"Market Intelligence for High-Geared Performance"
The global pickup truck market size stood at USD 199.23 billion in 2022. The market is expected to grow from USD 208.67 billion in 2023 to USD 299.98 billion by 2030, registering a CAGR of 5.3% during 2023-2030.
Pickup trucks are light-duty vehicles mostly used to transport products and freight. Furthermore, several North American nations, such as Mexico and the U.S., use such trucks as passenger vehicles. These trucks feature enormous cargo spaces, making them ideal for various commercial uses. They are popular as they can be used for multiple tasks, including hauling carriages and transporting cargo.
Factors, such as increased consumer preference for online shopping and high demand for fuel-efficient vehicles for outdoor activities, such as boating and camping will drive the pickup truck market growth. However, the high cost of full-size pickups and increasingly stringent emission regulations are slowing the development of the global market.
A key market driver is the growing customer preference for these trucks over passenger vehicles. Due to rising industrialization, infrastructure development, and goods carrier activity, utility trucks are preferred in developing countries. Developed countries that aggressively promote Do-It-Yourself (DIY) services witness high penetration of utility trucks compared to other vehicles, as these trucks are multifunctional. They can be useful for carrying modest cargo and pulling caravans and other carriages for their owners.
In both developed and developing nations, the growth of SMEs has been a significant driver for the light-duty truck industry during the last five years. A substantial rise in last-mile delivery services over the previous decade remarkably increased the demand for utility trucks.
Decline in New Vehicle Demand as COVID-19 Impeded Market Expansion
The COVID-19 pandemic severely impacted the automotive industry. It disrupted the supply chains, affecting the production and availability of light-duty vehicles. Several manufacturers had to temporarily shut down their factories and reduce production capacity owing to a shortage of raw materials and labor. This resulted in delayed deliveries, limited inventory, and a decline in revenue. For instance, the sales of Ford pickup trucks in the U.S. fell by 15.6% in 2020 due to the shutdown of factories and changes in production facilities.
The economic uncertainty reinforced by the pandemic resulted in a decline in consumer spending, which included purchasing new vehicles. Many potential buyers postponed buying a new car due to financial constraints. This resulted in a reduction in both personal and commercial vehicle sales.
Increasing Electrification of Vehicles and Adoption of Autonomous Vehicles will Set Positive Trend for Market Growth
The rising air pollution caused by fossil-fueled vehicles led to several environmental crises. This has encouraged auto manufacturing companies to shift toward sustainable sources of energy. They are adopting electrification in their pickup vehicles to promote zero emissions while protecting the environment.
Moreover, utility truck manufacturers are also reacting to the desire of truck owners for additional customization and choices in their vehicles. For instance, Chevy offers eight trim levels, while Ram offers six trim levels and sixteen-wheel design possibilities. Similarly, Ford provides buyers with various options including six engine selections. In addition, some truck manufacturers have recently developed advanced camera technology by adding an optional hitch-assist feature that superimposes guidance on the rearview mirror, allowing to line up tow hitch with the trailer directly. For instance, the Ford F-150 and Ram 1500 pickups' zoom function will let users look closer at the tow hitch. Other models now include mirror-mounted cameras that allow users to view the downside of a towed trailer, which helps them handle trucks and trailers easily once they are connected directly. New generation trucks have advanced features, such as improved connectivity, brake assistance, forward collision warning, an all-wheel-drive system, and automatic transmission. Hence, advanced technologies in light-duty vehicles will boost the market expansion during the projected period.
Request a Free sample to learn more about this report.
Growing Use of Trucks in E-commerce Sector and Rise in Off-Road Activities to Propel Market Growth
Globally, online retail platforms are becoming extremely popular and anticipated to drive the market growth over the forecast period. Customers shifted to online purchases, so the use of such trucks in the e-commerce sector has increased to offer last-mile delivery services. Increasing demand for lightweight transportation solutions in various industries and commercial sectors will drive the market growth over the next few years. The growing interest of manufacturers in developing lightweight, highly efficient, and technologically advanced utility trucks is expected to open up new market growth opportunities during the forecast period.
The growing popularity of off-road activities in North America is anticipated to increase the demand for pickup vehicles. These trucks are widely preferred in off-road activities owing to their ruggedness, versatility, and ability to handle rough terrains. They can navigate through deep mud and traverse over large rocks and boulders.
Strict Government Regulations May Increase Vehicle Costs, Inhibiting Market Growth
Governments across the world are taking essential steps to develop and grow their automobile industry to match the frequency of developed countries. They have strict regulations in place to reduce the frequency of road accidents, keep passengers & drivers safe, and curb fuel emissions. They are also imposing strict legislation on automakers to curb the rise in emissions, which lead to a global environmental crisis such as global warming. In addition, governments in some countries have developed emission guidelines, such as BSVI emission standards for India, Europe VI for Europe, and China VI for China to reduce emissions by setting emission limits. In some countries, gasoline and diesel trucks must be fitted with catalytic converters. Engine miniaturization has also led to higher vehicle costs. However, the government's initiatives and restrictions on the automotive industry have driven manufacturers to comply with these laws and implement energy-efficient systems, resulting in higher production costs and truck purchase prices. These factors may impede the market’s progress in the future.
Midsize Trucks to Dominate Market Due to their Versatility and Price Flexibility
The market is segmented into small size, midsize, and full size based on truck type.
The midsize segment dominated the market with a leading share in 2022. These trucks generate high power, which is suitable for various operating conditions. Furthermore, midsize pickup trucks come with a flexible price range. Hence, these trucks are highly used in emerging and developed countries.
The full size segment held a global market share of 35.2% in terms of revenue in 2022. It is the most demanded truck type in the U.S. and Canada owing to its strong performance and multipurpose applications. The high demand for full-size pickup vehicles can be attributed to their advanced safety features, powerful engines, and robust towing capacities, making them an ideal choice for outdoor enthusiasts.
To know how our report can help streamline your business, Speak to Analyst
High Efficiency of Diesel Propulsion Systems to Boost Their Demand
Based on propulsion type, the market is divided into gasoline, diesel, electric, and hybrid.
The diesel segment holds majority of the market share. The demand for light-duty trucks with diesel engines has increased owing to their capability to produce high torque value compared to other engines. Hence, they are highly accepted by customers for commercial purposes.
The gasoline segment accounted for 9% market share in 2022. The segment will show slow growth during the forecast period owing to the lower demand for this fuel due to high fuel prices. According to the U.S. Energy Information Administration report, gasoline prices were up 61% in June 2022 compared to June 2021. Moreover, several countries and OEMs plan to phase out petrol-powered cars and trucks to reduce their carbon footprint. For instance, in January 2021, GM announced to sell only zero-emission vehicles by 2035 to achieve carbon neutral by 2050. Similarly, in April 2023, California announced to phase out gas-powered bus and truck fleets to meet climate goals. These initiatives will propel the segment’s growth.
The hybrid segment is projected to grow significantly during the forecast period. Demand for hybrid utility trucks is expected to rise as several governments are financially supporting consumers purchasing vehicles across the world. Moreover, these trucks provide various benefits over gasoline and diesel trucks such as regenerative braking systems, higher mileage, lightweight, and small engines.
The electric segment will register a considerable CAGR during the forecast period. The demand for electric utility trucks will rise owing to stringent government regulations related to CO2 emissions and growing consumer preference for electric utility trucks. The falling price of Li-ion batteries is the most significant factor supporting the rapid rise in EV sales. Several manufacturers are upgrading their product lineups with electric pickup trucks to meet their growing demand. For instance, in January 2023, Ram announced the launch of an electric pickup vehicle with three rows of seats. The seats can also be removed, allowing them to be used in the cargo bed for tailgating or outside the car.
Drivetrains to be Widely Used Owing to Constant Technological Advancements
Based on component, the market is bifurcated into drivetrain, interior, body, electrical & electronics, and chassis.
