Pickup Truck Market Size, Share & Industry Analysis, By Truck Type (Small Size, Midsize, Full Size), By Propulsion Type (Diesel, Gasoline, Hybrid, Electric), By Component (Drivetrain, Interior, Body, Electrical & Electronics, Chassis), and Regional Forecast, 2024-2032

The global pickup truck market size stood at USD 208.67 billion in 2023. The market is expected to grow from USD 218.51 billion in 2024 to USD 333.34 billion by 2032, registering a CAGR of 5.4% during 2024-2032.

Pickup trucks are light-duty vehicles mostly used to transport products and freight. Furthermore, several North American nations, such as Mexico and the U.S., use such trucks as passenger vehicles. These trucks feature enormous cargo spaces, making them ideal for various commercial uses. They are popular as they can be used for multiple tasks, including hauling carriages and transporting cargo.

Factors such as the growing consumer preference for online shopping and the heightened demand for fuel-efficient vehicles for outdoor pursuits like boating and camping are expected to fuel the growth of the pickup truck market. Nevertheless, the high expenses associated with full-size pickups and the tightening emission regulations impede the global market's progress. The economic uncertainty exacerbated by the COVID-19 pandemic led to a downturn in consumer spending, including new vehicle purchases. Consequently, numerous potential buyers deferred their plans to buy a new car due to financial limitations, resulting in a decline in both personal and commercial vehicle sales.

A key market driver is the growing customer preference for these trucks over passenger vehicles. Due to rising industrialization, infrastructure development, and goods carrier activity, utility trucks are preferred in developing countries. Developed countries that aggressively promote Do-It-Yourself (DIY) services witness high penetration of utility trucks compared to other vehicles, as these trucks are multifunctional. They can be useful for carrying modest cargo and pulling caravans and other carriages for their owners.

In both developed and developing nations, the growth of SMEs has been a significant driver for the light-duty truck industry during the last five years. A substantial rise in last-mile delivery services over the previous decade remarkably increased the demand for utility trucks.

Pickup Truck Market Trends

Increasing Electrification of Vehicles and Adoption of Autonomous Vehicles will Set Positive Trend for Market Growth

The rising air pollution caused by fossil-fueled vehicles led to several environmental crises. This has encouraged auto manufacturing companies to shift toward sustainable sources of energy. They are adopting electrification in their pickup vehicles to promote zero emissions while protecting the environment.

Moreover, utility truck manufacturers are also reacting to the desire of truck owners for additional customization and choices in their vehicles. For instance, Chevy offers eight trim levels, while Ram offers six trim levels and sixteen-wheel design possibilities. Similarly, Ford provides buyers with various options including six engine selections. In addition, some truck manufacturers have recently developed advanced camera technology by adding an optional hitch-assist feature that superimposes guidance on the rearview mirror, allowing to line up tow hitch with the trailer directly. For instance, the Ford F-150 and Ram 1500 pickups' zoom function will let users look closer at the tow hitch. Other models now include mirror-mounted cameras that allow users to view the downside of a towed trailer, which helps them handle trucks and trailers easily once they are connected directly. New generation trucks have advanced features, such as improved connectivity, brake assistance, forward collision warning, an all-wheel-drive system, and automatic transmission. Hence, advanced technologies in light-duty vehicles will boost the market expansion during the projected period.

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Pickup Truck Market Growth Factors

Growing Use of Trucks in E-commerce Sector and Rise in Off-Road Activities to Propel Market Growth

Globally, online retail platforms are becoming extremely popular and anticipated to drive the market growth over the forecast period. Customers shifted to online purchases, so the use of such trucks in the e-commerce sector has increased to offer last-mile delivery services. Increasing demand for lightweight transportation solutions in various industries and commercial sectors will drive the market growth over the next few years. The growing interest of manufacturers in developing lightweight, highly efficient, and technologically advanced utility trucks is expected to open up new market growth opportunities during the forecast period.

The growing popularity of off-road activities in North America is anticipated to increase the demand for pickup vehicles. These trucks are widely preferred in off-road activities owing to their ruggedness, versatility, and ability to handle rough terrains. They can navigate through deep mud and traverse over large rocks and boulders. With the rapid growth of e-commerce platforms, there has been a corresponding increase in the demand for efficient transportation and delivery services. Pickup trucks are well-suited for last-mile delivery tasks, offering versatility, maneuverability, and ample cargo space. As more consumers turn to online shopping, the need for reliable pickup trucks to facilitate deliveries is expected to surge, thereby driving market growth.

Moreover, there is a noticeable trend toward outdoor recreational activities, such as camping, boating, and off-roading. Pickup trucks are favored by outdoor enthusiasts for their ruggedness, towing capacity, and ability to navigate rough terrain. Additionally, manufacturers are introducing new features and technologies geared toward enhancing the off-road capabilities of pickup trucks, further increasing their appeal to adventure-seekers. As the demand for vehicles suitable for off-road adventures continues to rise, it is expected to contribute significantly to the growth of the pickup truck market.

