Press Release

North America Truck Market to be Led by Diesel Engines through 2028

Increasing logistics industry, infrastructural development, construction activities, technological advancements, and government initiatives for emission regulations are driving the North America truck market during the forecast period.

 


According to TechSci Research report, “North America Truck Market – By Region, Competition, Forecast and Opportunities, 2028F,” the North America truck market is expected to surge substantially during the forecast period due to an increase in replacements of trucks which is induced by the ageing of commercial vehicles in North America, infrastructural development in the triad countries, and growth in construction and logistics activities. The market's growth is also stimulated by an increasing number of government initiatives as well which are imposing restrictions on emissions, thus, increasing the demand for newer trucks in the countries.

Trucking is the primary form of transportation for a variety of industries in North America, from retail to manufacturing, agriculture to construction and energy. It is responsible for the transportation of a significant portion of the goods in the region. The trucking industry provides a range of goods, from raw materials to components and finished products, to suppliers, manufacturers, and consumers throughout the US, Canada, and Mexico. Trucking is a key component of the North American economy, as it facilitates international trade across borders. The North American Free Trade Agreement (NAFTA) and its successor U.S.-Mexican Agreement (U.S.-Canada Agreement) rely heavily on trucking for the efficient transportation of goods.

The trucks are also classified into three categories as light, medium, and heavy commercial trucks. These three classifications are done based on the gross vehicle weights of vehicles. The light duty commercial trucks generally fall under the class 1, class 2, and class 3 categories. Examples of light commercial vehicles include vans, pickup trucks, SUVs, etc. which are used for small business operations. Medium duty commercial trucks fall under the category from class 4 to class 6. These vehicles are generally used in construction and small-scale operations like deliveries. Heavy duty trucks come under class 7 & class 8 categories. These types of trucks include trailers, dumper trucks, etc.

 

In terms fuel type, the truck market is divided into diesel, CNG, and others. Trucks and other bulky vehicles are mostly operated with diesel fuel as compared to any other fuel type. This is because the primary requirement of these kinds of vehicles is torque and horsepower and that too at low rpm most of the time. So, these requirements are only fulfilled by the diesel engines as of now. This is because diesel engines have higher compression ratio and high thermal efficiency which produces more torque and power. After diesels, CNG is the most common type of fuel that is used in the industry because of various benefits associated with it. Also, CNG costs less than diesel and petrol, therefore operating costs of vehicles using CNG are also low. Moreover, the CNG is free of Sulphur, lead and benzene, the level of harmful emissions is relatively low. Also, the amount of carbon monoxide released into the atmosphere is significantly reduced by vehicles running on CNG. CNG also does not contain traces of heavy metals and particulate matter that affect your engine performance. The other type of trucks apart from diesel and CNG includes electric, hybrid, fuel-cell, etc.  Trucks based on these types of fuel are currently in the developing stage and therefore, do not have a significant market share. But they are getting popular quickly. In the U.S., the EPA (Environmental Protection Agency) and NHTSA (National Highway Traffic Safety Administration) proposed the implementation of the SAFE (Safety, Accessible, Fuel-Efficient) Vehicles rule to take effect between 2021 and 2026. The SAFE rule may establish corporate average fuel economy (CAME) standards and greenhouse gas (GHG) emissions for passenger cars and commercial vehicles. The Zero Emission Vehicle (ZEV) Program requires OEMs (Original Equipment Manufacturers) to sell a certain number of clean (e.g., electric, hybrid, fuel cell-powered) commercial and passenger vehicles. The goal of the ZEV plan is to have 12 million zero emissions vehicles (ZEVs) on the roads by 2030 in the U.S.  

 

 

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The North America truck market is analyzed based on class type, fuel type, application type, and by country. Based on the class type, the market is segmented into class 1, class 2, class 3, class 4, class 5, class 6, class 7, class 8, class 9, and class 10. Based on fuel type, the market is segmented into diesel, CNG, and others (like, methanol blended fuels, electric, hydrogen, etc.). Based on the application type, the market is divided into logistics, construction, mining, and others (like e-commerce, FMCG, etc.). Based on countries, the market is segmented into Canada, United States, and Mexico.

 

Key market players in the North America truck market include:

  • Daimler Truck North America LLC
  • PACCAR Inc.
  • Volvo Trucks North America Inc.
  • ISUZU Commercial Truck of America Inc.
  • Ford Motor Company
  • Mack Trucks Inc.
  • Navistar International Corporation
  • General Motors
  • Hino Motors Ltd
  • FCA US LLC


 

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“The increase in economic development since the pandemic is attracting huge developments in the infrastructure, road networks, construction activities, logistics, and other heavy industries which is resulting in the growing demand of trucks in North America. Further, strict emission regulations are leading the demand for newer trucks, and it is also prompting the technological advancements in the industry such as digitalization, electrification, etc. Thus, taking all the aforesaid reasons into consideration, it can be said that the truck market is going to increase during the forecast period” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.



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