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The Europe Light Commercial Vehicle Market size is estimated to grow by USD 23.6 billion at a CAGR of 6.8% between 2023 and 2028. Pickup trucks have experienced a surge in utility, making them a popular choice for both personal and commercial use. This trend is driven by their versatility, offering ample cargo space, towing capacity, and the ability to traverse rough terrain. Moreover, the rising penetration of downsized engines in light commercial vehicles is a significant factor in driving vehicle prices down, making these vehicles more accessible to a wider audience. Additionally, advanced driver assistance features, such as adaptive cruise control, lane departure warnings, and automatic emergency braking, are increasingly being integrated into light commercial vehicles, enhancing safety and convenience. These innovations are transforming the light commercial vehicle market, making it an exciting space to watch.
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The market is expanding rapidly with the rise of e-commerce and increasing demand for efficient logistics and parcel and courier services. Innovations in autonomous driving technologies are transforming the sector, impacting light commercial trucks and utility vehicles. Companies like Switch Mobility are leading with models such as IeV3 and IeV4, catering to diverse needs from food trucks to refrigerated LCVs. The market encompasses a range of vehicles including light duty trucks, electric trucks, small trucks, and hybrid LCVs, driven by stringent emission norms and the shift from internal combustion engines to electric and hybrid alternatives. LCVs play crucial roles in construction, maintenance, rubbish collection, and street sweeping, supporting industrial activities with efficiency and sustainability. Third party logistics service play a pivotal role in managing logistics business, ensuring efficient e commerce delivery despite challenges such as excess emission premium for vehicles with internal combustion engine. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased utility of pickup trucks is notably driving the market growth. Pickup trucks are becoming more popular than sedans and hatchbacks due to their higher value proposition. The increased trunk capacity and towing capability of pickup trucks make them suitable for both commercial and non-commercial purposes, which has resulted in a growing demand for them in Europe. To capitalize on this trend, vehicle makers are implementing various refinements to increase their fuel efficiency. Additionally, pickup trucks are now being equipped with plush interiors to provide a premium feel to passengers. This has also contributed to the growing preference for pickup trucks by families looking for a comfortable or daily commute family car in Europe.
For example, the Honda Ridgeline, a highly popular compact pickup, offers seven trim levels with distinct interiors lined with soft-touch materials in Europe. This makes it an ideal family car instead of a rugged-looking work vehicle and also results in the Europe - light commercial vehicle (LCV) market expansion. Such factors are expected to drive the growth of the light commercial vehicle market in Europe during the forecast period
Integration of telematics systems in light commercial vehicles is an emerging trend shaping the market growth. Telematics is a field that combines telecommunication, electrical engineering, road transportation, and vehicular technologies. The integration of telematics offers numerous benefits to various stakeholders, such as vehicle owners, fleet operators, and insurance providers. Telematics systems are increasingly being installed in light commercial vehicles to improve their efficiency by monitoring their location and movement. The use of the Global Positioning System (GPS) and integrated global system for mobile communication (GSM) as part of telematics in light commercial vehicles provides accurate and real-time information regarding their location and movements.
Moreover, to cater to the growing demand, third-party telematics companies have started offering telematics packages customized for light commercial vehicles, such as the WEBFLEET package for light commercial vehicles developed by TomTom Telematics. This package helps fleet managers maintain an online track record of tours done by the vehicle, miles travelled, fuel consumed, and maintenance cycles. All of these factors contribute to the growth of the light commercial vehicle market in Europe during the forecast period.
The high manufacturing cost of light commercial vehicles is a significant challenge hindering market growth. Manufacturing light commercial vehicles is a capital-intensive process owing to the need for high-precision components such as braking systems, axles, suspension systems, and hauling and steering cylinders. Additionally, the prices of raw materials such as stainless steel, hardened steel, cast iron, and other metal alloys fluctuate constantly. The adoption of newer technologies would also increase manufacturing costs. Furthermore, light commercial vehicles require continuous maintenance and repairs, which in turn increases the total cost of ownership.
Similarly, regulations on fuel emissions and the efficiency of light commercial vehicles are pushing OEMs to install advanced technologies, further increasing the manufacturing cost. Such increased costs are passed on to customers, which slows down the sales of new light commercial vehicles and also restricts the Europe - light commercial vehicle (LCV) market growth. These factors pose a challenge to the growth of light commercial vehicles and negatively impact the market's growth during the forecast period
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Key Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ford Motor Co. - The company offers light commercial vehicles such as Maverick, Ranger, and F 150.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
By Type
The conventional fuel vehicles segment is estimated to witness significant growth during the forecast period. The majority of the Europe - light commercial vehicle (LCV) market was penetrated by diesel and gasoline engines. Increased preference for gasoline and diesel pickup trucks in the region is driving the conventional fuel segment of the Europe - LCV market.
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The conventional fuel vehicles segment was the largest segment and was valued at USD 43 billion in 2018. Rising demand for commercial vans is another factor driving the conventional fuel vehicles segment of the Europe - LCV market. The adoption of light commercial vehicles in Europe is positively correlated to the growth of small businesses. Currently, due to the growth in GDP and a strong domestic manufacturing market, small businesses in China are experiencing a significant boom. It is expected that the rising adoption of light commercial vehicles in Europe will drive the Europe - light commercial vehicle market growth. This is due to better access to financing and growth in the small business sector, which includes hospitality, retail, e-commerce, and other industries, that have increased the sales of Europe - LCV market in countries such as France, the UK, and Germany. Such factors will fuel the conventional fuel vehicles segment in the light commercial vehicle market in Europe during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Light Commercial Vehicle Market by Type and Geography - Forecast and Geography
Commercial Vehicle Steering System Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, China, Mexico, Canada, Japan - Size and Forecast
Commercial Vehicle Market Growth, Size, Trends, Analysis Report by Type, Application, Region and Segment Forecast
The market is experiencing significant transformation fueled by e-commerce growth and demand for efficient last mile delivery solutions. Innovations like IeV3 and IeV4 models from manufacturers are driving the adoption of electric vehicles and battery electric vehicles, aligning with stringent CO2 emission targets and emission laws. Businesses in logistics and freight transporters benefit from third-party logistics services and incentives such as tax credits and GST benefits for electric and hybrid LCVs. The market also sees advancements in driverless driving technology and connected vehicle technology, enhancing operations in construction, maintenance, and mobile repairs. With a focus on reducing carbon footprint and excess emission premiums, the LCV sector continues to evolve, relying on a skilled workforce to support electrification and hybrid powertrains
E commerce growth has spurred increased demand for logistics services, necessitating a diverse fleet of motor vehicle including heavy trucks, light trucks, and specialized LCVs like electric LCVs, gasoline powered LCVs, and diesel powered LCVs. These vehicles are essential for handling various tasks such as construction and maintenance jobs efficiently across industrial sectors. Third party logistics services play a crucial role in managing logistics operations, supported by financing options such as loans to facilitate fleet expansion and operational efficiency. Compliance with emission regulations is paramount, with industries facing challenges such as excess emission premiums for vehicles powered by internal combustion engines..
Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.8% |
Market growth 2024-2028 |
USD 23.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.27 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ford Motor Co., GAZ International LLC, General Motors Co., Hyundai Motor Co., Isuzu Motors Ltd., Iveco Group N.V, Mercedes Benz Group AG, Mitsubishi Motors Corp., PACCAR Inc., Renault SAS, Robert Bosch GmbH, Stellantis NV, Suzuki Motor Corp., Tesla Inc., Toyota Motor Corp., Volkswagen AG, and Volvo Car Corp. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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