Increasing e-commerce, third-party logistic activities and government measures to promote e-mobility fuels the Light Commercial Vehicle (LCV) market and is projected to reach $ 786.50 billion by 2030.
According to the Valuates Reports, the company that offers in-depth market insights into various industries, the global LCV market size was valued at $ 463.00 billion in 2020 will grow at a CAGR of 5.3% during the forecast period 2021 to 2030.
The market is segmented by vehicle type, propulsion and application, and the report covers global opportunity analysis and industry forecasts from 2021 to 2030.
Published by Valuates Reports under the Auto & Vehicles category, the report says that an increase in demand for electric trucks from the logistics industry is also likely to impact the global LCV market positively.
Major players in the LCV market include Ashok Leyland, Ford, GM, Honda, Hyundai, Isuzu, Renault, Tata Motors and Toyota.
Influencing trends
The report says that the recent developments, including technological improvements and the introduction of vehicles with efficient and eco-friendly fuel consumption technology, have resulted in substantial growth in recent years, eventually also benefitting the LCVs.
Several companies like Ashok Leyland and Tata Motors have been developing and introducing sophisticated LCVs to various regions worldwide, which has aided the market's growth.
The flourishing e-commerce industry is expected to propel the LCVs growth further. Third-party logistics services are used by the e-commerce industry to handle and control e-commerce enterprises' supply chains, allowing them to focus on marketing and other company activities. These third-party logistic providers, such as FedEx, XPO Logistics, and DHL, deliver the merchandise to the nearest product delivery station using a fleet of LCVs since smaller vehicles are more fuel-efficient than heavy commercial vehicles.
In addition, the governments are giving incentives to manufacturing battery-electric vehicles through programmes and schemes, which is expected to drive the expansion of the electric-based LCV industry.
According to Valuates Reports, one of the critical elements that drive the demand for electric propelled LCV is increased government support for the development and purchase of electric mobility in the form of tax credits, subsidies, and incentives.
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.
Regional analysis
As per Valuates Reports, North America dominated the market in revenue, followed by Asia-Pacific, Europe, and LAMEA. In 2020, the United States received the highest market share. However, due to increased demand for LCVs across the region, LAMEA is predicted to grow at a CAGR of 7.8% during the forecast period.
Based on propulsion type, the electric & hybrid segment is anticipated to exhibit significant growth in the near future.
On the basis of application, the industrial use segment is projected to lead the global LCV market owing to a higher CAGR, the research firm added.
Courtesy: Valuates Reports. NB: Photo is representational; courtesy: Tata Motors.