Market Trends of Semi-trailer Industry
This section covers the major market trends shaping the Semi-trailer Market according to our research experts:
The Augmenting European Logistics Sector
In the European Union, approximately 75% of all inland freight was moved via roads in 2020. In 2019, freight was transported across around 1.7 trillion kilometers across European roads. In recent years, the share of road freight increased incrementally while rail transportation declined.
Most of the freight transport in Europe is done by road transportation. According to Eurostat, over 75% of inland cargo transports within the European Union, i.e., about 1,750 billion metric ton-kilometer (tkm), travel by road. In some European territories, this percentage is as high as 90%, or even more.
The crucial factor driving the growth of the market is the boosted inclination for semi-trailers for logistics. Furthermore, the promptly growing e-commerce in Europe signifies a central pillar for the single digital market and indicates the developments in the e-tailing sector, which is perceiving the expansion of well-organized retail spaces. As the e-commerce industry grows across Europe, the demand for a more developed distribution network is on the rise. As the market persists to increase, the demand for all types of semi-trailers is also expected to rise, as freight transportation in Europe (between 50 km and 1,999 km) accounted for 89.1% of the global freight transportation industry in 2018. The majority of the vehicles are utilized by commercial fleet operators, including courier services, postal services, and e-commerce delivery services.
Additionally, due to environmental concerns, a trend toward the electrification of the commercial fleet was witnessed in the European Union, with some companies, like Hermes, Harrods, FedEx, and DHL, converting to electric light commercial vehicles. Also, Mercedes is proposing to enter the electric van market by launching electric vans for the German logistics firm Hermes. In one such move, the German postal service, DHL, engineered its electric vehicle for e-commerce operations in the country.
Asia-Pacific is Expected to be Dominate the Market Over the Forecast Period
Asia-Pacific is the largest market for semi-trailers, and it is expected to grow at the fastest pace beyond 2020, followed by North America. The growth is mainly influenced by the surge in construction activities, rising investments in infrastructure and inland transportation, and persistently growing demand from the logistics sector.
Several heavy commercial vehicles in India are outmoded and need replacement. Stringent emission norms are expected to result in a rise in the demand for replacements, thereby fuelling the growth in the Indian semi-trailer market.
China is the world's leading producer of minerals, such as rare earth minerals, gold, and coal, and it is one of the biggest consumers of coal, with a consumption of 81.67 exajoules in 2019. China accounted for approximately 51.7% of the world's coal consumption in 2019. Currently, with a total coal mining capacity was of 4.07 billion tons in 2021, the country is supporting and helping the demand throughout several locations of the world.
In June 2020, the National Energy Administration (NEA) approved two new coal mine projects, with a total investment of USD 566 million in the north-western regions of Xinjiang and Gansu and a combined annual capacity of 3.6 million tons. In 2019, China was the world's top importer of refined and crude oil, with a total of USD 226 billion (13.5%) of the world's imports.
Additionally, the demand for coal mining in China has increased drastically owing to the country's building new thermal power plant projects. Although several small players operate in China, the incompetence of these players to buy new equipment drives them to rent equipment for numerous projects and return it to the suppliers owing to the shortage of required capital.
