Report Description

 

Forecast Period

2018-2028

Market Size (2022)

USD 19.8 Billion

CAGR (2023-2028)

2.7%

Fastest Growing Segment

Vans

Largest Market

England

 

Market Overview

The UK light commercial vehicle (LCV) market represents a crucial component of the country's economy. In 2020, despite the global pandemic and subsequent economic downturn, the market showed remarkable resilience. Although the year-on-year sales dipped, the sector quickly rebounded to near-normal levels by the end of the year, underlining the robustness of this market segment. The LCV market primarily comprises small to large vans used for a multitude of commercial activities. The Ford Transit Custom, Mercedes-Benz Sprinter, and the Volkswagen Transporter represent some of the most popular models, highlighting the market's preference for reliable, efficient, and versatile vehicles. The UK LCV market continues to evolve, primarily driven by the changes in consumer behavior, technological advancements, and environmental considerations. The growth of e-commerce has been a major factor, especially during the lockdowns, driving an increased demand for delivery vehicles. Environmental considerations are also playing an increasingly important role. As the UK government is pushing for a 'net zero' emissions target by 2050, manufacturers are introducing more electric and hybrid models into the market. However, these new models are yet to gain major market share, primarily due to their higher costs and concerns over charging infrastructure. The Brexit transition has created some uncertainty, with potential changes to tariffs and regulations. However, the initial impact on the market has been minimal, with most manufacturers prepared for the changes. Moving forward, the key trends in the UK LCV market are expected to be the continued growth in demand driven by e-commerce, increased uptake of low-emission vehicles, and development of autonomous vehicle technology. With the UK government's commitment to infrastructure development, the LCV market is poised for future growth.

Key Market Drivers

Economic Growth and Business Activity

Economic growth and business activity play a significant role in driving the demand for light commercial vehicles. During periods of economic expansion, businesses tend to invest in fleet expansion or replacement to meet growing demand for goods and services. LCVs are essential for various sectors, including logistics, delivery services, tradespeople, and small businesses, as they provide efficient transportation solutions for goods and equipment.

E-commerce and Last-Mile Delivery

The rise of e-commerce has led to a surge in online shopping and home deliveries, especially during the COVID-19 pandemic. The increased demand for last-mile delivery services has necessitated a larger fleet of light commercial vehicles to facilitate efficient and timely deliveries. Companies in the logistics and delivery sectors are investing in LCVs to meet the growing demand for e-commerce deliveries and enhance their delivery networks.

Urbanization and City Regulations

The trend of urbanization has led to a higher concentration of economic activity and population in cities. Many cities in the UK are implementing regulations to address congestion, air pollution, and emissions. In response, businesses are turning to electric and low-emission light commercial vehicles to comply with city regulations, reduce their carbon footprint, and gain access to restricted zones.

Technological Advancements

Advancements in vehicle technology, including electric and hybrid propulsion systems, have been driving the adoption of cleaner and more efficient light commercial vehicles. Electric LCVs are becoming increasingly viable options, offering lower operating costs and reduced emissions. As battery technology improves and charging infrastructure expands, businesses are increasingly willing to invest in electric LCVs.

Government Incentives and Policy Support

Government incentives and policy measures have played a crucial role in encouraging the adoption of low-emission vehicles, including light commercial vehicles. The UK government offers grants and incentives to businesses for purchasing electric and low-emission vehicles, which has accelerated the transition towards greener LCV fleets.

Flexible and Versatile Transportation Solutions

Light commercial vehicles offer versatility, enabling businesses to adapt to changing transportation needs quickly. They can be configured for various purposes, such as cargo transportation, passenger transport, mobile workshops, and food delivery services. Their adaptability makes them attractive to businesses seeking flexible transportation solutions.

Business Cost Savings

LCVs often offer cost savings compared to larger commercial vehicles. They are more fuel-efficient, have lower maintenance costs, and may incur lower taxes and insurance premiums. These cost advantages make LCVs an appealing choice for businesses aiming to optimize their operational expenses.


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Key Market Challenges

Uncertainty and Economic Volatility

The UK light commercial vehicle market is susceptible to economic uncertainties and volatility, particularly in the context of events like Brexit and global economic fluctuations. Economic uncertainties can lead to reduced business investments and demand for LCVs, as companies may postpone fleet expansion or replacement decisions until there is greater clarity in the business environment.

Environmental and Emission Regulations

The UK government is increasingly implementing stringent environmental and emission regulations to address air pollution and climate change. These regulations pose challenges to businesses operating older, higher-emission LCVs that may not meet the required standards. Companies are faced with the need to upgrade their fleets to compliant, low-emission vehicles, which may involve higher upfront costs.

