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The Europe - Light Commercial Vehicle (LCV) Market size is estimated to grow at a CAGR of 6.86% between 2022 and 2027. The market size is forecast to increase by USD 22.43 billion. The growth of the market depends on several factors such as increased utility of pickup trucks, rising penetration of downsized engines in light commercial vehicles to drive vehicle price and increasing penetration of advanced driver assistance features in light commercial vehicles.
This Europe light commercial vehicle market report extensively covers market segmentation by type (conventional fuel vehicles and alternative fuel vehicles), and vehicle type (light commercial pick-up trucks and light commercial vans) It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 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.
Europe Light Commercial Vehicle 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.
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 40.96 billion in 2017. 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 Europe light commercial vehicle market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Europe Light Commercial Vehicle Market Scope |
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Report Coverage |
Details |
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Page number |
148 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.86% |
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Market growth 2023-2027 |
USD 22.43 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.22 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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, Tesla Inc., Toyota Motor Corp., Volkswagen AG, Volvo Car Corp., and Suzuki Motor Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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