Light Duty Vehicle Market - Forecast(2021 - 2026)

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Light Duty Vehicle Market Overview

The market for Light Duty Vehicle is forecast to reach $560 billion by 2025, growing at a CAGR of 9.1% from 2020 to 2025. Demand for light duty vehicle is expected to increase due to the lower amount of air pollution that is caused by them. Furthermore, it is anticipated that strict regulations aimed at reducing vehicle emissions would stimulate the adoption of electric light duty trucks and thus drive the market growth over the forecast period. Light duty vehicle tend to emit lower volumes of air pollutants and are hence turning out to be the preferred vehicle to transport people and goods.

Light Duty Vehicle Market Report Coverage

The report: “Light Duty Vehicle Market– Forecast (2020-2025)”, by IndustryARC covers an in-depth analysis of the following segments of the Light Duty Vehicle Market. 
By Fuel Type – Gasoline, Diesel, Electric
By Transmission Type – Automatic Transmission (AT), Manual Transmission (MT), Continuous Variable Transmission (CVT), Others
By Vehicle Type – Passenger Car, Van, Sports Utility Vehicle (SUV), Pickup Truck, Others
By Geography - North America (U.S, Canada, Mexico), South America(Brazil, Argentina and others), Europe(Germany, UK, France, Italy, Spain, Russia and Others), APAC(China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)

Key Takeaways

  • North America dominated the market in 2019 with a share of 39% owing to the growing adoption of electric vehicle in line with the government initiatives favouring the development and adoption of electric vehicle and the rollout of electric vehicle charging infrastructure. 
  • The passenger car segment accounted for 28% of the market share in 2019 attributed to the growing adoption of passenger cars by incumbents of the tourism industry. 
  • One of the major factors boosting the light duty vehicle market is the increased demand for Special Utility Vehicles (SUVs) in the recent years.
  • One of the main factors hindering the growth of light duty vehicle industry is rising costs of raw materials.

Light Duty Vehicle Market Segment Analysis - By Vehicle Type

On the basis of vehicle type, the market for light duty vehicle has been further segmented into passenger car, van, Sports Utility Vehicle (SUV), and pickup truck.  The passenger car segment accounted for 42% of the market share in 2019. Growth in this segment is attributed to the growing adoption of passenger cars by incumbents of the tourism industry. Additionally, the governments of various countries have issued regulations that have led the passenger car manufacturers to produce efficient and low-emission vehicles which have intensely pressurized the latter to engage in research and development works. European Emission Standards (EURO I, EURO II, EURO III, EURO IV and EURO V), Corporate Average Fuel Economy (CAFE) and Federal Motor Vehicle Safety Standards (FMVSS) are few of the most common emission standards followed in the global regions. Consequently, these regulations are boosting the production of low emission passenger cars, thereby driving he overall market during the forecast period.

Light Duty Vehicle Market Segment Analysis - By Fuel Type

Of all the major light duty vehicle fuel types, the gasoline segment held the largest share accounted to 57% in 2019. This is because gasoline-fired vehicles emit lesser emissions as compared to diesel-fired vehicle and can also be procured affordably. However, the electric segment is expected to register the highest CAGR of around 14.3% over the forecast period owing to the growing demand for high-performance and emission-free vehicles. Advances in technology coupled with proactive government initiatives to reduce vehicle emissions are encouraging the development and adoption of electric vehicles and the rollout of charging infrastructure for electric vehicles, thereby driving electric segment growth. Manufacturers of light duty electric vehicles are incentivizing customers for buying electric vehicles. At the same time, while countries, such as China, France, and Norway, have imposed stringent rules and regulations aimed at reducing vehicular emissions, other countries, such as China, the U.K., the Netherlands, and the Czech Republic, have implemented low emission zones in certain areas. Such initiatives are also expected to drive the growth of the electric segment.

