Medium-duty Engine Market Size

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.

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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.