PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1511357
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1511357
According to Stratistics MRC, the Global Class 5 Trucks Market is accounted for $23.05 billion in 2024 and is expected to reach $35.97 billion by 2030 growing at a CAGR of 7.7% during the forecast period. Class 5 trucks, commonly known as medium-duty trucks, occupy a crucial niche between light-duty pickups and heavy-duty semis. These vehicles typically have a gross vehicle weight rating (GVWR) ranging from 16,001 to 19,500 pounds (7,258 to 8,845 kilograms). They are versatile workhorses used for various applications, such as delivery trucks, utility trucks, and small buses. Class 5 trucks are designed to handle heavier loads than their lighter counterparts while remaining maneuverable and economical for urban and suburban environments. They often feature diesel or gasoline engines, offering a balance of power and fuel efficiency suitable for medium-duty tasks across industries like construction, logistics, and municipal services.
Industry trends and applications
The class 5 truck market is increasingly influenced by industry trends and applications that drive innovation and demand. Key trends include the shift towards electric and hybrid propulsion systems to meet sustainability goals and regulatory requirements. Additionally, advancements in connectivity and telemetries are enhancing fleet management efficiency and operational visibility. The growing emphasis on driver safety and comfort features is another significant driver, with technologies like advanced driver assistance systems (ADAS) becoming standard.
Market competition
Market competition in the class 5 truck market acts as a significant restraint due to its impact on pricing and profitability. With multiple manufacturers vying for market share, companies face pressure to keep prices competitive, which can squeeze profit margins. Additionally, intense competition spurs continuous innovation and product differentiation efforts, driving up research and development costs. Moreover, the need to maintain quality while reducing costs poses a challenge as manufacturers strive to meet customer demands without compromising on product standards.
Global market expansion
The global market expansion opportunity for class 5 trucks, which typically include medium-duty trucks used for various commercial purposes, is significant due to several factors. First, increasing urbanization and economic development in emerging markets are driving demand for efficient transportation solutions. Second, advancements in technology, such as electric and hybrid powertrains, are making these trucks more attractive in regions focusing on sustainability and emission reduction. Third, the expansion of e-commerce and last-mile delivery services is boosting the need for reliable medium-duty vehicles.
Insurance and liability issues
In the market for class 5 trucks, insurance and liability issues are significant concerns. Insurance premiums can be higher due to the size and weight of these trucks, which can cause greater damage in accidents. Liability issues arise from potential accidents involving these trucks, which may lead to substantial property damage or personal injury claims. Insurance companies closely assess risk factors such as driver experience, vehicle maintenance, and the nature of cargo transported.
The COVID-19 pandemic significantly impacted the class 5 truck market in several ways. Initially, lockdowns and restrictions disrupted manufacturing, supply chains, and dealer operations, leading to reduced production and sales. As economic activity slowed, demand for new trucks declined, affecting sales volumes across the industry. Moreover, logistical challenges and uncertainty about future business conditions further dampened investment in fleet expansions or upgrades. However, as economies began to recover and essential services resumed, there was a gradual rebound in demand for class 5 trucks, driven by sectors such as logistics, healthcare, and essential services needing reliable transportation solutions.
The diesel truck segment is expected to be the largest during the forecast period
The growth in the diesel truck segment within the class 5 truck market can be attributed to several factors. Diesel engines offer superior torque and towing capacity compared to gasoline engines, making them ideal for heavy-duty applications. Advancements in diesel engine technology have led to improved fuel efficiency and lower emissions, appealing to both regulatory requirements and cost-conscious fleet operators. Additionally, the durability and longevity of diesel engines make them a reliable choice for commercial use, ensuring lower maintenance costs over the vehicle's lifespan. These factors combined have driven the increasing adoption of diesel trucks in the class 5 segment, catering to industries such as construction, logistics, and municipal service.
The freight delivery segment is expected to have the highest CAGR during the forecast period
The freight delivery segment in the class 5 truck market has shown significant growth due to several key factors. Class 5 trucks, known for their versatility and maneuverability, are well-suited for urban environments where freight delivery demands are high. With the rise of e-commerce and last-mile logistics, there's been an increased need for reliable, agile trucks capable of navigating congested city streets while carrying substantial payloads. Manufacturers have responded by offering class 5 trucks with enhanced fuel efficiency, advanced safety features, and customizable configurations to meet specific delivery requirements.
The North American region has experienced significant growth in the class 5 truck market, primarily due to several key factors. One major driver is the robust expansion in construction and infrastructure projects across the continent, necessitating reliable and powerful vehicles for the transportation of heavy loads. Additionally, the increasing demand for efficient logistics and transportation solutions has spurred investments in class 5 trucks, which offer a balance of payload capacity and maneuverability. Moreover, technological advancements in vehicle design, including improved fuel efficiency and advanced safety features, have made class 5 trucks more attractive to fleet operators and businesses.
In recent years, the Asia-Pacific region has witnessed significant growth in the class 5 truck market. This growth can be attributed to several factors, including rapid industrialization, expanding infrastructure projects, and increasing urbanization across countries like China, India, and Japan. Government initiatives promoting transportation and logistics development have also fueled demand for class 5 trucks, which are crucial for medium-duty applications such as urban delivery, construction, and regional transportation.
Key players in the market
Some of the key players in Class 5 Trucks market include Caterpillar, Daimler AG, Doosan, Ford Motors, Freightliner Trucks, Hino Motors, Hitachi, Isuzu, Kenworth, Komatsu, Mitsubishi Motors Corporation, Navistar, Inc., Peterbilt, Terex Corporation, Toyota Motors Corporations and Volvo Group.
In June 2024, Volvo Group in India has signed a Memorandum of Understanding (MoU) with three prominent universities across India-Manipal University, KIIT University, and SRM University - to build a stronger industry-academia engagement and enhance industry readiness.
In June 2024, Demonstrating its commitment to a customer-first philosophy, Toyota Kirloskar Motor (TKM) inaugurated its First Company Owned Toyota Used Car Outlet (TUCO) in New Delhi, second in India, under the brand name of "Toyota U-Trust". This new facility spans over a vast 15,000 square feet with a capacity to display over 20+ Toyota certified vehicles.