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Regional Truck Market Size - By Fuel (Diesel, Natural Gas, Hybrid Electric), By Application (Freight Delivery, Utility Services, Construction & Mining), By GVWR (19,501 - 26,000 lbs, 26,001 – 33,000 lbs), By Axle (4X2, 6X4, 6X6) & Forecast, 2024 - 2032

  • Report ID: GMI9246
  • Published Date: Apr 2024
  • Report Format: PDF

Regional Truck Market Size

Regional Truck Market size was valued at USD 36.9 billion in 2023 and is estimated to register a CAGR of over 4.5% between 2024 and 2032. The surge in online shopping and e-commerce is driving market growth. Regional truck can make many deliveries within a single region every day. This is especially important for e-commerce enterprises that provide same-day or next-day delivery services. E-commerce deliveries sometimes include delivering items from warehouses or distribution centers to clients in a specific geographic area.
 

Regional Truck Market

Regional trucks are built for shorter travels; hence, they are more efficient & cost-effective. Regional trucking allows for greater flexibility than long-haul transportation enterprises. E-commerce enterprises may quickly alter their delivery dates and routes to accommodate shifting online orders. Regional vehicles can also be scaled up or down to accommodate seasonal demand fluctuations.
 

The rising demand from construction industries is fueling the adoption of regional truck. Increased construction activities, driven by urbanization and infrastructure development, need the transportation of enormous amounts of building materials such as gravel, concrete, and steel. 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 will put strain on infrastructure, housing, and public services in cities across the world, fueling the need for proper transportation of goods from one place to another, thereby fueling the demand for the regional truck market. Regional trucks are appropriate for these activities since they can carry huge loads and make regular deliveries within a specified territory.
 

The high competition in the regional trucking market is a major challenge, potentially slowing down its growth. Various trucking businesses fighting for consumers in a given location can lead to pricing wars, forcing them to decrease their prices in order to gain contracts. While this may help clients in the near term, it might reduce trucking businesses' profit margins, making it harder for them to invest in newer vehicles, technology, or safety features. Regional trucking firms may find it challenging to differentiate themselves in a competitive industry.
 

Companies must build efficient marketing tactics to separate themselves from the competition. Customer loyalty might be tough to build in a highly competitive industry. Shippers may be continually reviewing the rates and services provided by various firms. To maintain business, regional trucking businesses must focus on developing client connections and offering dependable & value-added services.
 

Regional Truck Market Trends

The regional truck industry is witnessing significant technological advancements. The emphasis on sustainability and emissions reduction has been a primary motivator of technological advancements. Electric regional trucks provide an appealing alternative to conventional gasoline-powered versions. With zero tailpipe emissions, they 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 owing 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 truck industry.
 

In April 2024, FOOTT, a waste and recycling company, conducted the trial of a Volvo FE electric truck on regional routes, marking a significant move toward sustainable transport. This initiative involved a month-long trial of the electric truck, showcasing FOOTT's commitment to embracing innovative solutions for waste management and transportation. The three-axle 6×2 truck is well suited for waste collection and has been fitted with a 16 cubic meter waste body. It utilizes four Gen 2 batteries with a capacity of 265KWh and has a potential range of up to 220 kilometers. FOOTT is exploring the potential use of electric trucks for council kerbside collections, and for short-haul transport, where feasible.
 

Regional Truck Market Analysis

Regional Truck 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 around 80% in 2023. Diesel engines are well-known for their capacity to produce tremendous power and torque, which is essential for regional vehicles that routinely transport big loads over diverse terrains. This is especially critical for jobs such as transporting building materials or conducting mining operations.
 

Diesel engines offer a good range on a single tank of gasoline, making them suited for regional deliveries that span extensive distances within a narrow area. Their well-established technology assures consistent functioning with little downtime. Most places across the world have a well-developed diesel fuel infrastructure. There is an extensive network of gas stations accessible to refill diesel vehicles, reducing downtime and assuring smooth operations for regional transportation businesses. This is a significant benefit over alternative fuel alternatives such as electric or hydrogen, where refilling facilities are currently limited.
 

Regional Truck Market Share, By Axle, 2023

Based on the axel, the regional truck market is categorized into 4X2, 6X4, and 6X6. The 6X4 segment is expected to hold around USD 27.5 billion market revenue by 2032. A 6x4 truck has two front axles for steering (drive axles) and four rear axles (two powered and two trailed). This layout strikes a fair mix between load capacity, agility, and weight distribution, making it suitable for a variety of regional transportation applications. The four rear axles improve stability and weight distribution over a single rear drive axle layout, which may be less appropriate for larger loads on regional routes.
 

A 6x4 vehicle has better mobility than heavy-duty truck with additional axles which can be useful when navigating rural locations with potentially smaller roads or tight turns. This enables efficient operation inside a regional zone. Furthermore, a 6x4 arrangement is often less expensive to acquire than vehicles with more axles. This can be a significant consideration for regional transportation businesses that prioritize cost efficiency.
 

Asia Pacific Regional Truck Market Size, 2022 -2032, (USD Billion)

Asia Pacific is the fastest-growing region in the global regional truck market, with a major share of around 68% in 2023. The region is undergoing major e-commerce growth, resulting in a high demand for last-mile delivery services. Regional trucks, with their mobility and efficiency, are suited for making these deliveries across cities. Many Asian Pacific countries, such as China, India, and Indonesia, are seeing economic growth and expansion in their industrial sectors. This results in increasing freight movement, requiring efficient & dependable transportation solutions. Regional trucks can be useful for short-haul deliveries inside production hubs as well as the distribution of completed goods.
 

The primary markets for regional truck in the U.S. are concentrated in areas with high population density and significant economic activity. These locations are hotspots for e-commerce, retail, and numerous businesses that rely on effective freight transportation networks. The West Coast, a hotspot for e-commerce fulfillment centers, may see an increase in the demand for regional trucks. This may encourage the adoption of agile 6x4 vehicles for efficient travel in urban and suburban regions. The continuous construction boom in Texas, driven by population expansion and energy development, may result in a strong need for regional trucks to transport building materials such as concrete, steel, and timber.
 

European countries, including France, Germany, the UK, and the Netherlands, are witnessing significant growth in the regional truck market. Stringent European emissions restrictions are increasing the demand for greener trucks. This is driving the introduction of electric & hybrid regional truck, which can help reach environmental goals. Additionally, European truck manufacturers are at the forefront of technical innovations, creating technologies such as telematics, ADAS, and autonomous driving capabilities.
 

These innovations enhance the efficiency, safety, and sustainability of regional transportation operations. 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 regional truck for transportation and logistics.
 

Regional Truck Market Share

The Volvo and Daimler Truck dominate the market with around 15% of the market share. Volvo Truck provides flexible solutions and customizable configurations for its regional trucks, enabling fleet operators to adjust vehicles according to their unique needs, such as payload capacity, body configurations, and vocational uses. This customization enhances operational efficiency and productivity for fleet operations.
 

Daimler Truck takes a customer-focused approach in developing and marketing its products, tailoring solutions to meet the specific requirements and preferences of regional haulage operators. By prioritizing reliability, durability, and value-added features, the company aims to enhance driver satisfaction and fleet productivity.
 

Regional Truck Market Companies

Major companies operating in the regional truck industry are:

  • Daimler Truck
  • Ford Motor
  • Hino Truck
  • MAN SE
  • Navistar
  • PACCAR Inc.
  • Scania AB
  • TRATON GROUP
  • Volkswagen
  • Volvo Truck
     

Regional Truck Industry News

  • In March 2024, Daimler Truck North America started series production of its battery-electric Freightliner eM2 truck at its manufacturing plant in Portland, Oregon (U.S.) The first production units were delivered in the U.S. to Ferguson, Hogan Truck Leasing, Inc., Penske Truck Leasing, PITT OHIO, Ryder System, Inc., TITAN Freight Systems, and Velocity Truck Rental & Leasing.
     
  • In September 2023, Fastenal, an industrial and construction supplies distributor, initiated an operational trial with the e-mobility solutions provider, ZEVX, to convert select pickup trucks in its final-mile delivery fleet to electric vehicles. The trial is part of Fastenal's ongoing commitment to test and, when feasible, operationalize battery electric technology in its fleet of more than 700 commercial motor vehicles and over 8,200 last-mile delivery vehicles.
     

The regional truck market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipment (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

  • 19,501 - 26,000 lbs
  • 26,001 – 33,000 lbs

Market, By Axle

  • 4X2
  • 6X4
  • 6X6

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
    • South Africa
    • UAE
    • Saudi Arabia
    • Iran
    • Turkey
    • Rest of MEA

 

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of regional truck reached USD 36.9 billion in 2023 and will grow at over 4.5% CAGR between 2024 and 2032, led by the surge in online shopping and e-commerce.

The diesel fuel segment accounted for 80% of the market share in 2023, owing to their capacity to produce tremendous power and torque.

Asia Pacific regional truck industry held 68% share in 2023, due to high demand for last-mile delivery services.

Daimler Truck, Ford Motor, Hino Truck, MAN SE, Navistar, PACCAR Inc., Scania AB, TRATON GROUP, and Volkswagen among others.

Regional Truck Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 350
  • Countries covered: 28
  • Pages: 240
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