Medium Commercial Vehicles Market Size, Share & Industry Analysis, By Powertrain (ICE, BEV, HEV/PHEV, LPG & Others, and Fuel Cell), By Class (Class 3, Class 4, Class 5, and Class 6), By Type (Tractor Units and Rigid Trucks), By Application (Transportation, Construction, Mining, and Agriculture), and Regional Forecast, 2024 – 2032

The global medium commercial vehicles market size was valued at USD 82.29 billion in 2023. The market is projected to grow from USD 84.09 billion in 2024 to USD 108.90 billion by 2032, exhibiting a CAGR of 3.3% during the forecast period.The Asia Pacific dominated the Medium Commercial Vehicles Market Share with a share of 42.07 % in 2023

Medium commercial vehicles are designed for transporting goods and materials, with a Gross Vehicle Weight Rating (GVWR) typically ranging from 14,001 to 26,000 pounds (6,351 to 11,793 kilograms). These vehicles offer a balance between payload capacity and maneuverability, making them suitable for urban deliveries, regional freight transport, and various industrial applications. Common examples include box trucks, flatbeds, and refrigerated trucks used for medium-duty hauling tasks.

The current trend in the Medium Commercial Vehicle (MCV) truck market is the increasing adoption of electric trucks due to sustainability efforts. Although high initial cost and limited charging infrastructure for electric trucks hamper market growth. The growing demand for efficient urban logistics solutions, supported by advancements in battery technology and government incentives promoting green transportation, is a key driving factor for the market.

The COVID-19 pandemic severely disrupted the medium commercial vehicles truck market. Supply chain interruptions, factory shutdowns, and decreased demand from industries such as construction and retail caused production delays and reduced sales. However, increased demand for logistics and delivery services during lockdowns partially offset these losses. The market has shown signs of recovery, driven by the resumption of economic activities and infrastructure projects in the post-pandemic.

Medium Commercial Vehicles Market Trends

Rapid Adoption of Electric and Alternative Fuel Technologies Advances the Market

As governments enforce stricter emissions regulations and companies aim for sustainability, there is a shift toward electric commercial vehicles, hybrid, and hydrogen-powered trucks. Innovations in battery technology, extended range, and improved charging infrastructure are accelerating this transition. Additionally, advancements in telematics and connectivity are enhancing fleet management and efficiency. The focus on reducing the total cost of ownership, combined with environmental concerns, is driving demand for greener and more efficient MCV trucks. In April 2024, Daimler Truck introduced its all-electric vehicles brand, RIZON, to the Canadian market with the launch of its Class 4-5 vehicles. The RIZON brand made its Canadian debut at Truck World in Toronto from April 18th to 20th and was made available to Canadian customers, with preorders commencing in June 2024.

Medium Commercial Vehicles Market Growth Factors

Surge in E-commerce and Last-mile Delivery Services to Augment Market Demand

The growing demand for timely and efficient goods transportation has increased the need for reliable MCV trucks. Additionally, the stringent emission regulations are pushing manufacturers toward cleaner, more fuel-efficient vehicles, including electric and hybrid models. Moreover, urbanization and infrastructure development further bolster demand, as cities require versatile and maneuverable trucks for construction and municipal services. Together, these factors drive innovation and growth in the MCV truck market. In November 2023, Bolloré Logistics introduced a fully electric truck for last-mile deliveries in New York State. In collaboration with long-standing partner Sarcona, Bolloré Logistics launched this sustainable logistics service, deploying the electric truck to handle deliveries between New Jersey and New York.

RESTRAINING FACTORS

High Initial Costs and Limited Charging Infrastructure May Hamper Market Growth

Despite long-term savings on fuel and repairs, the upfront investment in electric trucks can be prohibitive for many companies. Additionally, the limited availability of charging infrastructure and longer charging times hinder the widespread adoption of electric trucks. Supply chain disruptions and shortages of critical components, such as semiconductors, also pose significant challenges. These factors, combined with economic uncertainties, slow the market growth and adoption of new, more sustainable technologies in the MCV truck segment. For instance, in February 2022, the International Council on Clean Transportation reported that the initial costs for battery-electric tractor trucks range from approximately USD 200,000 to USD 800,000, while fuel cell trucks cost between USD 200,000 to USD 600,000.

Medium Commercial Vehicles Market Segmentation Analysis

By Powertrain Analysis

ICE Segment’s Market Leadership is Owed to Uptake of Alternate Fuel Technologies 

Based on powertrain, the market is divided into ICE, BEV, HEV/PHEV, LPG & others, and fuel cell.

