Light Commercial Vehicle: Growth Opportunities
The global light commercial vehicle market size was valued at USD 542.53 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 8.1% from 2022 to 2030
With the increase in vehicle electrification, the Light Commercial Vehicle industry is seeing cooperation between incumbent OEMs and start-ups in the development of electric LCVs (eLCVs). The fundamental rationale for on-road vehicle electrification is rising environmental concern about the automobile industry's role to climate change and the harmful effect of exhaust pollution on human health.
Currently, the upfront cost of LCVs is higher than that of conventional fuel models, and LCV operators base their purchase decisions primarily on total cost of ownership calculations. However, in the long run, operators can save a significant amount on overall operational costs by replacing conventional fuel models with electric drivetrains, as electric drivetrains require less maintenance and offer efficiency.