Heavy-Duty Trucks Market Size is Projected to Generate $538.2 Billion by 2031Download Sample Reports Overview
The Global Heavy-Duty Trucks Market Size was $357.7 billion in 2021 and is expected to grow with a CAGR of 4.3%, by generating a revenue of $538.2 billion by 2031.
COVID-19 Impact on the Heavy-Duty Trucks Market
The COVID-19 pandemic has brought several uncertainties leading to severe economic losses as various businesses across the world were standstill. This has ultimately lowered the demand for heavy-duty trucks due to disruption in the supply chain, closure of manufacturing plants, as well as economic slowdown across several countries. In addition, import-export restrictions were laid down on major heavy-duty truck-producing countries such as the U.S. and China. The global COVID-19 pandemic impacted heavy truck manufacturing & demand, and this is projected to constrain the heavy truck market during the forecast period. To manage the disease, the pandemic resulted in tight containment measures such as social separation, remote working, and the shutdown of some production units. Such lockdown standards caused supply chain struggles in a variety of sectors, including heavy vehicle production. Owing to the COVID-19 pandemic, the transportation industry was entirely shut down, posing new problems for freight and manufacturing companies to move their goods from one location to another. During the pandemic, severe disruptions in global logistics and supply chain systems led to a drop-in heavy-duty vehicle manufacturing. However, the industry is likely to rise during the forecast period as original equipment manufacturers (OEMs) attempt to resume manufacturing by investing heavily on the sector.
Global Heavy-Duty Trucks Market Analysis
Governments across the world are placing pressure on automakers to invest in the development of electric trucks in order to minimize carbon emissions generated by diesel fuel combustion and to combat greenhouse gas emissions. Governments are providing incentives through programmers and they intend to boost the development of battery electric trucks, which is anticipated to fuel the heavy-duty trucks market growth. Governments throughout the world are now offering tax reductions and other incentives to encourage the purchase of electric vehicles. Furthermore, the central governments of a few countries exclude electric cars from paying highway tolls. For example, the Indian government proposes to decrease the Goods and Services Tax (GST) on electric vehicles from 12% to 5% in order to accelerate the adoption of electric vehicles. These factors are anticipated to boost the heavy-duty trucks market size in the upcoming years.
Manufacturers, for their part, understand that strong customer demand translates into higher profit potential, and they price appropriately. The bulk of base model trucks are provided to commercial fleets & businesses, and they are extremely rare. The majority of buyers choose mid-grade trim vehicles in any automotive market, including trucks. The base model, on the other hand, acts as the manufacturer's marketing's "price pull" in terms of marketing. Once the consumer arrives on the dealer's lot with the lowest price possible, the dealer is expected certainly to almost add 30 to 50% more to that basic price in trim choices and upgrades, which is anticipated to hamper the heavy-duty trucks market growth.
The global heavy-duty truck sector is now undergoing a major shift in production. Autonomous trucks, and electrified trucks are set to disrupt the sector. The ever-expanding prospects of the automotive sector in emerging nations, owing to the availability of critical resources and favorable FDI regulations, are expected to enhance heavy-duty truck production across numerous areas. The expansion of road networks, as well as increased foreign sourcing of heavy-duty vehicle components, are likely to boost demand. Heavy-duty truck manufacturers concentrate their efforts on increasing their profit margins by depending on their dependable customers in the construction and logistics sectors.
Global Heavy Duty Trucks Market, Segmentation
The heavy-duty trucks market is segmented on the basis of class, horsepower, fuel type, and region.
By class, the market segment is bifurcated into class 7 and class 8. The Class 8 segment accounted for a dominant market in 2021. The increased availability of class 8 trucks in terms of cargo capacity, and engine systems is projected to provide a favorable climate for industry expansion. Transport operators are making high-value 6*2 and 6*4 heavy-duty vehicle orders with companies, increasing their market share. Manufacturers such as DAF Trucks N.V. and MAN SE are manufacturing trucks for heavy material transport in order to gain a competitive advantage in this sector. The increased demand for regular material supply to the power sectors and trash clearance to expedite mining activities have expedited the sale of sleeper cab class 8 heavy-duty trucks. Hyundai, Ashok Leyland, and Kenworth are among the industry participants producing class 8 sleeper trucks for heavy operation in all industries. These factors are anticipated to boost the heavy-duty trucks market share of the class 8 segment during the forecast period.
By Horsepower, the heavy-duty trucks market has been divided into below 300HP, 300HP-400HP, 400HP-500HP, Biofuels, and above 500HP. Among these, the above 500HP segment accounted for the highest revenue share in 2021. Among them, the above 500HP segment is expected to account for a sizable portion of the market during the forecast period. The market is expected to expand due to increased demand for these engines in vehicles. As engine horsepower increases, considerations such as weight, aerodynamics, and fuel efficiency become increasingly important for heavy-duty vehicles. The market is anticipated to grow due to increased demand for these engines in automobiles. Weight, aerodynamics, and fuel efficiency become increasingly critical for heavy-duty vehicles as engine horsepower grows. These factors are anticipated to boost the heavy-duty trucks market share of the diesel segment during the forecast period.
By fuel type, the market has been divided into diesel, gasoline, natural gas, biofuels, electricity, and hydrogen. Among these, the diesel segment accounted for the highest revenue share in 2021. In the diesel sector, the heavy-duty truck is widely used as motor diesel, owing to their high-octane content, which boosts vehicle efficiency & improves power and acceleration. Heavy-duty trucks are often used for longer routes and heavier loads so in comparison to gas engines, diesel engines can produce a lot more power. As a result, heavy-duty truck manufacturers choose to install diesel engines. Diesel trucks have a substantially greater compression ratio, ranging from 15:1 to 25:1, than gas-powered trucks, which have a compression ratio of 10:1. This allows diesel to self-ignite without the need for spark plugs. Diesel engines operate at a steadier temperature, resulting in improved fuel economy, whereas gas engines experience more severe temperature changes. These factors are anticipated to boost the heavy-duty trucks market size of the diesel segment during the forecast period.
The Asia-Pacific heavy-duty trucks market analysis accounted for the highest market share in 2021 and is projected to grow the fastest during the forecast period. The Asia-Pacific region is expected to expand rapidly throughout the forecast period. Rapid industrialization, commercial activity, and trade in the European area, as well as an increase in the number of truck component suppliers, are creating many opportunities for the heavy truck manufacturing industry to thrive. Market leaders are developing new high-performance vehicles ideal for all weather conditions to boost their market. The easy availability of labor at lower rates, as well as access to abundant raw materials at lower costs, may enhance the construction and automobile sectors, resulting in significant product penetration in Asia-Pacific. Thailand, China, India, Malaysia, and Indonesia are expected to contribute significantly to the regional market's revenue during the forecast period. Growing government policies to promote electric vehicle use, as well as robust expansion by OEMs and suppliers in the area to meet expanding demand from China's automotive sector, are projected to boost the market. The region's transportation business is expected to develop as a result of regulatory changes such as improved emission standards, axle loading, and a consumer move toward luxury trucks in Asia-Pacific.
Key Players in the Global Heavy-Duty Trucks Industry
Some of the leading heavy-duty trucks market players are
- Eicher Motors Limited
- Fiat Chrysler Automobiles
- Ford Motor Company
- General Motors
These players are constantly taking various initiatives such as partnerships and acquisitions to continue their dominance.