Market Trends of united states mlcc Industry
The development of third-party logistic providers may propel the demand for light commercial vehicles
- The market for light commercial vehicles (LCVs) is primarily driven by the e-commerce and logistics industries. As more people have access to the Internet and smartphones, online retail sales and e-commerce have been increasing. Purchases of LCVs are anticipated to increase, thereby facilitating quick delivery of items to customers. The country produced 8.03 million units in 2019.
- The COVID-19 pandemic and the Russia-Ukraine War resulted in unprecedented levels and types of mobility and transportation restrictions, resulting in a 17.17% Y-o-Y drop in production. Lockdowns and other restrictions caused previously unheard-of problems in the commercial vehicle industry's supply chain. Tightening emissions regulations, vehicle safety improvements, driver-assist systems in cars, and the explosive growth of logistics in the retail and e-commerce sectors have all fueled demand for new and innovative commercial vehicles.
- Third-party logistic providers, such as FedEx, UPS, and DHL, use a variety of LCVs to transport products to the nearest product delivery station. These businesses have a larger fleet of LCVs because smaller LCVs use less fuel than heavy commercial vehicles when commuting within a city. To combat climate change and city pollution, big logistics operators have started replacing their fleets of combustion engines with electric or low-emission vehicles. For instance, in December 2021, FedEx announced a global target to make 50% of all newly purchased vehicles electric by 2025, rising to 100% for the new fleet by 2030. By 2040, FedEx wants to achieve global carbon neutrality through the electrification of pickups and delivery vehicles as a significant investment area.
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Customers in the United States are demanding higher safety, which is propelling the demand for passenger vehicles
- The United States has one of the largest automotive markets in the world and ranks 8th in the production of passenger cars, producing 2.5 million units in 2019.
- Post the COVID-19 outbreak, there has been a major decline in production, registering a Y-o-Y drop of 24%, along with a decline in the usage of personal vehicles for commuting. Maintenance activities of passenger vehicles have significantly declined. With the ease of lockdown measures, there has been a surge in the usage of personal vehicles, which may drive the recovery of passenger vehicle consumption.
- The production of passenger vehicles in the United States reached 1.72 million units as several OEMs became interested in increasing their production capacity to meet the growing demand for electric vehicles. The government policy of banning ICE engines helped boost the sales of electric vehicles. The increase in the price of gasoline and diesel due to various global reasons has also made it easy for EV companies to boost their sales. Electric car sales in the United States, the third largest market, increased by 55% in 2022, reaching a sales share of 8%.
- Sales of ICE models have been steadily decreasing. The number of available ICE options was 3% to 4% lower in the United States in 2022 than in 2016. Several factors help increase sales of electric cars in the United States. More available models beyond those offered by OEMs help close the supply gap.
- The United States holds the second largest FCEV stock, with over 15,000 FCEVs. Most of these are fuel-cell cars. In 2022, the stock of FCEVs in the United States increased by more than 20%. These key elements fuel production demand for passenger vehicles and are expected to increase in the future.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Copper prices decline as the US dollar’s strength declines
- Prices increase due to an increase in travel
- Increasing residential construction activities and energy-efficient ACs, which consume less energy, are driving the demand
- Technological advancements and the introduction of 5G services drive the demand
- The increasing focus of consumers on eco-friendly, energy-efficient refrigerators propels the demand
- Supply chain disruptions and raw material and electronic component shortages decreased the growth of storage unit sales
- The affordable prices of larger screens and increasing viewing of online streaming platforms are driving the demand
- The development of third-party logistic providers may propel the demand for light commercial vehicles
- Supportive government policies to deploy public charging infrastructure are expected to promote battery electric vehicles
- The emergence of smart factories is expected to drive the growth of industrial robots
- The tightening of monetary policy to hamper the market
- Zinc prices may increase owing to fierce competition with Europe
- Price rises, rising interest rate hikes, and semiconductor shortages decreased the demand
- The rise in cloud adoption drives the demand
- The rapid adoption of 5G networks and the emergence of budget-centric smartphones drive the demand
- Innovative designs with advanced features are driving the demand
- Electric heavy commercial vehicles are expected to impact the demand positively
- Supportive infrastructure and electric vehicle regulations are driving the demand
- Advancements in battery technology to propel PHEVs in the United States
- The growing demand for service robots in the healthcare sector fuels the market's growth
