Market Research Report
Light Commercial Vehicle (LCV) Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||946156|
|Published||Content info||90 Pages
Delivery time: 2-3 business days
|Light Commercial Vehicle (LCV) Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: June 1, 2020||Content info: 90 Pages||
The Light Commercial Vehicle (LCV) Market is poised to register a CAGR of over 3.0% over the forecast period (2020-2025).
Electrification of Light Commercial Vehicles Likely to Bring Growth Opportunities
With the growth of electrification in vehicles, the LCV market is witnessing collaborations among incumbent OEMs and start-ups alike in the production of electric LCVs (eLCVs). The primary reason for on-road vehicle electrification is the growing environmental concerns about the automotive sector's contribution to climate change and the damaging effect on human health of exhaust pollutants.
Currently, the upfront cost of LCVs is greater than conventional fuel models, and LCV operators primarily base their purchase decisions on the total cost of ownership calculations, however, in the long run, the operators can save a significant amount on the overall operational by replacing conventional fuel models with the electrically powered, as electric drivetrains require less maintenance and offer efficiency.
Over the next forecast period, as battery pack prices decrease, electric drivetrain efficiencies improve and significant economies of scale savings are realized on the cost of electric components and vehicle manufacturing, it will become a competitive advantage for companies to operate electric vans as they will offer the lowest cost solution. The addition of road charges for diesel vehicles in low emission zones within urban centers will swing the Total Cost of Ownership (TCO) balance heavily in favor of electric LCV.
United States and China are likely to Lead the LCV Market
United States and China leads the light commercial vehicle market followed by Japan, India, Latin America respectively. The Chinese e-Commerce industry is continuously growing which is driving the LCV industry in the country. For instance,
Owing to the growing concerns on environment pollution, the US government has been consistently working and supporting various measures toward the growth of electric vehicle industry. For instance:
The major players in the Light Commercial vehicle market are Daimler AG, Renault SA, Volkswagen AG, Toyota Motor Corporation, Ford Motor Company, Ashok Leyland Ltd., Tata Motors Ltd., Mahindra & Mahindra Ltd., VE Commercial Vehicles Limited, SML Isuzu Limited, etc.
LCV manufacturers are developing advanced technologies and launching new products in order to stay competitive in the market. For instance,