Class 7 Truck Market Forecasts to 2030 – Global Analysis By Fuel (Natural Gas, Diesel, Hybrid Electric and Other Fuels), Application and By Geography

Class 7 Truck Market Forecasts to 2030 – Global Analysis By Fuel (Natural Gas, Diesel, Hybrid Electric and Other Fuels), Application and By Geography

According to Stratistics MRC, the Global Class 7 Truck Market is accounted for $52.6 billion in 2024 and is expected to reach $74.7 billion by 2030 growing at a CAGR of 6.0% during the forecast period. A Class 7 truck, also known as a medium-duty truck, falls within the weight range of 26,001 to 33,000 pounds. These vehicles are versatile, often used in urban settings for a variety of purposes such as local delivery, towing, and vocational applications like construction and landscaping. With a Gross Vehicle Weight Rating (GVWR) higher than Class 6 trucks but lower than Class 8 heavy-duty trucks, Class 7 trucks strike a balance between power and maneuverability. They typically feature diesel engines for efficient power delivery and are designed to handle moderate to heavy loads while offering good fuel economy.

According to the United States Department of Transportation classification system, is a medium-duty commercial vehicle with a Gross Vehicle Weight Rating (GVWR) ranging from 26,001 to 33,000 pounds.

Market Dynamics:

Driver:

Rise of urban logistics and infrastructure investments

Infrastructure investments often include upgrades to urban transport systems and logistics hubs. This pushes for technological advancements in Class 7 trucks, such as enhanced telematics, electric and hybrid powertrains, and automation features. These technologies improve efficiency, reduce emissions, and comply with stringent urban environmental regulations. As urban logistics expands, companies invest in expanding and modernizing their fleets. This involves acquiring more Class 7 trucks to handle the increased volume of urban deliveries and upgrading existing fleets to incorporate the latest technologies and meet new infrastructure demands.

Restraint:

Range anxiety for electric trucks

Range anxiety, the fear that an electric truck will run out of battery before reaching its destination, poses significant challenges for the Class 7 truck market. This concern is particularly acute for medium-duty trucks, which often operate in urban environments but may also need to cover substantial distances. Range anxiety can deter logistics companies from adopting electric Class 7 trucks, fearing disruptions in delivery schedules and increased operational inefficiencies due to frequent recharging needs. This can lead to higher operational costs and logistical challenges, making diesel or hybrid alternatives more attractive.

Opportunity:

Flourishing economy and e-commerce boom

Economic growth drives increased production and consumer spending, leading to higher demand for goods transportation. Class 7 trucks, ideal for handling substantial loads in urban and regional settings, become essential for businesses to meet this heightened demand efficiently. The e-commerce boom, characterized by rising online shopping and rapid delivery expectations, further accelerates this demand. E-commerce requires reliable logistics and frequent, timely deliveries, often facilitated by Class 7 trucks due to their balance of payload capacity and manoeuvrability in urban environments.

Threat:

Infrastructure limitations for alternative fuels

The scarcity of refueling stations for alternative fuels such as electricity, hydrogen, and compressed natural gas (CNG) hampers the adoption of cleaner, more efficient Class 7 trucks. Logistics companies may be reluctant to invest in alternative fuel trucks due to the fear of insufficient refueling options, leading to operational inefficiencies and increased downtime. This delay impedes environmental progress and the market's adaptation to stricter emission regulations, potentially stalling overall industry growth.

Covid-19 Impact

Initially, widespread lockdowns and economic uncertainty led to a sharp decline in demand for goods transportation, affecting Class 7 truck sales negatively. Many industries scaled back operations, reducing the need for medium-duty trucks. However, as the pandemic progressed, certain sectors experienced increased demand, such as e-commerce and home delivery services, driving up the need for Class 7 trucks for urban logistics. The pandemic also highlighted the importance of resilient and adaptable supply chains, leading to increased investment in fleet modernization and efficiency improvements.

The hybrid electric segment is expected to be the largest during the forecast period

The hybrid electric segment is estimated to have a lucrative growth, as hybrid electric Class 7 trucks offer several advantages, including reduced fuel consumption, lower emissions, and improved efficiency compared to traditional diesel-powered trucks.0020 Moreover, hybrid electric trucks provide versatility, as they can operate using both electric and conventional propulsion systems. This flexibility reduces range anxiety associated with fully electric vehicles and enables hybrid trucks to handle longer routes or operate in areas with limited charging infrastructure.

The freight delivery segment is expected to have the highest CAGR during the forecast period

The freight delivery segment is anticipated to witness the highest CAGR growth during the forecast period, owing the growing need for freight delivery, driven by e-commerce, urbanization, and globalization, directly fuels demand for Class 7 trucks. These trucks are crucial for transporting goods over short to medium distances, especially in urban areas where larger vehicles struggle to navigate efficiently.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the urbanization in countries like China, India, and Southeast Asian nations drives demand for Class 7 trucks, especially for urban logistics and last-mile delivery services. These trucks are essential for transporting goods efficiently within congested city centers. Moreover the booming e-commerce sector in the Asia Pacific region fuels demand for Class 7 trucks to support the delivery of online purchases. As more consumers turn to online shopping, logistics companies require a robust fleet of medium-duty trucks to meet delivery timelines.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to investments in infrastructure, including road and highway construction, impact the demand for Class 7 trucks. These vehicles are vital for transporting materials and equipment to construction sites, as well as for urban logistics and distribution networks. In addition regulatory standards for emissions and fuel efficiency play a significant role in shaping the Class 7 truck market. Manufacturers must comply with emissions regulations such as EPA standards, driving innovation in engine technology and alternative fuel options.

Key players in the market

Some of the key players in the Class 7 Truck Market include Autocar, Daimler AG, Ford, Freightliner, Hino, Kenworth, KIA, Mack Trucks, MAN, Navistar, NiteHawk, Peterbilt, Scania AB, Tata Motors, Tymco, Volkswagen Group and Volvo Trucks

Key Developments:

In May 2024, Tata Motors’ subsidiaries – TPEM and TMPV join hands with Bajaj Finance, offers financing program for authorized passenger and electric vehicle dealers. Through this memorandum of understanding (MoU), the participating companies will come together to leverage Bajaj Finance’s wide reach to help dealers

In May 2024, Tata Motors enhances its electric last-mile mobility offering; launches the all-new Tata Ace EV 1000. The Ace EV is developed with rich inputs from its customers and the new variant will address evolving needs from various sectors like FMCG, beverages, paints & lubricants, LPG & dairy.

In May 2024, Volkswagen starts pre-sales of the new, more powerful Golf GTI. The fast-shifting seven-speed DSG ensures that the Golf GTI’s power is transferred to the drive axle with virtually no interruptions to traction during gear changes.

Fuels Covered:
• Natural Gas
• Diesel
• Hybrid Electric
• Other Fuels

Applications Covered:
• Freight Delivery
• Utility Services
• Construction & Mining
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements