Market Trends of Automotive Tonneau Industry
Rise in Sale of Pick-up Truck Across the Globe
Due to the tremendous growth among sectors like logistics and supply chain industries, the adoption of electric vehicles is quite evident in many emerging markets. Additionally, the stringent emission norms in countries across the globe pushing many companies to electrify vehicles are likely to enhance the demand for pickup trucks in coming years. For instance,
- In April 2022, Ford Motor Company introduced the Ford F-150 electric pickup truck in the United States. The company's major aim is to achieve carbon neutrality by 2050 and to use 100% local, renewable electricity in all of its manufacturing operations by 2035.
Light commercial vehicles such as pickup trucks are primarily driven by the e-commerce and logistics industry. Owing to an increase in internet access and smartphones, online retail sales and e-commerce are increasing. It is likely to lead to an increase in the purchasing of light commercial vehicles to help with the timely delivery of goods to customers.
The COVID-19 online sales resulted in a significant increase in the global e-commerce market revenue and user base. However, the rise in consumer trends toward online stores is expected to achieve growth.
The demand for pickup trucks is steadily increasing across countries such as India, as this is one of the major truck categories in the country. The leading players in this segment are Mahindra & Mahindra (M&M), with its popular Bolero range of pickups. Ashok Leyland with the Dost range of mini-trucks, Tata Motors with its Ace Super, Yodha, 207, and Winger ranges, and Isuzu Motors India, which is one of the leaders in the global pickup trucks market. Every manufacturer is offering compelling products and trying to offer customers the most suitable pickup truck.
Major vehicle manufacturers, such as Daimler, Nissan, Ford, and Renault, saw a huge increase in e-commerce sales, which boosted the logistics industry. Furthermore, the demand for e-commerce transportation traditionally relied on pickup trucks and vans for logistics and consumer delivery services. It is likely to witness major growth for the automotive tonneau cover market during the forecast period.
With the development mentioned above across the globe, the market is witnessing significant growth during the forecast period.
North America is Expected to be the Largest Market
The North American region is expected to be the largest market for automotive tonneau covers. The major markets in the region are the United States of America and Canada. The demand for tonneau is also promising owing to the presence of many luxury OEMs in the region, which are manufacturing premium convertible cars for local as well as export markets.
The growth in the market is attributed to the high demand for pick-up trucks in the region and convertible cars. In 2022, the United States witnessed the sale of around 2,513.7 thousand units of pick-up trucks. With an increase in the sale of pick-up trucks across the country, the demand for tonneau covers is likely to grow during the forecast period.
In the United States, EPA and NHTSA proposed the implementation of the Safer Affordable Fuel-Efficient (SAFE) Vehicles rule to be implemented from 2021 to 2026. The rule may set the standards for corporate average fuel economy and greenhouse gas emissions for passenger and light trucks.
The Zero Emission Vehicles (ZEV) program requires OEMs to sell specific numbers of clean and zero-emission vehicles (electric, hybrid, and fuel cell-powered commercial and passenger vehicles). The ZEV plan aims at putting 12 million ZEVs on the road by 2030.
Third-party logistic suppliers, such as FedEx and XPO Logistics, utilize several light commercial vehicles to deliver the product to the nearest product delivery station. These companies include a larger fleet of LCVs since smaller LCVs are more fuel-efficient than heavy commercial vehicles when commuting within a city.
Moreover, due to numerous benefits provided by different vehicle manufacturers to freight transporters, the adoption of efficient light commercial vehicles in the e-commerce industry is increasing at a significant rate. It, in turn, is anticipated to enhance the demand for tonneau covers in the coming years.
