- The growing e-commerce industry is driving market growth.
- One of the key restraints for the global truck manufacturing market is the unstable crude oil prices.
- Asia Pacific was the largest truck manufacturing market.
Global truck manufacturing market is increasing mostly due to the growing population and increasing industrialization which is leading to the growth of logistics. After the Second World War, the industry and commerce activities grew at a rapid pace in the key developed countries which pace up the growing truck manufacturing market. With the growing e-commerce industry, the demand for shipping has increased which in turn has been creating propelling the truck manufacturing market. New emission regulations have been leading to the old truck models needs to be dumped which is creating new demands for the truck manufacturing industry.
Truck manufacturing market can be segmented in five categories namely light rigid commercial trucks, medium rigid commercial trucks, heavy rigid commercial trucks, heavy combination commercial trucks and multi combination commercial trucks. Trucks are segmented on the basis of their Gross Vehicle Mass (GVM). Light rigid commercial trucks include trucks of small sizes that have a GVM of about 4,500-8,000 kilograms. Medium rigid commercial trucks have two axles and a GVM of 8,000-9,000 kilograms. Heavy rigid commercial trucks have three or more axles and have the same GVM as of medium rigid commercial trucks. Heavy combination and Multi combination commercial trucks have GVM of over 9,000 kilograms. A mover plus semi-trailer combination is an example of heavy combination rigid commercial trucks, whereas road trains are the types of multi combination commercial trucks.
One of the key restraints for the global truck manufacturing market is the unstable crude oil prices which is affecting the profitability of the fleet owners. Poor road infrastructure in the developing countries has been a prevailing challenge for the trucks manufacturing market which is making the trucking activities strenuous and prone to frequent breakdowns. The global truck manufacturers have been increasing the number of their service stations in order to build customer relationships which are to a great degree dependent on servicing facilities provided by the companies. Besides, the increasing price of raw materials including iron and steel is leading to the hike in the prices of trucks.
Germany is known to be the logistics hub of Europe due to its high level of industrial and commercial activities. With the recovering European economy, the truck manufacturing industry in the region is also gaining the lost confidence due to the Euro-zone crisis. Commerce and trade are developing at a fast pace in Brazil and the Middle East countries. The increasing number of vendors for the components of truck is providing ample growth opportunities for the truck manufacturing market.
Among regions, Asia Pacific was the largest truck manufacturing market, followed by North America. North America and Europe have been constantly losing their shares, which is being gained by the emerging markets in Asia Pacific and Middle East. Among countries, China was the largest truck manufacturing market globally by volume in 2013.
The major players in truck manufacturing market include Daimler Trucks, Volvo Trucks, Scania, MAN, Paccar, Iveco and Isuzu. Most of the key players in the truck manufacturing market are operating with their subsidiaries. Daimler operates with its subsidiaries Mercedes Benz, Freightliner, Western Star and Mitsubishi Fuso. Volvo’s subsidiaries include Volvo, Renault Trucks, Mack and UD Trucks. Paccar operates with its subsidiaries Kenworth, Peterbilt and DAF Trucks.