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

The Light Commercial Vehicle (LCV) Market is segmented by vehicle type (Passenger Van, Cargo Van, Pickup Truck, and Others), by tonnage capacity type (Less than 2.5 tons, 2.5 to 3.5 tons, and More than 3.5 tons), by Fuel Type (Gasoline, Diesel and Alternative Fuels), and Geography

Market Snapshot

Light Commercial Vehicle (LCV) Market_Overview
Study Period: 2018 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >3 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The Light Commercial Vehicle (LCV) Market is poised to register a CAGR of over 3.0% over the forecast period (2020-2025).

  • Light commercial vehicles are largely used for carrying goods for shorter distances. The demand for LCVs is likely to increase as the logistics and e-commerce industries are growing rapidly. Also, the Rapid urbanization has created new retail and e-commerce platforms which require efficient logistics, leading to the growth of the Light Commercial Vehicles (LCV) market.
  • The growing stringent emission norms related to emissions, increasing oil prices, and rising penetration of downsized engines in LCVs are also acting as driving factors for the growth of the light commercial vehicle market. Moreover, the growth of the electric era of electric automobiles creating new opportunities for the manufacturers to invest in the development of electric light commercial vehicles. However, the demand for downsized engines is expected to increase the LCVs price, which is expected to hinder the growth of the LCV market over the forecast period.
  • The sales of LCVs are likely to continue to grow at the global level, owing to the growing consumer demand, continuous launch of new and upgraded models especially in the developing economies such as China, India, Brazil, etc.

Scope of the Report

The light commercial vehicle Market covers the latest LCV demand trends, technological development, latest government policies, etc. Also covers market share of major LCV manufacturers across globe.

By Vehicle Type
Passenger Van
Cargo Van
Pickup Truck
By Tonnage Capacity Type
Less Than 2.5 Tons
2.5 To 3.5 Tons
More Than 3.5 Tons
By Fuel Type
Alternative Fuels
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Asia Pacific
South Korea
Rest of Asia-Pacific
Rest of the World
United Arab Emirates
Other Countries

Report scope can be customized per your requirements. Click here.

Key Market Trends

Electrification of Light Commercial Vehicles Likely to Bring Growth Opportunities

With the growth of electrification in vehicles, the LCV market is witnessing collaborations among incumbent OEMs and start-ups alike in the production of electric LCVs (eLCVs). The primary reason for on-road vehicle electrification is the growing environmental concerns about the automotive sector's contribution to climate change and the damaging effect on human health of exhaust pollutants.

Currently, the upfront cost of LCVs is greater than conventional fuel models, and LCV operators primarily base their purchase decisions on the total cost of ownership calculations, however, in the long run, the operators can save a significant amount on the overall operational by replacing conventional fuel models with the electrically powered, as electric drivetrains require less maintenance and offer efficiency.

Over the next forecast period, as battery pack prices decrease, electric drivetrain efficiencies improve and significant economies of scale savings are realized on the cost of electric components and vehicle manufacturing, it will become a competitive advantage for companies to operate electric vans as they will offer the lowest cost solution. The addition of road charges for diesel vehicles in low emission zones within urban centers will swing the Total Cost of Ownership (TCO) balance heavily in favor of electric LCV.

Light Commercial Vehicle Market_Geography

United States and China are likely to Lead the LCV Market

United States and China leads the light commercial vehicle market followed by Japan, India, Latin America respectively. The Chinese e-Commerce industry is continuously growing which is driving the LCV industry in the country. For instance,

  • Local technology companies such as Alibaba Group, Tencent, and JD are dominating a rapidly growing e-commerce ecosystem in the country
  • The rapid development of this industry combined with a large and growing digital consumer base has fueled tremendous growth both domestically and abroad via cross-border trade. Other factors driving the e-commerce business in the country are –
    • Establishment of e-commerce special trade zones in the country.
    • Rise in Chinese social media influencers.

Owing to the growing concerns on environment pollution, the US government has been consistently working and supporting various measures toward the growth of electric vehicle industry. For instance:

  • In January 2019, Kaiyun Motors cleared the necessary regulatory approvals to begin exporting its Pickman electric pickup trucks to the United States. According to founder Wang Chao, the company plans to sell as many as 10,000 of them annually in the United States.
    • With a load capacity of 1,100 pounds, top speed of 28 miles per hour, and driving range of 75 miles on a single charge, the Pickman is suitable for farm owners, factory employees moving loads at their work sites, and commuters.
Light Commercial Vehicle (LCV) Market

Competitive Landscape

The major players in the Light Commercial vehicle market are Daimler AG, Renault SA, Volkswagen AG, Toyota Motor Corporation, Ford Motor Company, Ashok Leyland Ltd., Tata Motors Ltd., Mahindra & Mahindra Ltd., VE Commercial Vehicles Limited, SML Isuzu Limited, etc.

LCV manufacturers are developing advanced technologies and launching new products in order to stay competitive in the market. For instance,

  • In 2018, Truong Hai Auto Corporation (Thaco), one of the leading players in Vietnam, launched the new Mazda BT-50 pickup truck in Vietnam. The new pickup truck features an automatic transmission and a 2.2-liter engine version. The new BT-50 comes in 4 variants: BT-50 2.2L MT 4x4, BT-50 2.2L AT 4x2, BT-50 2.2L ATH 4x2, and BT-50 3.2L ATH 4x4.
  • In 2019, Toyota Motor Corporation officially unveiled its all-new 2020 Hiace MPV/Van in the Philippines. The all-new Hiace is the first Hiace model to be designed for overseas markets.
  • In 2019, Mitsubishi Motors Corporation (MMC) announced the launch of the new Delica D:5 all-round minivan in Japan.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    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


    1. 5.1 By Vehicle Type

      1. 5.1.1 Passenger Van

      2. 5.1.2 Cargo Van

      3. 5.1.3 Pickup Truck

      4. 5.1.4 Others

    2. 5.2 By Tonnage Capacity Type

      1. 5.2.1 Less Than 2.5 Tons

      2. 5.2.2 2.5 To 3.5 Tons

      3. 5.2.3 More Than 3.5 Tons

    3. 5.3 By Fuel Type

      1. 5.3.1 Gasoline

      2. 5.3.2 Diesel

      3. 5.3.3 Alternative Fuels

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.4.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Rest of Europe

      3. 5.4.3 Asia Pacific

        1. India

        2. China

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. Brazil

        2. Argentina

        3. United Arab Emirates

        4. Mexico

        5. Other Countries


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Daimler AG

      2. 6.2.2 Renault SA

      3. 6.2.3 Volkswagen AG

      4. 6.2.4 Volvo AB

      5. 6.2.5 Ford Motor Company

      6. 6.2.6 Ashok Leyland Ltd.

      7. 6.2.7 Tata Motors Ltd.

      8. 6.2.8 Mahindra & Mahindra Ltd.

      9. 6.2.9 VE Commercial Vehicles Limited

      10. 6.2.10 SML Isuzu Limited


You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Light Commercial Vehicle (LCV) Market market is studied from 2018 - 2026.

The Light Commercial Vehicle (LCV) Market is growing at a CAGR of >3% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Daimler AG, Ford Motor Company, Ashok Leyland Ltd., Tata Motors Ltd., Mahindra & Mahindra Ltd. are the major companies operating in Light Commercial Vehicle (LCV) Market.

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!