Market Trends of asia-pacific mlcc Industry
Development of the E-commerce industry is expected to propel the market
- The light commercial vehicle production was expected to grow from 5.25 million units in 2019 to 5.23 million units in 2022.
- The online commerce and logistics sectors support the market for light commercial vehicles. Owing to increased access to mobile phones and the Internet, there has been an increase in online retail sales and e-commerce. Commercial vehicle sales are expected to increase to improve the timely delivery of goods to clients.
- As a result of COVID-19 online sales, the user base and income of the global e-commerce market greatly expanded. The highest increase in online shopping by individuals in 2020 was caused by the pandemic, which forced individuals to shop online. However, the Asia-Pacific light commercial vehicles witnessed a YoY drop of 11.17% in production in 2020 because of stringent restrictions on e-commerce and travel imposed by the local authorities.
- The production of light commercial vehicles is recovering steadily as governments are taking the initiative to electrify these vehicles. Major regional players are collaborating to develop and manufacture electric trucks.
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The rising adoption of electric vehicles is expected to enhance the demand
- The passenger vehicle production was expected to grow from 40.65 million units in 2019 to 42.32 million units in 2022, registering a CAGR of 1.35% during the period.
- The passenger car sector witnessed a drop of 11.88% YoY production in 2020. The pandemic and the Russia-Ukraine war heavily impacted supply chains across the globe, slowing down the production of passenger cars and forcing manufacturers to close production lines temporarily. Economic challenges such as inflation affected demand, as people are postponing large purchases such as cars. However, the market witnessed a slow but steady recovery, with a YoY production growth of 10.83% in 2022.
- The demand for fuel-based passenger vehicles is slowly reducing due to changing government policies concerning CO2 emissions. Governments across the regions are focusing on reducing greenhouse gas emissions by 2030 and achieving net-zero emissions by 2050. To meet this demand, companies and governments are focusing on introducing hybrid or electric cars and installing charging infrastructures directly at public outlets or indirectly through subsidies for private car charging stations in homes and workplaces. Asia-Pacific countries are exhibiting higher growth in the sales of electric vehicles compared to their Western competitors. In the last decade, there has been a significant increase in BEV sales in this region.
- Owing to the aforementioned factors and developments, the adoption of predictive technologies is increasing in the production of passenger vehicles, and such positive trends are expected to enhance the growth of the MLCCs used in these vehicles during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Technological advancements and increasing consumer spending are driving market demand
- Technological advancements in gaming consoles driving the segment’s demand
- The increasing number of residential and commercial projects and consumers’ growing inclination toward smart refrigerators are driving the demand
- Big data and cloud computing expected to increase the demand for storage units in the region
- The willingness of consumers to invest in TVs and the increasing popularity of OTT content are driving TV sales in the region
- Ongoing technologies and policy developments point to the potential for new and more efficient freight trucks
- Growing industrial IoT 4.0 is expected to surge the demand
- The gaming industry and adoption of hybrid working models in the region are driving the demand for desktop PCs
- The growth of IT companies caused an increase in disposable incomes, driving the market
- Advancements in technology and 5G services are driving the demand for smartphones
- Unfavorable macroeconomic environment will continue to impact consumer spending on devices
- Increasing investments in production capacity by major industry players expected to propel market demand
- Stringent emission control policies will contribute to the Asia-Pacific electric vehicle growth in the future
- Increasing company investments in robotics and increasing hygiene due to the COVID-19 pandemic drove the demand
