Class 5 Trucks

Global Class 5 Trucks Market to Reach US$28.2 Billion by 2030

The global market for Class 5 Trucks estimated at US$21.9 Billion in the year 2024, is expected to reach US$28.2 Billion by 2030, growing at a CAGR of 4.3% over the analysis period 2024-2030. Diesel Engine, one of the segments analyzed in the report, is expected to record a 4.9% CAGR and reach US$15.3 Billion by the end of the analysis period. Growth in the Natural Gas Engine segment is estimated at 4.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$6.0 Billion While China is Forecast to Grow at 7.9% CAGR

The Class 5 Trucks market in the U.S. is estimated at US$6.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$5.8 Billion by the year 2030 trailing a CAGR of 7.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.7% and 3.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.5% CAGR.

Global Class 5 Trucks Market – Key Trends & Drivers Summarized

Why Are Class 5 Trucks Gaining Prominence in Regional Distribution and Vocational Service Fleets?

Class 5 trucks—defined by the U.S. Federal Highway Administration as having a Gross Vehicle Weight Rating (GVWR) between 16,001 and 19,500 pounds—are increasingly being positioned as a critical segment within the broader medium-duty truck landscape. Bridging the gap between light-duty commercial vehicles and heavier Class 6/7 trucks, Class 5 trucks offer the power and payload capacity required for more demanding operational roles while maintaining flexibility for various vocational and regional delivery applications. These trucks are commonly used in parcel and freight delivery, utility and service operations, towing and recovery, landscaping, construction support, and mobile maintenance services. Their versatility is a key selling point, as they can be upfitted with a wide range of specialized bodies—such as box trucks, stake beds, tow platforms, utility service bodies, or refrigerated units—enabling customization to specific industry use cases. For small- and mid-sized fleet operators, Class 5 trucks represent a sweet spot: high-performance workhorses that provide enhanced capacity without requiring the same level of licensing, insurance, or infrastructure investment associated with heavy-duty commercial trucks. As the need for flexible, robust, and multi-role commercial vehicles continues to rise, Class 5 trucks are becoming integral assets in the regional distribution and vocational fleet ecosystem.

How Are Electrification and Emission Regulations Transforming the Class 5 Truck Segment?

Global efforts to decarbonize transportation and tighten emissions regulations are having a direct impact on product development in the Class 5 truck market. As many urban areas begin enforcing zero-emission zones and regulatory agencies impose lower NOx and CO2 thresholds, fleet operators are under increasing pressure to transition toward cleaner alternatives. In response, OEMs are actively launching battery-electric Class 5 trucks, specifically designed for medium-haul routes, local deliveries, and vocational fleet applications that align well with current battery range capabilities. These electric models are being adopted by municipalities, logistics providers, and service contractors eager to meet ESG targets while also benefiting from lower fuel and maintenance costs over the truck lifecycle. Additionally, innovations in hydrogen fuel cell technology and hybrid drivetrains are beginning to enter the market as alternative solutions for heavier payload or extended duty cycle applications. On the internal combustion engine (ICE) front, manufacturers are introducing improved powertrains featuring advanced emissions control systems, enhanced fuel injection technologies, and lightweighting strategies to comply with new fuel economy standards. Government incentives, such as tax rebates, grants for fleet electrification, and green procurement subsidies, are further supporting the shift toward sustainable Class 5 trucks. As infrastructure improves and electric powertrains gain greater operational range and payload parity, electrified Class 5 trucks are expected to occupy a growing share of medium-duty vehicle procurement across both public and private sectors.

Is Product Modularity and Fleet Digitization Shaping the Competitive Edge of Class 5 Trucks?

A key growth enabler for the Class 5 truck market is its adaptability to evolving fleet requirements and technological integration. These trucks are now being developed with enhanced modularity in chassis platforms, cab configurations, and body compatibility—giving end-users the flexibility to customize vehicles precisely to their operational needs. From standard dry freight and flatbed configurations to specialized service bodies, boom lifts, or even mobile workshops, the design flexibility of Class 5 trucks ensures they can serve both general and niche markets effectively. In addition, manufacturers are equipping these trucks with digital fleet management systems, telematics, and cloud-connected diagnostics that enable real-time tracking, performance monitoring, fuel analytics, and predictive maintenance planning. Fleet digitization not only improves vehicle utilization but also reduces operating costs and increases asset longevity—making Class 5 trucks more attractive to data-driven operators. Moreover, driver-assist systems such as lane departure warnings, adaptive cruise control, backup cameras, and electronic stability control are being increasingly integrated to improve safety and driver comfort, especially in urban or congested route environments. This growing technology stack enhances the competitiveness of Class 5 trucks in both traditional and advanced fleet ecosystems. OEMs and upfitters are also offering end-to-end vehicle solutions—bundling truck bodies, telematics, service contracts, and financing packages into a single procurement model—further streamlining fleet acquisition and operation processes.

What’s Driving the Global Expansion of the Class 5 Trucks Market?

The growth in the Class 5 trucks market is driven by a combination of demand-side diversification, infrastructure development, fleet modernization trends, and regulatory shifts favoring medium-duty vehicle electrification. One of the strongest demand drivers is the ongoing surge in regional logistics and local freight distribution, especially in the wake of accelerated e-commerce growth and urban delivery requirements. As delivery networks decentralize and regional warehousing expands, Class 5 trucks are proving vital in bridging the gap between long-haul transport hubs and last-mile delivery nodes. In parallel, the expansion of construction and municipal infrastructure projects across both developed and emerging economies is fueling demand for vocational trucks with mid-range payload capacities and robust customization options. Small and mid-sized enterprises (SMEs), which represent a large share of the global service economy, are increasingly turning to Class 5 trucks for fleet expansion due to their affordability, versatility, and lower operating complexity compared to heavier trucks. Electrification, driven by regulatory mandates and incentive structures, is also opening new market opportunities, especially in public fleet procurement, utility service vehicles, and urban waste management operations. Additionally, the rise of digital fleet leasing, telematics-enabled maintenance contracts, and vehicle-as-a-service (VaaS) platforms is making Class 5 trucks more accessible and manageable for businesses of all sizes. As OEMs continue to invest in R&D, offer wider model portfolios, and scale production of electric and hybrid variants, Class 5 trucks are expected to see sustained adoption across global markets—cementing their role as a critical workhorse in the evolving commercial transport ecosystem.

SCOPE OF STUDY:

The report analyzes the Class 5 Trucks market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Engine Type (Diesel Engine, Natural Gas Engine, Hybrid Electric Engine, Other Engine Types); Application (Freight Delivery Application, Utility Services Application, Construction and Mining Application, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 41 Featured) -

• Bollinger Motors
• Daimler Truck AG
• Ford Motor Company
• General Motors Company
• GreenPower Motor Company Inc.
• Harbinger Motors Inc.
• Hino Motors Ltd.
• Isuzu Motors Ltd.
• Kenworth Truck Company
• Mitsubishi Fuso Truck and Bus Corporation
• Mullen Automotive Inc.
• Navistar International Corporation
• Optimal Electric Vehicles LLC
• PACCAR Inc.
• Peterbilt Motors Company
• Phoenix Motorcars
• REE Automotive Ltd.
• Stellantis N.V.
• Volvo Group
• Workhorse Group Inc.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

Please note: Reports are sold as single-site single-user licenses. Electronic versions require 24-48 hours as each copy is customized to the client with digital controls and custom watermarks. The Publisher uses digital controls protecting against copying and printing is restricted to one full copy to be used at the same location.

The latest version of Adobe Acrobat Reader is required to view the report. Upon ordering an electronic version, the Publisher will provide a link to download the purchased report.

Prior to fulfillment of an order, the client will be required to sign a document detailing the purchase terms for a publication from this publisher.