LIGHT COMMERCIAL VEHICLE MARKET ANALYSIS

Light Commercial Vehicle Market Size and Trends

Global light commercial vehicle market is estimated to be valued at US$ 612.53 Billion in 2024 and is expected to reach US$ 972.13 Billion by 2031, exhibiting a compound annual growth rate (CAGR) of 6.8% from 2024 to 2031.

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Global light commercial vehicle market growth is driven by rising demand for last-mile deliveries and increasing preference for rental and shared mobility services. Major fleet operators are increasingly procuring light commercial vehicles to support their delivery and logistic services, owing to growing e-commerce sales. Furthermore, increasing number of small businesses are also relying on light commercial vehicles to transport goods. Factors such as rising urbanization, growing business activities, and expansion of logistics and transportation infrastructure boosts demand for light commercial vehicles over the forecast period.

Urbanization and Last-Mile Delivery Demand

As urbanization continues to accelerate globally, there is a growing demand for efficient last-mile delivery solutions. Light commercial vehicles are pivotal in fulfilling this demand, serving as the backbone for logistics and e-commerce companies to deliver goods directly to consumers. The rise of online shopping and same-day delivery expectations further amplifies the need for nimble and versatile LCVs that can navigate urban environments efficiently. The demand for light commercial vehicles is expected to surge as companies seek to optimize their delivery operations in densely populated areas.

For instance, in April 2021, DHL Express made a significant move towards electrifying its last-mile deliveries in Europe by purchasing 100 E-Ducato electric vans from Fiat

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Governments worldwide are implementing stringent emissions regulations to combat air pollution and reduce greenhouse gas emissions. In response, manufacturers are compelled to develop cleaner and more fuel-efficient vehicles, including light commercial vehicles. This drive towards sustainability is pushing the adoption of electric and alternative fuel-powered LCVs. Businesses are increasingly embracing corporate social responsibility (CSR) initiatives, opting for eco-friendly transportation solutions to align with their sustainability goals. Light commercial vehicle market is experiencing a shift towards greener technologies, driving innovation and investment in electric and hybrid LCVs.

For instance, in November 2022, Ashok Leyland, a prominent commercial vehicle manufacturer under the Hinduja Group, announced its plan to bolster its market share in the electric vehicle sector. Executive chairman Dheeraj Hinduja outlined the company's EV roadmap, BS VI phase-2 readiness, and risk mitigation strategies during discussions with Shine Jacob.