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Tow Tractor Market - Global Outlook & Forecast 2023-2028
The global tow tractor market by revenue was valued at USD 1.96 billion in 2022 and is expected to reach USD 2.88 billion by 2028.The expansion of the e-commerce business is boosting the requirement for logistics services and is contributing to the growth of the tow tractor market.
New York, March 02, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Tow Tractor Market - Global Outlook & Forecast 2023-2028" - https://www.reportlinker.com/p06425886/?utm_source=GNW
The global tow tractor market by revenue was valued at USD 1.96 billion in 2022 and is expected to reach USD 2.88 billion by 2028.
The expansion of the e-commerce business is boosting the requirement for logistics services and is contributing to the growth of the tow tractor market. Moreover, tow tractors are increasingly gaining momentum in the manufacturing industry for several purposes. And retailers are investing a significant amount in tow tractors to enhance the logistics activities and make their work a little easier as these tractors are easy to handle and require less maintenance.
The constantly rising online purchases, high requirement of warehouses, and constant involvement of people are creating several challenges in terms of efficiency and productivity. As a result, automation is increasingly gaining momentum in warehouses. Automation in moving goods within and out of warehouses is increasingly becoming popular to minimize repetitive manual tasks. Financial and operational benefits are encouraging warehouses to adopt automated guided carts. Further, rapid industrialization and increasing applications in the aerospace and retail sectors are primarily driving the tow tractors market.
The tow tractor market in North America is projected to grow at a CAGR of 6.59% during the forecast period. The increasing import, export trading, and industrial activities in the region support the market demand for the tow tractor. Vendors of the tow tractor market increasingly emphasize enhancing the run time and power of electric tow tractors. Further, the growing U.S. tow tractor market can be attributed to the developing logistics, transportation, warehousing, food processing, manufacturing, automotive, and e-commerce industries.
MARKET TRENDS & DRIVERS
Growing Automation in Industries
Autonomous vehicles are one such technological innovation that can widely change logistics dynamics. Such vehicles integrate different technologies and can be driven without human intervention. Manufacturers also focus on innovating their products to meet customer needs for automatic material handling, enabling the automation of logistics processes in indoor and outdoor environments. TractEasy is a driverless, electric tow tractor enabling autonomous material handling in indoor and outdoor logistics processes and airports. Such factors are projected to increase the demand for autonomous tow tractors during the forecast period.
Expansion of The Aviation Industry
The aviation industry encompasses almost all aspects of air travel and the activities that help to facilitate it. These activities include the entire airline industry, aircraft manufacturing, research companies, military aviation, and more. Airports are actively embarking on modernization plans and pumping their investments into mega airport modernization projects to improve their infrastructure and services. Further, aircraft towing is essential to daily operations at airports worldwide. Towing aircraft is the safest way to move an aircraft on the ground through aircraft towing equipment. Hence, the expansion of the aviation industry is surging the usage of aircraft towing equipment, thereby supporting the global tow tractor market.
INDUSTRY RESTRAINTS
Violation of Material Prices
The single largest cost component in the tow tractor market comprises raw materials. The cost of the raw materials used to manufacture tow tractors, which involves steel, plastic, and rubber, has risen significantly over the past few years. The instability of raw materials prices seriously threatens the manufacturers’ profit margins. Other expenses, such as labor costs, also show a substantial increase. Furthermore, the increasing cost of raw materials increases the manufacturing cost by another band of 5-7%, reducing profitability. Hence, such factors are lumbering manufacturers endeavoring to manufacture efficient tow tractors at reasonable prices to grapple with rising competition in the tow tractor market.
SEGMENTATION INSIGHTS
INSIGHTS BY PRODUCT TYPE
The manual tow tractor market is projected to dominate the global market owing to its larger consumption in several industries. The global manual tow tractor market was valued at USD 1.27 million in 2022. This segment involves products that run on battery, propane, and conventional fuel. Manual tow tractors come with 1-50 tonnes capacity on a 3- and 4-wheeled chassis with a rider-seated, stand-in, and pedestrian models for indoor and outdoor use. These tow tractors are used in larger works, particularly in aerospace and large manufacturing facilities. They are particularly popular in Europe, where energy efficiency has long been a huge part of government measures.
Segmentation by Product Type
• Manual
• Self-Driven
INSIGHTS BY SUB-PRODUCT TYPE
The global tow tractor market is segmented into rider-seated, stand-in, and pedestrian by sub-product type. In 2022, the rider seated sub-product type category dominated the industry owing to its larger consumption in several industries for advanced order picking, long-distance load transportation, or specialized transports. The global rider-seated tow tractor market is expected to grow at a CAGR of 6.17% during the forecast period. These models have profound usage among professional logistics service providers, with variations in the size, type of fuel used, and different engine options. However, the stand-in tow tractors are significantly rising with a high growth rate owing to the increasing focus on lowering operational costs and enhancing productivity within the warehouse and operational plants.
Segmentation by Sub-product Type
• Rider-seated
• Stand-in
• Pedestrian
INSIGHTS BY LOAD CAPACITY
The global light-duty tow tractor market was valued at USD 749.86 million in 2022 and dominated the load capacity segment. The higher share is attributed to the larger usage of tow tractors by small manufacturing facilities and warehouses. However, applications in large to medium-sized warehouses and manufacturing facilities heavy-duty tow tractors are gaining momentum. Heavy-duty towing vehicles are ideal for cargo and luggage handling at airports and heavy-duty industries.
