2018 - 2026
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The Europe LCV Market was valued at USD 62 billion in 2020 and 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. 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.
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.
Moreover,New commercial vehicle registrations in the European Union increased by 1.2% with the exception of buses and coaches, all vehicle segments made a positive contribution to growth of the market. Demand was largely driven by the Central European countries given that registrations in all key Western European markets − except for Italy showing active signs of growth in region.
Cities are restricting diesel vehicles access through the implementation of ultra-low emissions zones, and in addition to that 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 Europe LCV Market report covers the latest trends, covid-19 impact followed by technological developments in the market. The scope of the report covers segmentation based on Vehicle Type, Drive Type, Country.
By Vehicle Type, the market is segmented into Pick-up trucks and Van. 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 and By Country, the market is segmented into Germany, 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 (USD billion).
|By Vehicle Type|
|By Drive Type|
|By End User|
|Rest of Europe|
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.
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. For instance,In 2019, Peugeot has 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 second half of 2020, with the choice of a 50 or 75kWh battery.
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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.
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.
Post-Pandemic, The EU commercial vehicle market declined by 3.3%, registered in total. Among the four key EU markets, Spain recorded the steepest decline followed by Germany . In France, sales volumes were more or less similar to last year , while Italy was the only major market to post an increase .However,market is expected to grow during forecast period as major players are contributing towards innovation strategies and product launches in market.
The impact of Novel Coronavirus can be seen across Germany,France as well, but not as severe as in Italy or Spain. With the trend in electrification of vehicles going-on, the German LCV manufacturers are expected to be at the forefront in introducing light trailers for electric vehicles as well, which is expected to drive the market over the forecast period.
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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.
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.
- In May 2020, the French government has announced that they are providing USD 8.8 billion packages to support the French automotive industry from the coronavirus crisis, which includes increased incentives for new Electric LCVs to 7,000 euros from 6,000 euros previously.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Driver
4.2 Market Restraint
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Pick-up Truck
5.2 By Drive Type
5.2.1 IC Engine
5.3 By End User
5.3.1 Commercial Fleet
5.3.2 Government Fleet
5.4 By Country
5.4.2 United Kingdom
5.4.6 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Volkswagen AG
6.2.2 Daimler AG
6.2.3 Groupe PSA
6.2.4 Ford Motor Company
6.2.5 Fiat Chrysler Automobiles NV
6.2.6 General Motors Company
6.2.7 Toyota Motor Corporation
6.2.8 Mitsubishi Motors Corporation
6.2.9 Hyundai Motor Company
6.2.10 Nissan Motor Company Ltd
6.2.11 Groupe Renault
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Europe LCV Market market is studied from 2018 - 2026.
What is the growth rate of Europe LCV Market?
The Europe LCV Market is growing at a CAGR of >4.5% over the next 5 years.
What is Europe LCV Market size in 2018?
The Europe LCV Market is valued at 62 Billion USD in 2018.
What is Europe LCV Market size in 2026?
The Europe LCV Market is valued at 81 Billion USD in 2026.
Who are the key players in Europe LCV Market?
- Groupe PSA
- Daimler AG
- Groupe Renault
Are the major companies operating in Europe LCV Market.