Trailers Market Definition
The trailers market consists of sales of trailers and related services by entities (organizations, sole traders and partnerships) that manufacture trailers which are used for the transportation of goods and materials. The trailers industry includes establishments that manufacture trailers such as enclosed trailers, dump trailers, tank trailers, and flatbed trailers.
Trailers are the unpowered vehicles towed by powered vehicles that are used to transport goods. Trailers are towed by hitches, which are further trailed by trucks, cars, traction engines and others.
Trailers Market Size
The global trailers market reached a value of nearly $56.9 billion in 2018, grown at 6.8% since 2014.
Growth in the historic period resulted from rapid urbanization in emerging economies increasing the demand for goods transportation, economic growth in emerging countries, and increased global demand for food transportation. Factors that negatively affected growth in the historic period were increased price and regulatory pressures from governments.
Going forward, expansion of the global population and growth of e-commerce will drive the growth. Factors that could hinder the growth of the trailers market in the future include reductions in free trade, shortages of truck drivers, and stringent emission regulations.
Trailers Market Drivers
The key drivers of the trailers market include:
Rapid Urbanization
Rapid urbanization, especially in developing countries, has increased the demand for transportation, driving the trailers market. Countries in the Sub-Saharan Africa, and East Asia and Pacific region saw the highest growth in urban population in the historic period. China’s urban population, for instance, increased by almost 12% from 2012 to 2016, while India’s urban population grew by 10% during the same period. Greater urbanization increased the demand for mobility that contributed to the demand for flatbed and automobile trailers to mass transport automobiles such as cars and motorbikes. The increased demand from the urban population for goods, especially fresh food, extended the logistical supply chains, supporting the demand for trailers. Further, road transportation was the preferred mode of transportation for freight in developed countries, with road transportation moving about 70% of all freight across North America annually. Rapid urbanization of populations in developing countries and preference for road transportation of goods in developed countries contributed to the growth in the demand for trailers.
Trailers Market Restraints
The key restraints of the trailers market include:
Narrowing Price-Cost Gap
Original equipment manufacturers (OEMs) of trailers in established markets such as Europe, North America, Japan and South Korea were facing challenges in differentiating themselves from competitors with the increasing price and regulatory pressures. According to a report by McKinsey, and American management consulting firm, the prices of vehicles had almost been flat in real terms since 1998, and with inflation taken into account the net effect resulted in a decline in profit per vehicle. OEMs were able to make efficiency and quality gains of 3-4% per year, however tighter regulations for emissions and safety added further production costs to an average vehicle. The narrowing price-cost gap in the trailers industry due to the pricing and stringent regulatory pressures limited the growth of the market .
Trailers Market Trends
Major trends influencing the trailers market include:
Shift To Lighter Trailers
Trailer manufacturers are increasingly producing light-weight trailers to comply with changing industry regulations. The shift towards lighter trailers can be attributed to increasing pressures on trucking companies owing to rising fuel prices and a stricter regulatory environment. Stringent greenhouse gas emission regulations are compelling the manufacturers to use a higher percentage of lightweight components in the assembly of trailers. Aluminum components, for instance, are being used to trim down the weight of trailers. The use of an aluminum air tank in a truck trailer instead of steel saves about 30 lbs. These lighter trailers allow trucking companies to reduce operating costs and trailer downtimes, and improve fleet efficiencies and safety.
Telematics For Truck Trailer Tracking
Trailer companies are incorporating telematics technology to enable efficient management of trailers for customers. Telematics is a method of monitoring vehicles by using GPS and onboard diagnostics to record movements on a computerized map. Telematics for trailers work with data sensors on the trailers which are connected to a modem. Using GPS and a mobile network, data from the trailer can be tracked, analyzed, and used to improve business performance and road safety. It also helps in increasing trailer utilization for trucking companies. Another feature in telematics is the tire pressure monitoring system (TPMS), which helps in enhancing fuel efficiencies for freight operators.
Opportunities And Recommendations In The Trailers Market
Opportunities – The trailers market size will gain the most in the USA at $11.3 billion. Market-trend-based strategies for the trailers market include shifting to lighter trailers manufacturing, adopting telematics, using advanced materials in trailer manufacturing, and deploying automation and sensors in dump trailers. Player-adopted strategies in the trailers market include reinforcing M&A strategies to expand businesses in other geographic areas, and investing in research and development to develop new trailers.
Recommendations – To take advantage of these opportunities, The Business Research Company recommends the trailers manufacturing companies to consider increasing the production of lightweight trailers, producing refrigerated trailers to cater to the growing demand from end-use industries, and directly targeting construction and mining companies, among other strategies.
Trailers Market Segmentation
The trailers market is segmented by type of trailer, by end-use industry and by geography.
By Type Of Trailer-
The trailers market can be segmented by type of trailer
- a) Enclosed Trailers
- b) Dump Trailers
- c) Tank Trailers
- d) Flatbed Trailers
- e) Other Trailers
The enclosed trailers market was the largest segment of the trailers market, accounting for 60.5% of the total in 2018. It was followed by other trailers, dump trailers, tank trailers and flatbed trailers. Going forward, the enclosed trailers segment is expected to be the fastest growing segment in the trailers market.
By End-Use -
The trailers market can be segmented by end-use
- a) Paper And Paper Products
- b) Pharma Drugs
- c) Textile Products
- d) Food and groceries
- e) Agriculture And Farm Products
- f) Chemicals
- g) Petroleum And Petroleum Products
- h) Motor Vehicle And Motor Vehicle Parts
- i) Metal And Minerals
- j) Commercial Machinery
- k) Other Products
By Geography - The trailers market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- o Asia Pacific
- China
- Japan
- India
- Australia
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Asia-Pacific was the largest region in the global trailers market, accounting for 35.8% of the total in 2018. It was followed by North America, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the trailers market will be Africa and North America.
Trailers Competitive Landscape
Major Competitors are:
- • China International Marine Containers (Group) Ltd.
- • Schmitz Cargobull AG
- • Bernard Krone Holding SE & Co. KG
- • Wabash National Corporation
- • Utility Trailer Manufacturing Company
Other Competitors Include:
- • Hyundai Motor Company
- • Great Dane LLC
- • Randon SA Implementos E Part
- • EnTrans International, LLC
- • MANAC Inc.
- • CIMS
- • Fujian Chnagchun
- • Shandong Union
- • Shekou Port
- • Hua-Win
- • Cargobull
- • Schmitz
- • Ashok Leyland
- • Tata International
- • Asia Motor Works
- • Satrac
- • Tratec Eng.
- • Mammut Industries
- • Maxi Trans
- • al-Kadi
- • Gorica
- • Iran Kaveh Saipa
- • Vauxhall
- • Leyland trucks
- • Alexander Dennis
- • Dennis Eagle
- • Schmitz Cargobull
- • Kässbohrer
- • Chereau
- • Fahrzeugwerk Bernard KRONE GmbH & Co. KG
- • Kögel Trailers
- • Kamaz
- • Nefaz
- • Tonar
- • Weilton
- • Steyr
- • Specpricep
- • MONO-TRANSSERVISS Ltd.
- • KrAZ
- • Hyundai Translead
- • Wabash National Corporation
- • Great Dane Limited Partnership
- • Utility Trailer Manufacturing Co.
- • Vanguard National Trailer Corporation
- • Randon S.A.
- • Great Dane
- • Santander Equipos
- • Titan trailers
- • Anderson
- • Heil Trailer International
- • Dillman
- • Gorica Group
- • OCT
- • Atlas Metal Industries LLC
- • Qasioon Group of companies
- • Mubarrad Transport Company
- • Afrit
- • Stako
- • Martin
- • Paramount trailers
- • Roadhog trailers
- • Engelbrecht trailers
- • CTS trailers
- • Kholeka Engineering