NEW YORK, April 25, 2024 /PRNewswire/ — The global light commercial vehicle market size is estimated to grow by 1.43 million units from 2022 to 2026, according to Technavio. The market is estimated to grow at a CAGR of over 1.5% during the forecast period.
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Key Trends Fueling Growth:
- Electric LCVs for facilitating last-mile connectivity:
- Automotive makers are increasingly researching raising the reliability of electric vehicles.
- The lack of proper charging stations and limited power capacity batteries are the main drawbacks of electric vehicles.
- Vehicle manufacturers are undertaking various experimental operations involving the usage of electric vehicles to troubleshoot the various issues faced by the vehicle in a real-world scenario. However, unlike passenger cars, LCVs require more power to be effective in hauling passengers or cargo.
- Vehicle manufacturers have begun using electric LCVs in real-world scenarios to test their ability and endurance of electric LCVs. This, in turn, will fuel the market growth during the forecast period.
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Major Challenge
- Implementation of fuel-efficiency standards resulting in increased prices of LCVs:
- Implementation of fuel efficiency standards for LCVs will increase the prices of vehicles by about $4,500 per vehicle. Vehicle manufacturers will equip the vehicle’s engine with numerous pieces of equipment to reduce the consumption of fuel.
- The US is planning to upgrade fuel-efficiency standards for the fleet of LCVs owned by LCV manufacturers, which is expected to increase the cost of LCVs considerably and lead to a decline in sales of LCVs during the forecast period.
- Increased electrification of automotive components will cause a significant increase in the prices of vehicles. Hence, an increase in the cost of LCVs will further lead to a decline in sales of LCVs during the forecast period.
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Analyst Review
The Light Commercial Vehicle (LCV) market is experiencing significant growth, particularly in the context of rapid urbanization and the increasing demand for efficient logistics in various sectors, including e-commerce. Technological improvements in fuel consumption technology are playing a crucial role in reducing the carbon emissions and greenhouse gas footprint of LCVs.
The adoption of e-mobility solutions, such as electric rickshaws, is also gaining momentum. Moreover, advancements in Automotive Driver-Assistance Systems (ADAS) are enhancing safety features in LCVs, making them more attractive to large-scale manufacturers and consumers. The LCV segment includes a wide range of vehicles, from light commercial vehicles to buses, trucks, crossovers, and SUVs.
Steering and chassis systems are being optimized for improved fuel efficiency and reduced emissions in gasoline and diesel-powered LCVs. The Organisation Internationale des Constructeurs d’Automobiles (OICA) reports continued growth in the global LCV market, with manufacturers focusing on innovation and sustainability to meet evolving vehicle emission regulations.
Market Overview
The Light Commercial Vehicle (LCV) market encompasses a wide range of vehicles used for business purposes, including trucks, vans, and buses. Tonnage segments in the LCV market vary, with some focusing on smaller vehicles under 3.5 tons and others catering to heavier vehicles up to 18 tons. Electric vehicles are gaining traction in the LCV sector, driven by the need for reduced emissions and increasing government incentives.
Carbon emissions are a significant concern, and the LCV market is responding with the development of more fuel-efficient and eco-friendly vehicles. The market is also witnessing the integration of advanced technologies such as telematics, autonomous driving, and connectivity to enhance vehicle performance and safety. The LCV market is a dynamic and evolving industry, with manufacturers constantly innovating to meet the changing needs of businesses and consumers alike.
Key Topics Covered:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
7 Customer Landscape
- Type
- Conventional Fuel Vehicles
- Alternative Fuel Vehicles
- Geography
- North America
- APAC
- Europe
- South America
- Middle East And Africa
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Venodr Landscape
11 Vendor Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
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Website: www.technavio.com/
SOURCE Technavio
