North America Heavy-Duty Trucks Market share was estimated to be around USD 50 billion in 2019 and is expected to grow at a CAGR of 4.5% from 2020 to 2026.
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Increasing demand for transportation of goods and cargo in North America is driving the heavy-duty trucks market. According to the American Trucking Association (ATA), approximately 71% of freight tonnage moved in the U.S. is transported through trucks. A report published by the Bureau of Transportation Statistics in March 2018 recorded a 4% increase in the total truck freight in the U.S. as compared to March 2017. Increasing international trade between the U.S., Canada, and other countries across the globe is augmenting the adoption of heavy-duty trucks for freight transportation in the region.
Technological advancements in the field of automation and driver assistance technologies are improving the market share of heavy-duty trucks in North America. Numerous heavy-duty trucks are being integrated with ADAS for blind-spot monitoring and prevention of accidents and collisions at high speeds. According to a survey conducted by the Fleet Owners and Management Association in 2018, large fleets with 50 or more Class 8 vehicles report the highest (over 73%) adoption of ADAS technologies.
The automotive and transportation industry has been severely impacted by the ongoing COVID-19 pandemic. Several countries imposed nationwide lockdowns and mass quarantines during the months of March and June 2020. Restrictions on movement and domestic & international travel caused disruptions in the supply chain of automotive industry. Manufacturers of heavy-duty trucks are facing issues such as shortage of raw materials and labor. This is hampering their production capabilities, thereby restricting the industry growth. The heavy-duty trucks market is expected to witness a slow growth during the second half of 2020.
Class 8 heavy-duty trucks will display a high growth potential in the heavy-duty trucks market due to optimized performance in long-distance traveling and development of new models. Manufacturers are incorporating advanced features including navigation systems and intelligent driver information systems into newer models. The rising adoption of class 8 trucks in the mining sector and growing investments for developing advanced trucks will drive the market growth. In addition, market players are offering promotional deals to enhance their sales in the class 8 trucks segment.
Key players operating in the market include Ford Motors, Freightliner, Isuzu Motors, Kenworth, Peterbilt, MAN SE, Scania AB, PACCAR and Volvo. These players are focusing on launching new products in the electric and hybrid-electric segment to cater to the growing market demand for low-emission heavy-duty trucks. For instance, in August 2019, Freightliner delivered the first Freightliner eCascadia battery-electric tractor truck. The truck is a level 2 autonomous class 8 model and provides long-haul driving capabilities to customers with reduced carbon emissions.