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The global pickup truck market size was stood at USD 177.7 billion in 2020. The market is expected to grow from USD 186.6 billion in 2021 to USD 256.5 billion in 2028 at a CAGR of 4.65% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and devastating, with demand for pickup trucks falling across all regions as a result of the epidemic. Based on our analysis, the global market exhibited a lower growth of -6.6% in 2020 compared to the average year-on-year growth during 2017-2019. The rapid increase in CAGR is due to the demand and growth of this market, which will return to pre-pandemic levels once the pandemic is over.
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 a wide range of commercial uses. These trucks are popular because they may be used for various tasks, including hauling carriages and transporting cargo.
Factors such as increased consumer preference for online shopping and increased demand for fuel-efficient vehicles for outdoor activities such as boats and camping drive the market growth. However, the high cost of full-size pickups and increasingly stringent emission regulations are slowing the development of the global market.
Furthermore, a key market driver is growing customer preference for these trucks over passenger vehicles. Due to rising industrialization, infrastructure, and goods carrier activity, utility trucks are preferred in developing countries. Developed countries that aggressively promote do-it-yourself services witness high penetration compared to other vehicles as utility trucks are multifunctional vehicles that can be useful for carrying modest cargo, pulling caravans, and other carriages for their owners.
In both developed and developing nations, the growth of SMEs has been a major driver for the light-duty truck industry during the last five years. A large increase in last-mile delivery services over the previous decade resulted in increased demand for utility trucks at a remarkable rate.
Decline In New Vehicle Demand Due to COVID-19 To Impede Market Expansion
A global economic slowdown has occurred from the COVID-19 epidemic. Lockdowns imposed in various parts of the world to stop the virus from spreading caused supply chain disruptions and the temporary shutdown of many production sites.
In recent months, the market has witnessed a decline in product demand due to lockdowns enforced in most countries. Since the coronavirus outbreak in December 2019, these lockdowns have temporarily halted utility truck production. In addition, numerous nations have experienced curfew-like situations reducing demand for these trucks. However, as some countries prepare to lift the lockdowns in phases, the market is expected to recover in the coming months.
The outlook in key markets such as Europe, Asia Pacific, and Southeast Asia is uncertain due to the COVID-19 epidemic. Furthermore, as raw material costs and tariffs increase due to U.S.-China trade concerns and new manufacturers from emerging nations enter the market, conditions are becoming more challenging.
While passenger car and SUV sales have fallen, pickup truck sales in the U.S. have held up remarkably well. Considering the economic crisis, major Americans saw taking advantage of low-interest financing options/schemes and actively purchasing the vehicle as per their requirement.
Although the duration of the pandemic is difficult to estimate, the launch of COVID-19 vaccines in early 2021 will improve auto sales.
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Increasing Electrification Of Vehicle And Adoption Of Advanced Technologies Will Set a Positive Trend for Market Growth
The rising air pollution caused by the fuel emitted by conventional vehicles leads to environmental crises. This has encouraged manufacturing companies to shift toward sustainable sources of energy. The manufacturer adopts electrification in these trucks to promote zero-emissions while keeping the residents' environment clean and breathable.
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 is providing 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, Ford F-150 and Ram 1500 pickups zoom function will enable users to 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 makes users handle trucks & trailers easily once they are connected directly. New generation trucks are equipped with advanced features such as improved connectivity, an all-wheel-drive system, automatic transmission. Hence advanced technologies will boost the market during the projected period.
Growing Use of Pickup Trucks for E-commerce Business And Development in Industrialization and Infrastructure is Expected to Propel the Pickup Truck Market Growth
Globally, online retail platforms are becoming extremely popular is anticipated to drive the growth of the utility truck market over the forecast period. Hence, the customer shifted for online purchases, due to which the use of such trucks in the e-commerce sector has increased for last-mile delivery. Increasing demand for lightweight transportation solutions in various industries and commercial sectors is expected to drive market growth over the next few years. The growing interest of manufacturers in the development of lightweight, highly efficient, and technologically advanced utility trucks is expected to open up new market opportunities during the forecast period.
The main drivers of the global market are rapid population growth, urbanization, industrial expansion, and infrastructure development. The evolution of the industrial sector, especially in developing countries, has brought many jobs in various industries, including mining, construction, and tourism. As a result, as the job outlook grows, so does the number of commuters, significantly impacting public transport demand.
Strict Government Regulations Lead to High Costs for Pickup Truck Vehicles, Thereby Inhibiting Market Growth
Governments worldwide are taking important steps to develop & grow their automobile industry to match the frequency with developed countries. The government has strict regulations to reduce the frequency of road accidents, keep passengers and drivers safe, and curb increased fuel emissions. They also impose strict legislation on automakers to curb the rise in emissions, leading to a global environmental crisis and 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 need to be fitted with catalytic converters. Engine miniaturization has also led to higher vehicle costs. However, the government's actions and different restrictions imposed on the automotive industry have driven manufacturers to comply with these laws and implement systems, resulting in higher production costs and higher truck purchase prices. Furthermore, consumers' less product/model availability is slowing down the global pickup truck profit margin.
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Mid-Size Truck Type Segment Dominates the Market as its Suitable in Various Conditions
The market is segmented into small size, mid-size, and full size based on truck type.
