Market Research Report
Heavy-duty Trucks Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||938215|
|Published||Content info||60 Pages
Delivery time: 2-3 business days
|Heavy-duty Trucks Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: May 1, 2020||Content info: 60 Pages||
The heavy-duty trucks market is expected to register a CAGR of around 4.5%, during the forecast period, 2020-2025.
Some of the major factors driving the growth of the market are growth in the industrial and construction sector, improvement in the road infrastructure, and consistent rise in the freight and logistics sectors.
APAC region witnessed a strong demand for heavy trucks, due to the higher number of construction projects in the pipeline, globally, worth ~ USD 8 trillion. Exports of heavy machinery, including trucks from Singapore to the rest of the APAC region, have grown steadily over the years, which is supported by the key drivers led by the investments in construction projects in the region. Philippines and Indonesia are a few examples of high growth opportunity markets in the region.
Due to high rate of smartphone penetration in emerging economies such as China and India, people are likely to buy majority of their supplies from the internet. This growth has resulted in the expansion of e-commerce sector. Also, augmented reality and virtual reality can now predict the possible failure of vehicle, servicing time for a vehicle, etc. This will lead to increased sales of high-performance trucks.
Mining industry is also on the rise after a slump in 2015. The industry made a profit of USD 66 billion in 2018 compared to USD 61 billion profit in 2017. Since mining industry is a major deployer of heavy-duty trucks, the improving condition of the industry is expected to boost the sales of heavy duty trucks.
The demand for downsized engines, along with the deployment trend of multi-axle vehicles, is anticipated to boost vehicle performance. Volvo Trucks, Paccar, and ISUZU are some of the prominent players in the industry, capturing significant market share.
Growth in Construction Activities to Drive the Demand for Heavy-duty Trucks
The heavy-duty commercial vehicle market, which is driven by logistics and the developments in the construction industry, is expected to witness significant growth in the coming years, with good opportunities opening in infrastructure, residential, and non-residential sectors.
The estimated net worth of global construction market is USD 17 trillion which is expected to touch USD 25 trillion mark by 2025. To fight major problems like traffic congestion, population explosion, high manufacturing costs and ageing transportation infrastructure, developed economies are now investing heavily in infrastructure development in developing economies such as India and African nations. These factors are boosting the sales of heavy-duty trucks across the globe.
Neom Project is a very ambitious venture of Saudi Arabia that aims at developing a smart futuristic city with a total area of 26500 square kilometers and a total length of 460 kilometers. The project has a gigantic cost of around USD 500 billion.
China's One Belt One Road initiative is a highly ambitious project that serves the purpose of constructing a unified market with geographies around World through road, rail and sea routes.
Projects worth USD 120.7 billion are under construction in Africa. This includes The Great Man-Made River project in Libya, New national capital development of Egypt with a proposed budget USD 58 billion and construction of mega cities in Africa.
The big city plan will increase the size of Birmingham city of England by 25%. With an estimated cost of USD 17 billion, this plan aims at constructing 5000 new houses and revamping of New Street Station at an estimated cost of 600 million euros.
High speed railway project aims at connecting 8 of the 10 largest cities of California from San Diego to San Francisco. The project is scheduled to be completed by 2029.
Asia-Pacific Expected to Lead the Global Market
Asia-Pacific countries exhibits the fastest economic growth rates in the entire world. The Asia-Pacific region is expected to be a major market propelling the global construction industry, with augment construction activities in countries, such as India and ASEAN countries.
India is investing huge amount of money in its ambitious smart city project and development of Special Economic Zones and National Investment and Manufacturing zones. India is also investing in setting up renewable energy generation centers like windmill farms and solar parks. This will surely give a boost to the growth and development of heavy-duty truck sales.
Ongoing mega projects in China needs a lot of machinery and materials to be displaced from one part of the country to the other. Projects like Tianhuangping hydroelectric project, South North water transfer project and Beijing airport are some of the many projects that will deploy a large number of heavy-duty trucks. Till October 2019, 3698 heavy duty trucks were sold in China.
Other than construction and development, defense and militarization is another reason for Asia-Pacific countries to deploy heavy duty trucks. India and China spend a major portion of their budget on defense and deploys some of the most sophisticated machineries. Heavy duty trucks are used by these countries to transfer manpower and heavy machineries in some of the world's most difficult terrains these countries have.
Some of the major players dominating the market are Volvo Trucks, Daimler Trucks, Isuzu Motors Ltd, PACCAR Inc., Tata Motors, and FAW Group Corp.
In Consumer Electronics Show 2019, Daimler announced to invest more than USD 570 million towards the development of autonomous trucks