Terminal Tractor Market Innovations 2025: Electric Models from ZM Trucks, Trova, and Kalmar Lead Shift

Terminal Tractor Market Size Growth, Innovations and Market Size Forecast

The terminal tractor market is predicted to expand from USD 1.57 billion in 2025 to USD 2.91 billion by 2034, growing at a CAGR of 7.09% during the forecast period from 2025 to 2034. The growing demand for efficient cargo handling coupled with rapid expansion of port infrastructure in several countries such as the U.S., Netherlands, Canada and some others has boosted the market growth. Additionally, the rising adoption of advanced equipment in modern ports coupled with numerous government initiatives aimed at developing the logistics sector is playing a crucial role in shaping the industrial landscape. The integration of AI and blockchain in modern trucks is expected to create ample growth opportunities for the market players in the future.

Unlock Infinite Advantages: Subscribe to Annual Membership

Introduction

The terminal tractor market is a crucial branch of the automotive industry. This industry deals in development and distribution of terminal tractors in different parts of the world. There are several types of vehicles developed in this sector consisting of manual terminal tractors and automated terminal tractors. These tractors are powered by different types of propulsion technology including diesel, electric, hybrid and some others. It finds application in numerous sectors comprising of port terminal, distribution centers, warehouses, manufacturing and some others. This market is expected to rise significantly with the growth of the commercial vehicle industry around the globe.

Highlights of the terminal tractor market

• North America generated highest revenue of the terminal tractor market.
• Asia Pacific is expected to rise with the fastest CAGR during the forecast period.
• By propulsion, the diesel segment held the largest share of the market.
• By propulsion, the electric segment is expected to grow with a significant CAGR during the forecast period.
• By application, the port terminal segment led the market.
• By application, the distribution centers segment is expected to grow with the fastest CAGR during the forecast period.
• By vehicle type, the manual segment held the largest share of the market.
• By vehicle type, the automated segment is expected to rise with a considerable CAGR during the forecast period.

What are the trends of the terminal tractor market in 2025?

The major trends in this market consists of collaborations, government initiatives and smart ports.

Collaborations

• Numerous logistics brands are collaborating with market players to deploy high-quality terminal tractors to optimize material handling capabilities.

Government Initiatives

• Government of numerous countries such as the U.S., Chima, India, and some others are launching new initiatives to adopt electric machineries in heavy industries for reducing emission.

Smart Ports

• The rising emphasis of port organizations to integrate smart technologies for enhancing material handling capabilities has increased the application of terminal tractors.

Propulsion Insights

How did the Diesel Segment Led the Terminal Tractor Market in 2025?

The diesel segment led the market. The growing demand for heavy-duty terminal tractor from the logistics sector to facilitate the movement of trailers and containers has boosted the market expansion. Moreover, numerous advantages of diesel-powered trucks including high fuel efficiency, enhanced towing capacity, superior longevity and some others is expected to drive the growth of the terminal tractor market.

The electric segment is expected to expand with a significant CAGR during the forecast period. The rising adoption of electric tractors in several countries to reduce vehicular emission has driven the market growth. Additionally, numerous government initiatives aimed at developing the EV charging infrastructure coupled with technological advancements in battery industry is expected to boost the growth of the terminal tractor market.

Application Insights

What Made the Port Terminal to be the Most Dominant Segment of the Terminal Tractor Market in 2025?

The port terminal segment dominated the market. The growing use of yard trucks in ports for moving semi-trailers and containers has driven the market expansion. Additionally, numerous government initiatives aimed at developing the port infrastructure is expected to propel the growth of the terminal tractor market.

The distribution centers segment is expected to expand with the fastest CAGR during the forecast period. The rising application of shunt trucks in distribution centers for enhancing loading and unloading process has boosted the market growth. Moreover, the deployment of smart equipment in modern warehouses to maintain the supply-chain operations is expected to foster the growth of the terminal tractor market.

Vehicle Type Insights

Why did the Manual Segment Held the Largest Share of the Terminal Tractor Market in 2025?

The manual segment dominated the market. The growing demand for manual terminal tractors in logistics sector for handling goods in warehouses has boosted the market expansion. Additionally, high precision and superior adjustability provided by manual equipment as compared to automated equipment is driving the growth of the terminal tractor market.

The automated segment is expected to grow with a considerable CAGR during the forecast period. The rising adoption of automated terminal tractors in modern ports to enhance material handling capabilities has boosted the market expansion. Also, the absence of skilled operators in several parts of the world coupled with technological advancements in automated machineries is expected to foster the growth of the terminal tractor market.

