Europe Light Commercial Vehicle (LCV) Market: Report Analysis, Share, Market Size, Revenue, Growth Rate With Forecast Overview 2022-2031

The Europe LCV Market was valued at USD 62 billion in 2022 and is expected to reach USD 81 billion by 2031 registering a CAGR of 4.5% during the forecast period (2022 – 2031).

The COVID-19 pandemic continues to transform the growth of various industries, however, the immediate impact of the outbreak is varied. While a few industries will register a drop in demand, numerous others will continue to remain unscathed and show promising growth opportunities. COVID-19 will have a low impact on the light commercial vehicle market.

However, the European LCV Market is expected to regain its growth during the forecast period as Online retail sales and e-commerce have been rising due to increased penetration of internet connectivity and smartphones. This is expected to result in the increased purchase of LCVs for facilitating the timely delivery of items to buyers.

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An increase in the demand for LCVs in the region is also due to the emergence of new ridesharing platforms. For instance, Daimler entered into a joint venture with the US startup company Via. Via is focused on developing scalable and on-demand ride sharing solutions. Together, the two companies aim to introduce on-demand shared rides in Europe, which is likely to increase the demand for passenger vans in the European region during the forecast period.

Key Market Trends

Rising Demand For Vans In The Region

Road transport is the baron ruling the European Light Commercial Vehicle market and accounts for 46.5% of all transport-related jobs. The light commercial vehicle market comprising of vans and trucks are likely to grow with a CAGR of 6% during the forecast period till 2025.

The demand for vans across Europe has been increasing over the past three years. Vans contribute to 80% of the total light commercial vehicle sales in Europe. They are used for a wide range of commercial activities, such as construction, postal and courier services, ambulance services, policing and rescue operations, mobile workshops, and passenger transportation.

Diesel-powered vans account to 96% of the sales, followed by those powered by gasoline with 2.3% and alternative fuel vehicles with 1.7%. Diesel engine vans are used because of their high torque and efficient load carrying and towing capabilities. Currently, there are over 29 million vans in use in the European region. The average age of a van is rising and has increased to 10.9 years. Europe is also one of the largest exporters of vans. The demand for European vans is mainly driven by the increase in logistics activities.

France And Germany Expected To Witness Significant Growth

France will be the major revenue contributor to the light commercial vehicle market in Europe throughout the forecast period. The increasing purchase of LCVs by corporate buyers and the high utilization of these vehicles to deliver e-commerce goods will drive the growth of this market in the region. As the e-commerce industry continues to grow across Europe, the demand for a more advanced distribution network is increasing. As the market continues to expand, the demand for pick-up vans, small trucks, and other LCVs is also likely to increase, with freight transportation in Europe accounting for 89.1% of the global freight transportation.

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Germany is a major automobile hub in Europe and is home to many famous auto manufacturers like the Volkswagen Group, BMW Group, Daimler Group, etc. The country is also a major producer of LCV in Europe. The German Light Commercial trailer vehicle companies together manufacture more trailers than the demand within the country, hence the country is also a major exporter of trailers.

Competitive Landscape

The Europe LCV market is moderately consolidated, has a limited number of active players, owing to the presence of major commercial vehicle manufacturers in the region. Some of the major players in the market are Ford, Nissan Motor Co., Groupe Renault, Volkswagen AG, among others. Although, the market is also witnessing the entry of new startups. The companies are launching their new electric LCVs model with new features in the market.For instance,

– In 2019, Renault launched hydrogen-electric commercial vehiclesMASTER Z.E. Hydrogen and KANGOO Z.E. Hydrogen. With hydrogen, the company is trying to increase the range of the vehicles from 120 km to up to 350km.

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