Medium-duty Truck Market size was USD 54.8 billion in 2024 and is estimated to reach USD 115.3 billion by the end of 2037, expanding at a CAGR of 5.9% during the forecast period, i.e., 2025-2037. In 2025, the industry size of medium-duty trucks is estimated at USD 58 billion.
The global medium-duty truck market is expanding at a healthy pace and is expected to exhibit the same growth during the projected period. One of the significant trends augmenting the demand for medium-duty trucks is the boom in the e-commerce sector. Medium-duty trucks have a high payload capacity and are prime logistic vehicles for transporting high delivery volumes. Also, as medium-duty trucks can transport larger quantities of products/goods effectively, many e-commerce businesses find no to less need for heavy-duty vehicles.
The U.S. commercial truck sales totaled over 381,000 units during the first three quarters, with a dip in heavy-duty truck sales and falling short of 203,000 units as compared to Q1 to Q3 2023. However, medium-duty truck sales were up by 0.9% YTD, accounting for 178,000 units in the 2024 first three quarters. The Fed announced the reduction of 50 basis points to the federal funds rate, allowing the interest rates to slump across the economy. The lower interest rates are expected to be a tailwind for medium-duty truck sales and freight hauling in 2025, particularly in both residential and commercial construction sectors.
Considering this trend, many manufacturers are launching high-performance medium-duty trucks to earn high profits. The Ford Motor Company is one of the top manufacturers of medium-duty trucks, accounting for over 30% market share and its F-650 & F-750 Models are gaining boom in the marketplace. For instance, in April 2022, Ford F-650 & F-750 Models received the Work Truck’s Medium-Duty Truck of the Year for 2022 award. The prime reasons that supported these Ford models in achieving the award are their high performance, durability, maintenance, servicing, quality, and effectiveness. From this, it can be understood that the development of medium-duty trucks with advanced features is not only boosting their capabilities but also contributing to sales growth.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.9% |
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Base Year Market Size (2024) |
USD 54.8 billion |
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Forecast Year Market Size (2037) |
USD 115.3 billion |
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Regional Scope |
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Fuel (Diesel, Natural Gas, Hybrid, Electric, Gasoline)
Diesel segment is anticipated to dominate medium-duty truck market share of over 55.5% by 2037 owing to rising adoption of diesel medium-duty trucks for fuel efficiency, high torque & power, and durability. Modern diesel engine medium-duty trucks are more fuel-efficient than gasoline counterparts. Diesel medium-duty trucks achieve lower carbon emissions, provide better mileage, and also reduce fuel costs, making them a prime choice for fleet operators. Furthermore, diesel engines produce high torque at lower revolutions per minute (RPM), which makes them effective models for frequent stop-and-go driving conditions. Also, as diesel engines can handle high stress and are less susceptible to wear and tear, they lead to lower maintenance and durability when installed in medium-duty trucks.
Application (Construction & Mining, Freight & Logistics, Others)
In medium-duty truck market, freight & logistics segment is set to account for revenue share of more than 45.3% by the end of 2037. The rise in freight and logistics activities across the world is augmenting the sales of medium-duty trucks. According to the Research Nester analysis, the global freight and logistics market is calculated to reach USD 18.6 billion by 2026. This static underscores that the rise in freight and logistics operations is estimated to have a positive influence on the demand for medium-duty trucks. The freight and logistics operators are also widely demanding advanced medium-duty trucks particularly those equipped with telematics as they offer high safety, efficient tracking systems, and cost-effectiveness in modern supply chain operations.
Our in-depth analysis of the medium-duty truck market includes the following segments:
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Fuel |
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Class |
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Horsepower |
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Application |
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Asia Pacific Market Forecast
Asia Pacific medium-duty truck market is anticipated to hold revenue share of over 45.2% by the end of 2037, primarily due to the rising industrial and urban activities. The rapid infrastructure development activities and swift migration of people towards urban cities necessitate the use of medium-duty trucks for construction and material transportation. Medium-duty vehicles with high-volume transportation capabilities are prime choice vehicles, particularly in transportation.
The rapid industrialization and e-commerce growth in China are pushing the demand for advanced medium-duty trucks. For instance, according to the International Trade Administration report, China is the world’s largest market for e-commerce and contributes to 50% of global transactions. This highlights that the huge freight and logistics operations carried out in China directly fuel the demand for advanced medium-duty trucks.
India is witnessing high mining operations with an estimated 1319 carried out in FY 2022, 545 for metallic mineral mining and 775 for non-metallic minerals respectively. The rising mining activities are fuelling the need for modern high-performance, medium-duty materials for material transportation. Thus, the expanding mining activities are expected to offer lucrative opportunities for modern medium-duty truck manufacturers in India.
North America Market Statistics
The North America medium-duty truck market is projected to expand at a healthy CAGR during the projected timeframe. The continuous advancements in truck production and strict regulations on carbon emissions are anticipated to boost the adoption of modern medium-duty trucks in the region. The end use industries such as construction, freight, and logistics are highly advanced and open to employing the latest technologies, which is contributing to the increasing sales of modern medium-duty trucks for transportation purposes.
In the U.S., strict environmental regulations are the prime factors augmenting the sales of electric medium-duty truck market. For instance, in March 2024, the U.S. Environmental Protection Agency announced a new set of national pollution standards for passenger vehicles, light-duty trucks, and medium-duty trucks for model years 2027 through 2032 and beyond. These new set of standards are anticipated to mitigate over 7 billion tons of carbon emissions in the coming years. Thus, to comply with these regulations the manufacturers are more focused on the production of sustainable medium-duty trucks, and end use organizations are also adopting EV medium-duty trucks to align with sustainability trends.
The swiftly expanding e-commerce sector in Canada is pushing the demand for advanced and reliable delivery vehicles such as modern medium-duty trucks. The logistics companies in the country are highly advanced and invest more in innovative delivery solutions such as medium-duty trucks with telematics and advanced driver-assistance systems. Furthermore, the country’s zero-emission initiative is driving the electrification trend in the medium-duty truck market. Road transportation is a major contributor to the air population growth and to mitigate this government is implementing strict clean transportation regulations, further fuelling the sales of EV medium-duty vehicles.
Key players in the medium-duty truck market are employing several organic and inorganic strategies such as technological advancements, strategic collaborations and partnerships, mergers and acquisitions, and regional expansions to earn high profits. The industry giants are collaborating with other players and tech firms to develop medium-duty trucks with advanced features such as telematics, GPS, and advanced driver-assistance systems.
To grab sustainability trend opportunities, the leading companies are focusing on introducing EV medium-duty trucks. The strict environmental regulations across the world are necessitating end use organizations to adopt sustainable vehicles including EV medium-duty trucks, boosting the profit shares of medium-duty truck market players. Furthermore, they are entering into regional expansion strategies to tap new revenue streams.
Some of the key players medium-duty truck market include:
Author Credits: Saima Khursheed
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