SEMI-TRAILER MARKET ANALYSIS

The global semi-trailer market size was valued at US$ 32.3 billion in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 3.7% from 2023 to 2030. The global Semi-Trailers market is expected to grow significantly in the next few years due to increasing construction activities worldwide.  The factors that are driving this growth are rising construction activities, bulging dependency on road transportation and demand from logistics sector.  Due to the increasing demand for cold chain products, such as frozen foods and pharmaceuticals, the market will witness increasing growth in the coming future.

Global Semi-Trailer Market: Regional Insights

North America is projected to show substantial growth in the global semi-trailer market during the forecast period. The factors driving growth of the market in this region are constantly growing retail sector and presence of huge trucking industry in the region. As the number of aging fleet is increasing in North America that should be replace with advanced semi-trailers, the market is witnessing strong growth in the region. Moreover, the region has supporting government regulations around weight carrying capacity and dimensions of semi-trailers. These factors are expected to augment growth of the global semi-trailer market over the forecast period.

Moreover, Asia Pacific is likely to show promising growth in the global semi-trailer market over the forecast period. This is owing to developing countries such as China and India comprising larger supply chain and logistics networks have become fastest-growing economies all over the world. The e-commerce industry of this region is likely to drive the demand for dry vans trailers in the near future. This in turn is anticipated to augment growth of the global semi-trailer market in Asia Pacific region.

Figure 1: Global Semi – Trailer Market Share (%), in terms of Value, By Region, 2022

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Global Semi-Trailer Market Drivers:

Improving infrastructure of road and traffic to boost the market growth

Logistics industry is one of the major end user of semi-trailers. These trailers and trucks are increasingly being used to transport goods. With changes in lifestyle and growing urbanization, people are inclining towards getting delivery of products and goods directly to them. Semi-trailers are also utilized in transporting goods and machinery used in other sectors, such as infrastructure development. As a result, the investment in road infrastructure is rapidly increasing across emerging countries. This in turn is expected to drive growth of the global semi-trailer market over the forecast period.

Expansion of cold chain industry to propel the market growth

The cold chain goods such as poultry, pharmaceutical products, fish, fresh flowers, fruits and vegetables, and dairy products are increasing in demand as the purchasing power among the middle-class population. Furthermore, rising disposable income in emerging countries is allowing people to spend more on organic, fresh and prime quality products. As a result, the cold chain industry is expanding constantly, which in turn is expected to propel growth of the global semi-trailer market over the forecast period.

Global Semi-Trailer Market Opportunities:

Availability of custom built semi-trailers is likely to bring multiple opportunities in the global semi-trailer market over the forecast period. The industry requirements and specification standards continue to evolve in the industry, due to which semi-trailers market vendors are producing more customized and specialized semi-trailers designed for serving particular purposes. This factor is creating several opportunities in the global semi-trailer market.

Emergence of electric semi-trailers is anticipated to offer business opportunities in the global semi-trailer market in the coming future. Automotive industry has witnessed technological advancements in past few years. Due to this, there is a shift towards electric vehicles from gas engine vehicles in the industry. Several automotive manufacturers are offering fully-electric cars. Similarly, manufacturers in trailers and trucks industry are also focusing on development of fully-electric semi-trailers. Thus, the market is expected to witness various growth opportunities in the global semi-trailer market over the forecast period.

Global Semi-Trailer Market Trends:

Increasing growth of European logistics industry is a recent trend

Increasing growth of European logistics industry is trending in the global semi-trailer market over the forecast period. According to the Coherent Market Insights, in 2020, nearly 75% of all inland freight in the EU was moved through roads, and transportation of freight was carried out nearly 1.7 kilometers on roads in Europe. Moreover, the rail transport has reduced in recent years in this region. Thus, the growing expansion of logistics industry in this region is expected to boost growth of the global semi-trailer market over the forecast period.

