Home Automotive and Transportation Road Trailers Market Size, Share,Statistics & Revenue by 2032

Road Trailers Market

Road Trailers Market Size, Share & Trends Analysis Report By Type (Passenger Vehicles, Commercial Vehicles), By Trailer Type (Dry Van and Box, Refrigerator, Flatbed, Others), By Region (North America, Asia-Pacific, Europe, Latin America, The Middle East and Africa) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRAT1515DR
Study Period 2020-2032 CAGR 5%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market Asia-Pacific Fastest Growing Market Europe
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Market Overview

The global road trailers market revenue valued at USD 22.3 billion in 2023. It is expected to reach USD 34.7 billion by 2032 at a CAGR of 5.0% during the forecast period 2023 to 2032. Road trailers are wheeled vehicles that move goods, materials, and other cargo along roads. They serve an essential role in the logistics and transportation industries, facilitating the flow of goods from one location to another. There are several varieties of road trailers, each built to satisfy distinct transportation and load requirements.

Factors such as rising demand for commercial vehicles and passenger automobiles, growing population in developed nations, increased urbanization rates in emerging countries, and others can all contribute to the worldwide road trailers market growth. Manufacturing and agriculture are the market's primary users. Demand for trailers in Asia-Pacific is rising due to rapid urbanization, shifting market dynamics, and an expanding number of supermarkets. India and China provide considerable development potential for trailer manufacturers to enter and gain market share by establishing local trailer production.

Market Dynamics

Market Drivers

Increasing International Trade

The expansion of international trade has resulted in the creation of complex global supply chain networks. These networks entail commodities flow across borders, necessitating efficient and dependable transportation methods like road trailers. Containerization is an essential component of international trade, and standardized containers are typically carried by intermodal means such as road trailers, railways, and sea transport. Road trailers are crucial to "last mile" delivery by transporting containers between ports, warehouses, and distribution hubs. The UNCTAD predicts containerized trade will increase 1.2% in 2023 and 3% between 2024 and 2028.

Additionally, a substantial component of global trade requires using road transport to carry commodities from ports to inland locations. Road trailers are essential for connecting ports to distribution centers and easing the transportation of commodities within countries. The World Trade Organization (WTO) forecasts goods trade growth to accelerate to 3.3% in 2024, consistent with its April projection of 3.2%. According to the worldwide shipping corporation Maersk, signs of a trade rebound are developing in 2024. However, the picture for 2024 remains relatively positive. Sectors such as road vehicles and transportation equipment have grown at 13% and 25%, respectively. 

Furthermore, trade agreements and regional integration initiatives like the European Union and the North American Free Trade Agreement (NAFTA) have facilitated cross-border commerce. These agreements raise the demand for road trailers to move goods seamlessly across borders. The ASEAN-Plus FTA was revised in August 2023 to include supply chain resilience, simplified rules of origin, and a trade and sustainable development chapter to assist the road trailers market trend. Furthermore, multinational corporations expanding their market reach frequently rely on worldwide supply chains. Road trailers facilitate the effective delivery of products throughout multiple regions, hence aiding market expansion efforts.

Market Restraints

Stringent Environmental Regulation

To address environmental concerns and prevent climate change, governments around the world are implementing increasingly rigorous emissions rules. Compliance with these criteria challenges the road trailer business because it requires cleaner and more fuel-efficient technologies. In the European Union, Euro emission standards limit the allowed levels of pollutants generated by vehicles, including those used for road transportation. As of December 2023, the Euro 6 emission regulations for gasoline engines are 1.0 CO, 0.060 NOx, and 0.005 PM. The diesel engine emissions requirements are 0.50 CO, 0.080 NOx, and 0.005 PM. 

The European Parliament proposes Euro 7 criteria for automobiles that use any fuel technology. The rules would apply to cars, vans, trucks, and buses. The guidelines are intended to enhance air quality and achieve the European Green Deal's zero-pollution goal. The guidelines would mandate a 55% decrease in CO2 emissions for new automobiles and a 50% reduction for new vans by 2030. By 2035, the regulations would require a 100% reduction in emissions. 

Similarly, China has some of the world's most rigorous automobile emissions standards. The China 6 standard intends to cut hydrocarbons by 50%, NOx by 40%, and PM by 33% compared to Euro 6 norms. The China 6a standard was adopted on July 1, 2020, while the China 6b standard will be implemented on July 1, 2023. As a result, these factors are projected to impede market growth over the forecast period.

