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The towing equipment market is estimated to increase by USD 2,120.68 million between 2022 and 2027. The size of the market is forecast to grow at a CAGR of 4.6%. The growth of the market depends on several factors, including increasing motorization in emerging countries, progressing requirement of commercial vehicles for road modes of freight transport, and increasing demand for commercial vehicles due to globalization.
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The increasing demand for commercial vehicles due to globalization is notably driving market growth, although factors such as volatile steel prices may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Driver
The increasing demand for commercial vehicles due to globalization is notably driving market growth. The growth in the industrial sector and other industrial activities, along with the improvements in commercial operations in logistics, has led to an increase in the demand for commercial vehicles. It is expected that this demand will increase further during the forecast period due to the improvement in economic growth in both developed and developing countries.
The benefits of lower operational and labor costs have provided momentum to globalization, with manufacturing being outsourced to comparatively low-cost nations. This implies that the methods of globalization have resulted in new geographies of production, in turn changing the logistics landscape. Furthermore, the volume flow of goods has risen exponentially, and as a result, led to a rise in supply chain complexities. As the distances associated with supporting global supply chains have increased, the importance of distribution has increased as well, prompting the extensive development of large terminal facilities such as ports, airports, rail yards, and distribution centers (DC) in metropolitan areas. Hence, factors like these will drive the global market during the forecast period.
Significant Trend
The growth of online capabilities is an emerging trend in the market. The growing popularity of e-commerce is changing the global automotive aftermarket and retail channels. The likelihood of reaching consumers directly through online capabilities is increasing for companies in the global market. Therefore, the establishment of a strong online presence will be significant for manufacturers, regardless of whether or not companies intend to participate directly in e-commerce.
Furthermore, individual companies such as Horizon Global are positioned well to take advantage of this trend by establishing a strong online presence. The company is assisting consumers by offering a broad range of information on its products and services, including custom-fit guides, installation videos, and links to authorized dealers (both brick and mortar) and e-commerce sites. Several other companies in the market are also increasing their presence online to improve their market penetration. Hence, such factors are expected to fuel the growth of the market in focus during the forecast period.
Major Challenge
Volatile steel prices are major challenges impeding market growth. The largest raw materials used in the manufacturing of towing equipment are steel, copper, and aluminum. Steel is acquired from steel mills and service centers with pricing contracts of generally three to six months. Changing global dynamics for steel supply and production may present a challenge to the business.
During the forecast period, the steel industry is anticipated to continue growing, driven by increasing construction and the growing manufacturing industry. While steel is readily available from a variety of competing suppliers, the volatility in the costs of these raw materials is expected to impact the margins of manufacturers. Hence, such factors are expected to hamper the growth of the market in focus during the forecast period.
Key Market Customer Landscape
The report includes the market's adoption lifecycle, covering the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Andersen Manufacturing Inc. - The company offers trucks and trailer hitches tow, accessories, rapid hitch parts and accessories, locks, and wheel connection parts and accessories. The key offerings of the company include towing equipment.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the passenger car segment will be significant during the forecast period. The passenger vehicle category comprises a broad segment of the automotive industry and can be classified into many types, such as sedans, hatchbacks, sports utility vehicles (SUVs), crossovers, multi-purpose vehicles (MPVs), and passenger vans. All these variants have several unique features and different applications based on the needs of end-users.
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The passenger cars segment was valued at USD 5,653.41 million in 2017 and continued to grow until 2021. These vehicles can be used for personal or commercial use, such as ride-sharing, fleet management, and others. They provide many benefits, including mobility, safety over two-wheelers, convenience, and independence from sharing a ride or taking public transport. Furthermore, the demand for passenger cars is significantly increasing in developing countries owing to factors like low car penetration per capita in the region and growing preference for having a car due to higher social recognition. Therefore, the increasing demand for passenger cars would lead to an increase in demand in the passenger cars segment during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in APAC is expected to grow at a rapid pace during the forecast period. This is owing to the growing demand for SUVs and pickup trucks in countries such as China, and India which form a major area of application. In the past few years, the demand for large utility vehicles such as SUVs, pickup trucks, and crossovers has increased in APAC. The factors responsible for this include improving socio-economic conditions, infrastructural development, road development, and the increase in trade activities in China and India. This increase in the sales of SUVs in emerging markets is acting as a growth enabler for the market in focus. Besides, the growth of the e-commerce market in many emerging economies in APAC is also driving the sales of this equipment.
Furthermore, the improvements in the standard of living and increasing disposable incomes are spurring the demand for automobiles in this region. The high demand for automobiles is encouraging automotive OEMs to set up their manufacturing plants in this region. For instance, in November 2019, Hyundai Motor Co. announced an investment of USD 1.55 billion in Indonesia's auto manufacturing plant until 2030. Hence, the rising production of vehicles in this region will lead to an increase in demand for automobiles, which will drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth, fueled by the expansion of the e-commerce industry and increased demand for delivery and courier services. Devices such as fifth wheels, wiring harnesses, and tow bars are essential components in this market, catering to the towing needs of various vehicles including campers and commercial cars. Key players leverage manufacturing operations to ensure low production costs, tapping into skilled and unskilled labor pools. Market dynamics vary across regions, with the Americas witnessing robust growth driven by motorization in emerging nations, while the Asia Pacific region sees traction in road transportation and automotive aftermarket services. Porter and PESTEL analyses help stakeholders understand competitive landscapes and external factors shaping the market, guiding investment decisions and strategic planning in this dynamic industry.
Towing Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.6% |
Market growth 2023-2027 |
USD 2,120.68 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.12 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Andersen Manufacturing Inc., B and W Trailer Hitches, Bosal Nederland BV, Brink Group BV, Butler Products, Camco Manufacturing Inc., CURT Manufacturing LLC, Dethmers Manufacturing Co., Fastway Trailer Products, Hopkins Manufacturing Corp., Horizon Global Corp., John Bean Technologies Corp., Maini Materials Movement Pvt. Ltd., Maxx Group LLC, Mumby Manufacturing Ltd., Pulliam Enterprises Inc., Rigid Hitch Inc., Technosys Equipments Pvt. Ltd., Winston Products LLC, and Youngs Welding Inc. |
Market dynamics |
Parent market analysis, Market forecasting, market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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