RESTRAINING FACTORS

Strict Government Regulations May Increase Vehicle Costs, Inhibiting Market Growth

Governments across the world are taking essential steps to develop and grow their automobile industry to match the frequency of developed countries. They have strict regulations in place to reduce the frequency of road accidents, keep passengers & drivers safe, and curb fuel emissions. They are also imposing strict legislation on automakers to curb the rise in emissions, which lead to a global environmental crisis such as global warming. In addition, governments in some countries have developed emission guidelines, such as BSVI emission standards for India, Europe VI for Europe, and China VI for China to reduce emissions by setting emission limits. In some countries, gasoline and diesel trucks must be fitted with catalytic converters.

Engine miniaturization has also led to higher vehicle costs. However, the government's initiatives and restrictions on the automotive industry have driven manufacturers to comply with these laws and implement energy-efficient systems, resulting in higher production costs and truck purchase prices. These factors may impede the market’s progress in the future.

Pickup Truck Market Segmentation Analysis

By Truck Type Analysis

Midsize Trucks to Dominate Market Due to their Versatility and Price Flexibility

The market is segmented into small size, midsize, and full size based on truck type.

The midsize segment dominated the market with a leading share in 2023. These trucks generate high power, which is suitable for various operating conditions. Furthermore, midsize pickup trucks come with a flexible price range. Hence, these trucks are highly used in emerging and developed countries.

The full size segment held a significant market share in terms of revenue in 2023. It is the most demanded truck type in the U.S. and Canada owing to its strong performance and multipurpose applications. The high demand for full-size pickup vehicles can be attributed to their advanced safety features, powerful engines, and robust towing capacities, making them an ideal choice for outdoor enthusiasts.

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By Propulsion Type Analysis

High Efficiency of Diesel Propulsion Systems to Boost Their Demand

Based on propulsion type, the market is divided into gasoline, diesel, electric, and hybrid.

The diesel segment holds majority of the market share. The demand for light-duty trucks with diesel engines has increased owing to their capability to produce high torque value compared to other engines. Hence, they are highly accepted by customers for commercial purposes.

The gasoline segment accounted for low market share in 2023. The segment will show slow growth during the forecast period owing to the lower demand for this fuel due to high fuel prices. According to the U.S. Energy Information Administration report, gasoline prices were up 61% in June 2022 compared to June 2021.  Moreover, several countries and OEMs plan to phase out petrol-powered cars and trucks to reduce their carbon footprint. For instance, in January 2021, GM announced to sell only zero-emission vehicles by 2035 to achieve carbon neutral by 2050. Similarly, in April 2023, California announced to phase out gas-powered bus and truck fleets to meet climate goals. These initiatives will propel the segment’s growth.

The hybrid segment is projected to grow significantly during the forecast period. Demand for hybrid utility trucks is expected to rise as several governments are financially supporting consumers purchasing vehicles across the world. Moreover, these trucks provide various benefits over gasoline and diesel trucks such as regenerative braking systems, higher mileage, lightweight, and small engines.

The electric segment will register a considerable CAGR during the forecast period. The demand for electric utility trucks will rise owing to stringent government regulations related to CO2 emissions and growing consumer preference for electric utility trucks. The falling price of Li-ion batteries is the most significant factor supporting the rapid rise in EV sales. Several manufacturers are upgrading their product lineups with electric pickup trucks to meet their growing demand. For instance, in January 2023, Ram announced the launch of an electric pickup vehicle with three rows of seats. The seats can also be removed, allowing them to be used in the cargo bed for tailgating or outside the car.

By Component Analysis

Drivetrains to be Widely Used Owing to Constant Technological Advancements

Based on component, the market is bifurcated into drivetrain, interior, body, electrical & electronics, and chassis.

The drivetrain segment is set to hold a leading pickup truck market share over the forecast period. Drivetrain is a vital component and consists of an engine, transmissions, fuel system, exhaust system, cradle, and oil & grease. Suspensions, steering & braking systems, and axles can be more complex and 5-15% more expensive for an electric pickup vehicle. Moreover, technological innovations in drivetrains have contributed to its high market share. For instance, in March 2021, Magna, a mobility tech firm, introduced its new drivetrain technology for pickup trucks to make it easy for automakers to convert existing Internal Combustion Engine (ICE) designs into hybrid or electric powertrain vehicles.

The electrical & electronics segment is anticipated to register a CAGR of 5.9% over the forecast period. The continuous development in a vehicle's electronics including battery, lighting system, ignition system, HVAC, Advanced Driver Assistance Systems (ADAS), other accessories, and controls will contribute to this segment's strong growth. As the infrastructure in developed countries changes and newer battery systems are designed, consumers want to buy EVs with longer ranges and faster charging times. All this relies on more advanced power management systems, which depend on various electronic components.

REGIONAL INSIGHTS

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The North America market accounted for USD 134.89 billion in 2023 and is projected to reach USD 205.89 billion by 2032 at a CAGR of 4.9% during the forecast period. The region led the global market share with a revenue share of over 70% in 2020. Some of the leading manufacturers in the market include Ford Motor Company, General Motors, and Honda Motors in the U.S., which are supporting the development of the market in this region. Canada and the U.S. are the top countries where truck usage has expanded significantly due to a robust economy, higher disposable income of inhabitants, upcoming Electric Vehicle (EV) initiatives, and government laws regulating trucks. Furthermore, the established commercial sector in North America's developed countries will likely surge the demand for pickup vehicles in this region. In North America, the rising need for digitization and rapid growth in the e-commerce industry boosted the demand for online shopping platforms, thereby fueling the vehicle sales.

Europe accounted for a significant market share in 2023. The current penetration of light-duty trucks in this region is low as compared to other areas due to a high preference for SUVs over pickup trucks. The automobile industry's presence in Germany, the U.K., and other European countries will likely drive the market expansion.

Asia Pacific held the second-largest market share due to increasing vehicle production annually in the region's countries. Significant government initiatives and increased use of electric and self-driving cars may drive the regional market development during the forecast period. In addition, the growth of mining and logistics sectors in developing countries in the region will drive the market development.

The Rest of the World held the small market share in 2023 due to fewer automotive OEMs, low technology adoption, and fewer vehicles in all categories. The Middle East & Africa region will also show lucrative growth opportunities for the market.

List of Key Companies in Pickup Truck Market

Key Companies are Implementing Robust Corporate Growth Strategies

Leading market players, such as Ford Motor, GMC, Nissan, RAM, Jeep, Fiat Chrysler Automobile, Volkswagen AH, and Toyota, are focusing on R&D to explore long-term growth opportunities. In 2023, the top five companies registered the highest global sales, indicating that the industry is highly competitive and concentrated. Ford Motor Company dominates the market. GMC, Fiat Chrysler Automobile, Honda Motor, and Isuzu Motor are the major market players.

LIST OF KEY COMPANIES PROFILED:

• Ford Motor Company (U.S.)


• FAW Group (China)


• Fiat Chrysler Automobile (Netherlands)


• GMC (U.S.)


• Honda Motor (Japan)


• Isuzu Motor (Japan)


• Mercedes Benz (Germany)


• Nissan Motor Company (Japan)


• Toyota Motor Corporation (Japan)


• Mahindra & Mahindra (India)


• Volkswagen AG (Germany)

KEY INDUSTRY DEVELOPMENTS

• June 2023 – GM announced an investment of over USD 1 billion in its Flint plants to boost heavy-duty pickup vehicle production. GM also announced spending USD 579 million at its Flint Engine Operations to develop a sixth-generation V-8 combustion engine. Another USD 103.5 million will be spent on upgrading a separate Flint facility that supports pickup truck production.


• April 2023 - Reading Truck Group officially sealed a deal to take over Mastercraft Truck Equipment, a reputable commercial truck and van solutions provider in Colorado. This strategic acquisition, encompassing Mastercraft's two Colorado-based locations, marks a significant step forward in Reading Truck's expansion plan. As a result, the company now boasts a total of 24 Reading Truck outlets across the nation.


• October 2022 - GMC introduced the first-ever Sierra EV, which will be available in early 2024. The new pickup truck is designed with the latest technology including an infotainment touchscreen, customizable drive modes, EV-enabled propulsion technologies, and a weatherproof compartment at the front of the vehicle.


• November 2021 – Ford unveiled the all-electric F-100 Eluminator concept, a zero-tailpipe-emission demonstration truck powered by the all-new Ford Performance Parts Eluminator electric crate motor, which was made available online.


• July 2021- GMC stated that it would offer an electric GMC full-size light-duty truck, its third vehicle, as part of a USD 35 billion investment in electric and self-driving cars.


• June 2020 - Ford Motor Company and Volkswagen AG signed agreements to expand their global alliance to support the rapidly evolving needs of their customers in Europe and other regions by leveraging their strengths in midsize light-duty trucks and commercial EVs. The partnership aimed to enhance driving experiences for current and future customers by innovating their vehicle offerings, incorporating the latest technologies, delivering better utility, and providing more model choices.

REPORT COVERAGE

The market research report provides a detailed analysis and focuses on crucial aspects, such as key companies, product types, competitive landscape, and leading product applications. Besides this, the report offers insights into the latest market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth in recent years.

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