Light Commercial Vehicles Market Analysis

Light Commercial Vehicles Market Overview

Light Commercial Vehicles Market Size was valued at USD 116554.4 million in 2023. The Global light commercial vehicles market is projected to register a 4.40% CAGR during the forecast period. One example of the increasing demand for light commercial vehicles is the rising demand generation from both industrial and non-industrial sectors. In 2022, the light commercial vehicles market was dominated by highly potential countries such as USA, China, India, and Japan. The future market growth outlook for light commercial vehicles in these countries seems astonishing owing to their pricing affordability, fuel economy and convenience.

The study papers by MRFR imply that the Light Commercial Vehicles Market Research Report Information by Application, Type, and Region - Global Forecast Till 2032, the Light Commercial Vehicles market is forecast to cultivate considerably over the valuation period from 2024 to 2032 at a substantial CAGR of nearly 4.40%. The study papers even offer predictions about the global market's expanding revenue numbers, which will likely attain a market of USD 794.39 billion by the end of 2032. As per these studies, the market was worth nearly USD 511 billion in 2022. The aggressive investments in infrastructure development & rural development and implementation of vehicle scrappage programs are considered vital parameters enhancing the performance of the global market.

• July 2023- A JV between the Volvo Group and Eicher Motors, VE Commercial Vehicles, logged sales of 6715 units in June 2023 compared to 6,307 units in June 2022, recording a growth of 6.5%. This incorporates 6,527 units of the Eicher brand and 188 units of the Volvo brand. As per the company statement, Eicher branded trucks and buses have documented sales of 6,527 units in June 2023 compared to 6,185 units in June 2022, representing a growth of 5.5%.

Figure 1: Light Commercial Vehicles Market Size 2019-2032 (Usd Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Light Commercial Vehicles Market Trends

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  Growing Demand from Logistics & Supply Chain Industries

  
  

The logistics & supply chain companies are facing unprecedented change as digitization takes hold and customer expectations evolve. Emerging advanced technologies are enabling greater efficiency and more collaborative operating models. Thus, it is anticipated to be a driving factor for the light commercial vehicles market. The logistics & supply chain industry across various countries is highly competitive. The rapid increase in e-commerce sales is driving changes in the logistics industry. As per the US Department of Commerce, in 2020, total US e-commerce sales reached USD 787.9 billion, a 32.3% year-over-year increase from 2019's USD 595.7 billion. The growth in e-commerce has resulted in a higher volume of low-value shipments. In response, retailers are increasingly decentralizing their distribution centers and establishing "last-mile" fulfillment centers to keep inventory closer to consumers. This factor, in turn, is increasing the demand for light commercial vehicles for transporting the inventory to the closer distribution centers.

Strategic Investment by Major Manufacturers

The sales of light commercial vehicles are likely to be propelled by customer preferences, business models, product technology, and regulatory framework development. Major players operating in the light commercial vehicles market use advanced technology to manufacture products such as trucks, vans, buses, and others, which can be further used to tackle supply chain-related challenges. The automotive industry has become one of the most important worldwide, not only at the economic level but also in R&D. Also, more technological elements are being introduced to improve passengers' and goods' safety. 

The market is also affected by small and medium-scale regional manufacturers who offer innovative light commercial vehicles at considerably low prices. These local players position themselves as regional experts in the particular product segment and excel in state and national sales. Furthermore, the successful track record of developing light commercial vehicles by major companies such as Ford Motor Company, General Motors, Daimler AG, Volkswagen Group, Groupe PSA, Groupe Renault, Volvo Group, Hyundai Motor Company, Mitsubishi Motors Corporation, and Nissan Motor Company Ltd is driving the growth of light commercial vehicles market across the target regions.

Light Commercial Vehicles Market- Segment Insights

FIGURE 2: Light Commercial Vehicles Market, By Vehicle Type, 2022 Vs 2032 (Usd Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

The segment- vans hold the largest share, that is 56.9% of the total market share while, trucks hold the second largest share which is 38.8% of the total share.

