Light Commercial Vehicle Market in Europe 2017-2021
About Light Commercial Vehicle
Commercial vehicles can be classified into two categories, namely light commercial vehicles (LCVs) and heavy commercial vehicles (HCVs). HCVs include all the vehicles with a gross weight of more than 3.5 tons, while LCVs include all the vehicles with a gross weight less than or equal to 3.5 tons. LCVs are primarily used to carry goods and for transporting people in short distances. These vehicles play a critical role in the final delivery of time-critical goods, high-value goods, and support services.
Technavio’s analysts forecast the light commercial vehicle market in Europe to grow at a CAGR of 3.57% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the light commercial vehicle market in Europe for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Light Commercial Vehicle Market in Europe 2017-2021
Technavio recognizes the following companies as the key players in the light commercial vehicle market in Europe: Renault, PSA Group, Ford, Volkswagen, and Fiat Chrysler Automobiles (FCA).
Other Prominent Vendors in the market are: Daimler, Toyota, JAC, PACCAR , General Motors, GAZ Group, Hyundai Motor Company, Isuzu Motors, AVTO VAZ, Tata Motors, and Nissan.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is innovative promotional activities done for alternative fuel LCVs. Alternative fuel vehicle manufacturers are increasingly undertaking innovative promotional activities for raising awareness about the reliability of electric and hybrid LCVs. Major drawbacks of electric LCVs are constricted number of charging stations and limited power carrying capacity of electric batteries used within electric vehicles.”
According to the report, one driver in the market is growth in construction industry and ecommerce to drive market demand for LCVs. Rising rates of urbanization are expected to increase the demand for construction of residential, commercial, and recreational centers during the forecast period. This is expected to drive the demand for additional vehicles to complement transportation of workforce and materials for construction within cities. Rising urbanization is causing retail and distribution centers to be shifted within the proximity of urban areas. Online retail sales have been rising due to increased penetration of internet connectivity and smartphones.
Further, the report states that one challenge in the market is increasing production costs. Bronze, polycarbonate, cast iron, stainless steel, and various alloys are used to manufacture components such as drive shafts, gearwheels, and hydraulic cylinders for LCVs. The price of precious metals and materials with high-temperature resistance (which are needed to manufacture these components) is rising in Europe, leading to higher costs of production. For instance, the prices of stainless steel went up by nearly 30% in Europe between June 2016 and April 2017. Therefore, the rising production cost will remain one of the prime concerns for LCV manufacturers.
Renault, PSA Group, Ford, Volkswagen, Fiat Chrysler Automobiles (FCA), Daimler, Toyota, JAC, PACCAR , General Motors, GAZ Group, Hyundai Motor Company, Isuzu Motors, AVTO VAZ, Tata Motors, and Nissan.