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Class 4 Truck Market Size - By Fuel (Diesel, Natural Gas, Hybrid Electric), Application (Freight Delivery, Utility Services, Construction & Mining), GVWR (Class 4a, Class 4b), Ownership (Fleet Operator, Independent Operator), Product & Forecast, 2024 - 2032

  • Report ID: GMI9167
  • Published Date: Apr 2024
  • Report Format: PDF

Class 4 Truck Market Size

Class 4 Truck Market size was valued at USD 5.4 billion in 2023 and is estimated to register a CAGR of over 6.5% between 2024 and 2032. The surge in online shopping and e-commerce is driving market growth. E-commerce relies on timely and effective delivery, particularly the final leg from a distribution center to the end customer.

Class 4 Truck Market

Class 4 vehicles are well-suited for last-mile delivery since their size allows them to navigate congested metropolitan areas and narrow roadways as compared to larger trailers. While smaller class 3 vehicles may be suitable for urgent single-package deliveries, the vast majority of online transactions contain numerous products. Class 4 trucks have extra cargo room to accommodate these combined deliveries. Furthermore, the e-commerce boom has resulted in more frequent deliveries, which class 4 trucks can manage with ease because of their endurance.

The growing urbanization in cities is fueling the adoption of class 4 trucks. As cities expand, there is an ongoing demand for building, maintenance, and utility services. Class 4 trucks are suitable for these activities because they can bring building materials straight to construction sites, carry specialized tools and equipment for utility personnel, and handle tight streets and obstacles in congested urban locations.

Urban areas are home to a wide range of small and medium-sized enterprises (SMEs). These enterprises frequently require transportation solutions for operations such as restocking restaurants and shops, moving equipment and supplies for maintenance or repairs, and picking up and delivering items to clients. Class 4 trucks are a more cost-effective and agile alternative to bigger vehicles, making them an appealing choice for SMEs.

In January 2024, The United Nations issued its "World Urbanization Prospects 2024" study, which predicts that by 2050, approximately 70% of the world population will live in cities, with urban populations increasing by 2.3 billion over the following 30 years. Rapid urbanization puts strain on infrastructure, housing, and public services in cities across the world and it demands the proper transportation of logistics and goods from one place to another, thereby fueling the demand for the class 4 truck market.

The high initial purchase price and ongoing operational costs are a major challenge for the market, potentially slowing down its growth. A class 4 vehicle may cost anywhere from USD 70,000 to USD 150,000 or more, depending on product specifications. This may be a significant challenge for small firms or those just starting out. They may struggle to obtain financing or be hesitant to make such a significant initial investment.

Businesses with limited finances may be compelled to examine alternatives such as secondhand vehicles or leasing options. This limits the total market size for new class 4 truck sales. Manufacturers can alleviate cost concerns by highlighting the long-term benefits of class 4 trucks.

Class 4 Truck Market Trends

The class 4 truck industry is witnessing significant technological advancements. The emphasis on sustainability and emissions reduction has been a primary motivator of technological advancement. Electric class 4 trucks provide an appealing alternative to conventional gasoline-powered versions. Electric vehicles, with zero tailpipe emissions, may help businesses comply with environmental rules while also contributing to healthier urban air. This is especially critical for delivery and operations in city centers.

Furthermore, electric powertrains have lower operating costs due to reduced fuel use and maintenance requirements. This results in long-term savings for firms, particularly those operating in cities with possibly higher fuel prices and stricter emissions rules. The combination of electric powertrains and other in-vehicle technology has the potential to significantly boost the class 4 truck market.

In April 2024, Daimler Truck's RIZON brand launched Class 4-5 electric trucks in Canada. The vehicles are available in four model variants, including the e16L and e16M, and are designed for urban and last-mile deliveries with a range of up to 150 miles (240 km) per day. The RIZON trucks are capable of being charged by two types of battery charging systems, DC Fast Charging (via CCS1 connector) and Level 2 AC Charging (via J1772 connector), making the transition to e-mobility easier.

Class 4 Truck Market Analysis

Class 4 Trucks Market Size, By Fuel, 2022 – 2032, (USD Billion)

Based on fuel, the market is divided into diesel, natural gas, hybrid electric, and others. The diesel segment accounted for a market share of over 83% in 2023 and is expected to exceed USD 7.6 billion by 2032. Diesel engines have a long and successful history of powering medium-duty vehicles. They provide dependable performance, adequate power for towing big loads, and a long operating range on a single tank of petrol. Predictability and dependability are critical for organizations that rely on class 4 trucks for everyday operations.

Diesel fuel stations are generally available in most nations, making refilling easy and accessible for class 4 truck owners. This large refueling network provides a substantial benefit over alternative fuels, which may have limited station availability, particularly outside urban regions. Diesel vehicles often have a cheaper initial purchase price than electric or alternative fuel-powered class 4 trucks. This affordability is critical for businesses, especially those with limited resources or trying to replace aging diesel cars.

Class 4 Trucks Market Share, By Application, 2023

Based on application, the market is categorized into freight delivery, utility services, construction & mining, and others. The freight delivery segment accounted over 33% of the class 4 truck market share in 2023. Class 4 trucks are substantially smaller than class 5 or bigger vehicles, allowing them to handle busy city streets, narrow parking spots, and residential neighborhoods with ease. This is critical for last-mile delivery firms that operate predominantly within urban contexts.

