Tow Truck Market Report 2026

The tow truck market size has grown steadily in recent years. It will grow from $1.67 billion in 2025 to $1.73 billion in 2026 at a compound annual growth rate (CAGR) of 3.5%. The growth in the historic period can be attributed to increase in vehicle breakdown incidents, growth of commercial vehicle fleets, expansion of roadside assistance services, rising urban traffic congestion, availability of specialized towing equipment.

The tow truck market size is expected to see strong growth in the next few years. It will grow to $2.11 billion in 2030 at a compound annual growth rate (CAGR) of 5.1%. The growth in the forecast period can be attributed to increasing adoption of electric and hybrid tow trucks, rising demand for fleet optimization technologies, expansion of smart roadside assistance platforms, growing focus on emission reduction in service fleets, increasing investments in high-capacity recovery vehicles. Major trends in the forecast period include increasing adoption of advanced recovery vehicles, rising demand for heavy-duty tow trucks, growing integration of telematics and gps systems, expansion of urban vehicle recovery services, enhanced focus on operator safety and efficiency.

The increasing number of road traffic accidents is expected to drive the growth of the tow truck market going forward. Road traffic accidents are incidents on roadways involving vehicles and other road users that may result in injuries or property damage. The rise in road traffic accidents is attributed to factors such as distracted driving, speeding, and the growing number of vehicles on the road. Tow trucks play a critical role in road traffic accidents by promptly removing damaged vehicles, helping to clear roadways and maintain traffic flow and safety. For instance, in April 2025, according to the National Highway Traffic Safety Administration (NHTSA), a US-based government agency, traffic fatalities in the United States reached 40,901 in 2023. Therefore, the increasing incidence of road traffic accidents is driving the growth of the tow truck market.

Major companies operating in the tow truck market are concentrating on developing innovative solutions, such as zero-hydraulic systems, to eliminate the risk of fluid leaks, lower maintenance requirements, and support cleaner and more reliable towing operations. Zero-hydraulic systems improve tow truck performance by completely removing hydraulic fluids, reducing leak risks, minimizing maintenance needs, and enhancing environmental safety while enabling smoother and more efficient operation through electric or mechanical actuation. For instance, in July 2024, CAA Québec, a Canada-based roadside assistance and automobile association, deployed the first all-electric tow truck in North America built on Lion Electric’s medium-duty electric chassis and equipped with a flatbed platform from XpaK Industries. The Lion5-based electric tow truck features 210 kWh, 800 V battery packs, delivers a range of up to 310 km, and produces 315 hp, while reducing fuel consumption by approximately 80% and maintenance costs by around 60% compared to similar diesel-powered trucks.

In December 2023, Hopkins Manufacturing Corporation, a US-based company known for manufacturing automotive accessories and outdoor products, acquired Hayes Towing Electronics for an undisclosed amount. This acquisition allows Hopkins Manufacturing Corporation to broaden its product range and strengthen its market presence within the automotive and outdoor sectors. Hayes Towing Electronics, also a US-based manufacturer, specializes in towing products and associated electronic systems.

Major companies operating in the tow truck market report include Ford Motor Company, Daimler Truck AG, AB Volvo, Isuzu Motors Ltd., Miller Industries Inc., Jerr-Dan Corporation, Boniface Engineering Ltd., NRC Industries Ltd., Detroit Wrecker Sales, Dual-Tech Inc., Golden West Towing Equipment, Blackburn Truck Equipment Inc., Ledwell & Son Enterprises, B&B Industries Inc., Carlinville Truck Equipment Inc., Tatra Trucks AS, Chevron Commercial Inc., Agero Inc., HONK Technologies Inc., Coach Net Corporation, Nation Safe Drivers, Allianz Partners SAS, Stella's Towing Inc., AutoVantage, A & A Truck and Auto Center Inc.

North America was the largest region in the tow truck market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tow truck market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tow truck market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tow truck market consists of sales of flatbed tow trucks, wreckers, integrated tow trucks, and wheel lift tow trucks. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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