Light Commercial Vehicle (LCV) Market by Vehicle Type (Pickup Trucks, Light Trucks, and Others), Propulsion Type (Internal Combustion Engine (ICE) and Electric & Hybrid), Application (Commercial Use and Industrial Use), and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Light Commercial Vehicle (LCV) Market size is projected to reach a CAGR of 5.2% from 2023-2030.
A 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 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.
Factors such as the 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. Furthermore, factors such as an increase in government initiatives for the promotion of e-mobility and a 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.
On the other hand, the 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. Also, 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.
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 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 a nationwide shutdown of almost all retail outlets for non-essential items, including clothing, electronics, accessories, and automobile.
The automotive industry's Light Commercial Vehicle (LCV) market, which manufactures and sells cars built for commercial usage, is a significant sector. The need for last-mile delivery services, e-commerce, and the growth of small and medium-sized firms (SMEs) in emerging economies have all contributed to the market's steady growth over the past several years. The LCV market is extremely competitive, with several manufacturers spending in R&D to provide more effective, dependable, and economical LCVs that satisfy consumers' changing expectations. Additionally, the industry is moving towards more ecologically friendly and sustainable options, with an increased emphasis on electric and hybrid LCVs. The LCV market is anticipated to expand further, propelled by rising consumer demand for products and services, the growth of SMEs, and a trend towards more environmentally friendly modes of transportation. To maintain their competitiveness in this changing market, businesses will need to concentrate on innovation and adaptation.
North America to Dominate the Market