Commercial trucks are vehicles used by businesses to move products. When loaded, a commercial truck can weigh up to 60tonnes. Big rigs, 18-wheelers, dump vehicles, logging vehicles, freight vehicles, and many other models are examples of commercial vehicles. Commercial trucks and their drivers are subject to unique legislation and restrictions. These are categorized according to the vehicle's Gross Vehicle Weight Rating (GVWR). The GVWR is a safety requirement created to ensure a vehicle's safe operating weight. This weight rating considers the vehicle's net weight and that of the drivers, passengers, fuel, and cargo. The GVWR of a vehicle is calculated by the manufacturer considering parts like the axles, frame, suspension, tires, and more.

Light commercial (Vans) are motor vehicles with at least four wheels used to carriage goods. Mass given in tons (metric tons) is a limit between light commercial and heavy vehicles. This limit depends on national and professional definitions and varies between 3.5 and 7 tons. According to the OICA (Organization Internationale des Constructeurs d'Automobiles), a light commercial vehicle is any vehicle weighing between 3.5 and 7 tonnes. People, products, and services are transported using light commercial vehicles. The light commercial vehicle comprises numerous tiny systems, including steering, chassis, interior and exterior, and many more. The manufacture of light commercial vehicles has increased in the Asia-Oceania region due to the enormous improvements in trade and transportation. The market for more modern light commercial vehicles is anticipated to grow in the coming years due to the region's growing demand for such vehicles.

A commercial bus is used to transport people for a fee or as part of a business. A commercial bus (contracted from omnibus, with variants multi-bus, motor bus, autobus, and so on) is a road vehicle designed to transport many passengers. Buses can carry up to 100 passengers. The most common type is the single-deck commercial bus, with double-decker and articulated buses carrying larger loads and midi buses and minibuses carrying smaller loads. At the same time, coaches are used for longer-distance services. Many buses, including city transit buses and intercity coaches, charge fares. Other types, such as elementary or secondary school buses or shuttle buses within a post-secondary education campus, do not charge a fare. In many jurisdictions, bus drivers must hold a special license in addition to their regular driver's license. Buses can be used for scheduled bus transport schedules.

Light Commercial Vehicles Market- Fuel Type Insights:

The Light Commercial Vehicles Market, in this report, has been segmented on the basis of Fuel Type into diesel, petrol, and electric.

The Light Commercial Vehicles Market, in this report, has been segmented based on fuel type into diesel, gasoline, and electric.

Diesel segment hold the largest share, 67.6 % of the total share while gasoline hold the 22.9% of the total share.

Most of the products consumed in the world are transported by bus and vehicles with diesel engines. As a transportation fuel, diesel offers better performance, efficiency, and safety features than gasoline. Diesel vehicles can tow and haul more while burning less fuel. Diesel fuel also has a greater energy density than other liquid fuels; hence, it provides more useful energy per unit of volume. As per the US Department of Energy, diesel engines are 30 to 35% more efficient than gasoline engines. They are also sturdier than gasoline engines, with a longer life expectancy.

Gasoline vehicles are rare as, generally, vehicles need torque to pull heavy loads, which is where the gasoline fuel lacks. If Gasoline vehicles are compared with diesel vehicles, the gasoline engine must be turbocharged and supercharged to bump up the output and maintain efficiency. Gasoline vehicles are often more affordable, and fuel costs are lower than diesel. Additionally, gasoline engines' overall maintenance costs are lower than diesel engines. According to the Energy Information Administration (EIA) report, gasoline is the US's most widely used transportation fuel.

A fuel processor, a fuel cell stack, an air management system, and a variety of BoP components distributed throughout the power plant comprise a complete fuel cell electric engine. The utilization of hydrogen is an important aspect of reactant flow and energy integration within the power plant. Because portions of the fuel anodes would "starve" electrochemically without flow to purge the carbon dioxide (and nitrogen if the fuel processor includes partial oxidation) from the stack, a certain amount of unreacted hydrogen must be allowed to pass through the anode compartments of the stack as part of the tail gas

Light Commercial Vehicles Market- Ownership Insights:

The light commercial vehicles market in this report has been segmented on the basis of ownership into, leased, and owned.

The segment- owned hold 66.2% of the total share while leased hold 33.8% of the total share.

