Medium-duty Engine Market Size - By Vehicle Class, By Horsepower, By End Use, By Sales Channel, Analysis, Share, Growth Forecast, 2025 – 2034

Medium-duty Engine Market Size

The global medium-duty engine market size was valued at USD 9.2 billion in 2024 and is projected to grow at a CAGR of 6.4% between 2025 and 2034. The expansion of the e-commerce industry has escalated the need for last-mile delivery vehicles, particularly for short routes in urban areas where medium-duty trucks are utilized. For example, GMI predicts the global valuation of last-mile delivery to reach USD 175.3 billion by 2023, with an anticipated growth rate of 6% between the years 2024 and 2032.
 

There is an increasing propensity for online shopping, which in turn increases the demand for home deliveries and urban fulfillment centers. This alters the internal workings of logistics as medium-duty vehicles are required to efficiently perform the functions. These trucks have to give high importance to payload capacity while ensuring they are able to navigate through small, crowded urban areas. This has led to an increase in demand for medium-duty engines, which would provide such metered performance.
 

Medium-duty engine manufacturers are addressing the needs of fewer pollutants and more fuel economy as states and companies around the world are pushing for green technologies. These regulations are increasing the adoption of cleaner medium-duty engine technologies like hybrids. Efficiency in engines is becoming a major concern, which is why the market for low-emission engines is rapidly expanding due to the rise in corporations aspiring to achieve environmental goals and reduce carbon footprints.
 

Medium-duty Engine Market Trends

The fuel economy of medium-duty engines is being improved by turbocharging and adding independent fuel injectors and variable valve timing (VVT) systems. To comply with recently developed exhaust emissions challenges, selective catalytic exhaust scrubbing (SCR) and exhaust gas recirculation (EGR) systems are also being introduced. These changes will limit nitrogen oxide (NOx) and particulate emissions and ensure that the medium-duty trucks are more compliant with environmental regulations. However, as fuel economy rules continue to grow around the world, these developments are needed in order to remain competitive.
 

For instance, during May 2023, Eaton presented their design of variable valve actuation for medium-duty trucks for use in the American market. In addition, the company modified the deactivating roller technology that controls the intake valve by closing it early or late. This process, referred to as Late Intake Valve Closing (LIVC), is another efficiency gain since it lowers the effective compression ratio, while there is higher exhaust temperatures compared to the expansion ratio.
 

Medium-duty engines are now being replaced by electric drivetrains in delivery trucks and urban buses as EVs (electric vehicles) continue to have higher adoption in commercial fleets. This change is justified because emissions and operational costs need to be reduced alongside government subsidization. Freightliner, BYD, and others are at the forefront of replacing traditional engine-powered Class 4-6 trucks with electric ones.
 

Medium-duty Engine Market Analysis

Based on the vehicle class, the market is segmented into class 4, class 5, and class 6. In 2024, the class 6 segment accounted for over 60% of the medium-duty engine market share and is expected to exceed USD 9.5 billion by 2034.
 

• The growing use of materials including aluminum and composites is increasing among manufacturers to reduce the weight of class 6 vehicles while maintaining strength and payload. This helps in enhancing fuel economy and maximizing vehicle volume, which is very important for city churn and last-mile delivery.
   
• The lightweight materials also compensate for the heavy weight of the electrification powertrain, increasing the overall environmental output without significant compromise on utility.
   
• The design of Class 6 vehicles is becoming increasingly flexible and modular, which enables faster product development coupled with easy adaptability into a wide range of applications.
   
• Scalable, platform-based architectures make it relatively easy to create different body styles, powertrain configurations, and specialized tools in meeting the different end-user needs. Such flexibility is critical in the class 6 segment, where customers look for specific vehicles for their operational requirements.
   

Based on horsepower, the medium-duty engine market is divided into below 150 HP, 150HP-250HP, and above 250 HP. By 2034, the 150 HP-250 HP segment is expected to exceed USD 3 billion due to several key factors.
 

• The demand for low greenhouse gases and the increasing infrastructure for natural gas and propane fueling is propelling the interest in alternative fuel powertrains within 150-250 HP segments.
   
• Engines in this range are particularly suitable for urban delivery, refuse, and specialized vocational applications because they offer cleaner combustion and lowered noise compared to diesel.
   
• In addition, medium-duty customers prefer integrated powertrain packages where the engine, transmission, aftertreatment, and other systems are assembled into a single unit. This change improves performance, efficiency, and reliability over the traditional practice of bolting together separate components.
   

