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 e-commerce sector's growth has significantly increased the demand for last-mile delivery vehicles, primarily medium-duty trucks for short urban routes. For instance, according to GMI, the global last-mile delivery market was valued at USD 175.3 billion in 2023 and is expected to register a CAGR of 6% between 2024-2032.
 

The trend towards home deliveries and urban fulfillment centers necessitates vehicles with medium-duty engines to manage logistics efficiently. These trucks must balance payload capacity with maneuverability in congested urban areas, driving the demand for medium-duty engines that offer optimal performance and efficiency.
 

As businesses and governments worldwide advocate for sustainability and greener technologies, medium-duty engine manufacturers are developing engines with lower emissions and higher fuel efficiency. Regulations such as the Euro 6 standards in Europe and similar rules in other regions are promoting the advancement of cleaner medium-duty engine technologies, including hybrid solutions. The market for low-emission engines is rapidly expanding as corporations aim to meet environmental goals and reduce their carbon footprints.
 

Medium-duty Engine Market Trends

Manufacturers are enhancing medium-duty engine fuel efficiency through turbocharging, variable valve timing (VVT), and direct fuel injection. To meet stringent emissions regulations, they are also implementing advanced exhaust treatment technologies like selective catalytic reduction (SCR) and exhaust gas recirculation (EGR) systems. These innovations reduce nitrogen oxide (NOx) and particulate emissions, making medium-duty trucks more environmentally friendly. As global fuel efficiency regulations tighten, these advancements are vital for maintaining competitiveness.
 

For instance, in May 2023, Eaton developed variable valve actuation technology for medium-duty trucks in the U.S. market. Moreover, Eaton's deactivating roller technology modulates the intake valve for early or late closing. This Late Intake Valve Closing (LIVC) enhances efficiency by lowering the effective compression ratio compared to the expansion ratio, resulting in higher exhaust temperatures.
 

As electric vehicles (EVs) gain traction in commercial fleets, medium-duty engines are being replaced by electric drivetrains in delivery trucks and urban buses. This shift is driven by the need for reduced emissions, lower operational costs, and government incentives. Companies like Freightliner and BYD lead in offering electric Class 4-6 trucks, reducing reliance on traditional engines.
 

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 market share and is expected to exceed USD 9.5 billion by 2034. Manufacturers are increasingly using advanced materials like aluminum and composites to reduce the weight of Class 6 vehicles while maintaining durability and payload capacity. This approach enhances fuel efficiency and maximizes cargo space, crucial for urban delivery and last-mile logistics. Lightweight materials also offset the weight of electrified powertrains, balancing environmental performance with practical utility.
 

Class 6 vehicle designs are becoming more flexible and modular, enabling faster product development and easier adaptation to diverse applications. Scalable, platform-based architectures allow for easy customization with different body styles, powertrain options, and specialized equipment, meeting the unique requirements of various end-users. This adaptability is essential in the Class 6 market, where customers demand tailored vehicles for specific operational needs.  
 

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 lower greenhouse gas emissions and the growing infrastructure for natural gas and propane fueling are driving interest in alternative fuel powertrains within the 150-250 HP segment. These engines, particularly useful for urban delivery, refuse, and vocational applications, offer cleaner combustion and reduced noise compared to diesel.
 

Additionally, customers in the medium-duty segment increasingly prefer integrated powertrain packages that combine the engine, transmission, aftertreatment, and other components into a cohesive system. This approach enhances performance, efficiency, and reliability over assembling individual components.
 

China medium-duty engine market accounted for over 30% of the revenue share in 2024. Chinese medium-duty engine manufacturers are focusing on localizing production and developing technologies tailored to domestic market needs. This includes optimizing engines for local fuel quality, operating conditions, and customer preferences to offer competitive, regionally relevant solutions.
 

Strict emissions standards in North America are driving significant investments in clean diesel innovations. Manufacturers are integrating technologies like selective catalytic reduction (SCR), turbocharging, and high-pressure common rail fuel injection to meet stringent NOx and particulate matter limits while maintaining diesel engines' fuel efficiency and torque delivery.
 

European fleet operators and medium-duty market customers emphasize the total cost of ownership, considering factors such as fuel efficiency, maintenance requirements, and resale value, in addition to the initial purchase price. Moreover, European customers increasingly prefer smaller medium-duty engine displacements with turbocharging technologies to boost fuel efficiency and cut CO2 emissions.
 

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. Cummins is enhancing fuel efficiency and reducing emissions in diesel and natural gas engines through advanced technology. To meet future energy demands and regulatory standards, they are investing in hybrid-electric and hydrogen-based powertrains. Cummins is also integrating telematics and data analytics to aid fleet managers in predictive maintenance and operational efficiency.
 

PACCAR, the manufacturer of Kenworth and Peterbilt trucks, focuses on vertical integration and technological innovation. By manufacturing engines in-house, PACCAR ensures high quality, performance, and compatibility across its vehicle lineup. Their engines are designed for fuel efficiency and reliability, and the company has expanded its portfolio to include electric and hybrid models to meet evolving market demands.
 

Volvo is advancing in the medium-duty market with a focus on sustainability and autonomous technologies. They are developing diesel engines with optimized fuel efficiency while transitioning to electric and hybrid models. Volvo has led the market with hybrid-electric medium-duty trucks in select regions and continues to invest in battery and fuel-cell technologies.
 

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
   

Medium-duty Engine Industry News

• In August 2024, Peterbilt announced the integration of PACCAR TX-12 automated transmissions with PACCAR PX-9 engines for its medium-duty Models 548, 537, and 536. Both the standard PACCAR TX-12 and TX-12 PRO versions seamlessly integrate with the PX-9, delivering efficient operation and superior drivability. The combined system offers up to 1,250 lbs.-ft. of torque and a maximum gross combination weight rating (GCWR) of 66,000 pounds, suitable for pick-up, delivery, and other tractor applications.
   
• In May 2024, Cummins Inc. and Isuzu Motors Limited launched a jointly developed 6.7-liter engine for Isuzu’s new medium-duty truck lineup. The “Isuzu DB6A” will power on-highway truck applications in the Japanese market and will be available in Asia Pacific and other global markets later this year. The engine will be assembled at Isuzu’s Tochigi Prefecture plant in 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