Medium Duty Truck Market Analysis

Medium-Duty Truck Market Overview

Medium-Duty Truck Market Size was valued at USD 49.8 Billion in 2022. The Global Medium-Duty Truck market industry is projected to grow from USD 52.53 Billion in 2023 to USD 80.63 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.50% during the forecast period (2023 - 2032). Increased demand for urban logistics and last-mile delivery services and focus on sustainability and environmental considerations in the transportation industry are the key market drivers enhancing the market growth.

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Medium-Duty Truck Market Trends

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  Growing demand for urban logistics and last-mile delivery services is driving the market growth

  
  

Market CAGR for medium-duty trucks is being driven by the rising demand for urban logistics and last-mile delivery services. Last-mile delivery represents the final leg of the supply chain, involving the transportation of goods from distribution centers to the end consumer. This stage is often the most challenging and expensive due to the need for quick and precise deliveries within urban areas. Medium-duty trucks are well-suited for navigating through city streets and fulfilling these last-mile requirements efficiently.

The surge in e-commerce activities has led to a substantial increase in parcel and package deliveries. With more consumers opting for the online shopping, businesses are under pressure to enhance their logistics capabilities, particularly in the crucial last-mile delivery stage. Rapid urbanization is concentrating populations in cities, leading to increased demand for goods and services within these urban areas. This trend is driving the need for robust urban logistics solutions that can navigate through congested traffic, limited parking spaces, and other urban challenges. Many urban areas are implementing regulations to mitigate the environmental impact of transportation. This has led to a growing emphasis on electric and alternative fuel vehicles, with medium-duty trucks being a practical choice for companies looking to comply with these regulations while maintaining the necessary load capacities for goods transport. Medium-duty trucks, especially those incorporating advancements in fuel efficiency and emission reduction technologies, are aligning with the sustainability goals of businesses and governments. Companies are increasingly recognizing the importance of environmentally friendly logistics solutions, and medium-duty trucks offer a balance between payload capacity and reduced environmental impact.

The integration of advanced technologies such as route optimization, GPS tracking, and real-time data analytics is making medium-duty trucks more efficient in managing last-mile deliveries. This technology helps companies streamline their logistics operations, reduce delivery times, and enhance overall service levels. Medium-duty trucks are often more adaptable to urban environments than their heavier counterparts. Their size and maneuverability make them suitable for navigating narrow streets and delivering to locations with limited access, which is crucial for successful last-mile logistics in densely populated areas. The market serves a range of industries, including retail, food and beverage, healthcare, and more. The versatility of medium-duty trucks makes them suitable for transporting various types of goods, contributing to their widespread adoption in urban logistics. Thus driving the Medium-Duty Truck market revenue.

Medium-Duty Truck Market Segment Insights

Medium-Duty Truck Fuel Insights

The Medium-Duty Truck Market segmentation, based on fuel, includes Diesel, Natural Gas, Hybrid, Electric, and Gasoline. The diesel segment dominates the market, accounting for the largest market revenue due to the efficiency and high torque provided by diesel engines, making them well-suited for the demanding tasks of medium-duty applications. Diesel engines offer superior fuel economy and longer driving ranges, essential factors for businesses engaged in urban logistics and last-mile delivery services, where efficiency and cost-effectiveness are crucial. Additionally, the established infrastructure for diesel fueling and the historically lower cost of diesel compared to alternative fuels further contribute to the dominance of the diesel fuel segment in the medium-duty truck market. The fastest-growing fuel segment in the market of medium-duty trucks is electric, driven by government incentives, advancements in battery technology, and increasing environmental concerns.

Medium-Duty Truck Horsepower Insights

The Medium-Duty Truck Market segmentation, based on horsepower, includes Below 150 HP, 150 HP-250 HP, and Above 250 HP. The 150 HP- 250 HP category dominates the market due to its versatile performance, striking a balance between power and fuel efficiency. Trucks in this range offer sufficient horsepower to handle diverse urban logistics and last-mile delivery tasks while maintaining cost-effectiveness. Their adaptability to various applications, from cargo transport to specialized services, makes them the preferred choice for businesses seeking optimal performance in medium-duty operations. The Above 250 HP segment is the fastest growing, and it is foreseen to continue to grow in the coming years, owing to the increasing demand for larger and more powerful trucks, particularly in the construction and mining industries.

Figure 1: Medium-Duty Truck Market, by Horsepower, 2022 & 2032 (USD Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Medium-Duty Truck Application Insights

The Medium-Duty Truck Market segmentation, based on application, includes construction and mining and freight and logistics. The freight & logistics category dominates the market due to the increasing demand for efficient and versatile vehicles in the transportation of goods. These trucks are well-suited for urban logistics, offering maneuverability and size advantages that are crucial for navigating city streets during last-mile deliveries. The sector's growth is further propelled by the rise of e-commerce, necessitating reliable medium-duty trucks to meet the demands of the evolving supply chain and last-mile logistics landscape.

The Construction and mining segment is the fastest-growing category due to the fact that medium-duty trucks are well-suited for a wider range of construction and mining applications.

Medium-Duty Truck Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific, and the Rest of the World. The North American Medium-Duty Truck market area dominates this market due to a robust economy that drives substantial demand for goods transported within the continent. The region's well-developed infrastructure, extensive road networks, and a thriving e-commerce sector contribute to the sustained growth of the medium-duty truck market.

Further, the prime countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.

Figure 2: Medium-Duty Truck Market Share By Region 2022 (Usd Billion)

Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Medium-Duty Truck market accounts for the second-largest market share owing to stringent environmental regulations, urbanization, and a growing emphasis on sustainable logistics, leading to increased demand for efficient and eco-friendly transportation solutions. Further, the German Medium-Duty Truck market held the largest market share, and the UK Medium-Duty Truck market was the fastest-growing market in European region.

The Asia-Pacific Medium-Duty Truck Market is expected to rise at the rapid CAGR from 2023 to 2032. This is due to the rapid urbanization, burgeoning e-commerce sector, and increasing emphasis on sustainable transportation solutions. Moreover, China’s Medium-Duty Truck market held the largest market share, and the Indian Medium-Duty Truck market was the fastest-growing market in Asia-Pacific region.

Medium-Duty Truck Key Market Players & Competitive Insights

Leading market players are investing heavily in the research and development in order to expand their product lines, which will help the Medium-Duty Truck market grow even more. Market players are also undertaking a variety of strategic activities to spread their global footprint, with important market developments including mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Medium-Duty Truck industry must offer cost-effective items.

Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the global Medium-Duty Truck industry to benefit the clients and increase the market sector. In recent years, the Medium-Duty Truck industry has offered some of the most significant advantages to automotive industry. Major players in the Medium-Duty Truck market, including Ashok Leyland, Eicher Motors Limited, Tata Motors Limited, Daimler Trucks, Hino Motors, BharatBenz, Ford, Isuzu Motors, Navistar, Freightliner, and others, are trying to increase market demand by investing in the research and development operations.

Navistar International Corporation is a prominent American company specializing in the manufacturing of commercial vehicles, primarily medium and heavy-duty trucks, buses, and military vehicles. The company is recognized for its innovative technologies, including advanced diesel engines and electric vehicle solutions. Navistar has a strong presence in North America and beyond, catering to various sectors such as transportation, construction, defense, and more. Over the years, the company has been known for its commitment to sustainability and has played a significant role for shaping the landscape of commercial vehicle manufacturing. With a focus on providing the reliable and efficient transportation solutions, Navistar continues to be a major contributor to the evolving automotive industry. In March 2023, Navistar announced that it had formed a partnership with GEICO to offer insurance for autonomous medium-duty trucks. The partnership is expected to help Navistar commercialize its autonomous trucking technology.

PACCAR is a prominent American company that stands as one of the world's largest manufacturers of heavy-duty and medium-duty trucks under the brand names Peterbilt, Kenworth, and DAF. Founded in 1905 and headquartered in Washington, PACCAR has established itself as a leader in the global trucking industry. The company is renowned for its commitment to innovation, producing trucks that integrate advanced technologies for enhanced fuel efficiency, safety, and environmental sustainability. PACCAR's trucks are widely used in various applications, including long-haul trucking, construction, and distribution. The company's success is attributed not only to its high-quality vehicles but also to its customer-focused approach and dedication to delivering reliable and efficient transportation solutions. In June 2023, PACCAR announced that it had acquired a minority stake in REE Automotive, a startup that develops electric vehicle platforms. The investment is expected to help PACCAR develop electric medium-duty trucks.

Key Companies in the Medium-Duty Truck market include

• Ashok Leyland


• Eicher Motors Limited


• Tata Motors Limited


• Daimler Trucks


• Hino Motors


• BharatBenz


• Ford


• Isuzu Motors


• Navistar


• Freightliner

Medium-Duty Truck Industry Developments

July 2023: Daimler Truck and Torc Robotics announced a partnership to develop autonomous medium-duty trucks. Daimler Truck will provide the truck platform, while Torc will provide the autonomous driving system. The partnership is expected to result in the first commercial deployment of autonomous medium-duty trucks in North America.

May 2023: Hino announced that it had formed a joint venture with Isuzu to develop electric medium-duty trucks. The joint venture is expected to lead to the development of new electric truck models that are sold by both companies.

April 2023: Mitsubishi Fuso Truck and Bus Corporation acquired the 10% stake in Nikola Corporation, a startup that develops electric vehicles. The investment is expected to help Mitsubishi Fuso develop electric medium-duty trucks.

Volvo Group has launched the new line of its electric trucks, with more sophisticated battery technology to achieve longer distances and better performance.

Ford Motor Company has recently announced an all-new medium-duty truck and improved driver assistance technology aimed at enhancing fleet management connectivity.

Isuzu Motors announced last week that it had bought UD Trucks from Volvo Group, as part of its alliance with Isuzu Motors.

Medium-Duty Truck Market Segmentation

Medium-Duty Truck Fuel Outlook

• Diesel


• Natural Gas


• Hybrid


• Electric


• Gasoline

Medium-Duty Truck Horsepower Outlook

• Below 150 HP


• 150 HP-250 HP


• Above 250 HP

Medium-Duty Truck Application Outlook

• Construction & Mining


• Freight & Logistics

Medium-Duty Truck Regional Outlook

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  Middle East
  
  


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  Africa
  
  


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  Latin America