Market Definition
Light commercial vehicle (LCV) tires are generally made for light-duty and heavy-duty trucks and vans. They are designed for traction and strength on and off the road with a load capacity ranging between ½ ton and 1 ton. They are used for various purposes like agricultural transportation, e-commerce, dairy & meat transportation, and others. Light commercial vehicle tires are of two types radial and bias.
Market Insights
The Global Light Commercial Vehicle Tire Market is projected to grow at a CAGR of around 3.5% during the forecast period, i.e., 2023-28. This is due to the factors like the easy availability of vehicle investment schemes by various governments & key market players, the growing e-commerce sector, the increasing number of multiple infrastructural projects, and the flooding logistics around the globe.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR(2021-26) | 3.5% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, UK, France, Italy, Spain, The Netherlands, Rest of Europe | |
| Asia-Pacific: China, Japan, India, Thailand, Indonesia, Rest of Asia Pacific | |
| South America: Brazil, Argentina, Columbia, Rest of South America | |
| Middle East & Africa: Saudi Arabia, The UAE, Egypt, South Africa, Nigeria, Ethiopia, Rest of The Middle East & Africa | |
| Key Companies Profiled | Bridgestone Corporation, Compagnie Générale des Établissements Michelin SCA, Continental AG, Goodyear Tire & Rubber Corporation, The Yokohama Rubber Co., Ltd., Toyo Tire Corporation, Pirelli, Hankook Tire & Technology Co., Ltd., Kumho Tire, Sumitomo Rubber Industries, Ltd., Zhongce Rubber Group Co., Ltd., Others |
| Unit Denominations | USD Million/Billion |
Another industry ascribing to the increase in the demand for the LCV vehicle is the agricultural sector. Europe has experienced fundamental policy changes by the European Union. Under the policy, it has increased the maximum support that can be availed by individual farmers to USD 22,388 over three years. This would help the farmers to avail more funds through support and also help the agricultural segment to grow in the coming period as the regulation are slated to come into effect after 2022. With the agriculture sector showing growth, the transportation of agricultural products is anticipated to increase which would result in creating more demand for light commercial vehicles in the years to come. Moreover, the presence of various LCV manufacturing plants in North America is one of the major factors proving ample boost to the demand for LCV tires. Some of the developments have been noticed in the North America Light Commercial Vehicle Tire market which is expected to boost the demand in the forecasted period of 2023-2028. For instance:
Market Dynamics
Key Driver: Thriving Ecommerce and Ridesharing Platforms to Boost the Market Growth
E-commerce is one of the platforms which has experienced a boom despite the economic slowdown in the COVID-19 pandemic. The increased purchasing from online platforms as well as growing home deliveries of products through online purchases has earmarked the requirement of more Light commercial vehicles for the timely delivery of goods to customers. With the increased demand for the LCVs in Europe, North America, etc., from Ecommerce companies, the demand for LCV tires in OEM and replacement would also increase.
In another instance, the ridesharing platforms in Europe, Asia Pacific, etc., have been increasing the demand for passenger vans in the LCV segment. Many of the ridesharing companies such as Uber, Yandex, BlaBla Car, kapten, Bolt, etc. have been working in the region regions like Europe which has increased the demand for passenger vans and with the subsequent increase of the vehicle demand from the respective companies to expand the ridesharing services to the customers the demand for the LCV tires would increase between 2023-2028.
Growth Opportunity: Increasing Light Commercial Vehicle Manufacturing Units to Support the Market Growth
The growing light commercial vehicle (LCV) manufacturing units in the region like North America, Europe, Asia Pacific, etc., are expected to facilitate the demand for light commercial vehicle tires during the forecast period. The booming agricultural farming, rising shared mobility platforms, etc., are some of the driving factors in the establishment of LCV production plants. Along with this, the surging demand for electric LCVs in line with reducing carbon emissions from transportation is also one of the key aspects estimated to amplify the market growth. For instance:
Market Segmentation
Based on Demand:
Based on demand, the replacement segment dominated the global market and is likely to continue its dominance in the forecast years. It owes to prominent factors like the expanding production of vehicles and numerous technological advancements in the industry. Furthermore, the gradual shift toward living a better lifestyle, and environment-friendly tires, with growing tire sales in the replacement segment are other crucial factors contributing to the continuously increasing market size.
Based on Vehicle Type:
Among them, Pickup Trucks and Vans are likely to witness the fastest market growth in the forecast years, majorly owing to their spacious seating and reasonable prices of tires used in them. Moreover, their easy availability & wide usage in the transportation of goods from one place to another require timely up-gradation of tires, leading to more sales of commercial tires. Hence, these factors are propelling the demand for pickup trucks and vans, thereby fueling the overall market growth across the globe.
Regional Projection
Geographically, the Global Light Commercial Vehicle Market expands across:
Europe is likely to witness substantial market growth in the forecast years due to the surging initiatives taken by numerous governments in the region to decrease carbon emissions. Ensuring this requires vehicles' tires to be replaced when their quality falls below acceptable limits and attain their roadworthiness. It has become a significant driving factor for the market growth in the region, and hence, it is likely to continue achieving the fastest market growth in the global market. Furthermore, the growing demand for electric light commercial vehicles is also anticipated to support the LCV tire market growth in the forecast years, as the region is extensively focusing on curbing carbon emissions from transportation by deploying large-scale on-road electric vehicles.
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Frequently Asked Questions
A. The Light Commercial Vehicle Market is predicted to grow at a CAGR of around 3.5% during 2023-28.
A. Increasing manufacturing of electric light commercial vehicles, rising agricultural activities in various regions, as well as booming e-commerce worldwide, are some of the factors driving the Light Commercial Vehicle Market during 2023-28.
A. The top players in the Light Commercial Vehicles Market are Bridgestone Corporation, Compagnie Générale des Établissements Michelin SCA, Continental AG, Goodyear Tire & Rubber Corporation, The Yokohama Rubber Co., Ltd., Toyo Tire Corporation, Pirelli, Hankook Tire & Technology Co., Ltd., Kumho Tire, Sumitomo Rubber Industries, Ltd., Zhongce Rubber Group Co., Ltd. , and Others.
A. Replacement is the leading demand in the Light Commercial Vehicle Market.
A. Europe would present growth prospects in the Light Commercial Vehicle Market during 2023-28.
A. Agricultural Transportation, Ecommerce, Dairy & Meat Transportation, and Others are the industry's potential end-users.
A. Expansion of light commercial vehicle manufacturing capabilities in various regions to provide a lucrative growth opportunity for the Light Commercial Vehicle Market through 2028.
