Market Research Report
Used Truck Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||907014|
|Published||Content info||65 Pages
Delivery time: 2-3 business days
|Used Truck Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: February 1, 2020||Content info: 65 Pages||
The global used truck market is expected to register a CAGR of 4.8% during the forecast period, 2020-2025.
The decision to buy a used truck is sometimes referred to as a smart buy decision, because of the advantages and value for money it offers. Some of the major factors driving the demand for used trucks are the growth in buildings and infrastructure (such as roads and highways), increasing e-commerce logistics, and continuous development in the agricultural sector, in both developed and developing countries. However, factors, such as the incentives and discounts offered by the truck manufacturers, new technologies, fuel efficiency (available at a low price), and less downtime of new trucks, are leading to the customers preferring new trucks to the used ones.
The growing construction and e-commerce activities have increased the demand for material transportation, which, in turn, has resulted in the increased sales of used trucks, across the world, over the past three years.
Rise in the Construction Industry Driving the Demand for Heavy-duty Trucks
Road transport is a critical component in the economy of any country or region, and high-performance trucks play a crucial part in the transportation of goods in an efficient manner. Enhanced performance, along with increased driver comfort and safety (especially in Class 6 and Class 7 trucks), is one of the primary drivers of the high-performance truck market. High horsepower and high speed primarily characterize these vehicles.
The advent of trucks with higher power and advanced features, like airbag occupancy sensor, air conditioning, cruise control systems, ABS and driveline traction control, and electronic stability, makes this one of the preferred choices for commercial and material handling, for vehicles in the construction and manufacturing sector.
The global construction industry is expected to witness a significant growth in the coming years, with good opportunities emerging from the infrastructure, residential, and non-residential sectors.
Some of the major factors driving the market studied are increasing construction of multi-family houses (with the growing trend of nuclear families) and increasing investments in the construction of roads, highways, smart cities, metros, bridges, and expressways, due to the growth in population and urbanization.
The average price of a used heavy-duty truck declined by 5% in 2017, and fell to USD 40,500. The average age of the trucks is increasing, which, in turn, is increasing the total number of miles travelled by a truck.
Moreover, the preference for advanced technologies, such as automatic transmission, is also increasing. The aforementioned factors are shifting the consumers' focus toward new trucks. As a result, the companies and manufacturers who sell used trucks are keeping their prices low, in order to attract customers.
There is a rise in the supply of trucks aged from of 3 years to 5 years, with increased mileage, resulting in a fall of the prices of trucks, in the market. Dealer lots are filled with trucks that are high on mileage, making the buyers lean toward the purchase of new trucks.
There is also an increasing trend toward AMT transmission, in the line-haul tractor segment, due to the fuel efficiency improvements that are offered. Freightliner Cascadia registered the highest volume among sleeper tractors that were sold in 2017, while Kenworth emerged as the strongest player in the vocational market.
The market is majorly controlled by retail dealership, with about 75% of the shares in the distribution channels. It offers better sales and service support, as compared to the other channels.
However, used truck prices are expected to increase, with the entry of the latest model year trucks into the used trucks segment, by 2020. Volvo and Mack trucks are highly accepted in the construction segment, due to the improved freight environment.
APAC is the Fastest Growing Market for Used Trucks
The used truck market is expected to grow more in the Asia-Pacific region, as compared to the other regions. By 2020, the 2013 and 2014 model year trucks will shift to the used truck market, and this will keep the value of used trucks high, which is presently low.
The Asia-Pacific region is expected to be a major market, propelling the global construction industry, with rising construction activities in countries, such as India and the ASEAN countries (including Thailand, Singapore, Vietnam, and others).
Additionally, despite its volatile growth in the real estate sector, significant developments in rail and road infrastructure, by the Chinese government (in order to withstand the demand stemming from the growing industrial and service sectors), have resulted in the tremendous growth of the Chinese construction industry in the recent years.
In the past few years, countries, like Indonesia, Malaysia, and Singapore, have become the primary hosts for numerous national and international events, owing to their business potential.
As a result of the aforementioned developments, the demand for used trucks is expected to increase in the freight and logistics segment, over the forecast period.
Key players operating in the market are Scania, Mercedes-Benz, Renault, Mascus, and Volvo Trucks, among others. Manufacturers are focusing on developing advanced technologies and launching new products, in order to stay competitive in the market.
Recent developments in the used truck market: