Market Trends of Automotive High Performance Trucks Industry
Heavy-duty Truck Segment is Projected to Grow at a Fast Pace
- The COVID-19 pandemic hurt the growth of heavy-duty trucks as lockdowns resulted in fewer trade activities and decreased demand from the transportation sector. Further shortage of drivers worsened the situation. However, post-pandemic restrictions eased demand for heavy-duty trucks across all major sectors, such as agriculture, mining, construction, and logistics is expected to further the sales of these heavy-duty trucks over the forecast period.
- The boom in the e-commerce sector and active engagement of key regional players, product launches, and growing focus on electrification of the fleet are anticipated to influence the market positively. For instance,
- According to The United Nations Conference on Trade and Development (UNCTAD) 2020 report, online retail sales have grown across several countries, with the Republic of Korea reporting the highest share at 25.9% in 2020, up from 20.8% in 2019. Although the reduction in services companies, total gross merchandise volume for the top 13 B2C e-commerce companies rose by 20.5% in 2020, higher than in 2019 (17.9%).
- Some of the prominent class 7 truck manufacturers operating across the market are adopting strategies like product launches, expansion, etc., to stabilize their position in the market. For instance, in May 2022, Volta Trucks announced its plans to deploy a pilot fleet of Class 7 trucks in Los Angels city by 2023, with additional cities to follow ahead of a rollout of production vehicles in 2024. With this initiative, the company plans to introduce battery-electric commercial cars into North America in 2023 by a Volta Zero Class 7 truck equivalent to the existing European 16-ton truck, with a dry or refrigerated cargo box.
- In November 2021, Isuzu announced that it plans to enter the Class 7 market in North America with F-Series Featuring Allison Rugged Duty Series Transmission. The Allison 2500 without park pawl has been integrated into the Class 7 capable Isuzu FVR model.
- In April 2021, Peterbilt Motors Co. unveiled their new Model 537 and Model 548 trucks, designed for the Class 7 and 8 segments. The new Model 537 and Model 548 are built upon a brand-new customizable chassis and multiplex electrical architecture.
- Over the forecast period, such developments are anticipated to rise, and critical players' presence is also expected to grow significantly. Such a positive environment results in the optimistic growth of the market during the forecast period.
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Asia-Pacific is dominating the Market
- Trucks are fundamental for businesses, including mining, construction, infrastructure development, and energy plants, creating a favorable market environment. The growing need for consistent material supply to the power industries and debris removal to speed up mining activities is expected to accelerate the demand for high-performance trucks across the country.
- For instance, in January 2022, the Chinese government announced its calls to boost infrastructure construction to counter the economic slowdown. The government ordered state-owned policy banks to set up an 800 billion yuan (USD 120 billion) line of credit for infrastructure projects.
- Supportive policies introduced by the government of China helped the country's logistics sector recover in May, as per the China Federation of Logistics and Purchasing (CFLP). The logistics performance index for May 2022 rose by 5.5% month on month (MoM) to reach 49%. The report stated that this improved performance could be attributed to the measures adopted by China to unblock logistics and help businesses during difficulties.
- Participants are establishing strategic partnerships to invent new technologies to minimize carbon emissions and improve market value. For instance, in October 2021, the new generation of Auman Planetary lightweight dump trucks was launched in Shanxi, and 107 units were ordered. In the face of Shanxi and other national regulations and customer needs, Auman Planetary provides a new generation of lightweight solutions.
- Apart from these developments, the growing usage of garbage trucks, especially for handling waste management, supports market demand. For instance, Mitsubishi Fuso Truck and Bus Co. Ltd, based on the electric light truck "eCanter" and ShinMaywa Industries Ltd, delivered one EV garbage collection vehicle to Atsugi City Kanagawa Prefecture in March 2022.
- In January 2022, a municipal government in the central Japan prefecture of Aichi started working with universities to create a system where residents are notified when garbage trucks are approaching. This was to solve various household trash problems, including odors and animals scavenging through garbage left outside. In the joint demonstration test started by groups, including the Nisshin Municipal Government, Meijo University in the Aichi Prefecture capital Nagoya and Nagoya University, GPS devices are set up in all 20 garbage trucks in Nisshin.
- With the above-mentioned development and investment across the region is likely to witness major growth for the market during the forecast period.
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