Segmentation by Load Capacity
• Light Duty
• Medium Duty
• Heavy Duty
INSIGHTS BY POWER SOURCE
The electric power source segment dominated the global tow tractor market in 2022, owing to a larger usage of tow tractors for quick and easy-to-maneuver features. Further, its lower long-run cost is attributed to eliminating the need for battery replacement. Moreover, these tow tractors are lightweight and require little maintenance. The rising automation of material handling systems in the industrial and commercial trades is anticipated to propel the demand for autonomous tow tractors. Hence, these factors are the prominent factors driving the demand for electric tow tractors during the forecast period.
Segmentation by Power
• Electric
• Diesel
• Gas
• Propane
INSIGHTS BY APPLICATION TYPE
The global intralogistics & warehousing tow tractor market was valued at $712.81 million in 2022 and dominated the application segment. The larger usage of tow tractors for supply chain management is a major factor propelling segmental growth. Tow tractors use different power sources, some employing traditional combustion engines while others run on electric battery packs. The growing industrial and commercial trades are anticipated to propel the demand for storage and transportation facilities. These factors are the prominent factors driving the demand for tow tractors significantly during the forecast period.
Segmentation by Application
• Intralogistics & Warehousing
• Industrial
• Aerospace
• Food & Beverages
• Others
INSIGHTS BY SALES CHANNEL
In 2022, direct sales dominated the global tow tractor market and accounted for a revenue share of 62.19%. The segment is expected to witness an incremental growth of USD 534.90 million during the forecast period. Factors such as the broader reach in areas that lack better connectivity and high consumer trust associated with personally experiencing the quality of products are driving the growth of this segment. Further, strategic partnerships between vendors and OEMs help reduce operational costs endured by OEMs. As a result, direct sales to OEMs hold a prominent share in the direct sales segment.
Segmentation by Sales Channel
• Direct Sales
• Indirect Sales
GEOGRAPHICAL ANALYSIS
The tow tractor market in the APAC region witnessed robust growth owing to the growing economies and the setting up of new manufacturing units by global OEMs. In 2022, the APAC region dominated the global tow tractor market and was valued at USD 886.41 million. APAC has emerged as the world’s manufacturing hub with the highest adoption rate of industrial robots (which helps in aiding the warehousing, logistics, and manufacturing sectors). As per the International Federation of Robotics (IFR), the robot density in China is the most dynamic in the world. Such factors are anticipated to support regional industry growth. Moreover, the increasing e-commerce industry in the APAC region is driving the growth of the tow tractor market.
The tow tractor market in Europe is expected to grow at a CAGR of 5.93% during the forecast period. The growing demand for tow tractors in the region is ascribed to the increasing e-commerce business in the country. The European region is home to diverse markets and particularly intricate digital markets. The share of the population gets into the internet, and shopping online is continuously growing. Hence, such high penetration in the e-commerce business requires strong supply management, including warehousing and material handling equipment, supporting the demand for tow tractors in the region.
Segmentation by Geography
• APAC
o China
o Japan
o India
o South Korea
o Australia
• Europe
o Germany
o UK
o France
o Italy
o Spain
• North America
o US
o Canada
• Latin America
o Brazil
o Mexico
o Argentina
• Middle East & Africa
o South Africa
o Saudi Arabia
o UAE
COMPETITIVE LANDSCAPE
The global tow tractor market is highly concentrated, with many local and international players. A fundamental shift in competition is anticipated in the market due to several upcoming construction projects of warehouses, airports, and manufacturing facilities. Many vendors are looking to expand their product portfolios using the latest technologies to widen their footprint in the market and cater to a growing customer base. Some global tow tractors market vendors include Alke, Toyota Material Handlings, Jungheinrich AG, Bradshaw, Eagle Tugs, Hyster-Yale Group, Helge Nyberg, and Others. The manufacturers emphasize identifying the different industry opportunities, setting certain goals to achieve productivity, and efficiently using capital resources. The present scenario forces vendors to alter and refine their unique value proposition to achieve a strong industry presence. The manufacturers are offering and expanding the product line-up in their business segments with the launch of various innovative techniques, thereby gaining an edge over their competitors.
Key Vendors
• Jungheinrich AG
• Alke
• Toyota Material Handling
Other Prominent Vendors
• Bradshaw
• Eagle Tugs
• Helge Nyberg AB
• Hyster-Yale Group, Inc.,
• Godrej Material Handling
• Linde Material Handling
• Motrec International Inc.
• John Bean Technologies
• STILL
• Kalmar Motors
• VOLK
• Spijkstaal International B.V.
KEY QUESTIONS ANSWERED:
How big is the tow tractor market?
What is the growth rate of the global tow tractor market?
Who are the key players in the global tow tractor market?
What will be the global tow tractor market share in shipments by 2028?
Which region holds the largest global tow tractor market share?
What are the significant trends impacting the tow tractor market?
Read the full report: https://www.reportlinker.com/p06425886/?utm_source=GNW
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