Increasing E-Commerce And Rapid Population Growth Will Drive The Demand For Trailers
The global trailers market is expected to grow from around $63 billion in 2019 to nearly $87 billion in 2022 at a compound annual growth rate (CAGR) of 11.1%. This rapid growth in the forecast period can be attributed to the growing e-commerce industry that uses trailers for the transportation of goods to customers, and the growing global population.
The growth of e-commerce is expected to drive the trailers market. The global e-commerce industry is growing at a significant pace, driving the need for logistics and demand for trailers. The global e-commerce market is expected to reach $4 trillion by 2020, and trailers are an important part of truck transportation in the deliveries of large e-commerce products. Trailer manufacturers are responding to e-commerce-fueled changes to the supply chain by expanding their operations. In 2017, major trailer manufacturing companies such as Hyundai Translead and Strick Corporation announced that they were exploring options to provide equipment deliveries in the final mile of an e-commerce delivery. Increasing e-commerce is expected to support the demand for trailers going forward.
The global population is growing and is expected to reach about 10 billion by 2050, indirectly contributing to the growth of the global trailers market. Increase in population creates more demand for food, automobiles, infrastructure and transportation. According to the American Trucking Association, the US trucking industry national trade association, trucks move about 71% of the nation`s freight, which is driven by population expansion in the country. Population expansion is expected to be the biggest factor in increasing the demand for transportation in countries such as India, Brazil and African countries in the forecast period. Companies in the trailers market are expected to see a growth in the demand for truck trailers from manufacturers of goods such as food, automobiles, clothing and other consumer goods in the forecast period.
Rapid urbanization, especially in developing countries, also increases the demand for transportation, thus driving the trailers market. China’s urban population increased by almost 12% from 2012 to 2016, while India’s urban population grew by 10% during the same period. Greater urbanization increases 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, extends the logistical supply chains, thus 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.