Market Segmentation

Trucks

• GVW 3.5T – 16T 
  •   Medium Duty
•  GVW 16T & above 
  •   Heavy Duty
• Medium-duty trucks represent all types of mid-size trucks and vans with GVW between 3,500 kg and 16,000 kg. Typical applications include home delivery, logistics, parcel delivery, utilities, waste collection and recycling, and airport operations.
• Heavy-duty trucks constitute all types of large trucks with GVW of more than 16,000 kg. Typical applications include line haul freight trucks, refuse trucks, mining and construction trucks, and other types of vocations that demand high GVWR trucks.

The Impact of the Top Three Strategic Imperatives on the Commercial Trucks Industry

Industry Convergence 
 

• Why 
  • Collaborations among original equipment manufacturers (OEMs), Tier I suppliers, and technology companies are likely to deal with common challenges in emissions, safety, and connectivity. 
  • Synergies will allow stakeholders to quickly develop innovative solutions, cut costs, and mitigate risks. 

• Frost Perspective 
  • Partnerships between automotive and technology companies are happening and will become more common. 
  • The confluence of diversified ideas and expertise will define the coming decade. 

Internal Challenges 

• Why 
  • The trucking industry, dominated by legacy companies with old ideas and resistance to change, has attracted interest from tech-savvy start-ups in recent years. 
  • These young companies are rewriting the rules of the game through high-level technology and artificial intelligence (AI). 

• Frost Perspective 
  • The next 2-5 years will see many new participants entering the market, especially in electrification. 
  • Numerous technology companies want a piece of the trucking pie and are working on connectivity, freight brokerage, and autonomous driving. 

Transformative Megatrends 

• Why 
  • Frost & Sullivan’s mobility revolution megatrend considers how autonomous mobility, green transportation, and new mobility models will shape our future world. 
  • In the trucking industry, the keywords are connected, autonomous, shared, and electric (CASE). 
  • Each will contribute to a cleaner, safer, and more sustainable environment. 

• Frost Perspective 
  • Connected and shared technologies in the form of telematics and digital freight brokerage are in the nascent stage but are already in deployment. 
  • Frost & Sullivan expects a proliferation of electric trucks in this decade. 
  • Depending on the level, autonomous driving is still 5-10 years away.

Saudi Arabia: HDT Forecast

Commercial Trucks: HDT Forecast, Saudi Arabia, 2024–2035

CAGR (2024-2035): 5.5%

The HDT truck market in Saudi Arabia will grow at a 5.5% CAGR. Demand will increase due to favorable economic growth, the increasing urbanization, and Vision 2030.

Saudi Arabia: MDT Forecast

Commercial Trucks: MDT Forecast, Saudi Arabia, 2024–2035

CAGR (2024-2035): 3.1%

Owing to the increased demand due to favorable economic growth, increased urbanization, and Vision 2030, the Saudi Arabian MDT truck market will grow at a 3.1% compound annual growth rate (CAGR).