increase in carbon footprint has enforced governments across the globe to implement stringent emission norms, thereby creating a negative impact on the growth of ICE-based light commercial vehicles. In the European Union (EU), LCV CO2 emission targets in 2018 were set at 175g/km. In April 2019, the EU imposed stricter CO2 emission standards on passenger cars and LCV, which came into force in January 2020. According to the new regulation standards (Regulation (EU) No 2019/631), the average CO2 emission target were 147 grams of CO2 per kilometer. The new regulations focused on reducing average CO2 emission by 31% for LCVs by 2030 as compared to 2021. The commission imposed an excess emission premium on the manufacturer of $112.15 for each g/km that is exceeded for all registered LCV if the manufacturer exceeds specific emissions target. Moreover, stringent CO2 emission regulations impacted the manufacturing expenditure; hence, such limitations affected the growth of the light commercial vehicles market across the globe.

Light Commercial Vehicle (LCV) Market
By Application
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Industrial Use is projected as the most lucrative segments

Increase in government initiatives for promotion of e-mobility

Governments across the world are pressurizing vehicle manufacturers to reduce carbon emissions caused by diesel fuel combustion and tackle greenhouse gas emissions, in turn, pushing them to invest in developing electric vehicles. For this purpose, governments are providing incentives with programs and schemes for manufacturing of battery electric vehicles, which, in turn, is anticipated to propel the growth of the electric-based LCV market. In addition, governments across the globe are supporting the purchase of electric mobility, in terms of tax credits and incentives. Moreover, central governments of few countries are providing exemption from the highway toll tax for electric vehicles. For instance, for faster adoption of electric vehicles, the Indian Government plans to lower the goods & service tax (GST) on e-vehicles from 12% to 5%. Moreover, around $2,101.5 tax exemptions will be given on loan taken for the purchase of e-vehicles. In addition, the South Korean Government announced that it will be providing the $900 million tax exemptions and subsidies for development and purchase of electric and fuel cell vehicle. Thus, increase in government support for the development and purchase of electric mobility, in terms of tax credits, subsidies, and incentives, is one of the major factors propelling the demand for electric propelled light commercial vehicles. 

Light Commercial Vehicle (LCV) Market
By Region
2030
North America 
Europe
Asia-Pacific
LAMEA

LAMEA would exhibit the highest CAGR of 7.8% during 2021-2030.

COVID-19 IMPACT ANALYSIS

  •  The outbreak of COVID-19 has resulted in flight cancellations, travel bans, and quarantines, which disrupted the supply chain and halted logistics activities across the world.
  •  As per the industry experts operating in the global light commercial vehicle industry, the automotive industry encountered a negative growth ranging between 5% and 10% in the first half of 2020 due to several causes such as transportation bans or the disruption in the supply chain.
  •  The disruption in the supply chain has been a major impact of the COVID-19 pandemic across the world.
  •  As a consequence of the COVID-19 outbreak, countries were left with no choice but to temporarily discontinue their trading activities with one another, which adversely impacted the supply of goods, thereby causing a disruption in the supply chain.
  •  Moreover, countries across the world have imposed nationwide shutdown of almost all retail outlets for non-essential items, including clothing, electronics, accessories, and automobile.

Key Benefits For Stakeholders

  •  This study presents the analytical depiction of the global light commercial vehicle (LCV) market analysis along with the current trends and future estimations to depict imminent investment pockets.
  •  The overall market opportunity is determined by understanding profitable trends to gain a stronger foothold.
  •  The report presents information related to the key drivers, restraints, and opportunities of the market with a detailed impact analysis.
  •  The current market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
  •  Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

Key Market Segments

By Vehicle Type

  •  Pickup Trucks
  •  Light Trucks
  •  Others

By Propulsion Type

  •  Internal Combustion Engine (ICE)
  •  Electric & Hybrid

By Application

  •  Commercial Use
  •  Industrial Use

By Region

  •  North America
    •  U.S.
    •  Canada
    •  Mexico
  •  Europe
    •  UK
    •  Germany 
    •  France 
    •  Italy
    •  Spain
    •  Rest of Europe
  •  Asia-Pacific
    •  China
    •  Japan 
    •  India
    •  South Korea
    •  Rest of Asia-Pacific
  •  LAMEA
    •  Latin America
    •  Middle East
    •  Africa

KEY PLAYERS

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

Light Commercial Vehicle (LCV) Market Report Highlights

Aspects Details
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By VEHICLE TYPE
  • Pickup truck
  • Light trucks
  • Others
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By PROPULSION TYPE
  • ICE vehicle
  • Electric & hybrid
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By APPLICATION
  • Commercial use
  • Industrial use
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, Spain, UK, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Australia, Thailand, Malaysia, Indonesia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, South Africa, Saudi Arabia, UAE, Argentina, Rest of LAMEA)
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Key Market Players

Ford Motor Company, SUZU MOTORS LIMITED, Renault Grou, GAZ international LLC, TOYOTA MOTOR CORPORATION, TATA MOTORS, ASHOK LEYLAND, Hyundai Motor Company, General Motors, HONDA MOTOR CO., LTD.

Analyst Review

Light commercial vehicle (LCV) is a motor vehicle with at least four wheels and is used for the carriage of goods. LCVs have a specific mass given in tons (metric tons) and are used to differentiate between the light commercial vehicles and heavy trucks. The market is supplemented by numerous developments carried out by the top light commercial vehicle (LCV) manufacturers. Moreover, technological advancements in automotive industry has created a positive impact on the growth of the global light commercial vehicle market.

Increase in demand for efficient and powerful commercial vehicles has enabled the manufacturers to develop & introduce efficient LCVs to be used in different industries. For instance, Ashok Leyland is planning to roll out its first electric light commercial vehicle (LCV) by the end of the current financial year. Moreover, Ford Motor Company invested $300 million to build a new light commercial vehicle at its Craiova facility in Romania starting in 2023. Similar developments have been carried out by companies such as Gaz Group, General Motors, and Honda Motor Company, which supplement the growth of the global market.

Factors such as development of the automotive industry, increase in industrial activities, and expansion of the e-commerce industry accelerate the growth of the global light commercial vehicle (LCV) market across the globe. However, implementation of stringent emission norms against CO2 emission and the availability of alternate vehicles are the factors that are expected to hamper the growth of the global light commercial vehicle (LCV) market during the forecast period. Moreover, factors such as increase in government initiatives for promotion of e-mobility and rise in demand for electric trucks from the logistics sector are expected to create a positive impact on the global light commercial vehicle (LCV) market.

Among the analyzed regions, North America is the highest revenue contributor, followed by Asia-Pacific, Europe, and LAMEA. On the basis of forecast analysis, North America is expected to maintain its lead during the forecast period, owing to increase in production of LCVs across the region.

Author Name(s) : Abhay Singh | Lalit Janardhan Katare
Frequently Asked Questions?

The global light commercial vehicle (LCV) market was valued at $463.00 billion in 2020, and is projected to reach $786.50 billion by 2030, registering a CAGR of 5.3%

Inclination towards electric vehicles followed by the introduction of heavy duty vehicles is expected to have a strong impact in the LCV market.

The sample for global LCV market report can be obtained on demand from the AMR website. Also, the 24*7 chat support and direct call services are provided to procure the sample report

Post Covid, the market is expected to see a lucrative growth owing to the increased adoption of electric vehicles in the near future.

Product development & innovations are the key strategies adopted by the top players to increase their revenue in LCV.

The company profiles of the top market players of LCV industry can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the LCV market

North America is and will provide more business opportunities for LCV in future.

Vehicle Type is the most influencing segment growing in the LCV Industry report.

China, U.S., Germany are the key matured markets growing in the LCV report

Electric propelled LCVs are the upcoming trends in LCV industry

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Light Commercial Vehicle (LCV) Market

Global Opportunity Analysis and Industry Forecast, 2021-2030