The global trailer market was estimated at $25.32 billion USD last year and is expected to surpass $37 billion in 2025, Markets and Markets reports Tuesday in its newest global forecast.
Markets and Markets is projecting the global market to grow at a CAGR of 4.98 percent over the next eight years, landing at $37.34 billion in 2025. The company says some of the major drivers of the market are the expanding cold chain industry and increasing use of advanced technologies that boost the demand of semi-trailer. Innovations in semi-trailer platooning and electric semi-trailer truck also can create new revenue generation opportunities for semi-trailer manufacturers, the company says, whereas manufacturing of lightweight semi-trailer, maintenance cost, and lowering the total cost of ownership are creating challenges for semi-trailer manufacturers.
Additionally, Markets and Markets says the global semi-trailer market is segmented on the basis of type, tonnage, number of axles, and region. The company says its new report discusses six semi-trailer types, namely, flatbed, low boy, dry van, refrigerated, tanker, and others. Others segment includes tipper and dump semi-trailer. Dry van semi-trailer segment held the largest share in the semi-trailer market and is estimated to grow with the highest CAGR during the forecast period, due to its wide applications in multiple industries. These trailers are used by LTL and FTL fleet operators for their operations because of their versatility and cost efficiency, Markets and Markets says.
On the basis of tonnage, the new report states below 25t segment is estimated to hold the largest share of the global semi-trailer market in 2017. This segment is estimated to grow at a significant CAGR and is expected to remain the largest segment during the forecast period. The growth of this segment is driven by government regulations regarding weight carrying capacity for road safety, Markets and Markets says.
On the basis of number of axles, the less than 3 axles segment is estimated to account for the largest share of the global semi-trailer market and is anticipated to remain the largest segment during the forecast period as this type of trailers are preferred in Europe and Asia Pacific for the transportation of load below 50 tons, the company says.
Extensive study has been done on four key regions, namely, Asia Pacific, Europe, North America, and the Rest of the World (RoW). Asia Pacific is forecast to have the largest market share by 2025 and to be growing at the highest CAGR, followed by North America. This growth is mainly fueled by the growth in inland transportation industry. Increasing investment in infrastructure, construction activities, and growing retail market are the factors that drive the growth in this region, the report states.
The new report also features some of the major restraints identified in the global semi-trailer market, which are high cost of refrigerated trailers and presence of local players in unorganized sector in the developing economies. In the semi-trailer market in emerging economies, small unorganized players pose a serious threat to the established global players, as they reduce the competitiveness of cost-sensitive markets. Cheaper and lower quality products from this unorganized sector may lead to pricing pressure for established OEMs and lower their profitability, the report states.
Finally, the last chapter of this report provides a comprehensive study of the key vendors operating in the semi-trailer market. The evaluation of market players is done by considering various factors such as new product development, R&D expenditure, business strategies, product revenue, and organic and inorganic growth, Markets and Markets says.
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