The ICE segment acquired the largest share of the market in 2023, driven by established infrastructure, lower initial costs, and widespread fuel availability. Proven reliability and longer driving ranges of ICE trucks make them favorable for long-haul and heavy-duty applications. Additionally, the slower adoption of alternative fuel technologies maintained steady demand for traditional ICE trucks.

The fuel cell segment is attributed to propel with the fastest growing CAGR during the forecast period 2024-2032, driven by the need for reduced emissions and environmental sustainability. Fuel cells offer long-range and quick refueling compared to batteries, addressing range anxiety and operational downtime. Government incentives and stricter emission regulations further boost adoption, promoting the shift from traditional diesel engines. For instance, in 2023, buyers of Nikola's hydrogen fuel cell electric trucks benefitted from a point-of-sale incentive of up to USD 385,000 per vehicle.

By Class Analysis

Integration of Advanced Technologies Propel Class 6 Segment

Based on class, the market is segmented into Class 3, Class 4, Class 5, and Class 6.

The Class 3 segment held the dominant share of the market in 2023 due to the increasing demand for versatile, cost-effective vehicles suited for urban and regional delivery. Key factors include the growth of e-commerce, regulatory support for emissions reduction, and the need for efficient, reliable trucks for last-mile logistics. Enhanced cargo capacity and improved fuel efficiency also contribute to the segment’s appeal over the considered period.

The Class 6 segment is estimated to experience a high growth rate over the forecast period. The segmental growth is propelled by the need for heavier payloads and greater durability for demanding applications. Advancements in truck technology that improve efficiency and reduce operating costs are fueling market demand.

For instance, in February 2024, Daimler unveiled the upgraded Actros L. The ProCabin design introduces a modern look with an 80-millimeter extended front end and enhanced aerodynamics, offering up to 3% fuel savings. The Actros L benefits from improved efficiency due to its aerodynamic cab and the latest OM 471 engine. Advanced vehicle safety systems such as Active Brake Assist 6 and Active Sideguard Assist 2, exceed General Safety Regulation standards. Additional innovations, including the Multimedia Cockpit Interactive 2 with expanded digital services, are anticipated to be available in Spring 2025.

By Type Analysis

Electrification of Fleets Advances Rigid Trucks Growth

Based on type, the market is divided into tractor units and rigid trucks.

The rigid trucks segment dominated the market in 2023 by holding the largest market share, driven by the versatility and reliability of rigid trucks across various applications. Rigid trucks are favored for their ability to handle diverse loads and urban deliveries efficiently, coupled with benefits from advancements in safety and fuel efficiency. This adaptability makes them essential for businesses in logistics, distribution, and construction, contributing to the medium commercial vehicles market growth.

In May 2023, Performance Food Group (PFG), along with Navistar, Great Dane, and Carrier Transicold (part of Carrier Global), launched an all-electric refrigerated truck. This initiative features battery-electric trucks equipped with electric refrigeration technology, providing a sustainable, direct-emissions-free solution for distributing refrigerated and frozen food. The program includes a commercial evaluation to assess truck’s performance and impact.

The tractor units segment is likely to experience the fastest growth during the forecast period of 2024 to 2032. The segment’s growth is primarily driven by the increasing demand for efficient long-haul transportation. Factors fueling this demand include growing logistics and supply chain needs, advancements in fuel efficiency and emissions technology, and regulatory pressures aimed at reducing environmental impact. These elements enhance the operational efficiency and sustainability of tractor units.

By Application Analysis

Transportation is the Leading Application of MCVs with Rapid Growth in E-commerce

Based on application, the market is distributed into transportation, construction, mining, and agriculture.

The transportation segment led the market in 2023, holding the largest share and is estimated to experience the fastest-growth during the forecast period. The key factors driving the transportation segment is the rapid growth of e-commerce and last-mile delivery services. Increased demand for efficient and reliable delivery solutions drives the need for versatile medium commercial vehicles capable of navigating urban environments and ensuring timely deliveries.

In March 2024, Saudia Cargo, Worldwide Flight Services (WFS), and Cainiao Group initiated a strategic partnership at Liege Airport to enhance the efficiency of cross-border e-commerce operations. The partnership’s key commitments include a three-hour e-commerce transit, BUP (Bulk Utilization Program), release within three hours from ATA, and truck handling in under 90 minutes.

The construction segment held a substantial share of the market in 2023. Urbanization and infrastructure development play a major role in generating a demand for medium commercial vehicles. Rising number of construction projects requires versatile and durable trucks for transporting materials and equipment, supporting efficient site operations and catering to diverse construction needs.

REGIONAL INSIGHTS

By region, the market for medium commercial vehicles is analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific held the largest medium commercial vehicles market share in 2023. Robust economic growth, which fuels infrastructure development and urbanization, drives the regional market. This increases demand for efficient transportation and logistics solutions, particularly medium commercial vehicles, to support construction, manufacturing, and distribution activities across rapidly expanding cities and industrial zones.

Europe held the second-largest share in 2023 fueled by stringent emission regulations and an increasing focus on sustainability. This drives demand for newer, more efficient, and environmentally friendly medium commercial vehicles. Additionally, the growth of e-commerce and urban delivery services enhances the need for reliable and versatile transportation solutions.

North America held a substantial market share in 2023 as e-commerce is boosting the demand for efficient urban and last-mile delivery trucks. Investments in infrastructure and construction projects further increase the need for versatile medium-duty trucks to support logistics, transportation, and building activities across the region.

South America held a decent market share in 2023 due to the expansion of the agriculture and mining sectors. These industries require reliable transportation for goods and materials resulting in increasing demand for medium-duty trucks. Additionally, improving road infrastructure and regional trade agreements boost the need for efficient logistics and distribution networks, generating market demand in the region.

The Middle East & Africa is likely to experience the fastest growing CAGR during the forecast period from 2024 to 2032. Rapid urbanization and infrastructure development in the region propels the market demand. Growing construction projects, coupled with expanding trade and logistics sectors, drive demand for medium-duty trucks. Additionally, economic diversification efforts and investments in transport networks further boost the need for reliable and efficient commercial vehicles.

KEY INDUSTRY PLAYERS

Key Players are Deploying Advanced Technologies Expand their Market Reach

The competitive landscape of the Medium Commercial Vehicles (MCV) market is marked by intense rivalry among leading global and regional manufacturers. Key players such as Daimler, Volvo, and PACCAR, among others, lead the market, leveraging advanced technologies and extensive distribution networks.

Emerging markets have witnessed increased competition from regional players such as Tata Motors and Hino Motors, offering cost-effective solutions tailored to local needs. Key differentiators in the market include innovation in fuel efficiency, electric and hybrid technologies, and adherence to stringent emission regulations. Additionally, strategic partnerships, mergers, and acquisitions play significant roles in expanding market reach and enhancing competitive advantages.

List of Top Medium Commercial Vehicles Companies:

• Volvo Group (Sweden)


• Daimler AG (Germany)


• PACCAR Inc. (U.S.)


• MAN SE (Germany)


• Tata Motors (India)


• Ashok Leyland (India)


• BharatBenz (India)


• Eicher Motors Limited (India)


• Ford Motor Company (U.S.)


• General Motors (U.S.)


• Scania AB (Sweden)


• Hyundai Motor (South Korea)


• Dongfeng Motor Corporation (China)


• Shaanxi Automobile Group (China)


• CNHTC (China National Heavy Duty Truck Group) (China)


• FAW Group (China)


• Isuzu Motors (Japan)


• Volkswagen Truck & Bus (Germany)

KEY INDUSTRY DEVELOPMENTS:

• May 2024 - Cummins and Isuzu Motors Limited launched a jointly developed 6.7-litre engine designed specifically for Isuzu's medium-duty truck lineup. The Isuzu DB6A engine powers highway truck applications intended for the Japanese market, with availability extending to the Asia Pacific region.


• March 2024 - General Motors (GM) advanced the development of a fleet of hydrogen-powered medium-duty trucks for a pilot project backed by the US Department of Energy (DOE). This initiative aimed at demonstrating the potential of hydrogen, as a viable alternative to diesel vehicles.


• February 2024 - Mack Trucks, a leading North American producer of heavy-duty and medium-duty trucks and a subsidiary of the Sweden-based Volvo Group, invested USD 14.5 million to expand its manufacturing operations in Roanoke County. This expansion added 72,000 square feet to the current production facility, enhancing capacity for both its medium-duty truck line and its medium-duty electric truck line.


• May 2023 - The Lion Electric Company, a premier manufacturer of all-electric medium and heavy-duty vehicles, introduced the Lion5, an all-electric Class 5 truck. This model is powered by LionBattery packs, which are Lion's proprietary 800V battery packs engineered and manufactured in-house.


• April 2023 - Motiv Power Systems, a pioneering force in electric vehicle (EV) trucks and buses for industry leaders such as Cintas, Bimbo Bakeries, and Purolator, launched next-generation electric trucks for medium-duty fleets.


• January 2023 - DEUTZ AG (DEUTZ) and Daimler Truck AG (Daimler Truck) signed agreements granting DEUTZ access to Daimler engines. This includes medium-duty engines (Daimler Truck MDEG series) for applications such as construction equipment and heavy-duty engines (Daimler Truck HDEP series) for heavy agricultural machinery. Consequently, DEUTZ would attract new customer segments, reduce development costs, expand its portfolio of modern internal combustion engines, and establish a foundation for future growth in this sector.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and top applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation