Class 4 Truck Market Size

Class 4 Truck Market Size

Class 4 Truck Market size was valued at USD 5.4 billion in 2023 and is estimated to register a CAGR of over 6.5% between 2024 and 2032. The surge in online shopping and e-commerce is driving market growth. E-commerce relies on timely and effective delivery, particularly the final leg from a distribution center to the end customer.

Class 4 vehicles are well-suited for last-mile delivery since their size allows them to navigate congested metropolitan areas and narrow roadways as compared to larger trailers. While smaller class 3 vehicles may be suitable for urgent single-package deliveries, the vast majority of online transactions contain numerous products. Class 4 trucks have extra cargo room to accommodate these combined deliveries. Furthermore, the e-commerce boom has resulted in more frequent deliveries, which class 4 trucks can manage with ease because of their endurance.

The growing urbanization in cities is fueling the adoption of class 4 trucks. As cities expand, there is an ongoing demand for building, maintenance, and utility services. Class 4 trucks are suitable for these activities because they can bring building materials straight to construction sites, carry specialized tools and equipment for utility personnel, and handle tight streets and obstacles in congested urban locations.
 

Urban areas are home to a wide range of small and medium-sized enterprises (SMEs). These enterprises frequently require transportation solutions for operations such as restocking restaurants and shops, moving equipment and supplies for maintenance or repairs, and picking up and delivering items to clients. Class 4 trucks are a more cost-effective and agile alternative to bigger vehicles, making them an appealing choice for SMEs.
 

In January 2024, The United Nations issued its "World Urbanization Prospects 2024" study, which predicts that by 2050, approximately 70% of the world population will live in cities, with urban populations increasing by 2.3 billion over the following 30 years. Rapid urbanization puts strain on infrastructure, housing, and public services in cities across the world and it demands the proper transportation of logistics and goods from one place to another, thereby fueling the demand for the class 4 truck market.
 

The high initial purchase price and ongoing operational costs are a major challenge for the market, potentially slowing down its growth. A class 4 vehicle may cost anywhere from USD 70,000 to USD 150,000 or more, depending on product specifications. This may be a significant challenge for small firms or those just starting out. They may struggle to obtain financing or be hesitant to make such a significant initial investment.
 

Businesses with limited finances may be compelled to examine alternatives such as secondhand vehicles or leasing options. This limits the total market size for new class 4 truck sales. Manufacturers can alleviate cost concerns by highlighting the long-term benefits of class 4 trucks.