Geographical Insights

Why North America dominated the Terminal Tractor Market in 2025?

North America led the terminal tractor market. The growing adoption of electric terminal tractors in the U.S. and Canada to reduce emission has boosted the market expansion. Additionally, rapid growth of the e-commerce sector along with numerous government initiatives aimed at developing the port infrastructure is playing a vital role in shaping the industrial landscape. Moreover, the presence of several market players such as Hyster-Yale Materials Handling, Outrider Technologies, Inc, TICO Tractors and some others is expected to propel the growth of the terminal tractor market in this region.

• In May 2024, Hyster-Yale Materials Handling announced to launch a new range of terminal tractors in the U.S. These terminal tractors are designed for operating several applications in ports across this nation.(Source: Hyster-Yale)

Asia Pacific is expected to rise with the highest CAGR during the forecast period. The rising application of terminal tractors in the logistics sector across China and South Korea has driven the market expansion. Additionally, rapid investment by government for strengthening the EV charging infrastructure along with deployment of smart machineries in modern ports is positively contributing to the industry. Moreover, the presence of several market players such as Shenzhen Reach Forklift Co., Ltd, SAIC Group Corporation, Sany Group and some others is expected to drive the growth of the terminal tractor market in this region.

• In October 2024, Sany announced to launch a new range of electric terminal tractors in Zhejiang Province, China. These terminal tractors are equipped with a 281.9 kWh battery that is expected to deliver a range of around 120 kms on full charge.(Source: World Cargo News)

Industry Leader Announcement

• In March 2025, Thor Brenden, the president of terminal tractors at Kalmar Americas made an announcement stating that, " We have been making every move count in the terminal tractor business for over 65 years, we believe that invention and innovation go hand in hand. Our engineers have evaluated every aspect of how to make the T2 the most efficient machine possible, and that solution was to electrify the current market-leading T2 terminal tractor."

Competitive Landscape

The terminal tractor market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of CVS Ferrari; MAFI Transport-System; Kalmar; Konecranes; Terberg Group; Sany Group; Hyster-Yale Materials Handling; TICO Tractors; Mol CY; Capacity Truck; Outrider Technologies, Inc.; Fernride and some others. These companies are constantly engaged in developing terminal tractors and adopting numerous strategies such as business expansions, launches, acquisitions, joint ventures, collaborations, partnerships, and some others to maintain their dominance in this industry.

• In July 2024, TICO launched Pro-Spotter electric terminal tractor. This terminal tractor is designed for operating heavy-duty application in the U.S.(Source: Chargedevs)
• In June 2024, Terberg launched a new terminal tractor. This terminal tractor is designed for handling containers in Netherlands. (Source: Truck & Bus Builder)

• According to t he annual report of Konecranes, the revenue of the company in 2023 was 1370.80 million euros that increased to 1521.70 million euros in 2024.(Source: Konecranes)

Recent Developments

• In July 2025, ZM Trucks launched T75 electric terminal tractor. This new terminal tractor is designed for the consumers of the APAC region.(Source: Clean trucking)
• In March 2025, Kalmar launched a 3rd-generation terminal tractor. This terminal tractor is equipped with a 210-kWh lithium iron phosphate battery that is expected to operate around 6,500-hours.(Source:  SAE International)
• In March 2025, Trova launched a new electric terminal tractor. This terminal tractor is designed for the eco-friendly consumers of the U.S.

Top Terminal Tractor Market Players

• Kalmar
• Konecranes
• Terberg Group
• MAFI Transport-System
• TICO Tractors
• Mol CY
• Capacity Truck
• Outrider Technologies, Inc.
• Fernride
• Sany Group
• Hyster-Yale Materials Handling
• CVS Ferrari

Terminal Tractor Market Segments

By Drive Type

• 4x2
• 4x4
• Others (6x4 and 8x4)

By Propulsion

• Diesel
• Electric
• Others (Hybrid/CNG)

By Tonnage

• <50 Ton
• 50-100 Ton
• >50 Ton

By Vehicle Type

• Manual
• Automated

By Application

• Port Terminal
• Distribution Centers
• Warehouse
• Others (Manufacturing and Utilities)

By Region

• North America
• Latin America
• Western Europe
• Eastern Europe
• Asia Pacific
• The Middle East and Africa