In 2024, China medium-duty engine market accounted for over 30% revenue share in the APAC.
 

• Manufacturers in China are devoting their efforts to setting up production lines in the country that will necessitate engines alongside R&D into the engine features that are in demand.
   
• They are also adjusting engines within specified parameters to provide lower specific fuel consumption and higher power output while being able to operate on the local diesel fuels and under specific conditions.
   
• The effort to achieve clean diesel innovations is being greatly increased due to the high emission standards in North America. Manufacturers are putting technologies like SRC, turbocharging, and diesel engines with high-pressure common rail fuel injection for diesel engines in order to meet the high standards of diesel NOx and particulate matter emissions without losing fuel efficiency and torque
   
• European fleet operators and the medium-duty engine market focus on the total cost of ownership which includes fuel efficiency, maintenance cost, resale value as well as the initial purchase price.
   
• In addition, medium duty European customers are now looking into lower engine sizes that come with turbocharging technologies to enhance CO2 emission reduction.
   

Medium-duty Engine Market Share

Cummins, PACCAR, and Volvo collectively held a substantial market share of over 16% in the medium-duty engine industry in 2024.
 

• Advancements in information technologies, such as telemetry and data analysis, are being deployed by Cummins to assist fleet managers in optimizing maintenance and operational effectiveness. Overall Cummin engine and diesel performance efforts are being employed to enhance overall fuel consumption and pollution emission. To adapt to changing societal energy requirements and legislative regulations, they are also working on hybrid-electric and hydrogen combustion engines.
   
• PACCAR, which builds Kenworth and Peterbilt trucks, firmly believes in integration thinking and in/building engines in-house to provide high quality, well performing, compatible and reliable engines across their whole vehicle range has forced the firm to expand its portfolio with electric and hybrid models.
   
• Additionally, Volvo has also rolled out hybrid-electric medium duty trucks in selected geographies and continues to invest in both batteries and fuel cells. Both these efforts alongside self-learner technologies are volumetric shifts toward the medium duty segment.
   

Medium-duty Engine Market Companies

Major players operating in the medium-duty engine industry are:

• CNH Industrial
• Cummins
• Hyundai
• Isuzu
• MAN
• Mercedes Benz
• PACCAR
• Scania
• Tata Motors
• Volvo
   

Engine advancements and the persistent need of stronger, fuel-efficient, greener engines enhances competition within the medium-duty engine market. The growing need of medium-duty trucks throughout logistics, construction, agriculture, and urban deliveries which relies highly on dependable performance is driving the competition.
 

The focus is on developing better emission-compliant, more efficient, and higher-performing engines.
 

The increasing use of medium-duty vehicles is also changing competition as such by the manufacturers adding hybrid and electric powertrains to their portfolios. Electric and hybrid engines and systems are being developed thanks to advanced battery technology, energy management, and lightweight materials. Additionally, the use of telematics and mid-range vehicles has also pushed manufacturers to include smart engine management systems capable of predictive diagnostics, fuel, and maintenance monitoring. Such innovations offer value to fleet operators by improving efficiency and reducing downtime.
 

Medium-duty Engine Industry News

• In August 2024, Peterbilt declared the incorporation of PACCAR TX-12 automatic transmissions with PACCAR PX-9 engines in its medium models 548, 537, and 536. The standard PACCAR TX-12 and TX-12 PRO versions work in conjunction with the PX-9 to ensure efficient operation and superior drivability of these vehicles. The service system can deliver maximum torque of 1,250 lbs.-ft. and is able to pull a gross combination weight rating (GCWR) of 66,000 pounds, which is suitable for pick-up and delivery and other tractor applications.
   
• In May 2024, Cummins Inc. launched together with Isuzu Motors Limited the new 6.7-liter engine for Isuzu medium duty truck series. The Isuzu DB6A, set to enter Asian Pacific countries later this year, is designed for American on-highway truck applications. The engine will be assembled at Isuzu’s plant in Tochigi Prefecture, Japan.
   

The medium-duty engine market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn), and shipments (Units) from 2021 to 2034, for the following segments:

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Market, By Vehicle Class

• Class 4
• Class 5
• Class 6

Market, By Horsepower

• Below 150 HP
• 150 HP- 250 HP
• Above 250 HP

Market, By Sales Channel

• OEM
• Aftermarket

Market, By End Use

• Construction machinery
• Agricultural machinery
• Commercial vehicles
• Special vehicles

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa