Rear Loader Trucks Market Size

Rear Loader Trucks Market Size

Rear Loader Trucks Market size was valued at USD 5.6 billion in 2023 and is estimated to register a CAGR of over 3% between 2024 and 2032. The market growth is driven by urbanization and industrial growth worldwide, along with stringent regulatory requirements aimed at proper waste management and environmental sustainability. Industries generate large amounts of waste, necessitating efficient disposal solutions and leading to significant demand for rear loader trucks.

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Governments and municipalities are investing heavily in waste management infrastructure and modernization of their waste collection fleets leading to market growth for rear loader trucks. Government initiatives and public-private partnerships for electrification of their fleets can significantly contribute to the growth of market. For instance, in July 2023, the Texas Commission on Environmental Quality released TXVEMP Grant for repowering eligible vehicles and equipment with electric models, along with supporting infrastructure. The total estimated funding is USD 87 million for replacing vehicles and equipment operating in Texas. The grant is targeting urban communities representing over 70% of the Texas population.

Companies operating in the market are launching new fully electric trucks to cater to its growing demand in the rear loader trucks market. For instance, in October 2023, Battle Motors launched LNT BEV Curbtender QuantumMD 11yd, a rear loader fully electric refuse truck that shows zero-emission fleet solutions. The truck has a range of up to 210 miles with a three-hour charge and peak power of 570 hp. The vehicle also has exclusive in-cab technologies including digital dash powered by RevolutionOS™, an API which combines analytics with operations like real-time routing and messaging to manage the vehicle and deliver rich decision-making data.

Rear loader trucks are typically more expensive compared to other types of garbage trucks, such as front loaders or side loaders. The high initial investment required is a barrier for smaller municipalities or private waste management companies, limiting their ability to adopt these vehicles. Also, these trucks are less maneuverable than other types of garbage trucks, especially in tight urban areas or residential neighborhoods with narrow streets. This can lead to operational challenges and potential damage to the vehicles or surrounding property.