Market Opportunity

Eco-Friendly Trailer Solutions

The global push for sustainability and lower carbon emissions has allowed the implementation of environmentally friendly trailer solutions. One significant example is the creation and use of electric trailers, which run on electric power rather than traditional fuel. During an evening event at its Nevada manufacturing plant, Tesla, famed for its electric vehicles, began customer deliveries of the Tesla Semi on December 1, 2022. On December 1, 2022, the first Tesla Semis arrived at PepsiCo's Frito-Lay production facility in Modesto, California. The electric commercial vehicle market, which includes electric trucks and trailers, has grown significantly. According to a January 2023 McKinsey Center of Future Mobility Emissions Model, transitioning to zero-emission (ZE) trucks might help countries become cleaner and greener. The switch to ZE trucks may lower the overall cost of ownership for fleet operators. According to a McKinsey report from September 2022, more than half of all new trucks will be electrified by 2035. 

Furthermore, electric trailers help to reduce carbon emissions from the transportation sector. According to the International Energy Agency (IEA), electrification of road freight could play a critical role in lowering CO2 emissions from trucks, thus contributing to climate change mitigation. Advancements in battery technology, particularly in energy density and charging infrastructure, contribute to the practicality of electric trailers. These developments increase electric trailers' range, efficiency, and overall performance, allowing them to compete with traditional trailers.

Regional Analysis

The global road trailers market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific's road trailers market share is estimated to grow at a CAGR of 5.3% over the forecast period. Factors influencing the market include economic growth, industrial development, infrastructure developments, and the expansion of trade and logistics networks. Countries in the region, including China, India, Japan, and others, significantly contribute to the road trailers market. China, a major economic powerhouse in the Asia-Pacific area, has seen a substantial increase in the road trailer industry. China's medium- and heavy-duty vehicle production is predicted to expand by 26% in 2023 over 2022. Between January and September 2023, CIMC Vehicles, a semi-trailer manufacturer, experienced expansion in global markets and greater profitability. The Chinese government's investments in infrastructure, such as highways and transportation centers, have aided the expansion of the road trailer sector. Initiatives like the Belt and Road Initiative (BRI) have boosted cross-border trade, highlighting the necessity for efficient road transportation.

Furthermore, the Asia-Pacific area is predicted to increase at 4.6% in 2023, up from 3.9% in 2022. Robust economic growth is frequently associated with increased demand for transportation services and road trailers. Asia-Pacific's e-commerce business has grown significantly, particularly in China and India. China's e-commerce sector is predicted to reach CNY 15.2 trillion (USD 2.2 trillion) by the end of 2023, a 9.9% rise. This expansion is fueled by a shift in customer preferences from offline to online buying. Further, Asia-Pacific countries engage in significant international trade. In 2022, China had the most considerable net trade in goods in Asia-Pacific, totaling approximately 668.6 billion US dollars. Road trailers serve an essential role in easing the transportation of products within and across countries. China's strong participation in global trade has resulted in a high demand for road trailers to move goods to and from ports and logistics centers.

Europe is anticipated to exhibit a CAGR of 5.4% over the forecast period. Germany is Europe's largest manufacturer of passenger cars, commercial vehicles, and heavy-duty trailers. Trailer demand in Western Europe is predicted to decline by 9.6% in 2023. However, the company expects sales to be similar to 2022 by 2025. Demand for new trailers has increased significantly in Eastern Europe, particularly Turkey. However, the region's heavy trailer sales are predicted to fall 13% in 2023 due to the Ukraine conflict, the oil crisis, inflation, and sanctions. This is mainly owing to prominent manufacturers, high demand for goods transportation, and significant movement of commodities for import and export purposes, among other things.

Additionally, the European Green Deal, an ambitious program of the European Union, seeks to make the EU's economy sustainable. This includes the transportation sector, where efforts are being made to promote low- and zero-emission cars, influencing the road trailer market.

The North American road trailers market is a thriving industry contributing to the continent's enormous transportation and logistics networks. In North America, as of 2022, the United States has 472 truck trailer manufacturing enterprises, a 4.5% growth from 2021. According to a September 2023 presentation, 85,000 trailer units were produced in the second quarter of 2023, with a projected 82,000 in the third quarter and 74,000 in the fourth quarter. Tankers and bulk transport trailers account for 10% of sales in the United States, compared to 7% in the EU. Tippers and dump trailers are significantly more common in the EU (13% against 2% in the US).

Report Scope

Report Metric Details
By Type
  1. Passenger Vehicles
  2. Commercial Vehicles
By Trailer Type
  1. Dry Van and Box
  2. Refrigerator
  3. Flatbed
  4. Others
By Region
  1. North America
  2. Asia-Pacific
  3. Europe
  4. Latin America
  5. The Middle East and Africa
Company Profiles Utility Trailer Manufacturing Company Dennison Trailers Ltd Brian James Trailers Limited Big Tex Trailers Beckmann Fahrzeugwerke Great Dane Infor Williams Trailer Limited Dutch Lanka Trailer Manufacturers LTD HYUNDAI Translead Wabash National Corporation
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turky Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global road trailers market is segmented based on type, trailer type, and region.

The market is further segmented by type into Passenger Vehicles and Commercial Vehicles.

Passenger Vehicles generate the most revenue in the market. Passenger vehicles are trailers that transport personal vehicles such as cars, motorcycles, and recreational vehicles. These trailers are frequently used for recreational towing, moving, or transferring autos between sites. Passenger vehicle trailers are available in various configurations, including open flatbeds and enclosed trailers, providing alternatives depending on the type of vehicle being transported and the required amount of protection. Consumer preferences, leisure activities, and the requirement for fast and secure vehicle transportation all impact the market for passenger trailers. These trailers are designed for people or businesses that trade or move vehicles. Commercial vehicle trailers transport commodities, equipment, or specialty cargo as part of corporate operations. This section covers trailers designed for various industries, such as logistics, construction, agriculture, and manufacturing. Commercial trailers can include flatbeds, dry vans, refrigerated trailers, tankers, and other specialty trailers for specific cargo categories. The need for commercial vehicle trailers is intimately related to economic activity, industrial production, and international trade. Industries that require the transportation of significant commodities, perishable materials, or specialized equipment rely on commercial trailers to ensure efficient goods movement.

The market can be bifurcated by trailer type into Dry Van and Box, Refrigerator, and Flatbed.

Dry Van and Box is a significant contributor to the market. Dry vans and box trailers are enclosed trailers that protect cargo from outside hazards like weather and theft. The enclosed structure allows them to convey various commodities, including ordinary merchandise, electronics, and packaged goods. These trailers have structural walls and a roof, which provide a safe and weather-resistant environment for the transported cargo. The demand for dry vans and box trailers is affected by the necessity for safe and weather-protected cargo transportation. These trailers are widely used in retail, manufacturing, and distribution industries to transport various types of merchandise. However, dry van orders fell 87% yearly in December 2023 compared to December 2022. Refrigerator trailers, sometimes known as reefers, are designed to transport temperature-sensitive cargo, such as food and pharmaceuticals. These trailers are outfitted with a cooling system that keeps certain temperature levels during travel. Reefers are essential in maintaining the freshness and quality of commodities that require controlled temperatures. The food and pharmaceutical sectors, which need a cold chain, drive the demand for refrigerated trailers. As global traffic in perishable commodities expands, using reefers becomes increasingly crucial for preserving the quality of temperature-sensitive products.

Market Size By Type

Market Size By Type
  • Passenger Vehicles
  • Commercial Vehicles
  • Impact of covid-19

    After setting records in the transportation equipment markets in 2018 and 2019, truck-trailer manufacturers predicted a decrease in the industry in 2020. The world did not anticipate the pandemic, and the widespread shutdowns interrupted the supply chain and compelled employers to redesign operations to safeguard workers from COVID-19. As a result, 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 exceeded 200,000 units for the tenth straight year in 2020. In July, the worldwide market took off quickly, and trailer manufacturing has begun to revive at an astonishing rate.

    However, the producers had to deal with many other issues, including a slowdown. Manpower shortages, raw material shortages, increasing steel prices, and supply chain disruptions affected the market. On the plus side, most of the dealer inventory accumulated in 2018 and 2019 was used in 2020. Early 2021 business has been substantially more potent than the previous 18+ months. 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 labor and raw material shortages.

    Recent Developments

    Key Players

    Road Trailers Market Share of Key Players

    Road Trailers Market Share of Key Players
    Utility Trailer Manufacturing Company Dennison Trailers Ltd Brian James Trailers Limited Big Tex Trailers Beckmann Fahrzeugwerke Great Dane Infor Williams Trailer Limited Dutch Lanka Trailer Manufacturers LTD HYUNDAI Translead Wabash National Corporation Others

    Frequently Asked Questions (FAQs)

    What is the estimated growth rate (CAGR) of the Road Trailers industry?
    Road Trailers industry size will grow at approx. CAGR of 5% during the forecast period.
    Top prominent players in Road Trailers Market are, Utility Trailer Manufacturing Company, Dennison Trailers Ltd, Brian James Trailers Limited, Big Tex Trailers, Beckmann Fahrzeugwerke, Great Dane, Infor Wiliams Trailer Limited, Dutch Lanka Trailer Manufacturers LTD, HYUNDAI Translead, Wabash National Corporation, etc.
    In the Market, Europe has established itself as the market leader with a significant market share.
    The North America region is projected to exhibit the highest rate of growth in the Road Trailers Market.
    The global Market report is segmented as follows: By Type, By Trailer Type

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