The global terminal tractor market size is projected to grow from USD 1.55 billion in 2025 to USD 2.25 billion by 2032 at a CAGR of 5.5%. Rising international trade by expanding ports and distribution centers, booming e-commerce, and expanding warehouses have increased the volume of goods movement, driving the demand for terminal tractors to ensure efficient cargo handling and quick turnaround. Additionally, integrating automation and AI in terminal tractors increases operational efficiency and improves safety, further boosting logistics and port operations market growth. North America remains the largest market for terminal tractors, followed by Europe and the Asia Pacific region.
“The diesel segment is projected to account for the largest share of the global terminal tractor market during the forecast period.”
By propulsion, the diesel segment is projected to account for the largest share (65%) of the global terminal tractor market by 2032. This dominance is primarily driven by the proven engine technology of the diesel production system, which offers high power output figures, a capability for heavy load handling, and relatively lower initial costs. This enables it to withstand any work requirement. It is the most preferred choice among port operators ranging from small to mid-sized terminals in developed regions like North America and Europe. Terminal ports in North America remain major users of diesel terminal tractors due to their extensive cargo handling needs and cost-sensitive operations. However, the growing regulatory pressure to reduce emissions of Nox and CO2 is pushing manufacturers toward cleaner diesel technologies. Kalmar’s Eco Heavy Terminal Tractor, equipped with a Stage 5 Cummins engine and Dana RTE14 transmission, offers up to 30% fuel savings and lower emissions. Similarly, Terberg’s YT series now features diesel models that are compliant with EU Stage V and US Tier 4 Final emission standards. Also, despite the shifting inclination toward pure electric variants, the long-term role of diesel terminal tractors is expected to be steady owing to their robust performance delivery at comparatively lower costs and established infrastructure.
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The warehouse & logistics segment is projected to account for the largest share of the global terminal tractor during the forecast period.
By application, the warehouse & logistics segment is projected to lead the terminal tractor market, driven by diverse applications across industries. In e-commerce and retail, terminal tractors enable quick trailer movement for high-volume, fast-paced fulfillment and distribution center operations. In cold storage and food & beverage, they support time-sensitive handling of temperature-controlled goods, ensuring efficiency and minimizing spoilage. The pharmaceutical and healthcare sectors benefit from their precision and reliability in transporting sensitive medical supplies under strict regulatory standards. Terminal tractors facilitate smooth intra-yard trailer transfers of significant, bulky components and finished goods for automotive and heavy industries.
North America is projected to lead the terminal tractor market during the forecast period.
North America is projected to lead the global terminal tractor market by 2032, with the US holding the largest share, followed by Mexico and Canada. Significant investments in port infrastructure primarily drive this regional dominance, the rapid growth of e-commerce, and advancements in automation technologies. Major US ports, such as Port Houston and the Port of Brunswick, are expanding to accommodate increasing trade volumes. For instance, Port Houston received USD 131 million in federal funding for 2025 operations. Similarly, the Port of Brunswick became the largest US automobile port in 2024, handling 841,000 vehicles, a 13% increase from the previous year. These developments necessitate efficient cargo handling solutions, thereby increasing the demand for terminal tractors.
Key Players
The terminal tractor market is dominated by global players such as Kalmar (Finland), Terberg Special Vehicles (Netherlands), Capacity Trucks (US), MAFI Transport-Systeme GmbH (Germany), and TICO Tractors (US). These companies have adopted product developments and supply contract strategies to gain traction in the terminal tractor market.
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