Light Commercial Vehicles - South Korea

In 2024, the Light Commercial Vehicles market in South Korea is projected to reach 207.90k vehicles units in terms of unit sales.
Looking ahead, the market is expected to experience a compound annual rate of 0.32% (CAGR 2024-2030), resulting in a projected market volume of 211.90k vehicles units by 2030.
This indicates the potential for growth in the Light Commercial Vehicles market in South Korea.
Additionally, the production of Light Commercial Vehicles market is expected to reach 331.70k vehicles units in 2030, further highlighting the market's potential.
From an international perspective, it is noteworthy that the United States is expected to have the highest sales volume of 13.20m vehicles units in 2024.
South Korea's light commercial vehicle market is seeing a growing demand for electric vans due to the government's push for electric vehicle adoption.

Definition

Light Commercial Vehicles (LCV) is a unique market of the broader Commercial Vehicles market, which focuses solely on vehicles designed to transport goods or to provide services on a relatively small scale. LCVs include a variety of compact and medium-sized vehicles specifically engineered for commercial purposes. These versatile vehicles are utilized by businesses and individuals for tasks such as local deliveries, trade, and various commercial applications. The gross vehicle weight rating of LCVs typically does not exceed 3.5 tons, although this limit may vary depending on the vehicle models, configurations, and local regulations.

LCVs are crucial for last-mile logistics, small business operations, and urban transportation. This market is highly responsive to emerging market trends, including the rise of eCommerce, the demand for sustainable transportation solutions, and the increasing need for versatile commercial vehicles that can adapt to a wide range of applications.

Additional Information

Notable key players in the Light Commercial Vehicles (LCVs) market include companies such as Ford, Mercedes-Benz, Fiat Professional, and Renault. These manufacturers play a vital role in shaping the market by offering a diverse range of LCV models and leading technological advancements within the market.

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Vans
Small delivery trucks
Refrigerated vans
Pickup trucks used for commercial purposes
Mini trucks
Light buses and coaches
Compact utility vehicles
Chassis cabs

Recreational vehicles (RVs)
Passenger cars
Motorcycles and scooters
Heavy-duty trucks
Agricultural and construction equipment

The Light Commercial Vehicles market in South Korea has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in South Korea have shifted towards more environmentally friendly and fuel-efficient vehicles.

As a result, there has been an increasing demand for light commercial vehicles that offer hybrid or electric options. This shift in customer preferences is in line with global trends, as consumers become more conscious of their carbon footprint and seek out sustainable transportation solutions. In addition to environmental considerations, customers in South Korea also value vehicles that offer advanced safety features and innovative technology.

Light commercial vehicles that are equipped with features such as lane departure warning, adaptive cruise control, and smartphone integration are particularly popular among buyers. This reflects a broader trend in the automotive industry, where customers are increasingly seeking vehicles that offer a seamless blend of safety, convenience, and connectivity. The market for light commercial vehicles in South Korea is also influenced by local special circumstances.

The country's dense urban areas and limited parking spaces have led to a growing demand for compact and maneuverable vehicles. This has resulted in an increased popularity of small vans and mini-trucks, which are well-suited for navigating crowded city streets and fitting into tight parking spaces. Furthermore, South Korea has implemented various government policies and incentives to promote the adoption of electric vehicles, including light commercial vehicles.

These policies include tax benefits, subsidies, and the establishment of charging infrastructure. Such support from the government has played a crucial role in driving the growth of the electric light commercial vehicle market in the country. Underlying macroeconomic factors also contribute to the development of the Light Commercial Vehicles market in South Korea.

The country's strong economy and rising disposable incomes have increased consumer purchasing power, leading to higher demand for vehicles. Additionally, the growth of e-commerce and delivery services has created a need for efficient and reliable transportation solutions, further fueling the demand for light commercial vehicles. In conclusion, the Light Commercial Vehicles market in South Korea is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

The shift towards environmentally friendly vehicles, the demand for advanced safety features and technology, and the need for compact and maneuverable vehicles are driving the market forward. Government policies and incentives, as well as a strong economy and rising disposable incomes, are also contributing to the growth of the market.

Data coverage:

The data encompasses B2B enterprises. Figures are based on unit sales and production of light commercial vehicles.

Modeling approach:

Market sizes are determined through a combined Top-Down and bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey). In addition, we use relevant key market indicators and data from country-specific associations, such as consumer spending per capita on transportation and consumer price index for purchase of vehicles. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, linear regression, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

The motor vehicle manufacturing industry is one of the drivers of the European industry. In the European Union, this sector reported annual revenue of around 940.5 billion euros and a production value estimated at some 746 billion euros in 2020. Light commercial vehicles, typically up to 3.5 metric tons in gross vehicle weight, were the EU industry's most produced commercial vehicle type. However, the COVID-19 pandemic and global automotive chip shortage have impacted the sector's van output, dropping to under 1.7 million units in 2021. France was the largest light commercial vehicle producer in Europe, while French brands Renault and Peugeot were the second and third best-selling van brands in the European Union in 2021.