Automotive High Performance Trucks Market - Growth, Trends, and Forecasts (2020 - 2025)
The Auomotive High Performance Trucks Market is expected to register a growth rate of more than 4% during the forecast period, 2020 2025.
Some of the major factors driving the growth of the market are the expansion of industrial sectors in the emerging market, growing demand from the logistics industry, rising demand from construction sector (owing to growing construction activities). The market is expected to witness growth in the coming years, owing to growing economies across both developing and developed counties.
Owing to consistent technological advancements and enactment of stringent emission norms, automakers (OEMs) are shifting their focus towards electric and hybrid high performance trucks. Rivian R1T truck which is fully electric is expected to be launched in 2020.
The increasing number of construction and ecommerce activities resulted in an increase in demand for material transportation, which in turn, resulted in increased sales of highperformance trucks worldwide. This is likely to drive the growth of the highperformance trucks market in the near future.
Sales of trucks is has shown a growth in Europe and European Free Trade Association region owing to stockpiling in quarter 1 and pre buying before European Union Smart Tachograph mandate in quarter 2. In South America, Brazilian Medium and Heavy Truck Market is booming owing to the demand from mining and agricultural sectors. In USA, production of commercial vehicles rose from 8.15 million units in 2018 to 8.52 million units in 2019.
Key Market Trends
Heavyduty Truck Segment is Projected to Grow at a Fast Pace
The heavy truck segment is expected to exhibit a significant growth rate of more than 3% during the forecast period. The heavyduty trucks have a gross vehicle weight of more than 16 metric ton. Factors such as demand for multiaxle systems, deployment of downsized engines, etc. are anticipated to boost vehicle performance.
In 2019 Europe and several AsiaPacific countries recorded a decline in sales of Heavy Commercial Vehicles (HCV). Factors such as fluctuations in the growth of tourism and logistics sectors, slow economic growth and stringent trade policies were responsible for the low sales number. Asian countries such as Japan and India and North America region exhibited growth in HCV sales. A total of 351128 units of Heavy Trucks were sold in India till September 2019, 15% more than 304313 units recorded in 2018.
The mining industry recorded a profit of USD 66 billion in 2018, USD 5 billion more than the profit in 2017. Mining industry deploys heavyduty trucks in large numbers and imptovements, advancments in the industry are propelling the sales of heavyduty trucks.
The growth in construction, tourism and logistics activities across the world is expected to propel the demand for heavyduty commercial vehicles during the forecast period. China’s highly ambitious One Belt One Road initiative aims at construction of a unified market with geographies and countries through rail, sea routes and roads. Saudi Arabia's Neom Project aims at development of smart futuristic city with a total length of 460 kilometers and an area of 26500 square kilometers. The aforementioned developments are propelling the growth of high performance heavy duty trucks across the world.
The growing demand for achievement of economies of scales and operational efficiencies in several sectors is driving the heavy duty truck leasing and rental market and subsequently propelling the market growth for high performance .heavy duty trucks.
Europe Leading the Electric Truck Market
The electric truck market is being led by Europe. The region is expected to shift to hybrid or fullelectric technologies in an active drive toward EU’s 202020 target and to achieve the COP21 objectives.
Europe and North America are expected to account for significant shares in the total sales of electric trucks. Moreover, growing concerns about environmental pollution through internal combustion engine vehicles are also expected to play a crucial role in the growth of the electric truck market.
Renault Trucks, after ten years of experimentation of its allelectric truck unveiled medium and heavyduty electric vehicles in 2018 namely Renault Trucks D Wide Z.E and Renault Trucks D Z.E ideally suited for use in the cities of France. Renault is planning to launch Truck Models D and D Wide Z.E commercially in 2019.
The demand for electric truck in North America is also increasing, with major truck manufacturers expanding their businesses in the region. Tesla launched all electric Cybertruck in November 2019. Tesla received nearly 146000 pre orders for Cybertruck after nearly 36 hours of launch. The pickup truck has 3 variants having single, dual and triple motors having range from 250 miles to over 500 miles.
The market studied is a consolidated one and major players such as General Motors, Ford, Daimler AG, Toyota Motor Corporation, ISUZU and Mitsubishi Motor Corporation currently dominates it.
Daimler Trucks is planning to invest a total of more than EUR 2.5 billion in RandD during 20182019, to focus on the ongoing trends of the automotive industry such as emobility, connectivity, and automated commercial vehicle technology.
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