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The North America used truck market was valued at USD 13 billion in 2020, and it is anticipated to reach USD 17 billion by 2026, at a CAGR of more than 4% during the forecast period (2021 - 2026).
With COVID-19 stopping every transport worldwide, the impact on the market was high in the first few months of the pandemic. As soon restrictions were eased, companies in the region witnessed a huge influx of customers looking for affordable used trucks. As auto plants were shut and consumers were more cautious about spending on new trucks, in the last few months, companies recorded more sales of used trucks.
The North America used truck market is expected to witness healthy growth during the forecast period, with the implementation of Green House Gas's phase 2.
The growth in construction activities and increasing demand for e-commerce in the region have increased the demand for trucks, both old and new, in the past few years. Further, the North America Free Trade Agreement has given the necessary impetus for the easy movement of goods in the region, thereby helping the growth of the market.
Newer trucks are now being equipped with advanced features like automatic transmission with more cabin comfort, which is driving the users to go for new trucks instead of purchasing old trucks without these features. This is hindering the market growth currently.
Scope of the Report
A used truck, a pre-owned truck, or a secondhand truck is a vehicle that has previously had one or more owners. The North America used truck market is segmented by vehicle type (light-duty truck, medium-duty truck, and heavy-duty truck) and geography (United States, Canada, and Rest of North America). The report offers the market size and forecasts in value (USD billion) for all the above segments.
|By Vehicle Type|
|Rest of North America|
Key Market Trends
Heavy Duty Trucks will Lead the Market
The construction industry in North America is expected to witness significant growth in the coming years, with good opportunities emerging from the infrastructure, residential, and non-residential sectors. The advent of trucks with higher power and advanced features, like airbag occupancy sensors, air conditioning, cruise control systems, ABS and driveline traction control, and electronic stability, makes them one of the preferred choices for material handling and transportation in the construction and manufacturing sector.
However, purchasing new trucks is a major investment for the construction companies, especially in short-term projects, as it is more suitable to lease heavy-duty trucks since they help in avoiding major start-up costs. In North America, numerous construction equipment users are seeing rented heavy-duty trucks or opt for the ‘pay-as-use’ model as an optimal way to do business. This model has been proven more beneficial for the used heavy-duty trucks market, thereby increasing the demand for used heavy-duty trucks.
After the COVID-19 pandemic, buyers were more inclined to buy used trucks as compared to new trucks, which created a huge demand last year. Owing to this, various major players added new dealerships to provide more options and after-sales services to customers. For instance, in September 2020, the Gordon Truck Centers added a new Freightliner Northwest store in Albany. The location will provide parts, services, and service support for Freightliner and Western Star.
Moreover, to support social distancing, some companies motivated buyers to select their vehicles from the website and made their websites more informative to customers. For instance, in April 2020, Penske rolled out the new and improved version of its website. The upgraded version includes an enhanced online experience featuring a responsive, adaptive design that makes shopping, buying, and financing a used truck online convenient.
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The United States is Expected to Hold the Largest Share in the Market
The United States is the largest market for used trucks in the North American region. The US trucking industry is poised to experience strong growth over the next decade as the country’s economy is slated to be steady, despite the signs of an upcoming recession. Nearly 70% of all freight transportation is done by trucks. On average, over 3.6 million heavy-duty Class 8 truck (heavy-duty trucks with a gross vehicle weight rating of greater than 33,001 pounds) movements are required to move the freight volume the country needs to handle per year.
However, due to COVID-19, commercial truck sales in 2020 reached near to 410,000 units, with a decline of 22.3% from the 2019 total. In that, sales of Class 8 trucks in 2020 totaled nearly 192,000 units, which was down by 30.6% from 2019. This has led to an increase in demand for used trucks, which has forced truck dealers to increase their used trucks fleet.
Moreover, with the growth of online retailers, digital logistics operations, and e-commerce companies such as Amazon, Fresh Direct, and Instacart and lowering of oil and gasoline prices, many major carriers across the country are expanding their fleets by purchasing used trucks at a lower price to increase their profit margins.
Moreover, the used truck prices are expected to increase with the entry of the latest model years trucks into the used truck segment in the next 1-2 years. The total nationwide fleet of trucks is probably about as big as it needs to be able to handle the current demand for freight. Hence, the leasing of trucks is expected to increase as truck operators have sufficient options to choose from in the used trucks market, according to the freight movement demand.
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Some of the prominent players in the market are Paccar Inc. (Kenworth Used Trucks, Peterbilt, and Mack Trucks), Gordon Truck Centers Inc. (Freightliner Northwest), Volvo AB Class B, Ford Motor Company, and General Motors Company, among others. The market is majorly controlled by retail dealerships, with about 75% of the share in the distribution channels. It offers better sales and service support compared to other channels.
Truck manufacturers are focusing on developing innovative powertrain technologies for enhancing the overall fuel efficiency and lifecycle of trucks. This, in turn, increases the operational age of the trucks, which will increase the inventory of used trucks over the years. Though there is an increase in mileage of the used trucks aging 2-4 years, the efforts by truck manufacturers to increase the lifecycle of trucks means that the existing inventory of used trucks will have healthier mechanical health, which will influence the purchasing decisions of the truck fleet operators to go for these trucks.
In March 2021, Gordon Truck Centers announced the acquisition of Western Idaho Freightliner and Western Star of Nampa, Idaho. After the acquisition, GTC operates fourteen stores across Washington, Oregon, Idaho, and Hawaii doing business as Freightliner Northwest, Western Star Northwest, and Freightliner of Hawaii. 12 of GTC’s 14 stores are dual branded as Freightliner and Western Star Northwest.
In February 2021, Ryder System Inc. introduced its updated Fleet Buy-Out Program that allows customers to trade their fleets and then lease new trucks through Ryder’s leasing program. The company will purchase used commercial vehicles in a one-for-one leasing exchange with competitive offers and a guaranteed sale.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Vehicle Type
5.1.1 Light-duty Truck
5.1.2 Medium-duty Truck
5.1.3 Heavy-duty Truck
5.2.1 United States
5.2.3 Rest of North America
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Gordon Truck Centers Inc.
6.2.2 Volvo AB Class B
6.2.3 International Used Trucks
6.2.5 Paccar Inc.
6.2.6 Ryder System Inc.
6.2.7 Isuzu Motor Ltd
6.2.8 General Motors Company
6.2.9 Ford Motor Company
6.2.10 Arrow Truck Sales Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. ASSESSMENT OF COVID-19 IMPACT ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The North America Used Truck Market market is studied from 2018 - 2027.
What is the growth rate of North America Used Truck Market?
The North America Used Truck Market is growing at a CAGR of >4% over the next 5 years.
What is North America Used Truck Market size in 2018?
The North America Used Truck Market is valued at 13 Billion USD in 2018.
What is North America Used Truck Market size in 2027?
The North America Used Truck Market is valued at 17 Billion USD in 2027.
Who are the key players in North America Used Truck Market?
Paccar Inc, Gordon Truck Centers, Inc, Volvo AB Class B, Ford Motor Company, General Motors Company are the major companies operating in North America Used Truck Market.