A commercial vehicle lease is defined as the bailment or lease of a single vehicle by a person for more than four months for a total contractual obligation of no more than $25,000, primarily for business or commercial purposes, regardless of whether the lessee has the option to purchase or otherwise become the owner of the vehicle at the lease's termination or expiration. If the payment is not nominal, the term includes a bailment or lease in which the lessee becomes or may become the owner of the vehicle by paying the lessor an amount that is substantially equal to the residual value or the unamortized capitalized cost. The term excludes a bailment or leases that the lessee agrees to pay as compensation.

Owned transportation (as opposed to public transportation) is the personal or individual use of transportation that is not available to the general public, in which the user can choose the time and route of transit freely choice rider' vs. 'captive rider, using vehicles such as private car, company car, bicycle, self-balancing scooter, motorcycle, scooter, aircraft, boat, snowmobile, carriage, horse, etc., or recreational equipment.

Light Commercial Vehicles Market- Regional Insights:

Based on Region, the global light commercial vehicles is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Light Commercial Vehicles Market Size By Region 2022 Vs 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Light Commercial Vehicles Market- Key Market Players and Competitive Insights:

The light commercial vehicles market is characterized by the presence of many regional and local vendors. The global market is highly competitive, with all the players competing to gain a larger market share. The vendors compete based on cost, product quality, reliability, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.

Ford Motor Company, General Motors, Daimler AG, Volkswagen AG, Renault Trucks, Volvo Group, Mitsubishi motor Corporation, PACCAR Inc. are the major players in the market, competing in terms of a variety of applications for the light commercial vehicles market and their components, as well as efficiency, reliability, affordability, and advanced technology. The primary focus of the players is to provide advanced products to aid in increasing adoption, which could help strengthen a country's growth with advanced products. Although global players dominate the market, a few regional and other local players with a limited market share also have a prominent presence in this market.

The major players would look to strengthen their regional presence through mergers & acquisitions of local and global players; they are expected to expand their presence and solutions in these countries during the forecast period. Therefore, vendors must develop new technologies to stay at par with emerging technology trends that could affect the competitiveness of their product lines in the market.

Light Commercial Vehicles Market- Key Companies Include

• Ford Motor Company


• General Motors


• Daimler AG


• Volkswagen AG


• Renault Trucks


• Volvo Group


• Mitsubishi motor Corporation


• PACCAR Inc.


• Hyundai Motor Company


• Nissan Motor Company Ltd.

Light Commercial Vehicles Market- Industry developments:

March 2022: Ford Motor Company Collaborated with Volkswagen. The agreement was signed as part of the strategic alliance between Volkswagen and Ford, which includes e-mobility, commercial vehicles and autonomous driving. Designed as an open vehicle platform, the MEB (Modular Electric Toolkit) allows car manufacturers to electrify their portfolio quickly and cost-effectively.

August 2022: Hyundai Motor Group collaborated with DAN Europe. Hyundai Motor Europe has provided DAN Europe ambassadors Manuel Bustelo and Alana Alvarez with a KONA Electric to travel through the UK and Ireland. DAN Europe is an international non-profit medical and research organisation dedicated to the health and safety of divers.

May 2022: Mitsubishi motors corporation launched new eK X EV, an all-electric kei-car1, will go on sale at sales affiliates nationwide and on Rakuten Ichiba2, an e-commerce marketplace, in Japan this summer. The all-new eK X EV is priced from 2,398,000 to 2,932,600 yen (10 percent consumption tax included).

Light Commercial Vehicles Market- Segmentation

Light Commercial Vehicles Market- Vehicle Type Outlook

• Trucks


• Vans


• Buses

Light Commercial Vehicles Market- Fuel Type Outlook

• Diesel


• Gasoline


• Electric

Light Commercial Vehicles Market- Ownership Outlook

• Leased


• Owned

Light Commercial Vehicles Market- Regional Outlook

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  North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


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  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Middle East & Africa
  
  
  
  • UAE
  
  
  • Saudi Arabia
  
  
  • South Africa
  
  
  • Rest of MEA
  
  
  
  


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  South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America