Europe Light Commercial Vehicle (LCV) Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)

The Europe Light Commercial Vehicle (LCV) Market has been Segmented by Vehicle Type (Pick-up Truck and Van), Drive Type (IC Engine and Electric), End User (Commercial Fleet and Government Fleet), and Country (Germany, the United Kingdom, Italy, France, Spain, and the Rest of Europe). The Report Offers Market Size and Forecast for the European LCV Market in Value (in USD billion) for the Above-mentioned Segments.

Market Snapshot

Europe LCV Market Bar Graph
Study Period: 2018 - 2026
Base Year: 2020
CAGR: >4.5 %

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Market Overview

The Europe LCV market was valued at USD 62 billion in 2020, and it is expected to reach USD 81 billion by 2026, registering a CAGR of 4.5% during the forecast period (2021-2026).

The COVID-19 pandemic continues to transform the growth of various industries. However, the immediate impact of the outbreak is varied. A few industries will register a drop in demand, while numerous others will 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. Online retail sales and e-commerce have been rising due to the increased penetration of internet connectivity and smartphones, which is expected to result in the increased purchase of LCVs for facilitating the timely delivery of items to buyers.

An increase in the demand for LCVs in the region is due to the emergence of new ridesharing platforms. For instance, Daimler entered a joint venture with the US start-up company, Via. Via is focused on developing scalable and on-demand ridesharing 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 Europe during the forecast period.

Moreover, new commercial vehicle registrations in the European Union increased by 1.2%, except for buses and coaches. All vehicle segments made a positive contribution to the growth of the market. The demand was largely driven by the Central European countries, as the registrations in all key Western European markets, except for Italy, show active signs of growth in the region.

Cities are restricting diesel vehicles access with the implementation of ultra-low emissions zones. Moreover, government grants, lower running and servicing costs, and access to ultra-low emissions zones can make electric commercial vehicles an attractive choice for business in the future.

Scope of the Report

Light commercial vehicles are used for the transportation of people, goods, and services across various regions. The European LCV market report covers the latest trends, COVID-19 impact, and technological developments in the market. The scope of the report covers segmentation based on vehicle type, drive type, and country.

By vehicle type, the market is segmented into pick-up trucks and vans. By drive type, the market is segmented into IC engine and electric. By end-user type, the market is segmented into commercial fleet and government fleet. By country, the market is segmented into Germany, the United Kingdom, Italy, France, Spain, and the Rest of Europe. For each segment, market sizing and forecast have been done on basis of a value (in USD billion).

By Vehicle Type
Pick-up Truck
Van
By Drive Type
IC Engine
Electric
By End User
Commercial Fleet
Government Fleet
By Country
Germany
United Kingdom
Italy
France
Spain
Rest of Europe

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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 vans and trucks, is likely to register 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 for 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 Europe. The average age of a van is rising, and it 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.

Europe is gaining traction in the market with the help of electric vans. Major players in the market are launching new electric vans for this region. In 2019, Peugeot announced the addition of a fully electric van called the e-Expert in its electric vehicles portfolio. This electric van will hit the European market by the second half of 2020, with the choice of a 50 or 75kWh battery.

Europe LCV Market Key Trends

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 is growing 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.

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

After the pandemic, the EU commercial vehicle market declined by 3.3%. Among the four key EU markets, Spain recorded the steepest decline, followed by Germany. In France, sales volumes were more or less similar to the last year, while Italy was the only major market to post an increase. However, the market is expected to grow during the forecast period, as major players are contributing to innovation strategies and product launches in the market.

The impact of Novel Coronavirus was seen across Germany and France, but it was not as severe as in Italy or Spain. With the trend in the electrification of vehicles, the German LCV manufacturers are expected to be at the forefront in introducing light trailers for electric vehicles, which is expected to drive the market over the forecast period.

Europe LCV Market Growth Rate By Region

Competitive Landscape

The European LCV market is moderately consolidated, with 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, and Volkswagen AG. Although the market is witnessing the entry of new start-ups, the companies are launching their new electric LCV models with new features in the market.

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

The other prominent vendors in the market are Daimler, Toyota, JAC, PACCAR, General Motors, GAZ Group, Hyundai Motor Company, Isuzu Motors, AVTO VAZ, Tata Motors, and Nissan.

Recent Developments

  • In May 2020, the French government announced that it is providing USD 8.8 billion packages to support the French automotive industry from the coronavirus crisis, including increased incentives for new electric LCVs to EUR 7,000, from EUR 6,000 previously.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Driver

    2. 4.2 Market Restraint

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Vehicle Type

      1. 5.1.1 Pick-up Truck

      2. 5.1.2 Van

    2. 5.2 By Drive Type

      1. 5.2.1 IC Engine

      2. 5.2.2 Electric

    3. 5.3 By End User

      1. 5.3.1 Commercial Fleet

      2. 5.3.2 Government Fleet

    4. 5.4 By Country

      1. 5.4.1 Germany

      2. 5.4.2 United Kingdom

      3. 5.4.3 Italy

      4. 5.4.4 France

      5. 5.4.5 Spain

      6. 5.4.6 Rest of Europe

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Volkswagen AG

      2. 6.2.2 Daimler AG

      3. 6.2.3 Groupe PSA

      4. 6.2.4 Ford Motor Company

      5. 6.2.5 Fiat Chrysler Automobiles NV

      6. 6.2.6 General Motors Company

      7. 6.2.7 Toyota Motor Corporation

      8. 6.2.8 Mitsubishi Motors Corporation

      9. 6.2.9 Hyundai Motor Company

      10. 6.2.10 Nissan Motor Company Ltd

      11. 6.2.11 Groupe Renault

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
Disclaimer

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Frequently Asked Questions

The Europe LCV Market market is studied from 2018 - 2026.

The Europe LCV Market is growing at a CAGR of >4.5% over the next 5 years.

The Europe LCV Market is valued at 62 Billion USD in 2018.

The Europe LCV Market is valued at 81 Billion USD in 2026.

Ford, Groupe PSA, Volkswagen, Daimler AG, Groupe Renault are the major companies operating in Europe LCV Market.

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