Light Duty Vehicle Market Segment Analysis - By Geography

The light duty vehicle market was segmented by region into North America, , South America, Europe, Asia - Pacific, Middle East and Africa. North America dominated the market in 2019 with a share of 39% owing to the growing adoption of electric vehicles in line with the government initiatives favouring the development and adoption of electric vehicle and the rollout of electric vehicle charging infrastructure. However, due to the evolving e-commerce industry, particularly in China, India , and Japan, Asia Pacific is expected to emerge as the fastest-growing regional market with a CAGR of around 16.2% over the forecast time period. It is also anticipated that stringent regulations aimed at curbing vehicle emissions will drive demand for light duty electric vehicles in Asia Pacific.

Light Duty Vehicle Market Drivers

Increased demand for Special Utility Vehicles (SUVs)

One of the major factors boosting the light duty vehicle market is the increased demand for Special Utility Vehicles (SUVs) in the recent years. Small cars are also growing at a fast pace as they find less traffic on the road as compared to large passenger vehicles. The emerging market for vehicle financing has stimulated the passenger vehicle industry where loans are given to the customers to purchase the car. Moreover, Passenger vehicles are the most common mode of conveyance in the developed countries and they are increasing in numbers in the developing countries as well due to increasing per capita income.

Stringent regulations for emissions for vehicles

Emission Standards (EURO I, EURO II, EURO III, EURO IV and EURO V), Corporate Average Fuel Economy (CAFE) and Federal Motor Vehicle Safety Standards (FMVSS) are few of the most common emission standards followed in the global regions. Governments in different countries are creating awareness towards low emission by vehicles through these regulations and standards which is thereby resulting in increased demand for low emission light duty vehicle and hence boosting the light duty vehicle market during the forecast period 2020 – 2025.

Light Duty Vehicle Market Challenges

Increase in raw material prices

One of the main challenges for the passenger vehicles industry is rising costs of raw materials. In recent years, iron, steel and plastics costs have risen to high levels that have resulted in rise in passenger vehicle costs for customers. High cost of raw materials results in high production costs, thereby increasing the overall product cost. This is set to hinder the market growth during the forecast period 2020 – 2025.

Light Duty Vehicle Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Light Duty Vehicle Market. Light Duty Vehicle driver market is expected to be dominated by major companies such as BMW AG, Daimler AG, Fiat Chrysler Automobiles N.V., Ford Motor Company, General Motors Company, Honda Motor Company, Ltd., Hyundai Motor Company, Nissan Motor Company, Ltd., Subaru Corporation, and Toyota Motor Corporation) among others.

Acquisitions/Technology Launches/Partnerships

  • In May 2019, Tata Motors has planned to to replicate the success of the Ace with the Intra—the two-tonne-plus LCV it will launch by end-May. This product launch is aimed at boosting the revenue of the company in its business segment of light commercial vehicles.
  • In June 2020, major key players of the market including Renault-Nissan, Volkswagen, and Daimler, announced their plans on working on building common platforms for light duty vehicle and passenger vehicles as part of the efforts to reduce lead times and save on development costs.

