Light-duty vehicles, which include passenger cars as well as sport utility vehicles (SUVs), vans, and pickup trucks are designed primarily for the transportation of passengers or cargo. These vehicles feature maximum gross vehicle weight ratings (GVWR) of less than 8,500 pounds. Light-duty vehicles offer increased fuel efficiency and reduced emissions which help lower operational costs and are environment friendly. Growing concerns towards sustainability and strict emission norms have prompted automakers to focus on developing fuel-efficient and low-emission light-duty vehicles.
The global light duty vehicles market is estimated to be valued at US$ 87.2 billion in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024-2031. Key functions include transportation of passengers and light cargo. Light-duty vehicles have wider applications in transportation, freight & logistics sectors owing to features such as decreased carbon footprint and improved performance. The automotive industry is witnessing growing demand for eco-friendly vehicles to cater to rising sustainability needs as well as stringent government regulations regarding vehicular emissions.
Key Takeaways
Key players operating in the light duty vehicles market are Ford Motor Company, Nissan Motor Company, General Motors Company, Toyota Motor Corporation, Honda Motor Company, Ltd. Ford Motor Company is one of the largest manufacturers of light trucks globally. Nissan Motor Company is a leading Japanese automaker focusing on commercialization of electric vehicles.
The growing demand for fuel-efficient and low-emission vehicles is fueling the growth of the light duty vehicles market. Stringent emission norms in several countries have prompted automakers to focus on developing light commercial vehicles with enhanced fuel efficiency and lower carbon footprint. North America and Europe currently dominate the light duty vehicles market.
The market is witnessing a rising focus on the global expansion efforts by various automotive giants. Growing sales of commercial electric vehicles in China are prompting international players to tap into opportunities in the China market. Strategic partnerships and mergers and acquisitions remain key routes for established as well as emerging automakers to fast track their global presence.
Market Key Trends
One of the major trends prevailing in the light duty vehicles market is the rising demand for electric vehicles. Stringent emission regulations along with growing environmental concerns have accelerated the shift towards electrification of fleet. Automakers are actively focusing on developing electric cars and SUVs with longer driving ranges to make electric mobility more viable. Furthermore, declining battery prices and advancements in charging technologies are supporting increased adoption of electric light commercial vehicles globally.
Porter’s Analysis
Threat of new entrants: Automobile industry requires huge capital investments and established brand loyalty makes difficult for new players to enter.
Bargaining power of buyers: Buyers have significant bargaining power given the availability of substitute options in the market.
Bargaining power of suppliers: Suppliers have less bargaining power due to availability of substitute components and fuel.
Threat of new substitutes: Substitutes like motorcycles, public transit pose minimal threat given preferences for personal mobility.
Competitive rivalry: Intense competition among existing players to gain market share.
Geographical Regions
North America currently holds the largest share of the global light duty vehicles market in terms of value, given high vehicle ownership and preferences for pickup trucks and SUVs. However, the Asia Pacific region is expected to see the fastest growth through 2031 driven by rising incomes, infrastructure development and urbanization in countries like China and India resulting in higher vehicle ownership.
Another key region contributing to market growth is Europe. Although Europe has relatively mature car markets, demand is driven by preference of consumers towards fuel-efficient and electric vehicles due to stringent emission norms. Government incentives and initiatives to develop charging infrastructure are also encouraging adoption of green vehicles.
What Are The Key Data Covered In This Light Duty Vehicles Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the Light Duty Vehicles 's growth between 2024 and 2031.
:- Accurate calculation of the size of the Light Duty Vehicles and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- Light Duty Vehicles Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market's competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of Light Duty Vehicles vendors
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it