Market Trends of united kingdom mlcc Industry
Shift toward new energy vehicles increases demand for LCVs
- Light goods vehicles represent an important part of the goods vehicle market in the United Kingdom. As of 2019, there were 57 thousand light goods vehicles manufactured in the country.
- The light goods vehicle market in the United Kingdom has been rattled by the pandemic and global chip shortage, as well as by the changes resulting from Brexit. The production of light commercial vehicles witnessed a Y-o-Y of 10.79% in 2020. However, the production of light commercial vehicles in the United Kingdom hiked up in 2021, rising by 8.59% Y-o-Y to 55.64 thousand units. This output increase was not enough to offset the drop recorded at the beginning of the COVID-19 pandemic, and 2021 production was close to six percent under the United Kingdom's 2019 production. Just over 51% of UK-produced commercial vehicles were exported. However, the share of exports decreased in 2021, partly due to new rules for trade with the European Union.
- The market is also following the automotive industry's shift towards new energy vehicles, with nearly four percent of new light commercial vehicle sales in the United Kingdom being alternative fuel vehicles. Battery-electric was the most popular electric light goods vehicle type in 2021. In 2021, the Ford Transit Custom was the best-selling light goods vehicle model in the United Kingdom, followed by the Ford Transit. This popularity helped make Ford the best-selling light commercial vehicle brand in the United Kingdom in 2021.
- Manufacturers are investing heavily to bring an exciting range of ultra-low and zero-emission light commercial vehicles into the country, increasing light commercial vehicle production.
Understand The Key Trends Shaping This Market
Download PDF
Rise in technological advancements in vehicles to boost passenger vehicles
- The passenger car production in 2019 was 1.30 million units, which decreased to 775 units in 2022. The observed CAGR of approximately -15.90% over the four-year period mirrors the difficult market conditions and disruptions encountered by the European automotive industry.
- Despite a decline in demand for a couple of years in the region, owing to factors such as the socio-political situation in the country, the Brexit deal, and uncertainty over future environmental regulation, the United Kingdom passenger vehicle market remains the second largest market in the European Union, standing behind Germany. The market is diverse, with around 350 different models available for end users with varying fuel types.
- Several players in the passenger car segment are introducing new and innovative products to increase the safety of the vehicle owner and attract more demand for their products. Furthermore, the ban on new gas- and diesel-powered vehicles will come into effect in 2030, increasing the demand for electric passenger cars in the country. As the population of the United Kingdom continues to grow, there is a greater demand for transportation, including passenger cars. Increasing population often leads to increased car ownership and usage. Furthermore, higher incomes and more disposable incomes are increasing the demand for passenger cars in the country.
Understand The Key Trends Shaping This Market
Download PDF
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- The price of copper is likely to be hit by a surplus of supply
- Zinc prices in Europe are rebounding post pandemic
- Inflation, price rises, interest rate hikes, and the recession in the United Kingdom
- Laptop sales to witness a drop in the United Kingdom
- The rollout of 5G services in the United Kingdom is prompting a surge in demand for smartphones
- The return of employees to the workplace and a tightening of consumer spending habits in the United Kingdom impacted the market
- Stringent carbon emissions policies increase demand for e-buses
- Growing demand of electric and autonomous vehicles to boost the market
- Advancements in battery technology to propel demand for PHEV's
- The incorporation of advanced technologies into robotics solutions is driving the demand
- Nickel prices in Europe is decreasing due to increased production and weak demand
- Rising awareness among consumers of using energy-efficient ACs and rapid urbanization is creating opportunities
- Lockdown conditions and the introduction of the latest generation gaming consoles boosted the sales
- The implementation of more stringent minimum energy performance requirements and a decrease in carbon emissions are driving the demand
- The decline in trade activities and a shortage of raw materials impacted the growth
- The prevalence of television viewing decreased was most pronounced among the youth in the United Kingdom
- Electric heavy commercial vehicles to have positive impact on the market
- Supportive government policies and significant public spending propel the demand
- Growing adoption of automation in manufacturing processes propels the market
