Light Commercial Vehicle Market Poised to Garner High Revenues owing to Increasing E-Commerce Deliveries

 

Light Commercial Vehicle Market

The light commercial vehicle market consists of light trucks or vans weighing up to 3.5 tons. They are preferred for last-mile deliveries and transportation of goods. Light commercial vehicles provide greater operational efficiency due to their compact size and maneuverability compared to heavy trucks. They find applications in delivery of goods for retail stores, restaurants and e-commerce deliveries.

The global light commercial vehicle market is estimated to be valued at US$ 730.35 Bn in 2024 and is expected to exhibit a CAGR of 19% over the forecast period 2024 to 2031.

Rising e-commerce activities have increased the demand for last-mile deliveries, driving sales of Light Commercial Vehicle Market Growth. Various advantages such as lower running and maintenance cost compared to heavy trucks also contribute to their growing popularity.

Key Takeaways

Key players operating in the light commercial vehicle market are Tesla, Sono Motors, Lightyear, Aptera Motors, Squad Mobility, EVX Pty Ltd, ElectraMeccanica Vehicles Corp.. Major automakers such as Toyota Motor Corporation, Hyundai Motor Group, Audi, Ford, Volkswagen, Mahindra & Mahindra, Nissan, General Motors, BYD, Renault, Honda, Tata Motors and BMW also offer light commercial vehicles.

The growing e-commerce industry is opening up opportunities for electric light commercial vehicles sales. Various governments are providing subsidies for purchase of electric commercial vehicles to reduce vehicular emissions. Leading automakers are expanding their electric LCV manufacturing and sales globally to cater to the growing demand.

Market drivers and restrain:

 Rising e-commerce activities are boosting the demand for last-mile deliveries, which is a key driver for the light commercial vehicle market. Growing preference for fuel-efficient and low-emission vehicles is also propelling the sales of light commercial electric vehicles. However, high procurement and maintenance cost of electric light commercial vehicles compared to conventional vehicles may restrain the market growth initially. Developing extensive public charging infrastructure is another challenge faced by the electric LCV market.

Segment Analysis

The Light commercial vehicle market is dominated by electric commercial vehicles which holds around 35% market share. Factors such as rising environmental concerns, stringent emission norms and technological advancements are driving the demand for electric commercial vehicles. Within electric commercial vehicles, battery electric vehicles capture around 75% share owing to negligible tailpipe emission, lower operating and maintenance cost compared to other fuel-based vehicles.

Global Analysis

North America captured over 30% share of global light commercial vehicle market in 2020. Presence of major economies like US and Canada with rising demand from logistics, retail and e-commerce sectors is fueling the demand. In addition, supportive government policies promoting clean energy vehicles is positively impacting the adoptions of electric light commercial vehicles. Asia Pacific is fastest growing region for light commercial vehicle market growing at over 20% annually. China alone holds around 35% share of global light commercial vehicle production led by demand from transportation and logistics sector.

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