The global light commercial vehicle market consists of a wide range of small to medium-sized cargo vans, pickup trucks, and light trucks designed for the transportation of goods or groups of people. Light commercial vehicles are ideal for last-mile deliveries, service industry transportation needs, and private small-scale carrier applications due to their compact size, affordability, and maneuverability. They provide small businesses and contractors a cost-effective and highly versatile transportation solution.
The global light commercial vehicle market size is estimated to be valued at US$ 730.35 Bn in 2024 and is expected to exhibit a CAGR of 19% over the forecast period of 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the light commercial vehicle market is the growing demand for electric light commercial vehicles due to stringent emission regulations around the world. Many countries have implemented regulations and targets to lower emissions from combustion engine vehicles to reduce air pollution and carbon emissions. This is driving automakers to increasingly focus on developing electric light commercial vehicles and electric vans for last-mile deliveries. Several startups such as Tesla, Sono Motors, Lightyear, and Aptera Motors have entered the market with innovative electric cargo vans and trucks designed for urban environments. Established automakers are also introducing their electric light commercial vehicle models. Rapid expansion of the e-commerce industry and online grocery delivery services is another major trend fueling demand for affordable and environment-friendly electric commercial vehicles suited for last-mile logistics.
Threat of new entrants: Low barriers to entry enable new players to enter the market easily. However, established brands have strong brand recognition and scale advantages.
Bargaining power of buyers: Buyers have high bargaining power due to availability of multiple existing alternatives. However, unique product offerings by some electric commercial vehicle manufacturers enhance customer lock-in.
Bargaining power of suppliers: Suppliers of critical components like batteries have considerable bargaining power due to increasing global demand and limited suppliers. However, vertical integration strategies by OEMs are reducing suppliers’ power.
Threat of new substitutes: Increased investments in alternative fuel technologies like hydrogen fuel cells pose a threat. However, limitations in terms of infrastructure and high costs work in favor of electric commercial vehicles.
Competitive rivalry: Intense competition among existing players to gain market share through new product launches and partnerships. Collaboration is also increasing to develop required infrastructure.
The global light commercial vehicle market is expected to witness high growth. Global Light Commercial Vehicle Market Size is projected to reach US$ 730.35 Bn by 2024 from US$ 257.12 Bn in 2021, growing at a CAGR of 19% during the forecast period.
Regional analysis: North America dominates currently due to supportive government policies and investments in electric vehicle infrastructure by local authorities. However, Asia Pacific is expected to emerge as the fastest growing market led by China due to the country’s push for new energy vehicles. Europe is also anticipated to witness significant growth in electric commercial vehicle adoption owing to stringent emission norms.
Key players: Key players operating in the light commercial vehicle market are Tesla, Sono Motors, Lightyear, Aptera Motors, Squad Mobility, EVX Pty Ltd, ElectraMeccanica Vehicles Corp., Hyundai Motor Group, Toyota Motor Corporation, Audi, Ford, Volkswagen, Mahindra & Mahindra, Nissan, General Motors, BYD, Renault, Honda, Tata Motors, BMW. Tesla is a prominent player with its electric commercial vehicles gaining significant traction. Meanwhile, Asian automakers are also investing heavily in developing affordable electric commercial vehicles.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it