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Heavy-Duty Trucks Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 90 Pages
  • June 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4828248
The heavy-duty trucks market was valued at USD 204.56 billion in 2021, and it is expected to reach USD 313.95 billion by 2027, registering a CAGR of around 7.4% during the Forecasts period (2022-2027).

Amid COVID-19 pandemic major OEM experienced a significant decline in heavy-duty trucks market. The transportation industry completely shut down due to the COVID-19 pandemic, creating new challenges for the cargo and production houses to shift their goods from one place to another. Severe disturbance in global logistics & supply chain system during the pandemic cause in decline in production of heay duty trucks. However, the market is expected to grow during the Forecasts period, as original equipment manufacturers (OEMs) are trying to restart production by bringing heavy investments to the market.

Over long term, the rising regulations on vehicle emissions, advancement in vehicle safety, and rapidly growing logistics, retail, and e-commerce sectors, expected to drive demand for the new advanced trucksacross the globe. Further, growing demand for powerful vehicles with higher carrying capacity to handle weights and strong suspension systems, and rising need for fuel-efficient trucks likely to further enhance demand in the market. For example, US National Highway Traffic Safety Administration set new standards for fuel economy for heavy-duty truck engines driven by diesel, natural gas, and substitute fuels.

Asia-Pacific countries exhibit the fastest economic growth rates in the entire world. Asia-Pacific is expected to be a major market propelling the global construction industry, with growing construction activities in India and ASEAN countries. North America will register considerable growth in the heavy-duty trucks market, owing to the presence of the major manufacturers, including Freightliner, Kenworth, International, Peterbilt, Volvo, and Mack, with the surging freight demand in the region.

Key Market Trends

Hybrid and Electric Heavy-duty Trucks to Have Positive Impact on the Market

The high market growth in the hybrid electric segment will be driven by the stringent emission norms established by the governments. The European Commission (EC) is also developing new software solutions to determine fuel consumption and CO2 emissions. In response to these policy changes across North America and Europe, the market players are introducing new models of hybrid electric and fully electric heavy-duty trucks.

North America, India, and Japan are some of the prominent regions saw positive sales for electric trucks in coming years owing to the expanding infrastructure and constantly growing need of freight loading. However, most countries across the globe in 2019 have witnessed decline in truck sales owing to the slowdown in economy, which was further continued during 2020 due to the outbreak of COVID-19.

Companies, such as Tesla, BYD, Volvo, and Mercedes-Benz have launched electric truck model to replace the diesel and gasoline powered models in few coming years. For instance,
  • In January 2022, Volvo Truks launched Volvo VNR electric truck with longer range. Volvo VNR Electric had an operating range of up to 240 km (150 miles). Now an enhanced version of the class 8* electric truck is launched, with an operational range of up to 440 km (275 miles) and increased energy storage of up to 565kWh. The improved performance is due to, among other things, improved battery design and a new six battery package option.
With the shifting preferences of customers, development of charging infrastructure, availability of fast-charging station and the subsidiary benefits on electric vehicles over conventional internal combustion engine trucks, the demand for electric trucks for freight operation is expected to grow, and the market may experience an exponential upward trajectory during the projection period.

Asia-Pacific Region Likely to Have Major Influence on Overall Market

The expansion of the heavy-duty trucks industry in Asia-Pacific over the estimated period is due to the increase in product sales, with a huge presence of reputed players in the region. The easy availability of workforce at reduced wages and the access to abundant raw materials at lower costs will steer the construction and automotive sectors, resulting in huge product penetration in Asia-Pacific. Countries, like Thailand, China, India, Malaysia, and Indonesia, are predicted to contribute sizably to the regional market revenue over the estimated timespan.

The growing government regulations improving electric vehicles adoption and robust expansion adopted by OEMs and suppliers in the region to accommodate rising demand from the automotive industry in China are expected to create a positive outlook for market growth during the Forecasts period. For instance,
  • The government of China is encouraging people to adopt electric vehicles. The country has already made plans to phase out diesel fuel, which runs the current generation of tractors and construction equipment. The country is planning to completely ban diesel and petrol vehicles by 2040.
The state governments in the India are including electric buses in their fleet in order to convert their ICE fleet of buses and reduce the operational cost while also reducing carbon emissions and improving the air quality. For instance,
  • In March 2021, the Delhi government approved a proposal to procure 300 new low-floor electric (AC) buses to increase the number of buses in the city. The upcoming buses will be inducted into the Delhi Transport Corporation (DTC). The first lot of 118 buses will arrive in October this year, while November will see an addition of 100 buses. As many as 60 buses will arrive in December, while the remaining 20 buses are likely to be received by January 2022.

Competitive Landscape

The market is neither fragmented nor consolidated. The heavy-duty truck market accommodates both major regional players and new players, providing equal opportunities. Manufacturers of heavy-duty trucks are engaged in developing effective supplier relations for ensuring timely delivery of high-quality products to meet the growing demand of consumers.
  • In January 2022, Ford Motor Company begins the production of all electric van, e-Transit that gets an all-electric powertrain and claims zero tail pipe emissions.
  • In Spetember 2021, Tata Motors announced its plans to invest over USD 1 billion, or an amount exceeding Rs 7,500 crore over the next 4-5 years to recreate its roadmap for the commercial vehicle business, a major part of which comprises electric vehicles. Especially buses.
  • In March 2019, Navistar launched its new Diamond Partner Program to connect truck manufacturers with international dealers in the heavy-duty trucks market, providing them with benefits to streamline the installation efforts. This aided the company in strengthening its relationship with truck dealers.
Some of the major players dominating the market include Volvo Trucks, Daimler Trucks, Isuzu Motors Ltd, PACCAR Inc., Tata Motors, and FAW Group Corp.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Driver
4.2 Market Restraint
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining power of suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size in Value - USD billion)
5.1 Tonnage Type
5.1.1 10 to 15 metric ton
5.1.2 More than 15 metric ton
5.2 Class
5.2.1 Class 5
5.2.2 Class 6
5.2.3 Class7
5.2.4 Class 8
5.3 Fuel Type
5.3.1 Diesel
5.3.2 Natural Gas
5.3.3 Hybrid Electric Vehicle
5.3.4 Gasoline
5.4 Application Type
5.4.1 Construction and Mining
5.4.2 Freight and Logistics
5.4.3 Other Applications
5.5 Geography
5.5.1 North America United States Canada Rest of North America
5.5.2 Europe Germany United Kingdom France Italy Rest of Europe
5.5.3 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.5.4 Rest of the World South America Middle-East and Africa
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 AB Volvo
6.2.2 Daimler AG
6.2.3 Traton Group
6.2.4 PACCAR Inc.
6.2.5 Tata Motors Limited
6.2.6 Ashok Leyland
6.2.7 FAW Group Corporation
6.2.8 China National Heavy Duty Truck Group
6.2.9 Dongfeng Motor Corporation
6.2.10 Isuzu Motors Ltd

Companies Mentioned

A selection of companies mentioned in this report includes:

  • AB Volvo
  • Daimler AG
  • Traton Group
  • PACCAR Inc.
  • Tata Motors Limited
  • Ashok Leyland
  • FAW Group Corporation
  • China National Heavy Duty Truck Group
  • Dongfeng Motor Corporation
  • Isuzu Motors Ltd