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Medium Duty Truck Market Size
Medium Duty Truck Market size was valued at USD 51.8 billion in 2023 and is projected to grow at a CAGR of 5.6% between 2024 and 2032. The rise in e-commerce is significantly influencing the market. With the increase in online shopping, there is a growing demand for efficient & timely delivery of goods. Medium duty trucks play a crucial role in last-mile logistics, enabling swift and localized deliveries to consumers. The surge in e-commerce activities necessitates a fleet of versatile medium-duty trucks capable of navigating urban areas and fulfilling the growing volume of orders, driving market growth.
The rising demand for rental services is fostering the medium-duty truck market size. Businesses are increasingly opting for truck rental solutions to cater to varying transportation needs without the commitment of ownership.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 51.8 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR: | 5.6% |
| 2032 Value Projection: | USD 85 Billion |
| Historical Data for: | 2018-2023 |
| No. of Pages: | 250 |
| Tables, Charts & Figures: | 324 |
| Segments covered: | Class, Fuel, Horsepower, Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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For instance, in June 2023, Openforce and Ryder have joined forces to provide independent contractors with access to commercial vehicle rentals. Through this partnership, individuals utilizing the Openforce platform can take advantage of exclusive discounted rates when renting sprinter vans and box trucks from Ryder. This trend boosts the overall utilization of medium-duty trucks, driving market demand. Rental services offer flexibility to businesses, enabling them to scale operations efficiently, reduce upfront costs, and access specialized vehicles as required. This demand for flexible logistics solutions is contributing to market expansion.
The evolving emission standards pose a challenge to the medium duty truck market. As regulations become more stringent, manufacturers need to invest in advanced emission control technologies, which can increase the production cost. Adapting the existing fleets to meet new standards may require retrofitting or replacement, incurring additional expenses for operators. Balancing compliance with emission norms while maintaining cost-effectiveness becomes a complex task, impacting both manufacturers and buyers in the market.
Medium Duty Truck Market Trends
The integration of telematics and connectivity solutions is an ongoing trend in the medium duty truck industry. Advanced technology enables the real-time monitoring of vehicle performance, driver behavior, and route optimization. Telematics systems enhance fleet management, reduce fuel consumption, and improve overall operational efficiency. This trend aligns with the industry's push for data-driven decision-making, cost savings, and sustainability, making telematics a crucial component in shaping the future of medium-duty truck operations.
Stringent emission regulations and a growing emphasis on sustainability are pushing companies to launch EVs to reduce their carbon footprint. For instance, in May 2023, Lion launched Lion5, an all-electric Class 5 medium-duty truck equipped with LionBattery packs. The LionBattery is designed to optimize performance, integration, and packaging throughout Lion's complete portfolio of commercial trucks and buses.
Medium Duty Truck Market Analysis
Based on fuel, the diesel segment held over 60% of the market share in 2023. Diesel engines offer better torque and fuel efficiency for heavy loads and long hauls, making them suitable for commercial applications. Additionally, advancements in diesel technology have led to cleaner emissions and improved environmental standards, addressing previous concerns.
Moreover, the established refueling infrastructure and lower diesel fuel costs compared to gasoline also contribute to its popularity. With the increasing demand for freight transportation, especially in sectors including logistics and construction, the reliability and cost-effectiveness of diesel-powered medium duty trucks are expected to drive market growth during the forecast period.
Based on application, the freight & logistics segment accounted for 45% of the medium-duty truck market share in 2023. Augmented collaborations are driving advancements in the market's freight and logistics segment. Strengthened partnerships between key players contribute to improved efficiency, innovative solutions, and the integration of cutting-edge technologies.
For instance, in August 2023, Eicher Trucks and Buses, has enhanced its collaboration with Safexpress, a logistics and the supply chain organization. As a significant milestone in this enduring partnership, the Eicher Trucks and Buses officially delivered India's inaugural 5.5 T electric truck, the Eicher Pro 2055 EV, to Safexpress.
Asia Pacific medium-duty truck market recorded around 45% of the revenue share in 2023, owing to factors such as rapid urbanization and industrialization, thereby driving the demand for efficient goods transportation. The expansion of e-commerce and changing consumer behavior necessitate reliable last-mile delivery solutions.
Moreover, infrastructure development projects also require medium duty trucks for construction and material transportation. The growing middle-class population and economic growth further increase commercial vehicle demand. As a result, manufacturers are focusing on tailored offerings for the region. The ongoing expansion of industries and urban centers is expected to significantly boost the regional market demand.
Medium Duty Truck Market Share
Ford Motor Company and Mercedes-Benz Group AG are the major companies operating in the medium duty truck industry with a combined market share of over 30%. The medium-duty truck industry is dynamic and influenced by various factors such as technological advancements, regulatory changes, and market trends. These companies focus on introducing new & improved medium-duty truck models with advanced features, better fuel efficiency, and enhanced safety measures that can attract customers and create a competitive advantage.
The market is also witnessing an increasing adoption of electric medium duty trucks, encouraging companies operating in this market to launch innovative electric medium duty trucks.
Medium Duty Truck Market Companies
Major companies operating in the medium-duty truck industry are:
- Ashok Leyland Limited
- BharatBenz
- Eicher Motor Limited
- Ford Motor Company
- General Motors
- Hino Motors, Ltd.
- ISUZU MOTORS
- Mercedes-Benz Group AG
- PACCAR Inc
- Tata Motors Limited
- Traton Group
Medium Duty Truck Industry News
- In September 2023, Volvo Maroc introduced a fresh lineup of electric trucks in the medium & heavy-duty categories. The company has set ambitious goals to achieve 50% of its global sales from new electric trucks by 2030, with a commitment to achieving 100% net-zero emissions by 2040. With six electric truck models currently in serial production, Volvo Trucks offers the most comprehensive electric lineup within the global truck industry.
- In April 2023, Daimler launched a new electric medium duty truck brand in the U.S. Vehicle distribution will start in the fourth quarter of 2023 through an exclusive agreement with Velocity Vehicle Group.
The medium duty truck market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and Shipments (Units) from 2018 to 2032 for the following segments:
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Market, By Class
- Class 4
- Class 5
- Class 6
Market, By Fuel
- Diesel
- Natural Gas
- Hybrid
- Electric
- Gasoline
Market, By Horsepower
- Below 150 HP
- 150 HP – 250 HP
- Above 250 HP
Market, By Application
- Construction & Mining
- Freight & Logistics
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Russia
- Nordics
- Asia Pacific
- China
- India
- Japan
- South Korea
- ANZ
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- South Africa
- Saudi Arabia
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