Market Research Report
North America Used Truck Market Analysis, Forecast to 2025
|Published by||Frost & Sullivan||Product code||617095|
|Published||Content info||89 Pages
Delivery time: 1-2 business days
|North America Used Truck Market Analysis, Forecast to 2025|
|Published: February 22, 2018||Content info: 89 Pages||
Sales Volume of Class 8 Used Trucks to Reach 281,000 Units By 2025
The demand for used trucks is expected to remain flat in the short term and gain strength in the medium term following the implementation of greenhouse gas (GHG) phase 2 regulations, combined with the upcoming fleet replacement cycle in 2019-2020. Many owner-operators and other smaller fleets are still uncomfortable with the low used truck prices and so are not willing to dispose their old trucks. There is now a high supply of 3- to 5-year-old trucks with increasing mileage, resulting in sustained low prices in the market. Dealer lots having high-mileage trucks are unappealing to buyers in the market, leading to an increase in new truck sales over the short term.
Truck specification will play a key role in determining the valuation of used trucks. There is a strong demand for higher-displacement engines in the used truck market. There is also an increasing trend toward AMT transmission in the line-haul tractor segment due to the fuel efficiency improvements offered. Freightliner Cascadia registered the highest volume among sleeper tractors sold in 2016, while Kenworth emerged as the strong player in the vocational market. Volvo and Mack trucks are finding higher acceptance in the construction segment due to the improved freight environment.
With advancement in truck technologies, newer model year (MY) trucks will increase the reliability and durability of the vehicles, thereby reducing downtime. Fleets will be able to hold their cabs for a longer period of time, while also maintaining strong performance standards and reduced upkeep costs. Additionally, warranty will play a key role as an asset value multiplier, increasing the valuation of used trucks. The implementation of stricter emission and fuel efficiency regulations will require OEMs and dealers to educate customers on new technologies. Retail dealership controls more than 75% market share of distribution channels and offers better sales and service support compared to the other channels.
Digitization, big data, and analytics are making strong inroads in the used truck market. They enable OEMs and dealers to automate their customer outreach campaigns, generate large lead volumes, reach target customers, and facilitate in the management of optimal inventory based on vehicle valuation and regional pricing.