Light Duty Truck Market size was USD 8.6 trillion in 2024 and is estimated to reach USD 27.7 trillion by the end of 2037, expanding at a CAGR of 9.4% during the forecast period, i.e., 2025-2037. In 2025, the industry size of light duty truck is assessed at USD 9.4 trillion.
The light duty truck market is growing as stricter regulations and a heightened sense of environmental awareness prompt consumers and businesses to opt for vehicles that produce lower emissions and offer improved fuel efficiency. The Climate Change Authority reported that vehicle emissions regulations apply to more than 70% of light vehicles sold worldwide today. In absolute terms, the EU and Japan have the most aggressive standards for 2020 and beyond. China's and the US's 2020 criteria are anticipated to move these countries from efficiency levels comparable to Australia's to levels much closer to the world leaders, taking advantage of the higher rates of reduction that can be achieved when beginning with a less efficient fleet.
Moreover, manufacturers employ stronger materials for automobile interiors and structures while lowering weight. To reduce weight, they are also getting rid of extra tires and shrinking other equipment. According to the U.S. Department of Energy (DOE), a vehicle's fuel efficiency can increase by 6 to 8 percent for every 10% reduction in weight. Additionally, lightweight materials assist counteract the possible weight gain from emerging technology like connected and driverless cars. Therefore, these factors have propelled the demand for light-duty trucks.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
9.4% |
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Base Year Market Size (2024) |
USD 8.6 trillion |
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Forecast Year Market Size (2037) |
USD 27.7 trillion |
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Regional Scope |
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Fuel Type (Gasoline, Diesel, Electric)
Diesel segment is set to hold light duty truck market share of over 95.5% by the end of 2037. The segment is growing due to the recent introduction of diesel-powered light-duty trucks with improved fuel efficiency. The new series offers truck owners financial advantages by achieving industry-leading fuel efficiency and outstanding uptime. These trucks' increased mileage and less environmental impact are drawing in customers and organizations looking for cost-effective and environmentally friendly solutions, which is reviving interest in diesel as a fuel source.
From heavy-duty trucks to passenger automobiles, synthetics have become more popular in recent years as automakers work to fulfill increasingly stringent fuel economy and greenhouse gas emission regulations. Synthetics have been demonstrated to provide exceptional durability, longer engine life, all-temperature performance, and longer intervals between oil changes for light duty diesel engines, all of which reduce maintenance costs. Major players are striving to create the best synthetic oils for light-duty trucks and other vehicles due to the surging demand for logistics. For instance, in April 2022, Chevron released a premium full synthetic oil designed exclusively for the light duty diesel market: Chevron Delo XSP 15W-40. Chevron Delo XSP 15W-40 is intended for the light-duty diesel pickup driver or fleet manager who prefers the benefits of a complete synthetic.
Application (Commercial, Industrial)
The commercial segment in light duty truck market is estimated to gain a notable share in the forecast period. The increasing need for effective last-mile delivery solutions is driving the segment's growth. In addition to e-commerce, several other industries, such as local services, groceries, and pharmaceuticals, deliver goods to customers' homes. Light-duty trucks have become vital tools for satisfying this need because of their agility and versatility in urban settings. Companies are prioritizing these vehicles to streamline their delivery procedures, which leads to a rise in market expansion and adoption.
Our in-depth analysis of the global light duty truck market includes the following segments:
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Fuel Type |
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Application |
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Drive Configuration |
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APAC Market Statistics
Asia Pacific light duty truck market is predicted to account for revenue share of around 59.5% by 2037. The region's varied commercial and personal transportation needs are met by the new vehicles' cutting-edge features, increased efficiency, and contemporary looks. Moreover, governments are enacting legislation to promote greener and more efficient transportation alternatives, encouraging the use of electric and hybrid vehicles. According to the Asian Development Bank, Asia and the Pacific have the most active internet users (2.6 billion, or 52.8% of the global count). This has resulted in the expansion of e-commerce driving demand for delivery trucks and forcing logistics companies to invest in newer, more technologically capable vehicles to fulfill changing client demands.
According to Climate Change Research, in 2019, CO2 emissions from China's transport sector were 1274 million t, second only to the U.S. (1788 million t), accounting for 12.42% of the country's total CO2 emissions and 14.82% of global transport CO2 emissions. Therefore, as part of its initiatives to lessen air pollution and reliance on fossil fuels, the government is aggressively encouraging the use of electric vehicles. As companies seek to comply with the government's environmental objectives and take advantage of incentives and subsidies for purchasing electric vehicles, the demand for light duty trucks has increased.
The demand for light duty trucks has increased in India due to the number of end-use industries, including the food and beverage, construction, automotive, and healthcare sectors, which mostly depend on them for the transportation of finished items from production plants to retail locations. The automobile industry is one of the main drivers of economic expansion. For instance, in 2023, India produced 25.9 million automobiles annually. India's automobile industry is robust in terms of both exports and local demand.
North America Market Analysis
North America light duty truck market will garner a substantial share in the forecast period. The growing demand for these vehicles for family and personal use is driven by their adaptability and usefulness. Additionally, the region has a strong automotive infrastructure, which includes a large number of dealerships and service networks. Vehicle sales are also increased by economic variables like favorable financing alternatives and growing disposable incomes. The existence of significant automakers also guarantees that customers will have access to a wide variety of excellent light-duty vehicles.
In the U.S., larger vehicles like SUVs and pickup trucks are increasingly favored by consumers, dominating the light duty truck market. This trend is largely driven by lifestyle preferences, as buyers prioritize performance, spaciousness, and versatility. Strong economic conditions, such as rising disposable incomes and accessible financing options, have also contributed to the surge in vehicle sales. Trading Economics reported in 2024, the disposable personal income climbed from 21798.30 USD billion in August to 21855.80 USD billion in September. Additionally, advancements in technology within the light-duty truck sector are enhancing safety features and connectivity, attracting even more customers.
Furthermore, to maximize their investment, more buyers are on the lookout for vehicles that serve both personal and professional needs. As a result, compact vans and pickup trucks are gaining popularity due to their ample storage capacity, fuel efficiency, and ease of maneuverability in urban settings. Additionally, these trends have played a role in the growth of the light duty truck market in Canada.
The light duty truck market for is distinguished by its competitive and dynamic environment, fueled by the growing need for effective transportation solutions across various industries. Numerous well-established firms and recent arrivals influence the competition by consistently aiming to develop in the areas of smart mobility, fuel efficiency, and design.
Author Credits: Saima Khursheed
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