Used Truck Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The used truck market was valued at around USD 41 billion in 2021, and it is expected to reach a value of around USD 52 billion by 2027 while registering a CAGR of over 4% during the Forecasts period.

COVID-19 pandemic in 2020 affected many markets, and the used trucks market is no exception. As the economies came to a halt, the sales of used trucks registered a decline, and this might cause an increase in prices in the post-pandemic period.

Owing to the low costs compared to the new trucks and rising freight demand across the construction and logistics industries, the demand for used trucks has been significant over the years. However, factors, such as the incentives and discounts offered by the truck manufacturers, new technologies, fuel efficiency (available at a low price), and less downtime of new trucks, are leading to the customers preferring new trucks over the used ones.

The rise in construction, agriculture, and e-commerce activities increased the demand for material transportation, which, in turn, has resulted in the increased sales of used trucks, across the world, over the past three years. The key factor contributing to the growth of the global used trucks market is the value proposition of used trucks. Reduced prices of used trucks and their increased operational quality are expected to boost demand from various customer segments during the Forecasts period.

Key Market Trends

The Rising Construction Industry is Driving the Demand for Heavy-duty Trucks

For any country, road transportation plays a crucial role in the transportation of goods. The high performance, along with improved features like driver comfort and safety (especially in Class 6 and Class 7 trucks), is one of the primary drivers of the high-performance truck market. High horsepower and high speed primarily characterize these vehicles.

The advanced use of technology like sensors, ABS, EBD, and other sophisticated safety features makes trucks one of the preferred choices for commercial and material handling in the construction and manufacturing sector.

With the thriving construction and real estate sector of countries such as India, South Korea, and China, heavy-duty trucks are expected to see a greater deployment rate in the next few years. By 2026, the Asia-Pacific heavy-duty trucks market share may gain substantially due to the numerous government investments and initiatives toward the promotion of construction activities in the region.

Moreover, the preference for advanced technologies, such as automatic transmission, is also increasing. The aforementioned factors are shifting the consumers' focus toward new trucks. As a result, the companies and manufacturers who sell used trucks are keeping their prices low in order to attract customers. There is a rise in the supply of trucks aged from 3 years to 5 years, with increased mileage, resulting in a fall in the prices of trucks in the market. Dealer lots are filled with trucks that are high on mileage, making the buyers lean toward the purchase of new trucks.

The market is majorly controlled by the retail dealership, with about 75% of the shares in the distribution channels. It offers better sales and service support, as compared to the other channels.

Asia-Pacific is the Fastest Growing Market for Used Trucks

Compared to the other regions, the used truck market is expected to grow more in the Asia-Pacific region. By 2020, the 2013 and 2014 model year trucks were available in the used truck market, and this may keep the value of used trucks high, which is presently low.

The Asia-Pacific region is expected to be a major market, propelling the global construction industry, with rising construction activities in developing countries, such as India and the ASEAN countries (including Thailand, Singapore, Vietnam, and other countries).

• For instance, in India, the construction sector is one of the booming industries. The country's construction sector is expected to grow twice as fast as China's, until 2030, with the rising population.
• The infrastructure sector is an important pillar for growth in the Indian economy. The Indian government is taking various initiatives to ensure the time-bound development of excellent infrastructure in the country.

Additionally, despite its volatile growth in the real estate sector, significant developments in rail and road infrastructure by the Chinese government (to withstand the demand stemming from the growing industrial and service sectors) have resulted in the tremendous growth of the Chinese construction industry in the recent years.

In the past few years, countries like Indonesia, Malaysia, and Singapore, have become the primary hosts for numerous national and international events, owing to their business potential.

As a result of the aforementioned developments, the demand for used trucks is expected to increase in the freight and logistics segment over the Forecasts period.

Competitive Landscape

The growth in used truck sales will hinge on strong improvements in cargo availability in the coming years, as the market is projected to grow. The pre-owned or used truck market was expected to see some spurt in sales due to the highly-priced new trucks and prevailing sluggish economic activity. A healthy freight market, a subdued volume of trade-ins, and tougher availability of new trucks have combined to push demand for used trucks upward.

Key players operating in the used trucks market are Scania, Mercedes-Benz, Renault, Mascus, and Volvo Trucks, among others. With the incorporation of advanced technologies, including IoT, AI, smart navigation systems, and accident prevention technologies, manufacturers are focusing on launching new products in order to stay competitive in the market.

Additional Benefits:

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

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