Growing Fast Moving Consumer Goods (FMCG) industry is another trend in the market

Growing Fast Moving Consumer Goods (FMCG) industry is another trend in the global semi-trailer market over the forecast period. These products are of limited shelf life as they include perishable items fruits, meat, vegetables, baked goods, and dairy products. The items that are purchased regularly are mostly low cost and are marketed in large quantities. Increasing population, growth in income, favorable regulations and digitization are driving the growth of this industry. This in turn is expected to propel growth of the semi-trailer market over the forecast period.

Global Semi-Trailer Market Restraints:

Presence of local players in unorganized sector to hamper the market growth

The global semi-trailer market is significantly fragmented with multiple local and region players in the unorganized sector. In emerging countries such as India, small unorganized players have captured more than 70% of the market with location manufacturing activities. This factor in turn impacts the globally established players, as it reduces the keenness of cost-sensitive markets. Thus, this factor is expected to hinder growth of the global semi-trailer market over the forecast period.

Certain rules and regulations around development of semi-trailers to limit the market growth

In road transportation, the semi-trailer empty vehicle consumer more fuel compared to semi-trailer filled with goods and also increase the greenhouse gas emissions. For this, market players are finding ways to develop innovative and new semi-trailers that have lesser carbon foot print and are cost effective. However, certain rules and regulations implemented for the semi-trailers are hinder the market. Nevertheless, the new innovative designs of semi-trailers to overcome these challenges are likely to support the market growth.       

Figure 2: Global Semi-Trailer Market Share (%), in terms of Value, By Type, 2022

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Global Semi-Trailer Market Segmentation:

The global semi-trailer market report is segmented into Types.

Based on Type, the market is segmented into Dry Vans, Flat Bed Trailer, Refrigerated Trailers, Lowboy Trailers, Tankers, and Others. Out of which, Dry Vans is expected to dominate the global market over the forecast period and this is attributed to their versatility and cost-efficiency. The use of dry vans is common is supporting freight requiring nominal protection against road and climate conditions. Fleet operators of full truckload (FTL) and less-than-truckload (LTL) use these trailers for their operations, as dry vans offer various benefits including versatility and cost-effectiveness among others. Thus, this segment is likely to dominate the global semi-trailer market in the near future.

Flat Bed Trailer segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for flatbed trailers. These trailers are widely used to transport heavy cargo, construction heavy materials, and machinery equipment. Due to the ease of use provided by these trailers, their demand continues to increase, further driving growth of this segment.

Global Semi-Trailer Market: Key Developments

In May 2020, Great Dane entered into partnership with Velocity Vehicle Group. With this partnership, Velocity Vehicle Group became a full-service Great Dane dealer. The company plans to sell products and services of Great Dane in Fontane, California, under, Southern California Great Dane name.

In March 2021, Kogel Trailer GmbH & Co.KG opened its new branch in Kampen. The new facility will be helping in expansion of the company’s footprint in Netherlands and cater the constantly increasing product demand in the region.

In March 2021, Krone Commercial Vehicle Group introduced the Krone 360° trailer service for semi-trailers and trailers. This service is for offering a comphrehensive service program to customer with which they will be able to put together a trailer-made package as per their needs.  

In June 2021, Schmitz Cargobull revealed its new factory in Manchester. With this expansion, Schmitz will aim at building customized vehicles for the operators in the Ireland and the U.K.

Global Semi-Trailer Market: Key Companies Insights

The global semi-trailer market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global semi-trailer market are Schmitz Cargobull, China International Marine Containers (Group) Ltd., Polar Tank Trailer, Llc (Entrans International, Llc Company), Fontaine Commercial Trailer, Inc., Lamberet Sas (Xinfei France Sa), Great Dane, Krone Commercial Vehicle Group (Bernard Krone Holding), and Kogel Trailer Gmbh & Co.Kg.

*Definition: A semi-trailer is a piece of equipment that is attached to the front of a truck. They are often referred to as big rigs or 18 wheelers. They are a great choice for transporting heavy loads over long distances because they can move more quickly than a full trailer, which has both front and rear axles. Semi-trailers are used in a wide variety of sectors, including transportation, logistics, building, and agriculture.