With a constantly rising population, the market is seeing an increase in demand for several products, including food, automobile, chemicals, building materials, oil and gas, medicines, furniture, and home items. This has accelerated the industrial manufacturing of these items across the world. With each passing year, many competitors enter the FMCG industry to capitalize on the attractive growth opportunity.
Furthermore, as the number of vehicles on the road grows worldwide, so does the need for oil and gas. Major oil-producing countries, including the United States, Russia, Saudi Arabia, Qatar, and China, have significantly boosted their overall production output. These reasons are likely to increase demand for road trailers to transport manufactured goods, oil and gas, agricultural produce, pharmaceuticals, and automobiles, among others.
North America and Europe currently account for more than 60% of worldwide road-trailer manufacturing. However, when manufacturers compete with many competitors and supply quality items to remain in the market, manufacturing costs rise to a high level, reducing net profit margins. This creates a lucrative opportunity for market participants to develop their manufacturing line or production facility in economies with abundant raw materials and favorable government policies.
According to our findings, Asia-Pacific and South America provide an excellent potential opportunity for market participants to extend their presence and establish manufacturing plants in these regions. This would allow the participants to take advantage of low-cost labor, plentiful raw materials, improved operational efficiency, and favorable government regulations.
Due to a rapidly rising population and a movement in the number of manufacturing businesses to this region, the industrial output and supermarket network have significantly increased in the last several years. Furthermore, the ongoing trade battle between the United States and China and China and India has produced attractive income pockets for trailer manufacturers.
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The pandemic disrupted the economies of all the counties around the world. Widespread lockdowns interrupted the supply chain and compelled companies to follow strict guidelines to safeguard workers from COVID-19. Due to this, the five-year streak in which the Top 25 trailer manufacturers produced more than 300,000 trailers ended in 2020. Despite the obstacles, trailer output topped 200,000 units for the eighth straight year in 2020 and was back on its feet.
In July, the global market took off quickly. Trailer manufacturing has begun to recover rapidly. However, the producers had to deal with several additional issues, including a slowdown in production, workforce shortfall, raw material shortages, increasing steel costs, and supply chain disruptions. On the plus side, most of the dealer inventory accumulated in 2018 and 2019 was used in 2020 since business has been substantially more robust than in 2019.
Most trailer manufacturers in the United States and Europe saw a considerable increase in backlog as demand increased but could not be met owing to manpower and raw material shortages.
The Asia Pacific market for road trailers is the fastest expanding. The area is home to more than 60% of the world's population, with India and China accounting for more than 35%. These two nations have emerged as the top mining and manufacturing hubs for autos, chemicals, and medicines in recent years.
North America and Europe were the two largest markets for road trailers in 2021. In Europe, Schmitz Cargobull led all manufacturers in overall trailer sales throughout the period, selling about 55,000 trailers in 2016. Krone is the second-largest trailer manufacturer, with around 34,500 units sold in 2016. Its European market share, close to 6% in 2009, rose to 18% in 2012 and settled about 16% from 2014 onwards. Schmitz Cargobull and Krone are the undisputed market leaders, accounting for more than 40% of trailer manufacturing in the EU.
The top 25 trailer manufacturers account for 95% of the overall manufacturing in North America. Among these, the top five trailer manufacturers are Wabash, Hyundai Translead, Great Dane & Utility, and Vanguard. These five manufacturers account for more than 60% of the regional market. Wabash owns more than 16% of the company. Tankers and bulk transport trailers make for a slightly bigger %age of sales (10%) in the United States than in the EU (7 %). Tippers and dump trailers are significantly more frequent in the EU (13%) than in the United States (2%).
" Crucial Insights The Report Provides:"
* Known and Unknown Adjacencies Influencing the Growth of Market
* Explorable Revenue Sources
* Customer Behaviour Analysis
* Target Partners
* Customized Geographical Data Based on Customers as well as Competitors
* Analysis of Market Size and CAGR between the Forecast PeriodsView Full Report Buy This Report Now