Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Top 10 Truck Manufacturing Companies in the World

The top 10 truck manufacturing companies in the world control the bulk of the world’s market share. For example CNH Industrial NV (NYSE:CNHI) controls 13.1% of the European truck market, 13.9% of the light truck market, and 34% of the medium truck market. PACCAR Inc (NASDAQ:PCAR) has a medium-duty market share of 16.2% and a 28.5% share of the class 8 truck market in the U.S and Canada. where one of its main competitors, Navistar International Corp (NYSE:NAV), also has market share of around 25%.

The reason why a small number of companies have such large market shares is the high barriers to entry. Similar to the automotive, agricultural and construction equipment industries, the truck industry is capital intensive. At the same time, the market size is pretty limited. In 2016, there were 2.68 million medium and heavy duty trucks sold worldwide, a slight increase of 2.4% over the year, according to Frost & Sullivan. In this way, companies buy other brands in order to expand their market share. As you will see from the list on the following pages, most of the top 10 truck manufacturing companies in the world own several brands.

Aside from the small market size, there are other challenges that Original Equipment Manufacturers (OEMs) in the truck industry are facing. Governments are imposing more and more strict regulations on emissions and the sizes of trucks in order to address global warming. Safety is another concern, especially in large urban areas, where traffic density has increased as cars have become more affordable.



To address the issue of emissions, truck manufacturers have to invest more in R&D in order to build engines and drive trains that are more efficient so as to use less fuel, or even use fuel with lower emissions of carbon, such as LNG. To improve security, truck companies have to include sensors that allow the car to detect potential hazards and either warn the driver or perform the necessary actions to avoid a potential accident.

Luckily for truck manufacturing companies there are plenty of technologies available that can address most issues and improve the driving experience. The problem is that with some features being mandatory, truck manufacturers face higher costs of production, which leads to either higher prices and lower demand, or lower margins and weak financial results. However, at the same time, new technology offers truck manufacturers the possibility to diversify their product line-ups and establish their positions in new markets, like hybrid, or even fully-electric trucks.

Suggested article: 10 Biggest Trucking Companies In the World

Overall, it is expected that over the next decade or so, the truck manufacturing industry will develop in two separate markets. First, there will be the more developed countries, like the U.S, European Union, Japan, etc., which are highly industrialized and whose governments have imposed strict regulations on emissions and safety. This will also be the market where companies will introduce new technologies and experiment with new features like autonomous driving. Then, there are countries that aren’t so developed, where customers put a big emphasis on price and don’t really care about additional features. As these are still emerging markets, it is expected that truck manufacturers will see more sales growth in these regions.

Having said that, let’s take a look at the top 10 truck manufacturing companies in the world. The list is based on the total number of trucks these companies sold in 2016 and begins on the next page.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.