1. Light Duty Vehicle Market - Overview
        1.1 Definitions and Scope
2. Light Duty Vehicle Market - Executive summary
        2.1 Market Revenue, Market Size and Key Trends by Company
        2.2 Key Trends by type of Application
        2.3 Key Trends segmented by Geography
3. Light Duty Vehicle Market
        3.1 Comparative analysis
            3.1.1 Product Benchmarking - Top 10 companies
            3.1.2 Top 5 Financials Analysis
            3.1.3 Market Value split by Top 10 companies
            3.1.4 Patent Analysis - Top 10 companies
            3.1.5 Pricing Analysis
4. Light Duty Vehicle Market - Startup companies Scenario Premium
        4.1 Top 10 startup company Analysis by
            4.1.1 Investment
            4.1.2 Revenue
            4.1.3 Market Shares
            4.1.4 Market Size and Application Analysis
            4.1.5 Venture Capital and Funding Scenario
5. Light Duty Vehicle Market - Industry Market Entry Scenario Premium
        5.1 Regulatory Framework Overview
        5.2 New Business and Ease of Doing business index
        5.3 Case studies of successful ventures
        5.4 Customer Analysis - Top 10 companies
6. Light Duty Vehicle Market Forces
        6.1 Drivers
        6.2 Constraints
        6.3 Challenges
        6.4 Porters five force model
            6.4.1 Bargaining power of suppliers
            6.4.2 Bargaining powers of customers
            6.4.3 Threat of new entrants
            6.4.4 Rivalry among existing players
            6.4.5 Threat of substitutes
7. Light Duty Vehicle Market -Strategic analysis
        7.1 Value chain analysis
        7.2 Opportunities analysis
        7.3 Product life cycle
        7.4 Suppliers and distributors Market Share
8. Light Duty Vehicle Market - By Turbocharged Engines (Market Size -$Million / $Billion)
        8.1 Introduction
        8.2 Gasolone Turbocharged, By Coutry Level Production
        8.3 Diesel Turbocharged, By Coutry Level Production
9. Light Duty Vehicle Market - By Fuel Type (Market Size -$Million / $Billion)
9.1 Introduction 
9.2 Gasolone, By Coutry Level Production 
9.3 Diesel, By Coutry Level Production 
9.4 Others, By Coutry Level Production
10. Light Duty Vehicle - By Transmission Type (Market Size -$Million / $Billion)
9.1 Introduction 
10.2 Automatic Transmission (AT), By Coutry Level Production 
10.3 Manual Transmission (MT), By Coutry Level Production 
10.4 Continuous Variable Transmission (CVT), By Coutry Level Production 
10.5 Others, By Coutry Level Production
11. Light Duty Vehicle- By Geography (Market Size -$Million / $Billion)
        11.1 Light Duty Vehicle Market - North America Segment Research
        11.2 North America Market Research (Million / $Billion)
            11.2.1 Segment type Size and Market Size Analysis
            11.2.2 Revenue and Trends
            11.2.3 Application Revenue and Trends by type of Application
            11.2.4 Company Revenue and Product Analysis
            11.2.5 North America Product type and Application Market Size
                  11.2.5.1 U.S
                  11.2.5.2 Canada
                  11.2.5.3 Mexico
                  11.2.5.4 Rest of North America
        11.3 Light Duty Vehicle- South America Segment Research
        11.4 South America Market Research (Market Size -$Million / $Billion)
            11.4.1 Segment type Size and Market Size Analysis
            11.4.2 Revenue and Trends
            11.4.3 Application Revenue and Trends by type of Application
            11.4.4 Company Revenue and Product Analysis
            11.4.5 South America Product type and Application Market Size
                  11.4.5.1 Brazil
                  11.4.5.2 Venezuela
                  11.4.5.3 Argentina
                  11.4.5.4 Ecuador
                  11.4.5.5 Peru
                  11.4.5.6 Colombia
                  11.4.5.7 Costa Rica
                  11.4.5.8 Rest of South America
        11.5 Light Duty Vehicle- Europe Segment Research
        11.6 Europe Market Research (Market Size -$Million / $Billion)
            11.6.1 Segment type Size and Market Size Analysis
            11.6.2 Revenue and Trends
            11.6.3 Application Revenue and Trends by type of Application
            11.6.4 Company Revenue and Product Analysis
            11.6.5 Europe Segment Product type and Application Market Size
                  11.6.5.1 U.K
                  11.6.5.2 Germany
                  11.6.5.3 Italy
                  11.6.5.4 France
                  11.6.5.5 Netherlands
                  11.6.5.6 Belgium
                  11.6.5.7 Denmark
                  11.6.5.8 Spain
                  11.6.5.9 Rest of Europe
        11.7 Light Duty Vehicle - APAC Segment Research
        11.8 APAC Market Research (Market Size -$Million / $Billion)
            11.8.1 Segment type Size and Market Size Analysis
            11.8.2 Revenue and Trends
            11.8.3 Application Revenue and Trends by type of Application
            11.8.4 Company Revenue and Product Analysis
            11.8.5 APAC Segment - Product type and Application Market Size
                  11.8.5.1 China
                  11.8.5.2 Australia
                  11.8.5.3 Japan
                  11.8.5.4 South Korea
                  11.8.5.5 India
                  11.8.5.6 Taiwan
                  11.8.5.7 Malaysia
                  11.8.5.8 Hong kong
                  11.8.5.9 Rest of APAC
        11.9 Light Duty Vehicle - Middle East Segment and Africa Segment Research
        11.10 Middle East & Africa Market Research (Market Size -$Million / $Billion)
            11.10.1 Segment type Size and Market Size Analysis
            11.10.2 Revenue and Trend Analysis
            11.10.3 Application Revenue and Trends by type of Application
            11.10.4 Company Revenue and Product Analysis
            11.10.5 Middle East Segment Product type and Application Market Size
                  11.10.5.1 Israel
                  11.10.5.2 Saudi Arabia
                  11.10.5.3 UAE
            11.10.6 Africa Segment Analysis
                  11.10.6.1 South Africa
                  11.10.6.2 Rest of Middle East & Africa
12. Light Duty Vehicle Market - Entropy
        12.1 New product launches
        12.2 M&A s, collaborations, JVs and partnerships
13. Light Duty Vehicle Market - Industry / Segment Competition landscape Premium
        13.1 Market Share Analysis
            13.1.1 Market Share by Country- Top companies
            13.1.2 Market Share by Region- Top 10 companies
            13.1.3 Market Share by type of Application - Top 10 companies
            13.1.4 Market Share by type of Product / Product category- Top 10 companies
            13.1.5 Market Share at global level - Top 10 companies
            13.1.6 Best Practises for companies
14. Light Duty Vehicle Market - Key Company List by Country Premium
15. Light Duty Vehicle Market Company Analysis
        15.1 Market Share, Company Revenue, Products, M&A, Developments
        15.2 BMW
        15.3 Diamler AG
        15.4 Fiat Chrysler Automobiles
        15.5 Ford Motor Company Company
        15.6 Fuji Heavy Industries
        15.7 General Motors
        15.8 Honda Motor
        15.9 Hyundai Motors
        15.10 Nissan Motor Corporation
        15.11 Toyota Motor Corporation
        15.12 Company 12
        15.13 Company 13 & More
*Financials would be provided on a best efforts basis for private companies
16. Light Duty Vehicle Market - Appendix
        16.1 Abbreviations
        16.2 Sources
17. Light Duty Vehicle Market - Methodology
        17.1 Research Methodology
            17.1.1 Company Expert Interviews
            17.1.2 Industry Databases
            17.1.3 Associations
            17.1.4 Company News
            17.1.5 Company Annual Reports
            17.1.6 Application Trends
            17.1.7 New Products and Product database
            17.1.8 Company Transcripts
            17.1.9 R&D Trends
            17.1.10 Key Opinion Leaders Interviews
            17.1.11 Supply and Demand Trends

List of Tables

1 US Light Duty Vehicle Market Size 2018
2 Canada Light Duty Vehicle Market Share 2018
3 Brazil Light Duty Vehicle Market Outlook 2019 - 2023
4 Mexico Light Duty Vehicle Market Research 2018
5 Germany Light Duty Vehicle Market Trends 2019 - 2023 
6 France Light Duty Vehicle Market Growth 2019 - 2023 
7 UK Light Duty Vehicle Market Demand 2019 - 2023 
8 Italy Light Duty Vehicle Market Segmentation 2018
9 Russia Light Duty Vehicle Market Analysis 2019 - 2023
10 China Light Duty Vehicle Market Revenue 2019 - 2023
11 Japan Light Duty Vehicle Market Volume 2019 - 2023
12 South Korea Light Duty Vehicle Market Potential 2019 - 2023
13 India Light Duty Vehicle Market Leaders 2018
14 Saudi Arabia Light Duty Vehicle Market Forecast 2019 - 2023 
15 Kuwait Light Duty Vehicle Market Value 2018

List of Figures

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