The drivetrain segment is set to hold a leading pickup truck market share over the forecast period. Drivetrain is a vital component and consists of an engine, transmissions, fuel system, exhaust system, cradle, and oil & grease. Suspensions, steering & braking systems, and axles can be more complex and 5-15% more expensive for an electric pickup vehicle. Moreover, technological innovations in drivetrains have contributed to its high market share. For instance, in March 2021, Magna, a mobility tech firm, introduced its new drivetrain technology for pickup trucks to make it easy for automakers to convert existing Internal Combustion Engine (ICE) designs into hybrid or electric powertrain vehicles.
The electrical & electronics segment is anticipated to register a CAGR of 5.9% over the forecast period. The continuous development in a vehicle's electronics including battery, lighting system, ignition system, HVAC, Advanced Driver Assistance Systems (ADAS), other accessories, and controls will contribute to this segment's strong growth. As the infrastructure in developed countries changes and newer battery systems are designed, consumers want to buy EVs with longer ranges and faster charging times. All this relies on more advanced power management systems, which depend on various electronic components.
North America Pickup Truck Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The North America market accounted for USD 129.24 billion in 2022 and is projected to reach USD 187.50 billion by 2030 at a CAGR of 4.8% during the forecast period. The region led the global market share with a revenue share of over 70% in 2020. Some of the leading manufacturers in the market include Ford Motor Company, General Motors, and Honda Motors in the U.S., which are supporting the development of the market in this region. Canada and the U.S. are the top countries where truck usage has expanded significantly due to a robust economy, higher disposable income of inhabitants, upcoming Electric Vehicle (EV) initiatives, and government laws regulating trucks. Furthermore, the established commercial sector in North America's developed countries will likely surge the demand for pickup vehicles in this region. In North America, the rising need for digitization and rapid growth in the e-commerce industry boosted the demand for online shopping platforms, thereby fueling the vehicle sales.
Europe accounted for a significant market share in 2022. The current penetration of light-duty trucks in this region is low as compared to other areas due to a high preference for SUVs over pickup trucks. The automobile industry's presence in Germany, the U.K., and other European countries will likely drive the market expansion.
Asia Pacific held the second-largest market share due to increasing vehicle production annually in the region's countries. Significant government initiatives and increased use of electric and self-driving cars may drive the regional market development during the forecast period. In addition, the growth of mining and logistics sectors in developing countries in the region will drive the market development.
The Rest of the World held the small market share of 8.3% in 2022 due to fewer automotive OEMs, low technology adoption, and fewer vehicles in all categories. The Middle East & Africa region will also show lucrative growth opportunities for the market.
Key Companies are Implementing Robust Corporate Growth Strategies
Leading market players, such as Ford Motor, GMC, Nissan, RAM, Jeep, Fiat Chrysler Automobile, Volkswagen AH, and Toyota, are focusing on R&D to explore long-term growth opportunities. In 2022, the top five companies registered the highest global sales, indicating that the industry is highly competitive and concentrated. Ford Motor Company dominates the market. GMC, Fiat Chrysler Automobile, Honda Motor, and Isuzu Motor are the major market players.
An Infographic Representation of Pickup Truck Market
To get information on various segments, share your queries with us
The market research report provides a detailed analysis and focuses on crucial aspects, such as key companies, product types, competitive landscape, and leading product applications. Besides this, the report offers insights into the latest market trends and highlights vital industry
CAGR of 5.3% from 2023 to 2030
Value (USD Billion) & Volume (Thousand Units)
By Truck Type
By Propulsion Type
Fortune Business Insights says that the global market size was valued at USD 199.23 billion in 2022 and is expected to reach USD 299.98 billion by 2030.
In 2022, North America stood at USD 129.24 billion.
The market is projected to record a CAGR of 5.3% and exhibit steady growth during the forecast period.
The midsize segment is the leading segment in this market.
The growing use of trucks by the e-commerce sector and rise in off-road activities in North America will be the driving factors for the market growth.
Ford Motor Company, GMC, and Fiat Chrysler Automobile are the major players in the market.
North America dominated the market share in 2022.
Increasing electrification of vehicles, adoption of advanced technologies, and growing use of pickup trucks by the e-commerce industry will boost the market.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry