Global Light Commercial Vehicle Market 2017-2021
About Light Commercial Vehicle
Light commercial vehicle (LCV) is a commercial carrier of people and goods, which approximately comes under 8-ton category. Commercial vehicle manufacturers focus on launching newer models that are compliant with the latest emissions regulations to maintain good business profits. Rising air pollution levels are causing governing bodies to upgrade vehicular emissions regulations for commercial vehicles on intervals less than a year. Vehicle manufacturers are constricting the production of newer commercial vehicle models to allow the produced stock of commercial vehicles to be sold off before the implementation of upgraded emission norms. LCVs include light pickup trucks used for distribution and transportation of goods, especially in stop-and-go traffic, and for light construction and municipal applications.
Technavio’s analysts forecast the global light commercial vehicle market to grow at a CAGR of 0.96% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global light commercial vehicle market for 2017-2021. To calculate the market size, the report considers the production volume.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Light Commercial Vehicle Market 2017-2021
Technavio recognizes the following companies as the key players in the global light commercial vehicle market: Ford Motor Company, Groupe PSA, and Renault
Other Prominent Vendors in the market are: Anhui Jianghuai Automobile, Ashok Leyland, AVTOVAZ, Toyota Motor Corporation, GAZ Group, General Motors, Honda Motor Company, Hyundai Motor Company, ISUZU MOTORS, Mitsubishi Motors, Opel, PACCAR, and Tata Motors.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Electric LCVs used for facilitating last-mile connectivity. Automotive makers are increasingly researching on raising the reliability of electric vehicles. 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 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 reliability and endurance of electric LCVs.”
According to the report, one of the major drivers for this market is Rising penetration of downsized engines in LCVs to drive vehicle price. Vehicle manufacturers are increasingly developing downsized engine blocks for decreasing curb weight, improving fuel efficiency, and limiting the formation of emissions. Downsized engines are made to produce the same amount of power as that of higher-powered models. Most vehicle manufacturers equip turbochargers within diesel and gasoline engines to facilitate more air to be taken in for combustion. More air into the combustion chamber allows more fuel to burn and produce a much higher output, matching that of the higher-power variant.
Further, the report states that one of the major factors hindering the growth of this market is Implementation of fuel-efficiency standards will result 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 equipment to reduce the consumption of fuel. The global LCV market will have an increase of about $8 billion if fuel-efficiency standards are increased by 1 mpg. The US is planning to upgrade fuel-efficiency standards for the fleet of LCVs owned by LCV manufacturers during the forecast period. This is expected to increase the cost of LCVs considerably and lead to a decline in sales of LCVs by 2021.
Ford Motor Company, Groupe PSA, and Renault, Anhui Jianghuai Automobile, Ashok Leyland, AVTOVAZ, Toyota Motor Corporation, GAZ Group, General Motors, Honda Motor Company, Hyundai Motor Company, ISUZU MOTORS, Mitsubishi Motors, Opel, PACCAR, and Tata Motors.