India and LATAM will be the key growth markets for the LCV market in 2019 with 10.8% and 9% growth rates respectively. Global LCV market is expected to grow at a moderate pace at the rate of 4.8% from 2018 to 2019, with the tremendous increase in trade and transportation in the emerging markets like India, Latin America, Asia Pacific and China. Pick up trucks which are mostly popular in the US and Canada are finding widespread acceptance in other regions as well. South Korea and Japan although have a OEMs manufacturing pick ups in other regions are introducing pick up models in their home countries. A number of investment announcements have also been made about OEMs regarding the electrification of pick up trucks.
Aggressive growth in sensor technologies, artificial intelligence, maps and advanced computing capabilities are paving the way for autonomous driving in the LCV market. With major OEMs already working towards L3 level of automation, LCV OEMs are set to follow suit. Majority of the LCVs sold are expected to have fleet tracking, preventive maintenance, navigation and safety alerts as standard telematics features especially in the developed regions, however emerging regions are also expected to adopt telematics solutions in a big way. Innovations in last mile delivery and passenger transportation are set to bring out new applications for the use of LCVs. With the increase in supply chain complexity and service requirements, last mile delivery is evolving dynamically to meet the customer demands. Electric and autonomous LCVs will play a crucial role in this regard. A large portion of the dynamic shuttles which are a part of on-demand passenger transportation will be based on LCV platforms. LCV OEMs will leverage their technological knowhow in the passenger vehicle segment in terms of powertrain, and lightweighting strategies. Most of the OEMs such as Renault-Nissan, Volkswagen and Daimler are working on building common platforms for some LCVs and passenger vehicles to reduce lead times and save on development costs.