The Forecast of World-Wide Semi-Trailer Industry—Part I
By 2020, the global semi-trailer market is estimated to reach 29.5 billion U.S. dollars and is expected to grow to 41.2 billion U.S. dollars by 2025, with a compound annual growth rate of 5.6%
The expansion of the cold chain industry, the growth of the fast-moving consumer goods industry, and the use of advanced technologies such as telematics and stability control are expected to drive demand in the semi-trailer market. However, local participants in the unorganized sector of developing countries are a constraint for participants in the global semi-trailer market. Modern technologies such as semi-trailer platoons and electric semi-trailers provide numerous development opportunities in the near future. On the other hand, light-duty semi-trailers and lower total cost of ownership (TCO) will be challenging factors for the semi-trailer market in the future.
COVID-19 has had a significant impact on the semi-trailer market. With the chaos of the entire ecosystem, the production and sales of new semi-trailers worldwide have ceased. OEMs must wait until the lock is released to resume production, which has affected their business. After the pandemic, with the steady recovery of the economy, the demand for new semi-trailers is expected to show growth. However, another wave of COVID-19 caused by the new strain may hinder recovery in some countries. Subsequently, semi-trailer manufacturers will need to adjust production according to COVID-19 scenarios in different countries/regions. In addition, component manufacturing has also been suspended, and small secondary and tertiary manufacturers are also facing liquidity issues. Therefore, production shutdowns during the outbreak and reduced demand after the pandemic may have an unprecedented impact on semi trailer manufacturers.
The fast-growing fast-moving consumer goods industry may drive the semi-trailer market
Currently, the company is focusing on investment in supply chain automation, expansion of existing manufacturing facilities, and development of warehouse centers. In addition, distribution centers and locations play a vital role in FMCG logistics. Therefore, the continuous growth of cargo transportation from manufacturing facilities to warehouses, from warehouses to distribution centers, and from distribution centers to retail stores, will drive the demand for semi-trailers in the fast-moving consumer goods industry. Similarly, the increasing acceptance of e-commerce in fast-moving consumer goods will provide opportunities for the growth of the semi-trailer market.
Semi-trailers are one of the main road transportation methods used by the fast-moving consumer goods industry to transport their products. Many leading companies rely on their own transportation and logistics systems to transport goods. For example, fast-moving consumer goods giants such as Coca-Cola, Pepsi, Wal-Mart, and Nestlé all have their own private fleets, including different semi trailers used to transport goods. The transportation of goods in the fast-moving consumer goods industry must comply with specific standards and laws. Since the characteristics of the product will be affected during the packaging and transportation of the product, the demand for special semi-trailers (such as refrigerated semi-trailers) in the fast-moving consumer goods industry is increasing. Major participants in the semi-trailer market have already understood the changes in demand for refrigerated semi-trailers and are investing in new product development or cooperation. For example, in February 2020, Wabash and C&S Wholesale Grocers developed a zero-emission 48' refrigerated trailer. This is a kind of similar product, compared with the traditional refrigerated trailer, its thermal efficiency is increased by 30%.