Class 4 Truck Market Forecasts to 2030 - Global Analysis By Product, Fuel, Gross Vehicle Weight Rating, Ownership, Application and by Geography

According to Stratistics MRC, the Global Class 4 Truck Market is accounted for $6.08 billion in 2024 and is expected to reach $9.91 billion by 2030 growing at a CAGR of 8.50% during the forecast period. Medium-duty trucks, or class 4 trucks, fill a crucial role in the commercial vehicle market. The gross vehicle weight rating (GVWR) of these trucks usually falls between 14,001 and 16,000 pounds. They are adaptable workhorses, capable of doing everything from small-scale towing and transportation to local delivery and utility work. Moreover, class 4 trucks balance maneuverability and payload capacity with their moderate size and sturdy build, making them ideal for maneuvering through urban streets and towing heavy loads.

According to the American Trucking Associations (ATA), the trucking industry is the backbone of the American economy, responsible for transporting goods that sustain businesses and communities nationwide.

Market Dynamics:

Driver:

Growing need for services related to urban delivery

The growth of e-commerce has increased demand for prompt and effective urban delivery services. Class 4 trucks are a great option for last-mile delivery services because they can maneuver easily through city streets. Additionally, in response to the increasing demand for urban logistics, businesses are growing their fleets of Class 4 trucks as a result of the growth of online shopping and the expectation of same-day delivery.

Restraint:

Hefty purchase price up front

Class 4 trucks typically cost more to buy outright than smaller cars, which can be prohibitive, particularly for fleet managers and small businesses with tight budgets. Some prospective buyers may be discouraged from entering the market or growing their fleets due to the initial investment required to purchase Class 4 trucks, as well as additional costs for equipment installation and customization. Furthermore, the financial burden associated with Class 4 trucks is further increased by the total cost of ownership, which includes fuel, insurance, and maintenance costs.

Opportunity:

Growing interest in environmentally friendly transportation options

Class 4 trucks have a big chance to benefit from the move towards greener transportation options, given the rising concerns about environmental sustainability and the need to cut carbon emissions. By making investments in the creation of Class 4 trucks that run on alternative fuels, hybrids, or electricity, manufacturers can take advantage of this trend. Moreover, manufacturers can meet the growing demand from environmentally conscious consumers and businesses for sustainable transportation solutions by providing vehicles with lower emissions and less of an impact on the environment.

Threat:

Market saturation and competitive pressures

There are many truck manufacturers fighting for market share and customer attention in the fiercely competitive Class 4 truck market. Intense competition can cause manufacturers to strive to differentiate their products and draw in customers, which can result in pricing pressures, margin erosion, and increased marketing expenses. Furthermore, market saturation in specific areas or market segments can restrict prospects for growth and compel manufacturers to look into other markets or niche markets in order to maintain growth.

Covid-19 Impact:

The Class 4 truck market has been significantly impacted by the COVID-19 pandemic, which has resulted in supply chain disruptions, production delays, and demand fluctuations. Sales of Class 4 trucks decreased as a result of numerous companies delaying or cancelling fleet expansion and upgrade projects as lockdown measures were implemented and economic activity decreased. Moreover, mobility limitations and social distancing policies impacted logistics and transportation operations, which in turn affected the use of Class 4 trucks, especially in industries like construction, hospitality, and retail.

The City Delivery segment is expected to be the largest during the forecast period

In the Class 4 truck market, city delivery usually commands the largest share. Because of their mobility and accessibility, these trucks are ideal for navigating crowded city streets and effectively delivering goods to customers and businesses. Additionally, Class 4 trucks with advanced safety features, fuel-efficient engines, and ergonomic driver cabins are becoming more and more popular in the city delivery segment due to the growth of e-commerce and the growing demand for same-day and next-day delivery services.

The Electric segment is expected to have the highest CAGR during the forecast period

In the Class 4 truck market, the electric segment is growing at the highest CAGR. Recent years have seen a notable increase in the popularity of electric Class 4 trucks due to the growing emphasis on sustainability and the need to reduce carbon emissions. Furthermore, these trucks provide zero-emission transportation options for short-haul and urban delivery because they are battery- and electric motor-powered. Due to advancements in battery technology, government incentives encouraging the adoption of electric vehicles, and the expansion of charging infrastructure, the electric segment is growing rapidly.

Region with largest share:

North America holds the largest market share for Class 4 trucks. Due to the substantial demand from numerous industries, including construction, utilities, delivery services, and municipal applications, North America leads the world in the Class 4 truck market. The region boasts a strong industrial infrastructure, a booming logistics sector, and a vast network of road transportation. Moreover, class 4 trucks, which prioritize efficiency, dependability, and adaptability, are widely used on the continent for urban delivery, utility maintenance, and commercial transportation requirements.

Region with highest CAGR:

In the Class 4 truck market, the Asia-Pacific region has the highest CAGR. The demand for medium-duty trucks is being driven by rising economic activity, rapid urbanization, and infrastructure development in a number of industries, including municipal services, construction, and logistics. Additionally, rising urban populations, burgeoning e-commerce sectors, and government initiatives to update transportation infrastructure are driving substantial growth in commercial vehicle sales in emerging economies within the Asia-Pacific region, including China, India, and Southeast Asian nations.

Key players in the market

Some of the key players in Class 4 Truck market include General Motors, Navistar International Corporation, Tata Motors, Ford Motor Company, Volvo Group, Mitsubishi Fuso Truck and Bus Corporation, Scania AB, Isuzu Motors Ltd., Mahindra & Mahindra Ltd., Ram Trucks (Stellantis), Daimler Trucks North America LLC.

Hino Motors Ltd.

Key Developments:

In May 2024, Tata Motors and South Indian Bank have entered into a memorandum of understanding (MoU) to provide accessible financing solutions to commercial vehicle customers and dealerships. Under this agreement, South Indian Bank will extend financing services across Tata Motors' complete commercial vehicle range, leveraging its extensive network and tailored repayment options.

In January 2024, Volvo Group has signed an option agreement with John Cockerill Defense, which gives the Volvo Group the right to sell French military vehicle maker Arquus after mandatory consultations with staff representative bodies. The consultations are expected to be finalized in Q1 2024. The amount of the agreement was not disclosed.

In October 2023, General Motors and the United Auto Workers union have reached a tentative contract agreement that could end a six-week-old strike against Detroit automakers, a person briefed on the deal said Monday. The deal follows the pattern set with Ford last week and Jeep maker Stellantis over the weekend.

Products Covered:

• Large Walk-in
• Box Truck
• City Delivery
• Other Products

Fuels Covered:

• Diesel
• Natural Gas
• Hybrid
• Electric
• Other Fuels

Gross Vehicle Weight Ratings Covered:

• Class 4a
• Class 4b

Ownerships Covered:

• Fleet Operator
• Independent Operator
• Government Agencies
• Rental and Leasing Companies
• Manufacturers and Dealerships
• Other Ownerships

Applications Covered:

• Urban Delivery
• Refrigerated Transport
• Construction
• Utilities
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances