Light Duty Vehicles Market Size, Share, and Trends 2024 to 2033

Light Duty Vehicles Market Size to Reach USD 1882.48 Bn by 2033

The global light duty vehicles market size was USD 801.04 billion in 2023, calculated at USD 872.49 billion in 2024 and is expected to reach around USD 1,882.48 billion by 2033, expanding at a CAGR of 8.92% from 2024 to 2033. The rising demand for light-duty electric trucks worldwide is driving the growth of the light duty vehicles market.

Light Duty Vehicles Market Key Takeaways

• The North America light duty vehicles market size reached USD 272.35 billion in 2023 and is projected to grow around USD 649.46 billion by 2033, at a CAGR of 9.07% from 2024 to 2033.
• North America dominated the market with the largest revenue share of 34% in 2023.
• By vehicle type, the passenger car segment has contributed more than 43% in 2023.
• By vehicle type, the pickup truck segment is expected to grow at the fastest rate during the forecast period.
• By fuel type, the gasoline segment has held a major revenue share of 72% in 2023.
• By fuel type, the electric segment is estimated to register the highest CAGR during the forecast period.
• By drivetrain, the rear wheel drive (RWD) segment dominated the market during the forecast period.
• By drivetrain, the all-wheel drive (AWD) segment is expected to grow at the fastest rate during the forecast period.
• By transmission type, the manual segment has recorded more than 61% of revenue share in 2023.
• By transmission type, the automatic segment is expected to grow at the fastest CAGR during the forecast period.

U.S. Light Duty Vehicles Market Size and Growth 2024 to 2033

The U.S. light duty vehicles market size was valued at USD 217.88 billion in 2023 and is expected to be worth around USD 5.22.81 billion by 2033, at a CAGR of 9.14% from 2024 to 2033.

North America held the largest share of 34% in the light duty vehicles market share in 2023. The growth of this region is mainly driven by the rising developments in the automotive industry in countries such as the U.S., Canada, and Mexico. Detroit is also known as the automotive capital of the world, and it has the largest automotive industry in North America. This city has also experienced rapid innovations and scientific advancements to strengthen the automotive infrastructure that drives the market growth.

Moreover, rising government initiatives for strengthening EV infrastructure in countries such as the U.S., Canada, Mexico, and some others have boosted the light duty vehicles market growth. Additionally, the presence of ADAS manufacturers such as Magna International, Texas Instruments, Hella, and some others are adopting strategies such as product launches, collaborations, partnerships, and others, that drive the growth of the light duty vehicles market in this region. Furthermore, the growing trend of autonomous vehicles among the people of North America tends to lead automotive companies such as Tesla, Ford, GM, and others to launch autonomous vehicles that further drive market growth.

Asia Pacific is observed to grow at the fastest rate during the forecast period. Governments in the Asia Pacific region have implemented supportive policies, such as subsidies, tax incentives, and favorable regulations, to boost the automotive industry and promote the adoption of light duty vehicles. Governments in the Asia Pacific region have implemented supportive policies, such as subsidies, tax incentives, and favorable regulations, to boost the automotive industry and promote the adoption of light duty vehicles. Continuous investment in research and development by regional manufacturers has led to technological advancements in vehicle design, fuel efficiency, and safety features, making light duty vehicles more attractive to consumers.

• For instance, in January 2024, Tesla launched the all-new Model 3 in North America. This vehicle supports level 2 autonomy and comes with an electric drivetrain that provides a driving range of up to 341 miles on a single charge.
• In January 2024, Texas Instruments launched a new automotive chip named ‘AWR2544’. This is a satellite-based single-chip radar sensor that enables a high autonomy level and improves sensor fusion and decision-making capabilities in ADAS.
• In May 2024, the U.S. government announced that it would invest around 1.3 billion USD in developing EV infrastructure across the country.

Europe is observed to grow at a notable rate during the forecast period. The growth of this region is mainly driven by scientific advancements in the automotive sector, along with the presence of a well-established automobile industry in countries such as the UK, Germany, France, Italy, the Netherlands, and Switzerland. Also, the growing interest from the public and private sectors for development & research related to light duty vehicles has boosted the market growth. Moreover, the rise in government initiatives to reduce taxes for purchasing electric vehicles (EVs) has fostered light duty vehicles market growth.

