Market Trends of Indonesia Box Truck Industry
This section covers the major market trends shaping the Indonesia Box Truck Market according to our research experts:
Rise in residential and Commercial Transportation
- Box trucks are commonly used for residential and commercial transportation, such as transportation of furniture, transportation of fragile goods, and many others across the city, which in turn is likely to witness major growth for the market during the forecast period.
- Primarily, box trucks are experiencing an outpouring of demand from the e-commerce and logistics industry, wherein it is presumed that the e-commerce industry will possess ten-fold growth over the next two decades, which will subsequently draw the market in the coming years. Owing to an increase in internet access and smartphones, online retail sales and e-commerce have been increasing. This is likely to lead to a rise in the demand for box trucks in the view of timely deliveries of goods to customers.
- A dry van is also a box truck container used to transport non-perishable products. These trucks are completely enclosed and shuttered. These trucks are designed to transport vast commodities, freight, and equipment that do not require refrigeration.
- As these trailers are used by the full truckload (FTL) and less-than-truckload (LTL) fleet operators for their operations owing to their cost-efficiency and versatility, the active collaborations between fleet operators and logistic service providers to further enhance demand for these dry vans during the forecast period.
- The adoption of refrigerated box trucks is expected to increase significantly due to the expanding cold chain industry. These trailers are used widely in transporting perishable products like fish, meat, vegetables, etc., and are also deployed for transporting specialized medications that require specific temperature ranges.
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Electric Box Trucks are dominating the market
- Rising carbon emissions and climate change have posed a potential challenge for governing bodies. The transportation sector contributes significantly to greenhouse effects; according to International Energy Agency (IEA), the transportation sector accounts for around 37% of global Co2 emissions; nonetheless, the same issue has been faced by Indonesia as well.
- To minimize the carbon emission from the transportation sector, technologies of low or zero carbon emission are required to be deployed at a vast scale, not only in the passenger vehicle category but in the commercial. The Indonesian government introduced several policies to reduce emissions by 29% by 2030, which is anticipated to boost the market during the forecast period.
- In the context of zero carbon emission technologies, alternative fuel vehicles (AFV) offers significant energy-sustainable transportation and came up as a potential innovation to address the issue. Several vehicle manufacturers are introducing electric box trucks to zero-emission transportation across the country.
- For instance, in August 2022, Mitsubishi Fuso Truck and Bus Corporation introduced an all-electric light-duty e-canter truck in Indonesia. The truck distributes raw materials for a factory across the country.
- Shifting customer preference towards electric vehicles is an evident sign for future decarbonization and simultaneously decisive for charging stations. However, the penetration of electric box trucks is subjected to various attributes, including range, charging infrastructure, reliability, and specific regional clusters. This will likely witness major growth for the electric box trucks during the forecast period.
