Light Commercial Vehicle Global Market Report 2022

Major players in the light commercial market are Daimler, Ford, Renault, Volkswagen, Ashok Leyland, Tata Motors, SML Isuzu Limited, Toyota Motor, Groupe PSA, and Nissan.

The global light commercial vehicle market is expected to grow from $491.08 billion in 2021 to $562.73 billion in 2022 at a compound annual growth rate (CAGR) of 14.6%. The market is expected to grow to $911.5 billion in 2026 at a compound annual growth rate (CAGR) of 12.8%.

The light commercial vehicle market consists of sales of light commercial vehicles and related services by entities (organizations, sole traders, and partnerships) that produce complete light trucks and utility vehicles such as light-duty vans, pick-up trucks, minivans, and sport utility vehicles. Only goods and services traded between entities or sold to end consumers are included.

The main types in the light commercial market are passenger van, cargo van, pickup trucks, light trucks, minibusses, other types. Trucks carrying the highest gross vehicle weight of 3.5 metric tons and above 15 metric tons could be classified as light commercial vehicles (LCVs). The various fuel types are electric, diesel, gasoline. The various tonnage capacity includes less than 2.5 tons, 2.5 to 3.5 tons, more than 3.5 tons.

North America was the largest region in the light commercial vehicles market in 2021.Asia Pacific was the second-largest region in the light commercial vehicle market.

The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, Africa.

The increase in online shopping is expected to drive the light commercial vehicles market.As urbanization has increased, it has created new retail and e-commerce platforms that require efficient logistics, which could be fulfilled by light commercial vehicles (LCV).

Moreover, the current pandemic situation has spiked online shopping owing to health concerns. According to Adobe Analytics, consumers in the USA spent $2.2 billion on November 2nd, 2020, a 31% increase in year-over-year growth, and another $2.0 billion on November 3rd, 2020, which was a 27% year-over-year increase. Thus, increased demand for goods through e-commerce is pushing the use of LCV in logistics paving way for the growth of the light commercial vehicles market.

The stringent emission norms by the government-related for CO2 emissions are expected to be a major challenge for the light commercial vehicles market.In the European Union (EU), LCV CO2 emission targets were set at 175g/km.

In April 2019, the EU imposed stricter CO2 emission standards on passenger cars and LCV and came into force in January 2020.According to the new regulation standards (Regulation (EU) No 2019/631), the average CO2 emission target is 147 grams of CO2 per kilometer.

The new regulations focus on reducing average CO2 emission by 31% for LCVs by 2030 as compared to 2021. The commission will impose an excess emission premium on the manufacturer of $112.15 (€95) for each g/km that is exceeded for all registered LCV if the manufacturer exceeds a specific emissions target. The strict CO2 emission regulations impact the manufacturing expenditure and limit the growth of the light commercial vehicles market.

Skateboard architecture is increasingly being preferred by manufacturers for high efficiency and productivity in light commercial vehicles and turning to be a trend in the light commercial vehicles market.The skateboard architecture refers to an actual physical platform, which forms the floor of the vehicle, and incorporates the battery.

For instance, in February 2020, Hyundai, partnered with Canoo, a Los Angeles-based company creating EVs, to jointly develop an electric vehicle (EV) platform. Canoo’s scalable skateboard architecture will provide a simplified and standardized development process for Hyundai and Kia electrified vehicles and this will help reduce costs.

The countries in the light commercial market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, USA.