Class 5 Trucks - Global Strategic Business Report

The global market for Class 5 Trucks was estimated at US$21.9 Billion in 2024 and is projected to reach US$28.2 Billion by 2030, growing at a CAGR of 4.3% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Class 5 Trucks market.

Global Class 5 Trucks Market - Key Trends & Drivers Summarized

Why Are Class 5 Trucks Gaining Prominence in Regional Distribution and Vocational Service Fleets?

Class 5 trucks - defined by the U.S. Federal Highway Administration as having a Gross Vehicle Weight Rating (GVWR) between 16,001 and 19,500 pounds - are increasingly being positioned as a critical segment within the broader medium-duty truck landscape. Bridging the gap between light-duty commercial vehicles and heavier Class 6/7 trucks, Class 5 trucks offer the power and payload capacity required for more demanding operational roles while maintaining flexibility for various vocational and regional delivery applications. These trucks are commonly used in parcel and freight delivery, utility and service operations, towing and recovery, landscaping, construction support, and mobile maintenance services. Their versatility is a key selling point, as they can be upfitted with a wide range of specialized bodies - such as box trucks, stake beds, tow platforms, utility service bodies, or refrigerated units - enabling customization to specific industry use cases. For small- and mid-sized fleet operators, Class 5 trucks represent a sweet spot: high-performance workhorses that provide enhanced capacity without requiring the same level of licensing, insurance, or infrastructure investment associated with heavy-duty commercial trucks. As the need for flexible, robust, and multi-role commercial vehicles continues to rise, Class 5 trucks are becoming integral assets in the regional distribution and vocational fleet ecosystem.

How Are Electrification and Emission Regulations Transforming the Class 5 Truck Segment?

Global efforts to decarbonize transportation and tighten emissions regulations are having a direct impact on product development in the Class 5 truck market. As many urban areas begin enforcing zero-emission zones and regulatory agencies impose lower NOx and CO2 thresholds, fleet operators are under increasing pressure to transition toward cleaner alternatives. In response, OEMs are actively launching battery-electric Class 5 trucks, specifically designed for medium-haul routes, local deliveries, and vocational fleet applications that align well with current battery range capabilities. These electric models are being adopted by municipalities, logistics providers, and service contractors eager to meet ESG targets while also benefiting from lower fuel and maintenance costs over the truck lifecycle. Additionally, innovations in hydrogen fuel cell technology and hybrid drivetrains are beginning to enter the market as alternative solutions for heavier payload or extended duty cycle applications. On the internal combustion engine (ICE) front, manufacturers are introducing improved powertrains featuring advanced emissions control systems, enhanced fuel injection technologies, and lightweighting strategies to comply with new fuel economy standards. Government incentives, such as tax rebates, grants for fleet electrification, and green procurement subsidies, are further supporting the shift toward sustainable Class 5 trucks. As infrastructure improves and electric powertrains gain greater operational range and payload parity, electrified Class 5 trucks are expected to occupy a growing share of medium-duty vehicle procurement across both public and private sectors.

Is Product Modularity and Fleet Digitization Shaping the Competitive Edge of Class 5 Trucks?

A key growth enabler for the Class 5 truck market is its adaptability to evolving fleet requirements and technological integration. These trucks are now being developed with enhanced modularity in chassis platforms, cab configurations, and body compatibility - giving end-users the flexibility to customize vehicles precisely to their operational needs. From standard dry freight and flatbed configurations to specialized service bodies, boom lifts, or even mobile workshops, the design flexibility of Class 5 trucks ensures they can serve both general and niche markets effectively. In addition, manufacturers are equipping these trucks with digital fleet management systems, telematics, and cloud-connected diagnostics that enable real-time tracking, performance monitoring, fuel analytics, and predictive maintenance planning. Fleet digitization not only improves vehicle utilization but also reduces operating costs and increases asset longevity - making Class 5 trucks more attractive to data-driven operators. Moreover, driver-assist systems such as lane departure warnings, adaptive cruise control, backup cameras, and electronic stability control are being increasingly integrated to improve safety and driver comfort, especially in urban or congested route environments. This growing technology stack enhances the competitiveness of Class 5 trucks in both traditional and advanced fleet ecosystems. OEMs and upfitters are also offering end-to-end vehicle solutions - bundling truck bodies, telematics, service contracts, and financing packages into a single procurement model - further streamlining fleet acquisition and operation processes.

What’s Driving the Global Expansion of the Class 5 Trucks Market?

The growth in the Class 5 trucks market is driven by a combination of demand-side diversification, infrastructure development, fleet modernization trends, and regulatory shifts favoring medium-duty vehicle electrification. One of the strongest demand drivers is the ongoing surge in regional logistics and local freight distribution, especially in the wake of accelerated e-commerce growth and urban delivery requirements. As delivery networks decentralize and regional warehousing expands, Class 5 trucks are proving vital in bridging the gap between long-haul transport hubs and last-mile delivery nodes. In parallel, the expansion of construction and municipal infrastructure projects across both developed and emerging economies is fueling demand for vocational trucks with mid-range payload capacities and robust customization options. Small and mid-sized enterprises (SMEs), which represent a large share of the global service economy, are increasingly turning to Class 5 trucks for fleet expansion due to their affordability, versatility, and lower operating complexity compared to heavier trucks. Electrification, driven by regulatory mandates and incentive structures, is also opening new market opportunities, especially in public fleet procurement, utility service vehicles, and urban waste management operations. Additionally, the rise of digital fleet leasing, telematics-enabled maintenance contracts, and vehicle-as-a-service (VaaS) platforms is making Class 5 trucks more accessible and manageable for businesses of all sizes. As OEMs continue to invest in R&D, offer wider model portfolios, and scale production of electric and hybrid variants, Class 5 trucks are expected to see sustained adoption across global markets - cementing their role as a critical workhorse in the evolving commercial transport ecosystem.

Report Scope

The report analyzes the Class 5 Trucks market, presented in terms of market value (US$ Thousand). The analysis covers the key segments and geographic regions outlined below.

Segments: Engine Type (Diesel Engine, Natural Gas Engine, Hybrid Electric Engine, Other Engine Types); Application (Freight Delivery Application, Utility Services Application, Construction and Mining Application, Other Applications)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Diesel Engine segment, which is expected to reach US$15.3 Billion by 2030 with a CAGR of a 4.9%. The Natural Gas Engine segment is also set to grow at 4.0% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $6.0 Billion in 2024, and China, forecasted to grow at an impressive 7.9% CAGR to reach $5.8 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Class 5 Trucks Market, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Class 5 Trucks Market.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Class 5 Trucks Market expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as Bollinger Motors, Daimler Truck AG, Ford Motor Company, General Motors Company, GreenPower Motor Company Inc. and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Select Competitors (Total 41 Featured):

• Bollinger Motors
• Daimler Truck AG
• Ford Motor Company
• General Motors Company
• GreenPower Motor Company Inc.
• Harbinger Motors Inc.
• Hino Motors Ltd.
• Isuzu Motors Ltd.
• Kenworth Truck Company
• Mitsubishi Fuso Truck and Bus Corporation
• Mullen Automotive Inc.
• Navistar International Corporation
• Optimal Electric Vehicles LLC
• PACCAR Inc.
• Peterbilt Motors Company
• Phoenix Motorcars
• REE Automotive Ltd.
• Stellantis N.V.
• Volvo Group
• Workhorse Group Inc.

Tariff Impact Analysis: Key Insights for 2025

Global tariff negotiations across 180+ countries are reshaping supply chains, costs, and competitiveness. This report reflects the latest developments as of April 2025 and incorporates forward-looking insights into the market outlook.

The analysts continuously track trade developments worldwide, drawing insights from leading global economists and over 200 industry and policy institutions, including think tanks, trade organizations, and national economic advisory bodies. This intelligence is integrated into forecasting models to provide timely, data-driven analysis of emerging risks and opportunities.

What’s Included in This Edition:

• Tariff-adjusted market forecasts by region and segment
• Analysis of cost and supply chain implications by sourcing and trade exposure
• Strategic insights into geographic shifts

Buyers receive a free July 2025 update with:

• Finalized tariff impacts and new trade agreement effects
• Updated projections reflecting global sourcing and cost shifts
• Expanded country-specific coverage across the industry