LONDON--(BUSINESS WIRE)--Technavio’s latest market research report on the global light commercial vehicle (LCV) market provides an analysis on the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
The market is expected to grow with advancements in alternative fuel technology and relaxation of taxes on the purchase of alternative fuel LCVs. Stringent emissions regulations are expected to encourage R&D for the development of alternative fuel technology.
According to Ganesh Subramaniam, a lead analyst at Technavio for automotive manufacturing research, “The rising rate of urbanization is inducing additional demand for construction of housing, commercial retail centers, and recreational centers. This is expected to drive the demand for additional vehicles to complement transportation of man and materials within cities, which augurs well for the growth of the global LCV market.”
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The top three emerging market trends driving the global LCV market according to Technavio research analysts are:
- Electric LCVs used for facilitating last-mile connectivity
- Integration of telematics systems in LCVs
- Innovative promotional activities for alternative fuel LCVs
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Electric LCVs used for facilitating last-mile connectivity
Automotive makers are increasingly researching on raising the reliability of electric vehicles. Lack of proper charging stations and limited power capacity batteries are the main drawbacks of electric vehicles. Vehicle manufacturers are undertaking various experimental operations, involving the use of electric vehicles, to troubleshoot the various issues faced by the vehicle in a real-world scenario.
Unlike passenger cars, LCVs require more power to be effective in hauling passengers or cargo. Vehicle manufacturers have begun using electric LCVs in real-world scenarios to test reliability and endurance of electric LCVs. For instance, Mahindra & Mahindra, an automotive manufacturer based in India, introduced a chain of electric LCVs for providing last-mile transportation facility to people at various metro stations in India in 2015. Mahindra Reva Electric Vehicle has undertaken this venture to test the feasibility of having electric LCVs for transporting passengers within the limits of the city.
Integration of telematics systems in LCVs
Telematics is a field that includes telecommunication, electrical engineering, road transportation, and vehicular technologies. Integration of telematics offers numerous advantages to various stakeholders, namely vehicle owners, fleet operators, insurance service providers, and others. LCVs are increasingly being integrated with telematics systems for increasing their usage efficiency by monitoring their movement and location.
Third-party telematics companies have begun offering telematics packages customized for LCVs, namely WEBFLEET package for LCVs developed by TomTom Telematics. The package helps the LCV fleet managers to maintain an online track record of tours done by the vehicle, miles traveled, fuel used, and maintenance cycles.
Innovative promotional activities for alternative fuel LCVs
Alternative fuel vehicle manufacturers are increasingly undertaking innovative promotional activities for increasing awareness about the reliability of electric and hybrid LCVs. For instance, Nissan has undertaken an innovative promotional activity for showcasing reliability of its all-electric panel van Nissan e-NV200 by organizing a 35-day 6,300-mile tour covering eight European countries in 2017. The tour is proposed to start from Barcelona and end in Norway. Similarly, Ford Motor Company is planning to officially launch a hybrid electric commercial panel van, Ford Transit, by 2019.
“Hybrid electric LCVs would require large space for storing the enormous electric battery, which significantly affects the vehicle's payload limit. Hence, Ford Motor Company looks forward to gauging the practicality of having a battery design that does not compromise with the payload capacity of its hybrid electric panel vans,” says Ganesh.
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