Used Truck Market Size
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|CAGR||> 4.00 %|
|Fastest Growing Market||Asia-Pacific|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and its growth?
Used Truck Market Analysis
The used truck market was valued at around USD 41 billion in 2021, and it is expected to reach a value of around USD 52 billion by 2027 while registering a CAGR of over 4% during the forecast period.
The market for used trucks has been impacted by COVID-19's restrictions on cash flow and the sharp decline in transportation demand. Owners of used trucks had experienced a panic over making their EMI payments on time due to COVID-19. By mid-2021, truck usage increased as manufacturing and construction activities increased. This has continued as the governments across the globe have opened international borders resulting in increased road freight activities.
Over the long term, owing to the low costs compared to the new trucks and rising freight demand across the construction and logistics industries, the demand for used trucks has been significant over the years. However, factors, such as the incentives and discounts offered by the truck manufacturers, new technologies, fuel efficiency (available at a low price), and less downtime of new trucks, are leading to the customers preferring new trucks over the used ones.
The rise in construction, agriculture, and e-commerce activities increased the demand for material transportation, which, in turn, has resulted in the increased sales of used trucks, across the world, over the past three years. The key factor contributing to the growth of the global used trucks market is the value proposition of used trucks. Reduced prices of used trucks and their increased operational quality are expected to boost demand from various customer segments during the forecast period.
Used Truck Market Trends
This section covers the major market trends shaping the Used Truck Market according to our research experts:
The Rising Construction Industry is Driving the Demand for Heavy-duty Trucks
For any country, road transportation plays a crucial role in the transportation of goods. The high performance, along with improved features like driver comfort and safety (especially in Class 6 and Class 7 trucks), is one of the primary drivers of the high-performance truck market. High horsepower and high speed primarily characterize these vehicles.
The advanced use of technology like sensors, ABS, EBD, and other sophisticated safety features makes trucks one of the preferred choices for commercial and material handling in the construction and manufacturing sector.
With the thriving construction and real estate sector of countries such as India, South Korea, and China, heavy-duty trucks are expected to see a greater deployment rate in the next few years. By 2026, the Asia-Pacific heavy-duty trucks market share may gain substantially due to the numerous government investments and initiatives toward the promotion of construction activities in the region.
Moreover, the preference for advanced technologies, such as automatic transmission, is also increasing. The aforementioned factors are shifting the consumers' focus toward new trucks. As a result, the companies and manufacturers who sell used trucks are keeping their prices low in order to attract customers. There is a rise in the supply of trucks aged from 3 years to 5 years, with increased mileage, resulting in a fall in the prices of trucks in the market. Dealer lots are filled with trucks that are high on mileage, making the buyers lean toward the purchase of new trucks.
The market is majorly controlled by the retail dealership, with about 75% of the shares in the distribution channels. It offers better sales and service support, as compared to the other channels.
To understand key trends, Download Sample Report
Asia-Pacific is the Fastest Growing Market for Used Trucks
Compared to the other regions, the used truck market is expected to grow more in the Asia-Pacific region. By 2020, the 2013 and 2014 model year trucks were available in the used truck market, and this may keep the value of used trucks high, which is presently low.
The Asia-Pacific region is expected to be a major market, propelling the global construction industry, with rising construction activities in developing countries, such as India and the ASEAN countries (including Thailand, Singapore, Vietnam, and other countries).
For instance, in India, the construction sector is one of the booming industries. The country's construction sector is expected to grow twice as fast as China's, until 2030, with the rising population. The infrastructure sector is an important pillar for growth in the Indian economy. The Indian government is taking various initiatives to ensure the time-bound development of excellent infrastructure in the country.
Multiple price increases have rendered new trucks unaffordable, driving up the cost of used trucks by a factor of ten. Used truck costs have increased by anywhere between 18 and 20 percent, and in some categories by as much as 30 percent, according to bankers and retailers in this market. The introduction of BS6 increased prices by 12 percent - 20 percent across all segments, and now that steel prices have increased by more than 50 percent, OEMs have increased the price of new vehicles. As a result, the price of used vehicles is increasing across all segments, including LCV and HCV. Disbursements are up 20 percent so far in FY21, the second year in a row when used truck demand has remained strong.
Additionally, despite its volatile growth in the real estate sector, significant developments in rail and road infrastructure by the Chinese government (to withstand the demand stemming from the growing industrial and service sectors) have resulted in the tremendous growth of the Chinese construction industry in the recent years.
In the past few years, countries like Indonesia, Malaysia, and Singapore, have become the primary hosts for numerous national and international events, owing to their business potential.
As a result of the aforementioned developments, the demand for used trucks is expected to increase in the freight and logistics segment over the forecast period.
To understand geography trends, Download Sample Report
Used Truck Industry Overview
The growth in used truck sales will hinge on strong improvements in cargo availability in the coming years, as the market is projected to grow. The pre-owned or used truck market was expected to see some spurt in sales due to the highly-priced new trucks and prevailing sluggish economic activity. A healthy freight market, a subdued volume of trade-ins, and tougher availability of new trucks have combined to push demand for used trucks upward.
Key players operating in the used trucks market are Scania, Mercedes-Benz, Renault, Mascus, and Volvo Trucks, among others. With the incorporation of advanced technologies, including IoT, AI, smart navigation systems, and accident prevention technologies, manufacturers are focusing on launching new products in order to stay competitive in the market. For instance,
- In August 2020, Scania trucks launched a new 108-point check-up program for a used trucks. Scania Benelux predicts increased used truck sales with the help of 108-point inspections, a "Scania Talent" program, and an interior UV treatment.
Used Truck Market Leaders
*Disclaimer: Major Players sorted in no particular order
Used Truck Market News
- In April 2022, Scania introduces Scania One, a marketplace for late-model commercial vehicles such as coaches and buses, along with its Scania Go concept, which emphasizes flexibility, according to the company. Scania Go accepts vehicles up to five years old with a maximum mileage of 550,000km. Customers will be able to customize their maintenance needs through a "pick and mix" offering that includes an R&M contract proposition or a service package. Scania Financial Services will offer a variety of funding options. Hire purchase, finance lease, and operating lease are examples of these.
- In May 2021, Volvo Trucks introduces Volvo Selected, a new platform for purchasing used trucks. Driveline coverage, service contracts, and flexible financing options are available in addition to the trucks. Volvo Selected includes search filters to help truck buyers find the right truck to grow their business, such as vehicle type and axle configuration.
- In January 2021, PACCAR Financial launched a redesigned used truck website that features the ability to search by make, model, truck components, and miles.
Used Truck Market Report - 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 Industry Attractiveness - 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 (Market Size in USD Billion)
5.1 Vehicle Type
5.1.1 Light Trucks
5.1.2 Medium-duty Trucks
5.1.3 Heavy-duty Trucks
5.2.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.2.4 Rest of the World
184.108.40.206 South Africa
220.127.116.11 Other Countries
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 PACCAR Inc.
6.2.2 Daimler AG (SelecTrucks)
6.2.3 Renault SA
6.2.4 MAN SE (Volkswagen AG)
6.2.5 Volvo Trucks
6.2.6 Scania AB ( Traton SE)
6.2.8 OK Trucks ( IVECO S.p.A)
6.2.9 International Used Truck (Navistar, Inc.)
6.2.10 Truck World
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Used Truck Market Research FAQs
What is the current Used Truck Market size?
The Used Truck Market is projected to register a CAGR of greater than 4% during the forecast period (2023-2028).
Who are the key players in Used Truck Market?
Volvo Trucks, Scania, MAN SE, Renault SA and Mercedes Benz are the major companies operating in the Used Truck Market.
Which is the fastest growing region in Used Truck Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Used Truck Market?
In 2023, the Asia-Pacific accounts for the largest market share in the Used Truck Market.
Used Truck Industry Report
Statistics for the 2023 Used Truck market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Used Truck analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.