Charging Infrastructure for Electric LCVs

While there is a growing interest in electric LCVs due to their lower emissions and operating costs, the UK's charging infrastructure for electric vehicles still faces challenges. The availability and accessibility of charging points in urban and rural areas need to be improved to support the widespread adoption of electric LCVs. The lack of a robust charging infrastructure may deter some businesses from transitioning to electric LCVs.

Infrastructure and Congestion

Urban areas, especially in large cities, often face challenges related to congestion and limited infrastructure for delivery and loading/unloading. Businesses operating LCVs may encounter difficulties in accessing congested areas, resulting in delayed deliveries, and increased operating costs.

Key Market Trends

Electrification and Low-Emission Vehicles

One of the most prominent trends in the UK LCV market is the increasing adoption of electric and low-emission vehicles. With growing environmental consciousness and stringent emission regulations, businesses are seeking cleaner and more sustainable transportation solutions. Electric LCVs offer lower operating costs, reduced carbon emissions, and potential access to restricted zones in urban areas, making them attractive options for businesses looking to minimize their environmental impact.

Connected and Autonomous Features

LCVs are increasingly incorporating connected technologies and autonomous features, enhancing safety, efficiency, and fleet management. Features like GPS tracking, telematics, and driver assistance systems help businesses monitor vehicle performance, optimize routes, and enhance overall fleet management. As technology continues to evolve, we can expect more advanced autonomous capabilities in LCVs, leading to safer and more efficient operations.

Lightweight Materials and Design Innovations

To improve fuel efficiency and reduce emissions, LCV manufacturers are incorporating lightweight materials and design innovations in vehicle construction. Lightweight materials, such as aluminum and composites, help enhance LCVs' fuel economy without compromising payload capacity and performance.

Mobility Services and Sharing Models

The concept of mobility-as-a-service and vehicle-sharing models is gaining traction in the LCV market. Businesses and individuals are exploring shared mobility solutions, such as renting or sharing LCVs, as a cost-effective alternative to ownership. These models allow businesses to access LCVs on-demand without the burden of ownership and maintenance costs.

Segmental Insights

Vehicle Type Insights

In the United Kingdom's light commercial vehicle (LCV) market, vans have held a larger market share compared to pickup trucks. This preference is due to the versatility of vans, offering a customizable cargo space for transporting various goods and equipment. Vans boast higher payload capacities than pickup trucks, enabling businesses to carry more goods efficiently, reducing operational costs. Additionally, the enclosed cargo area of vans provides better security and protection for goods, safeguarding them from weather conditions and theft. Vans' manoeuvrability and city-friendly nature make them suitable for navigating congested urban areas, while their professional image helps enhance brand visibility for businesses engaged in delivery and transportation services. While pickup trucks offer advantages like off-road capabilities and towing capacities, vans have consistently been the preferred choice for businesses seeking a reliable and efficient light commercial vehicle for their transportation needs in the UK.

Fuel Type Insights

diesel-powered light commercial vehicles (LCVs) have dominated the market share in the United Kingdom due to their fuel efficiency, higher torque, and established refuelling infrastructure. Diesel engines offer better fuel economy, making them cost-effective for businesses with long-distance delivery routes. Their higher torque also makes them suitable for towing and carrying heavy loads, appealing to industries requiring higher payload capacities. Additionally, the well-established network of diesel refuelling stations across the country has contributed to the continued popularity of diesel LCVs. However, with increasing environmental concerns and government regulations promoting sustainability, the market dynamics are evolving, and the market share of electric LCVs is expected to grow significantly in the coming years. As the focus shifts towards reducing emissions, businesses are likely to explore electric LCV options, and the UK government's incentives and policies will likely drive the adoption of electric vehicles, leading to a shift in the market share distribution among diesel, petrol, and electric LCVs.


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Regional Insights

England has held the maximum market share of light commercial vehicles (LCVs) in the United Kingdom due to several key factors. The country's higher population and urbanization levels create increased demand for LCVs, especially for last-mile deliveries and transportation of goods within urban areas. Being the economic hub of the UK, England's thriving economy and concentration of businesses and industries drive the need for a robust transportation infrastructure, where LCVs play a crucial role. The well-developed road network and accessibility of major ports and airports support efficient distribution and logistics operations, further contributing to the higher demand for LCVs. Additionally, England's specific policies and regulations may influence businesses' choices in acquiring and operating LCVs, influencing the market dynamics in the region. However, it's important to acknowledge that market trends can evolve over time due to economic shifts, government initiatives, and technological advancements, so up-to-date market research and industry reports are essential to monitor the latest developments in LCV market shares among regions in the UK.

Recent Developments

·    In November 2021, Shiseido, one of the leading cosmetics manufacturers in the market, unveiled Inryu, an ingestible beauty brand that aims to enhance skin healthy from the inside

·      In September 2021, Coty Inc., a prominent beauty and body care company, announced the launch of Kylie Baby, a gentle, safe, and conscious baby care range by Kylie Jenner. The products were available exclusively on the brand’s direct-to-consumer website

·      In January 2020, iconic beauty brand Revlon launched its PhotoReady Prime Plus Perfecting + Smoothing Primer, the first mass cosmetic product that meets the clean beauty standards of the Environmental Working Group (EWG)

Key Market Players

           ·         Ford Motor Company Limited

           ·         Volkswagen Group United Kingdom Limited

           ·         Peugeot Motor Company PLC

           ·         Mercedes-Benz UK Ltd

           ·         Vauxhall Motors Limited

           ·         Citroën UK Limited

           ·         Renault UK Ltd

           ·         Isuzu (UK) Ltd Iveco Limited

           ·         Iveco Limited

           ·         Fiat Chrysler Automobiles N.V.


 By Vehicle

By Tonnage Capacity

By Fuel

By Region

       Pickup trucks

       Vans

       Less than 2 tons

       2-2.5 tons

       2.5-3.5 tons

       3.5 - 6 tons

       Diesel

       Petrol

       Electric

       Others

       England

       Scotland

       Wales

       Northern Ireland

 

Report Scope:

In this report, the •      United Kingdom Light Commercial Vehicle Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • United Kingdom Light Commercial Vehicle Market, By Vehicle Type:

o   Pickup truck

o   Vans

  • United Kingdom Light Commercial Vehicle Market, By Tonnage Capacity:

o   Less than 2 tons

o   2-2.5 tons

o   2.5-3.5 tons

o   3.5 - 6 tons

  • United Kingdom Light Commercial Vehicle Market, By Fuel Type:

o   Diesel

o   Petrol

o   Electric

o   Others

  • United Kingdom Light Commercial Vehicle Market, By Region:

o   England

o   Scotland

o   Wales

o   Northern Ireland

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the United Kingdom Light Commercial Vehicle Market.

Available Customizations:

United Kingdom Light Commercial Vehicle market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

United Kingdom Light Commercial Vehicle Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]  

Table of content

1.    Introduction

1.1.  Market Overview

1.2.  Key Highlights of the Report

1.3.  Market Coverage

1.4.  Market Segments Covered

1.5.  Research Tenure Considered

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary         

3.1.  Market Overview

3.2.  Market Forecast

3.3.  Key Regions

3.4.  Key Segments

4.    Impact of COVID-19 on United Kingdom Light Commercial Vehicle Market

5.    Voice of Customer Analysis

5.1.  Factors Influencing Purchase Decision

5.2.  Brand Awareness

5.3.  Brand Satisfaction

6.    United Kingdom Light Commercial Vehicle Market Outlook

6.1.  Market Size & Forecast

6.1.1.     By Value

6.1.2.     By Volume

6.2.  Market Share & Forecast

6.2.1.     By Vehicle Type Market Share Analysis (Pickup Trucks & Vans)

6.2.2.     By Tonnage Type Market Share Analysis (Less than 2 tons, 2-2.5 Tons, 2.5-3.5 tons, 3.5-6 tons)

6.2.3.     By Fuel Type Market Share Analysis (Diesel, Petrol, Electric, others)

6.2.4.     By Regional Market Share Analysis

6.2.4.1.         England Region Market Share Analysis

6.2.4.2.         Scotland Region Market Share Analysis

6.2.4.3.         Wales Region Market Share Analysis

6.2.4.4.         Northern Ireland Region Market Share Analysis

6.2.5.     By Company Market Share Analysis (Top 5 Companies, Others - By Value, 2022)

6.3.  United Kingdom Light Commercial Vehicle Market Mapping & Opportunity Assessment

6.3.1.     By Vehicle Type Market Mapping & Opportunity Assessment

6.3.2.     By Tonnage Market Mapping & Opportunity Assessment

6.3.3.     By Fuel Type Market Mapping & Opportunity Assessment

6.3.4.     By Regional Market Mapping & Opportunity Assessment

7.    United Kingdom Pickup Trucks Market Outlook

7.1.  Market Size & Forecast

7.1.1.     By Value

7.1.2.     By Volume

7.2.  Market Share & Forecast

7.2.1.     By Tonnage Type Market Share Analysis

7.2.2.     By Fuel Type Market Share Analysis

8.    United Kingdom Vans Market Outlook

8.1.  Market Size & Forecast

8.1.1.     By Value

8.1.2.     By Volume

8.2.  Market Share & Forecast

8.2.1.     By Vehicle Type Market Share Analysis (Passenger Carrier & Load Carrier)

8.2.2.     By Tonnage Type Market Share Analysis

8.2.3.     By Fuel Type Market Share Analysis

9.    Market Dynamics

9.1.  Market Drivers

9.2.  Market Challenges

10.  Market Trends and Developments

11.  SWOT Analysis

11.1.             Strength

11.2.             Weakness

11.3.             Opportunities

11.4.             Threats

12.  Porter’s Five Forces Model

12.1.             Competitive Rivalry

12.2.             Bargaining Power of Buyers

12.3.             Bargaining Power of Suppliers

12.4.             Threat of New Entrants

12.5.             Threat of Substitutes

13.  Policy & Regulatory Landscape

14.  United Kingdom Economic Profile

15.  Competitive Landscape

15.1.             Company Profiles (Up To 10 Major Companies)

15.1.1.  Ford Motor Company Limited

15.1.1.1.      Company Details

15.1.1.2.      Key Product Offered

15.1.1.3.      Recent Development

15.1.1.4.      Key Management Personnel

15.1.2.  Volkswagen Group United Kingdom Limited

15.1.2.1.      Company Details

15.1.2.2.      Key Product Offered

15.1.2.3.      Recent Development

15.1.2.4.      Key Management Personnel

15.1.3.  Peugeot Motor Company PLC

15.1.3.1.      Company Details

15.1.3.2.      Key Product Offered

15.1.3.3.      Recent Development

15.1.3.4.      Key Management Personnel

15.1.4.  Mercedes-Benz UK Ltd

15.1.4.1.      Company Details

15.1.4.2.      Key Product Offered

15.1.4.3.      Recent Development

15.1.4.4.      Key Management Personnel

15.1.5.  Vauxhall Motors Limited

15.1.5.1.      Company Details

15.1.5.2.      Key Product Offered

15.1.5.3.      Recent Development

15.1.5.4.      Key Management Personnel

15.1.6.  Citroën UK Limited

15.1.6.1.      Company Details

15.1.6.2.      Key Product Offered

15.1.6.3.      Recent Development

15.1.6.4.      Key Management Personnel

15.1.7.  Renault UK Ltd

15.1.7.1.      Company Details

15.1.7.2.      Key Product Offered

15.1.7.3.      Recent Development

15.1.7.4.      Key Management Personnel

15.1.8.  Isuzu (UK) Ltd Iveco Limited

15.1.8.1.      Company Details

15.1.8.2.      Key Product Offered

15.1.8.3.      Recent Development

15.1.8.4.      Key Management Personnel

15.1.9.  Iveco Limited

15.1.9.1.      Company Details

15.1.9.2.      Key Product Offered

15.1.9.3.      Recent Development

15.1.9.4.      Key Management Personnel

15.1.10.                Fiat Chrysler Automobiles N.V.

15.1.10.1.    Company Details

15.1.10.2.    Key Product Offered

15.1.10.3.    Recent Development

15.1.10.4.    Key Management Personnel

16.  Strategic Recommendations

16.1.             Key Focus Areas

16.1.1.  Target Regions

16.1.2.  Target Vehicle Type

17. About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The market size of the United Kingdom Light Commercial Vehicle Market was estimated to be USD 19.8 Billion in 2022.

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In the UK's light commercial vehicle (LCV) market, vans have consistently maintained a larger market share compared to pickup trucks. This preference can be attributed to the remarkable versatility of vans, which provide a customizable cargo space for transporting a wide range of goods and equipment. Vans also excel in terms of payload capacities, allowing businesses to efficiently carry larger quantities of goods and ultimately reduce operational costs.

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England has maintained the largest market share of light commercial vehicles (LCVs) in the United Kingdom due to several key factors. The country's higher population and urbanization levels create a heightened demand for LCVs, particularly for last-mile deliveries and intra-urban goods transportation. Serving as the economic hub of the UK, England's thriving economy and concentration of businesses and industries necessitate a robust transportation infrastructure, in which LCVs play a pivotal role.

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The key drivers of the United Kingdom light commercial vehicle (LCV) market are the rising demand for last-mile delivery services due to the growth of e-commerce and the need for efficient urban transportation solutions. Additionally, advancements in vehicle technology and government incentives play a significant role in fostering the market's growth and development.

profile

Srishti Verma

Business Consultant
Press Release

United Kingdom Light Commercial Market to be Led by Vans through 2028

Aug, 2023

Increasing demand for last-mile delivery solutions driven by e-commerce growth and changing consumer preferences, as well as the need for efficient transportation in urban areas. Additionally, govern