Compared to smaller class 3 vehicles, class 4 trucks have a bigger load capacity. This allows them to transport more products in a single journey, increasing efficiency and lowering total delivery costs for freight firms. They can manage a considerable amount of daily deliveries without having to use bigger, less maneuverable class 5 or class 8 trucks on every route.

Asia Pacific Class 4 Trucks Market Size, 2022 -2032, (USD Billion)

Asia Pacific is the fastest-growing region in the global class 4 truck market, with a major share of over 46% in 2023. Class 4 vehicles are perfectly sized for navigating congested urban areas and support essential urban functions such as last-mile delivery for the booming e-commerce sector, construction and utility work in constantly developing urban environments and local business needs for transporting goods and equipment within cities.

The largest markets for class 4 trucks in the U.S. are centred in locations with significant population density and substantial economic activity. These locations are hotspots for e-commerce, retail, and numerous businesses that rely on effective freight transportation networks. The rise of these industries has led to the need for class 4 trucks for last-mile deliveries and urban transportation demands. Certain areas, notably California and coastal regions, impose stricter pollution standards. This may impact the adoption of electric class 4 vehicles, which are concentrated in these areas due to their emphasis on clean air programs.

European countries including France, Germany, UK, and the Netherlands are witnessing significant growth in the class 4 truck market. European cities are expanding and creating the demand for smaller, fuel-efficient vehicles for construction, utility maintenance, and local delivery. Small and medium-sized enterprises in Europe frequently rely on class 4 trucks for cost-effective transportation of products and equipment. Moreover, countries in the Middle East and Africa (MEA) region, such as the UAE and Saudi Arabia, are experiencing a rise in infrastructure development, propelling the demand for class 4 trucks for transportation and logistics.

Class 4 Truck Market Share

Ford Motor Company and General Motors holds over 10% of global class 4 trucks market share. Ford Motor Company places emphasis on performance, fuel efficiency, and overall cost-effectiveness in its class 4 truck range, incorporating innovative powertrain technologies, aerodynamic improvements, and lightweight materials to enhance fuel economy, reliability, and operational effectiveness.

General Motors provides comprehensive fleet management solutions and telematics platforms for its class 4 trucks, offering fleet operators advanced features such as real-time vehicle tracking, diagnostics, maintenance scheduling, and driver performance monitoring to enhance fleet efficiency and minimize operational expenses.

Class 4 Truck Market Companies

Major companies operating in the class 4 trucks industry are:

  • Ford Motor Company
  • General Motors
  • Stellantis
  • Isuzu Motors Ltd.
  • Hino Motors Ltd.
  • Daimler Trucks North America LLC
  • Volvo Group
  • Navistar International Corporation
  • Mitsubishi Fuso Truck and Bus Corporation
  • PACCAR Inc.
  • Iveco
  • MAN Truck & Bus AG
  • Scania AB
  • Tata Motors
  • Mahindra & Mahindra Ltd.

Class 4 Truck Industry News

  • In January 2024, Mullen Automotive Inc. announced that Bollinger Motors received vehicle orders for 40 B4, Class 4 EV trucks valued at approximately USD 6 million. This highlights the growing demand for electric vehicles in the commercial sector and underscores the market's shift towards sustainable transportation solutions.
  • In March 2023, Morgan Truck Body showcased a Class 4 Parcel Van with a full-height walk-through on an electric chassis at the NTEA Work Truck Week 2023. The show truck features an EV chassis provided by Pritchard Commercial, and the joint project was displayed at the Morgan Truck Body booth. The vehicle offers easy access from the cab to the cargo area with a full-height sliding door, and features a translucent mid-panel roof, allowing ample light while maintaining visibility.

The class 4 truck market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and volume (Units) from 2021 to 2032, for the following segments:

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Market, By Fuel

  • Diesel
  • Natural gas
  • Hybrid electric
  • Others

Market, By Application

  • Freight delivery
  • Utility Services
  • Construction & mining
  • Others

Market, By GVWR

  • Class 4a
  • Class 4b

Market, By Ownership

  • Fleet operator
  • Independent operator

Market, By Product

  • Large Walk-in
  • Box Truck
  • City Delivery
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
    • Belgium
    • Sweden
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Thailand
    • Vietnam
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia
    • Rest of MEA
Authors: Preeti Wadhwani, Aishwarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of class 4 truck reached USD 5.4 billion in 2023 and will demonstrate a 6.5% CAGR between 2024 and 2032, attributed to the increasing demand for efficient and reliable transportation solutions, rapid industrialization, urbanization, and infrastructure development initiatives across regions.

The freight delivery segment reached 33% in 2023, due to the escalating demand for efficient and reliable transportation of goods amid burgeoning e-commerce activities.

Asia Pacific market recorded 46% share in 2023, propelled by rapid industrialization, burgeoning urbanization, and expanding logistics and transportation sectors across the region.

Some of the key class 4 truck players are Ford Motor Company, General Motors, Stellantis, Isuzu Motors Ltd., Hino Motors Ltd., Daimler Trucks North America LLC, Volvo Group, Navistar International Corporation, Mitsubishi Fuso Truck and Bus Corporation, PACCAR Inc., among others.

Class 4 Truck Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 12
  • Tables & Figures: 300
  • Countries covered: 26
  • Pages: 340
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