DUBLIN, March 21, 2023 /PRNewswire/ — The “Tow Tractor Market – Global Outlook & Forecast 2023-2028” report has been added to ResearchAndMarkets.com’s offering.
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.
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.
Market Dynamics
Market Opportunities & Trends
- Increasing Logistics Service Providers
- Expansion of Aviation Industry
- Evolution in Batteries
Market Growth Enablers
- Rising Sustainably Awareness
- Fluctuation in Fuel Prices ( Petrol)
- Growing Automation in Industries
Market Restraints
- Violation in Material Prices
- Rising Emissions by Diesel Consumption
Advantages of Tow Tractors
- Safe Way of Transportation
- Less Movement, Less Cost
- Effective Material Handling
Value Chain
- Raw Materials
- Manufacturers/Vendors
- Dealers/Distributors
- Retailers
- End-Users
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.
For more information about this report visit https://www.researchandmarkets.com/r/5cjq51
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