Tow Truck Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The tow truck market size has grown steadily in recent years. It will grow from $1.62 billion in 2024 to $1.69 billion in 2025 at a compound annual growth rate (CAGR) of 4.5%. The growth in the historic period can be attributed to increased road traffic accidents, vehicle ownership growth, urbanization, increased commercial fleets, weather-related incidents.

The tow truck market size is expected to see strong growth in the next few years. It will grow to $2.06 billion in 2029 at a compound annual growth rate (CAGR) of 5%. The growth in the forecast period can be attributed to electric vehicle market growth, autonomous vehicle development, rise of on-demand services, environmental and fuel efficiency concerns, government initiatives for road safety. Major trends in the forecast period include electric and hybrid tow trucks, automation and autonomous towing vehicles, digital dispatch and mobile apps, telematics for preventive maintenance, strategic partnerships with insurance companies.

The rise in road traffic accidents is expected to drive the growth of the tow truck market. Road traffic accidents involve incidents on roadways where vehicles and other road users are involved, often resulting in injuries or damage. The increase in these accidents is attributed to factors such as distracted driving, speeding, and a higher volume of vehicles on the road. Tow trucks play a crucial role in road traffic accidents by swiftly removing damaged vehicles, helping to clear traffic and enhance safety. For example, a report published by the Bureau of Infrastructure and Transport Research Economics (BITRE), an Australia-based organization, revealed that in 2022, there were 1,194 road crash deaths, marking a 5.8 percent increase from 2021. Over the past decade, national fatalities have remained relatively stable. As a result, the growing number of road traffic accidents is contributing to the expansion of the tow truck market.

The growing vehicle ownership is expected to fuel the expansion of the tow truck market. Vehicle ownership refers to the legal possession and control of a motor vehicle, such as a car, truck, or motorcycle, that is registered and operable. As the number of vehicles on the road increases, the frequency of accidents also rises. Many of these accidents result in damaged or disabled vehicles that need to be towed to repair facilities or collision centers. For example, in November 2023, Statistics Canada, a government agency, reported that in 2022, the total number of registered road motor vehicles in Canada increased slightly to 26.3 million, marking a 0.3% rise from the previous year, which equated to an additional 78,655 vehicles on the road. As a result, the rise in vehicle ownership is driving the growth of the tow truck market.

Key players within the tow truck market are strategically emphasizing the development of autonomous tow tractors, exemplified by innovations such as the Palion Series 8, aimed at maximizing market revenues. The Palion Series 8 stands as an autonomous self-driving tow tractor embedded with sensors and software enabling navigation in its environment while evading obstacles to tow trailers or other loads. For example, Seegrid Corporation, a US-based manufacturer specializing in autonomous mobile robots (AMRs), introduced the Palion Series 8 Autonomous Tow Tractor in May 2022. This upgraded vehicle, an enhanced iteration of the previous automated tow tractor, boasts the capability to safely tow loads weighing up to 4,500 kg (10,000 lbs.) in dynamic and high-traffic environments. Equipped with artificial intelligence and sensor fusion technology, this vehicle gains a comprehensive understanding of its surroundings, enabling informed decisions for safe movement. Its advanced features position it as a transformative tool capable of revolutionizing material transportation in industrial settings.

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

North America was the largest region in the tow truck market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tow truck market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the tow truck market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, 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.

Tow trucks are specialized motor vehicles designed and equipped with a winch or crane to lift and transport other disabled or damaged vehicles. They are commonly used to move cars that have broken down, been in accidents, or parked improperly.

The main types of tow trucks include light-duty tow trucks, medium-duty tow trucks, and heavy-duty tow trucks. Light-duty tow trucks are specifically designed to transport smaller and lighter vehicles, such as passenger cars, vans, and small trucks. These trucks find applications in various industries, including personal use, commercial use, and government agencies, and are distributed through both direct channels and distribution channels. They are utilized in sectors such as the machine building industry, metallurgical industry, furniture industry, appliance industry, and others.

The tow truck market research report is one of a series of new reports that provides tow truck market statistics, including tow truck industry global market size, regional shares, competitors with a tow truck market share, detailed tow truck market segments, market trends and opportunities, and any further data you may need to thrive in the tow truck industry. This tow truck market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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