The mid-size truck segment dominated the market with a revenue share of more than 40% in 2020. The mid-size segment holds the largest pickup truck market share as these trucks generate high power suitable for various operating conditions. Furthermore, mid-size trucks come with a flexible price range. Hence, these trucks are highly adopted in emerging and developed countries.
The small-size segment is expected to emerge as the fastest-growing market segment during the forecast period. It is due to an increasing preference for small-size utility trucks in developing countries. The increased demand for small-size trucks in developing countries is primarily due to better mobility, compact size, and low price. The small-size segment accounted for a 27.03% market share in 2020.
The full-size segment is anticipated to hold the second-largest market share in 2020; however, it is expected to gain momentum and grow at the fastest CAGR over the forecast period. The full-size segment will increase due to its strong performance and multipurpose applications in North America and European countries.
Diesel Segment Contributed for the Largest Market Share Due to High Efficiency
The market is divided into gasoline, diesel, electric, and hybrid based on propulsion type.
The diesel segment holds the majority of the market share. The diesel segment accounted for 77.68%. The demand for light-duty trucks with diesel engines has increased, owing to their capability to produce high torque value compared to other types. Hence they are highly accepted by customers for commercial purposes.
The gasoline segment will have high growth in 2020. The gasoline segment accounted for an 11.96 % market share in 2020. The segment will show positive growth during the forecast period due to the high usage of petrol engines in medium-size trucks. The accessibility of gasoline is high than diesel fuel. Moreover, Gasoline fuel is supposed to have a higher pure fuel economy than diesel fuel.
The hybrid light-duty truck segment is projected to register a significant CAGR of 6.3% during the forecast period. Demand for hybrid utility trucks is expected to rise as several governments worldwide support the consumers financially to purchase vehicles. Moreover, hybrid utility trucks provide various benefits over gasoline and diesel pickup trucks, such as regenerative braking systems, higher mileage, light materials, 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 regulation related to co2 emissions worldwide and growing consumer preference for purchasing electric utility trucks.
North America Pickup Truck Market Size, 2020 (USD Billion)
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The North America Market is accounted for USD 108.39 billion in 2020 and is projected to reach USD 147.80 billion by 2028, at a CAGR of 3.8% over the forecast period. North America will lead the market with a revenue share of over 60% in 2020. Some of the leading manufacturers of pickup trucks, such as Ford Motor Company, General Motors, and Honda Motors, in the U.S. are crucial elements supporting the development of the market in this region. Canada and the U.S. are the top countries where these trucks usage has expanded significantly due to a developed economy, higher disposable income of inhabitants, upcoming electric vehicle initiatives, and government laws regulating trucks. Furthermore, The established commercial sector in North America's developed countries is likely to drive demand for pick-up vehicles in this region. In North America, the rising need for digitization and rapid growth in the e-commerce industry boosted demand for online shopping platforms, likely to drive demand for pickup trucks.
Europe is estimated to register a CAGR of 6.9% from 2021 to 2028. The current penetration of light-duty trucks in this region is low compared to other areas due to a high preference for SUV vehicles compared to pickup trucks. The automobile industry's presence in Germany, the United Kingdom, and other European countries will likely drive market expansion.
The Asia Pacific region is anticipated to see a considerable increase in need for light-duty trucks over the projection period. The region holds the second largest market share in the global pickup market, increasing vehicle production per year in the region's countries. Significant government initiatives and increased use of electric and self-driving cars may drive regional market development during the forecast period. In addition, the growth of companies such as mining and logistics in developing countries in the region will drive the market development.
The rest of the world contributes 11.79 % due to fewer automotive OEMs, low technology adoption, and lower presence of vehicles in all categories. However, it is estimated to grow in the future at a CAGR of 6.1%. Additionally, the Middle East and Africa will show lucrative opportunities for the market growth.
Improvements in Existing Product Line, New Product Developments, Merger, and Acquisition From Leading Players and Strong Focus on R&D Activities to Expand Market Share
Leading market players, such as Ford Motor, GMC, Fiat Chrysler Automobile, Volkswagen AH, and Toyota, focus on R&D to explore long-term growth opportunities. In 2020, the top five companies contributed for most worldwide 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 also major key players.
An Infographic Representation of Pickup Truck Market
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The market research report provides a detailed analysis and focuses on crucial aspects such as leading companies, product types, competitive landscape, and leading product applications. Besides this, the report offers insights into the pickup truck market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.
Value (USD Billion)
By Truck Type
By Propulsion Type
Fortune Business Insights says that the global market size was at USD 177.7 billion in 2020, and it is expected to reach USD 256.5 billion by 2028.
In 2020, North America stood at USD 108.39 billion.
The market is projected to grow at a CAGR of 4.65% and exhibit steady growth during the forecast period (2021-2028).
The mid-size segment is the leading segment in this market.
The growing use of pickup trucks by e-commerce and development in industrialization and infrastructure will be the driving factors for market growth
Ford Motor Company, GMC, and Fiat Chrysler Automobile are the major players in the market.
North America dominated the market share in 2020.
Increasing electrification of vehicles, adoption of advanced technologies, and growing use of pickup trucks by the e-commerce industry will boost the demand for cars.
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