Each year, road transportation businesses carry 6,000 billion ton-kilometers of goods throughout countries such as US, China, and the whole of Europe. Big companies involved in construction, energy, automotive, defense, and manufacturing rely heavily on semi-trailers for transporting materials. The reliance on heavy duty vehicles is driving the semi-trailer market, with experts predicting it could exceed $37 billion by 2025. This equates to a compound annual growth rate (CAGR) of 4.98% from 2017 to 2025!! Here are 4 trends driving semi-trailer market growth:
1. Dry Van Segment
Digital Journal reports that the main semi-trailer segment that will take the lead in terms of CAGR are dry vans. This segment will have the majority share over others like refrigerated, flatbed, and lowboy because it provides more uses in a variety of industries. Less Than Truckload (LTL) and Full Truckload (FTL) freight shipping companies see these semi-trailers as the most versatile.
2. Below 25t Segment
Thanks to government safety regulations across the world, the below 25t semi-trailer has the most widely accepted weight carrying capacity among the 51-100t, 25-50t and above 100t categories. Many countries in the Asia Pacific are beginning to us the below 25t as transport for their cargo, which fuels demand.
Another trend that is working in favor of the semi-trailer market is the incorporation of telematics. The term refers to a system that records and analyzes multiple sets of data about the vehicle and driver behavior. Whether it is the average speed you drive, how quickly you break, and the usual time you drive, telematics can break it down. All this info can be used to develop solutions that you encounter on the road that could slow down your unit.
A comprehensive telematics system in a semi-trailer can even gather additional useful info such as the temperature and fuel management of the reefer. In 2016, 20% of all semi-trailers in the US were installed with this technology, and it’s expected to grow three-fold by 2025.
4. Electronic Logging Devices
For a time, there were concerns that electronic logging devices (ELDs) could impede the growth of the trucking industry in general. There was resistance to the government mandate that required all commercial trucks to be fitted with this technology. Truckers felt that the ELD limited the amount they could earn due to more strict Hours of Service (Hos) stipulations.
One of the main purposes of ELDs, however, is to promote road safety. Drivers must adhere to established HoS rules, as it can greatly reduce the number of road accidents due to driver fatigue. Drivers exceeding the standard 11- and 14-hour HoS rule run the risk of exhausting themselves to the point of blacking out, endangering themselves, other drivers, and pedestrians.
Ultimately, it appears that the mandate doesn’t actually impede, rather it contributes to the growth of the industry. Trucker employment has grown to almost 19,000 jobs in the last twelve months, which translates to more trucks on the road. Trucks.com revealed a survey which indicates that only a small number of drivers would rather leave the business than be digitally tagged by ELDs. As more businesses adopt the technology and improvements are added to the mandate, the trucking sector will continue to flourish.
Post solely for the use of TheDealerConnection.org by Ella Black.