In addition, the rising integration of ADAS in vehicles to ensure vehicle safety is an ongoing trend in Europe. Thus, ADAS components companies such as Autoliv, Bosch, Valeo, Delphi Technologies, and some others are constantly engaged in the research and development of ADAS systems and started adopting strategies such as product launches, collaboration, partnerships, and others that further drive the growth of the light-duty vehicles market. Additionally, the presence of global automotive manufacturers such as Audi, BMW, Volkswagen, Mercedes Benz, Ferrari, Lamborghini, Renault, and some others are continuously engaged in developing new vehicles with superior features, which in turn is expected to drive the growth of the light vehicles market in this region.

• For instance, in January 2024, Bosch announced a partnership with Here Technologies and Daimler Trucks. This partnership was done to develop a new advanced driver assistance system (ADAS) for commercial vehicles in Europe.
• For instance, in June 2023, Volkswagen launched a new SUV named ‘Tiguan’ in Europe. This SUV comes with several superior features, such as a modern cockpit design, a Car2X warning system, side assist (lane change assist), front assist (emergency braking system), and others, along with eight different mild hybrids (eTSI), turbocharged petrol (TSI), plug-in hybrid (eHybrid), and turbocharged diesel (TDI) drives.
• For instance, in April 2024, the government of the Netherlands announced that fully electric vehicles are exempted from any taxes, and plug-in hybrid vehicles will get a 50% reduction in taxes till the end of 2024.

Market Overview

The light duty vehicles market is one of the most important industries in the automotive domain. This industry has gained serious attention recently with the rising demand for passenger cars and SUVs across the world. Light-duty vehicles are mainly classified as vehicles that weigh less than 10,000 pounds. These vehicles have several applications in various domains ranging from passenger touring to goods transportation. There are several classes of light-duty vehicles, mainly including Passenger cars, vans, Sports Utility vehicles (SUVs), and Pickup Trucks, which have different applications in various fields. This industry has experienced rapid growth due to growing technological innovations in automotive sectors coupled with the rising interest of automotive companies in manufacturing these vehicles.

Light Duty Vehicles Market Growth Factors

• The growing awareness about electric vehicles (EVs) has boosted the market growth.
• The rising application of light duty trucks for commercial purposes has also driven the growth of the light duty vehicles market.
• The technological advancements in the automotive industry are expected to drive the market growth.
• The growing investments from public and private sector entities for developing the light duty vehicles industry boost the market growth.
• The rising trend of luxurious vehicles among the elite class people has fostered market growth.
• The increasing demand for rented vehicles across the world has propelled the growth of the light duty vehicles industry.
• The rise in government initiatives toward the development of EV infrastructure is driving the growth of the light duty vehicles market.

Light Duty Vehicles Market Scope

Light Duty Vehicles Market Size Dynamics

Driver

Integration of ADAS in modern vehicles

The growing preference of customers towards superior driving experience and safety features increases the demand for ADAS features in vehicles. Several automotive manufacturers, such as BMW, AUDI, MG, TATA, and others, started launching ADAS-enabled vehicles in the market. Thus, the growing integration of ADAS in vehicles is expected to drive the growth of the light duty vehicles market.

• For instance, in January 2024, MG launched the all-new Astor. This car comes with superior features such as ABS, EBD, six airbags, brake assist, ESP, and Level-2 - 2 ADAS for ensuring maximum safety while traveling. 

Restraint

Volatility in raw materials prices

The automobile sector has experienced regular fluctuations in the prices of raw materials associated with the production of vehicles. Due to the rising prices of raw materials, automotive manufacturers tend to increase the overall prices of the vehicles to gain maximum profits. This, in turn, restrains the growth of the light duty vehicles market in the forecast period.

Opportunity

Technological innovations to change the future

The automotive industry has experienced rapid developments due to advancements in modern science and technology. The integration of technologies such as artificial intelligence (AI), Blockchain, internet of things (IoT) , Predictive technology, and some others in vehicles has attracted investors from various domains to gain the interest of people around the world in buying smart cars. Thus, technological innovations in the automotive sector are expected to create growth opportunities for market players in the future.

• For instance, in February 2024, Saudi Arabia launched an AI-powered electric security vehicle. This vehicle was launched to analyze data and transfer command with control centers that help maintain security levels and traffic control.

Vehicle Type Insights

The passenger car segment dominated the light duty vehicles market in 2023. The growth of this segment is driven by the growing use of passenger cars for personal and office use. Also, the growing demand for low-maintenance and fuel-efficient cars in developing countries such as India increased the demand for passenger cars, which in turn drives the market growth. Moreover, the growing demand for passenger cars from the tourism industry also boosts the growth of the market. In addition, several car manufacturers such as Ford, Tata, Mahindra, Maruti Suzuki, Toyota, and others are constantly developing cars with maximum efficiency and higher longevity, which in turn drives the growth of the light duty vehicles market.

