July 21, 2024
Trailer Terminal Tractor Market

Trailer Terminal Tractor Market is Expected to be Flourished by Autonomous Navigation Technology

Trailer terminal tractors, also known as spotter trucks or yard trucks, are utility tractor units that are used to tow container chassis or semi-trailers within an intermodal facility, cargo yard, container depot or logistics park. They transport semi-trailers and intermodal containers short distances, typically hauling them between intermodal facilities and loading docks, rail yards or warehouses. The introduction of autonomous navigation technology in trailer terminal tractors has opened new growth opportunities, allowing unmanned operation with improved productivity and efficiency. The global trailer terminal tractor market is estimated to be valued at US$ 6.68 Bn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The introduction of autonomous navigation technology is expected to be a key driver for market growth over the forecast period. Autonomous trailers can navigate a facility automatically without on-board drivers using technologies such as GPS, sensors and LiDAR. This significantly improves productivity and efficiency as drivers are not required to operate the vehicles. In addition, smart yard management systems enable real-time cargo and vehicle tracking as well as faster yard operations through route optimization. These autonomous solutions are gaining rapid acceptance across warehouses, logistics parks and port terminals to streamline short-distance material or container handling. The growing adoption of autonomous trailers is thus anticipated to open lucrative opportunities for trailer terminal tractor manufacturers.

Segment Analysis:

– Below 10,000 lbs segment – This segment accounts for more than 50% share of the overall market. It is dominating the market as majority of the goods transportation requires trailer terminal tractors of below 10,000 lbs capacity.
– 10,000 lbs to 20,000 lbs segment – This segment is growing at a faster pace on account of increasing demand from e-commerce and retail industries for transportation of heavy shipments.
– Above 20,000 lbs segment – Specific industries such as construction and energy require heavy duty trailer terminal tractors of more than 20,000 lbs capacity for transportation of heavy machineries and equipment. However, this segment holds lowest market share.

PEST Analysis:
Political: Stringent emission norms globally are propelling the demand for electric trailer terminal tractors. Some nations provide subsidies for adoption of electric vehicles.
Economic: Rising e-commerce activities are increasing the demand for effective logistics. Growth in warehouse markets is positively impacting the trailer terminal tractor market.
Social: Younger population is inclined towards sustainable logistics solutions. Social media marketing campaigns by OEMs are influencing the purchase decisions.
Technological: Advanced connectivity features like telematics, adaptive cruise control etc. are gaining popularity. Lithium ion batteries and fuel cell technologies are enhancing the duty cycles of electric terminal tractors.

Key Takeaways:
The Global Trailer Terminal Tractor Market Share is expected to witness high growth at a CAGR of 7.8% during the forecast period of 2023 to 2030. The market size is projected to increase from US$ 6.68 Bn in 2023 to US$ 15 Bn by 2030.

Regional analysis:
North America dominates the market with over 40% share due to strong infrastructure and robust warehousing markets. Stringent emission norms in California further propel demand for electric terminal tractors. Europe and Asia Pacific are two fast growing regional markets owing to rising third party logistics, e-commerce and construction activities in countries like China and India.

Key players:
Key players operating in the Trailer Terminal Tractor market are RSA Security LLC (a subsidiary of Dell Technologies), Symantec Corporation (acquired by Broadcom Inc.), and Vasco Data Security International, Inc. These prominent players are focusing on developing advanced telematics and adaptive cruise control features to gain more market share.

Note:
Source: Coherent Market Insights, Public sources, Desk research
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