Pickup Truck Market

Pickup Truck Market: Overview

• The global pickup truck market is expected to expand at a CAGR of ~2% between 2020 and 2030
• Decline in demand for vehicles across the globe due to the coronavirus pandemic has led to a decline in the sales of pickup trucks in the 2nd quarter of 2020
• Pickup trucks are highly popular in North America and Europe due to the ability to be utilized for multiple applications such as hauling carriages and transportation of goods

Drivers of Pickup Truck Market

• The popularity of less than load (LTL) systems around a decade ago was majorly due to a surge in interest in large distribution center models, wherein trucks entered from one side and left from the other side. However, the last couple of years witnessed the revival of the less-than-load industry, primarily driven by the boom of the e-Commerce sector and significant penetration of automation in factories across the globe.
• Evolving manufacturing models coupled with high demand from the LTL side is likely to boost the LTL transportation across the globe. Demand for efficient LTL transportation is likely to be driven by a rise in the number of smaller shipments due to expansion of the e-Commerce sector.
• Rising penetration of smartphones and access to speedy Internet services has boosted consumer preference toward online shopping, which requires pickup trucks to deliver products. This, in turn, is anticipated to propel the pickup truck market during the forecast period.
• Increase in middle class population across the globe has resulted in the rise in consumption, which in turn is expected to boost the goods transport volumes. Changes in consumer tastes and preferences where people are inclined toward Western lifestyles have led to a rise in the demand for deliveries that takes lesser time. This, in turn, is projected to drive the last mile delivery, which is likely to propel the pickup truck market during the forecast period.
• Rising urbanization has resulted in an increase in transport volumes. Rapid expansion of the Internet retailing market across the globe is driving the first and last mile delivery market. Rising popularity of online shopping in countries is a key factor to drive the pickup truck market across the globe.

Challenges for Pickup Truck Market

• Pickup trucks are extensively employed for commercial activities and hence, the cost of the full size pickup trucks is significantly high. Additionally, increasingly stringent emission regulations are likely to drive the market for electric pickup trucks, which are even more expensive. Thus, the high cost of the pickup trucks is a major restraint for the market.

Pickup Truck Market: Segmentation

• Based on truck type, the medium segment held a leading share of the market, in terms of volume, in 2019; however, the full size segment accounted for a prominent share in terms of revenue. Medium type trucks are conventional pickup trucks and are highly popular in majority of regions, which is attributed to the high market share held by the segment in the global pickup truck market.
• Small pickup trucks are continuously gaining popularity, which in turn is propelling the market for pickup trucks. Moreover, rising focus toward the development of high economy vehicles for SMEs drives the segment. On the other hand, higher popularity of full size trucks in North America and Europe due to their use in multipurpose application can be attributed to the significant share held by the full size segment of the global market.
• Based on propulsion, the diesel segment held a prominent share, in terms of revenue, of the global market in 2019. Most full size trucks are diesel fueled, as diesel engines are capable of producing higher torque as compared to that generated by gasoline engines, which in turn propels the diesel segment of the pickup truck market.
• Gasoline propulsion systems are mostly used by medium pickup trucks in North America and GCC Countries. Gasoline vehicles are more popular, owing to high availability of the gasoline. Additionally, gasoline is considered as a cleaner fuel as compared to diesel, which is boosting the gasoline segment. Hybrid and electric segments are anticipated to expand in the near future.

Pickup Truck Market: Regional Analysis

• In terms of region, North America and Europe held a significant share of the global pickup truck market in 2019, owing to high production of trucks and higher preference for pickup trucks in the region. The global pickup truck market is directly influenced by expansion of small- and medium-scale enterprises.
• Presence of the major pickup truck manufacturers, such as Ford Motor Company, GMC, and Toyota, led the region to hold a high share of the global market. High affordability and presence of SMEs in the region are propelling the demand for pickup trucks in Europe and North America.
• The global pickup truck market is anticipated to expand during the forecast period, owing to an increase in affordability of vehicles among consumers and transition of people into middle and upper middle income group. For instance, after a global slowdown in the automobile industry, several governments have reduced taxes on automobiles to encourage sale of vehicles. This resulted in an increase in sale of vehicles in the second half of 2019.

Pickup Truck Market: Competition Landscape

• Key players operating in the global pickup truck market include
  • Ford Motor Company
  • FAW Group
  • Fiat Chrysler Automobile
  • General Motor Company
  • Great Wall Motors
  • Honda Motor Company, Ltd.
  • Isuzu Motors Ltd.
  • Mahindra & Mahindra Ltd.
  • Mercedes Benz
  • Mitsubishi Motors Corporation
  • Nissan Motor Co., Ltd.
  • Tata Motors
  • Toyota Motor Corporation
  • Volkswagen AG
• Ford Motor Company and General Motor Truck Company (a division of General Motor Company) have been key manufacturers of pickup trucks. Ford F-series, RAM Pickup, and Chevrolet Silverado are some of the highest sold pickup trucks by leading manufacturers.