• For instance, in May 2024, Maruti Suzuki launched the Swift 2024 model in India. This car has improved features such as a 9.0-inch touchscreen infotainment system, six airbags, and a claimed mileage of around 25 km.

The pickup truck segment is expected to be the fastest-growing segment during the forecast period. The growth of this segment is attributed to the growing use of pickup trucks from the construction and logistics industry. Also, the rising application of pickup trucks for towing and transporting goods, along with the growing trend of mountain rides and others by moto riders, has boosted the demand for pickup trucks, thereby driving the growth of the light duty vehicles market. Moreover, automotive companies such as Ford, Toyota, BYD, Mahindra, and others started developing pickup trucks with efficient mileage and superior performance, which, in turn, drove the growth of the light-duty vehicles market.

• For instance, in April 2024, BYD announced the launch of an electric pickup truck at the end of 2024. This pickup truck comes with a boxy design along with DRLs and rectangular LED headlamps.

Fuel Type Insights

The gasoline segment held the largest share of the light duty vehicles market in 2023. The growing application of gasoline-based passenger cars for daily commute and rental purposes boosts the market growth. Also, gasoline vehicles are pocket-friendly and deliver high performance as compared to diesel vehicles, which increases the demand for gasoline vehicles, thereby driving the growth of the market. Moreover, gasoline-powered vehicles produce less noise, and their maintenance charges are also nominal as compared to other vehicles, which drives the market growth. In addition, automobile companies around the world are launching gasoline cars with superior features and improved performance, thereby driving the growth of the light duty vehicles market.

• For instance, in February 2024, Hyundai launched the all-new Creta N line. This car comes with a 1.5-litre turbo-petrol engine that produces a peak power of 158bhp and features a new front grille, a pronounced roof spoiler, sporty front and rear bumpers, 18-inch wheels, and a leather dashboard.

The electric vehicle segment is estimated to be the fastest-growing segment during the forecast period. The rising awareness regarding eco-friendly and fuel-efficient vehicles has boosted the demand for electric vehicles, thereby driving the market growth. Also, the rise in government initiatives to control C02 emissions, along with several subsidy schemes to promote electric vehicles (EV), boosts the growth of the light duty vehicles market. Moreover, automotive manufacturers such as Tata Motors, Mahindra, MG, and others are launching electric vehicles (EVs) at low prices that attract customers to adopt EVs, which in turn drives the growth of the market. 

• For instance, in January 2024, Tata Motors launched the all-new Punch EV in India at an affordable price of RS 11 lakhs. This car comes in different variants, having battery packs of 25 kWH and 35 kWH that claim a driving range between 315km and 421km.

Drivetrain Insights

The rear-wheel drive (RWD) segment dominated the light duty vehicles market in 2023. The growing use of rear-wheel drive (RWD) in vehicles due to factors such as high traction control, acceleration-handling balance, and some others increases the demand for rear-wheel drive (RWD) cars, thereby driving the growth of the light duty vehicles market. Also, rear-wheel drive (RWD) cars are less costly and require less maintenance as compared to all-wheel drive cars (AWD) and front-wheel drive (FWD) cars, which increases the demand for rear-wheel drive (RWD) cars that, in turn, drive the growth of the light-duty vehicles market. Also, automotive manufacturers are launching rear-wheel drive (RWD) cars at pocket-friendly prices, which in turn drives the growth of the light duty vehicles market.

• For instance, in January 2023, Mahindra launched the RWD Thar in India. This car is available in diesel-manual and petrol-automatic variants. The petrol variant comes with a 2.0-litre turbo-petrol engine that produces a maximum power of 150 bhp, and the diesel variant comes with a 1.5-litre diesel engine that produces a maximum power of 117 bhp.

The all-wheel drive (AWD) segment is expected to be the fastest-growing segment during the forecast period. The growth of this segment is mainly due to the growing interest of people towards off-roading activities along with the rising number of sporting events in snowy, muddy, and rocky terrains that increase the demand for all-wheel drive (AWD) cars, thereby driving the growth of the light-duty vehicles. Moreover, the rising interest of the young generation to buy sports utility vehicles (SUVs) increases the demand for all-wheel drive (AWD) cars, which, in turn, drives market growth. Also, vehicle manufacturers started developing all-wheel drive (AWD) SUVs that produce maximum power and provide high safety, which in turn drives the growth of the light duty vehicles market.

• For instance, in January 2024, Mahindra launched the all-new XUV700. This car comes with features such as captain seats, vehicle status, remote functions, location-based services, safety, third-party apps, and all-wheel drive (AWD) capabilities.

Transmission Insights

The manual segment dominated the light duty vehicles market in 2023. This segment is generally driven by the growing demand for affordable cars across the world. Also, manual cars are equipped with features such as superior control, fuel efficiency, less maintenance, ease of use, and some other features that increase the demand for manual cars, thereby boosting the growth of the light duty vehicles market. Moreover, automotive companies around the world have started launching manual cars to maintain the demand-supply chain that, in turn, drives the growth of the light duty vehicles market.

• For instance, in April 2024, Kia Motors launched a new passenger vehicle named’ Carens.’ This car comes with a new 1.5 Diesel engine with a 6-speed manual transmission for delivering superior performance and high control.

The automatic segment is estimated to be the fastest-growing segment during the forecast period. The growth of this segment is generally driven by the growing demand for luxury cars by rich people across the world. Also, automatic transmission cars are easy to use in heavy traffic and allow a simple driving experience along with better comfort than manual cars, which increases the demand for automatic cars, thereby driving the growth of the market. Moreover, automotive companies are engaged in developing high-performance automatic vehicles and launching luxury cars to gain customer attention, which increases the demand for automatic vehicles, thereby driving the growth of the light duty vehicles market.

• For instance, in May 2024, Mercedes Benz launched the Maybach GLS 600 facelift and the Mercedes AMG S63 E in India. These vehicles come with superior features such as Automatic Climate Control, Multi-function Steering Wheel, ADAS, Ventilated Seats, and 9-speed automatic gear transmission.

Light Duty Vehicles Market Companies

• Ford Motor Company
• Nissan Motor Company
• Subaru Corporation
• General Motors Company
• Honda Motor Company, Ltd., 
• BMW AG
• Daimler AG
• Fiat Chrysler Automobiles N.V.
• Hyundai Motor Company
• Toyota Motor Corporation

Recent Developments

• In March 2024, BMW launched the all-electric‘ iX xDrive50’ in India. This car provides superior features to ensure a smooth driving experience. It comes with standard adaptive 2-axle air suspension for a comfortable ride and a driving range of up to 635 km.
• In March 2024, Nissan launched a Kicks SUV. This SUV comes with ADAS and ProPILOT assist system for maximum safety along with touch-sensitive controls for the HVAC, a wireless charging pad, four USB-C ports, wireless Apple CarPlay and Android Auto connectivity, a headrest-mounted BOSE speakers, and a panoramic sunroof.
• In February 2024, Daimler AG launched a new light truck named ‘Canter’ in Japan. This truck offers a high level of comfort and advanced safety features, such as active sideguard assist and active brake assist 5, to ensure safe driving.
• In February 2024, Honda Motors launched a plug-in hydrogen fuel cell electric vehicle. This car is named the ‘Honda CR-V,’ and it bundles a 17.7-kwh battery that provides a range of around 270 miles along with a 9-inch HD touchscreen, wireless phone charging, wireless Apple CarPlay, and Android Auto compatibility, a 12-speaker Bose premium audio system, heated steering wheel, dual-zone climate control, power-adjustable heated front seats, parking sensors, and bio-based leather seat.
• In November 2023, Mitsubishi Motors Corporation launched a new Minicab EV. This vehicle has enhanced safety features, a powerful driving experience, and a range of around 180 km.
• In September 2023, Switch Mobility launched two light commercial electric vehicles in India, the Switch IeV3 and Switch IeV4. The Switch IeV3 has a 25.6 kWh LFP battery that produces a peak power of 40 kW and provides a payload capacity of 1200 kgs. The Switch IeV4 has a 32.2 kWh LFP battery that produces a peak power of 60 kW and provides a payload capacity of 1700 kgs.

Segments Covered in the Report

By Vehicle Type

• Passenger Car
• Van
• Sports Utility Vehicle (SUV)
• Pickup Truck

By Fuel Type

• Diesel
• Gasoline
• Hybrid
• Electric

By Drivetrain

• Front-Wheel Drive (FWD)
• Rear Wheel Drive (RWD)
• Four Wheel Drive (4WD)
• All-Wheel Drive (AWD)

By Transmission Type

• Manual
• Automatic

By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa