In the near future, increasing installation and maintenance of off-road vehicles will evoke the need for trailer axles which are subjected to severe load-based operations. This will eventually augment the growth of trailer axle sales
A fair distribution of demand shares between on-road and off-road trailers and trailer axles have recently been witnessing higher demand from the latter. Trailer axles, installed in medium to heavy-duty trailer vehicles, are widely subjected to bulk load transportation. However, increasing adoption for applications in construction and mining industries is expected to account for the demand growth facing trailer axles in off-road vehicles. A new research study suggests that Asia Pacific (APAC) and Europe will remain at the forefront in the global market for trailer axles. Some of the prominent growth opportunities indicated by the report include strong demand for heavy-duty trailers.
Freight vehicles are major contributors to climate change, emissions, and fuel consumption in on-road transportation sector. As per the report, in the era of industrialisation, the BRICS nations – Russia, India, China, Brazil – are witnessing a mass shift towards three-axle trailers owing to requisites associated with long distance transportation. The global trailer axle market is said to be highly consolidated with top five players accounting for over 70% of the market value. The report identifies APAC as a highly lucrative regional market for trailer axle sales, attributing to the high-scale assembly of trailers in China. Over the forecast period, markets in Latin America, followed by APAC, will also emerge attractive, registering substantial growth.
For logistics’ companies, owing to the fleet of commercial trailers, financing can provide immediate access to required trailers with a much lower up-front cost, competitive interest rates, and low down payments to address concerns related to their operating costs. “Manufacturing, construction, and industrial sector operators focusing on goods transportation prefer to purchase their own equipment over rental,” the report states. In terms of volume, medium-duty or trailer axles with 8,000-15,000 lbs capacity are anticipated to lead the way in the trailer axle market. Market analysis by sales channel reveals that OEMs are expected to be preferred among trailer axle manufacturers, with bulk of trailer axle sales and installation at OEM sites.
The market value of replacement will remain relatively stable. Implementation of new and advanced technologies to enhance product quality and compliance with government policies and regulations to meet emission standards may improve sales output that in turn would spur the demand for trailer axle market The demand for telematics will experience spectacular growth at a yearly rate as high as 15%, consequently driving the demand for trailer axles over the forecast period. Leading axle manufacturers are focusing on market consolidation by expanding their manufacturing, distribution, and sales network in fast developing economies of Latin America and Asia Pacific, the report adds.