LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global towing equipment market to grow at a CAGR of more than 6% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global towing equipment market for 2017-2021. The market is segmented based on application (passenger cars and commercial vehicles) and geography (APAC, EMEA, and the Americas).
The primary applications of towing equipment are related to automotive accessories for light commercial and recreational vehicles. Purchases of towing equipment are discretionary and demand is driven by macroeconomic factors, including employment trends, consumer confidence, fuel prices, and interest rates among others. The global automotive market is expected to achieve a similar growth in the coming years. The growth in the automotive market is anticipated to boost the demand for towing equipment during the forecast period.
This report is available at a USD 1,000 discount for a limited time only: View market snapshot before purchasing
Buy 1 Technavio report and get the second for 50% off. Buy 2 Technavio reports and get the third for free.
Technavio heavy industries research analysts highlight the following three factors that are contributing to the growth of the global towing equipment market:
- Increasing motorization in emerging countries
- Progressing requirement of commercial vehicles for road mode of freight transport
- Rising growth of e-commerce industry and subsequent increase in delivery services
Looking for more information on this market? Request a free sample report
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
Increasing motorization in emerging countries
Passenger cars occupy a major share of the towing equipment market. Therefore, the increase in sales of passenger cars will lead to an increased demand for towing equipment units. Emerging countries, such as China and India, have a lesser penetration of motorization when compared with the developed economies of the US and Europe.
Gaurav Mohindru, a lead construction research analyst at Technavio, says, “The increase in disposable income, especially within the emerging nations, is expected to create more new demands in the automotive sector and will lead to an increase in the number of first-time buyers. About two-third of the global consumer spending came from rapid growing markets such as China, India, Brazil, and South Korea in 2016. The rising population of middle class in China, India, Brazil, and South Korea with an increasing household earning is expected to drive the towing equipment market in the coming years.”
Progressing requirement of commercial vehicles for road mode of freight transport
Increased global urbanization rates lead to a trend of increased consumption within an economy. The World Bank estimated that about 55% of the global population resides within urban and semi-urban areas in 2016. Most of the growth of global urbanization occurs within developing nations such as India, China, and Brazil. Adequate amount of transportation services is required to meet the rising demands of the population within urban areas.
“There is a growing preference for road transportation in emerging countries such as India and China due to limited number of freight rail services within these countries. Heavy-, medium-, and light-duty vehicles are used extensively for transporting cargo in China. There has been a subsequent decline in the volume of rail freight year-over-year,” adds Gaurav.
Rising growth of e-commerce industry and subsequent increase in delivery services
The rising popularity of the e-commerce industry and the increasing volumes of online delivery orders resulted in the blooming of delivery services and courier services industry in 2016. The rising number of delivery orders and the subsequent growth of courier delivery agencies are driving the sales of commercial vehicles that are crucial for transporting goods.
The growth of e-commerce industry largely depends on timely distribution of goods and services to customers. Increased competition within the e-commerce industry has resulted in e-commerce companies opting for aggressive pricing strategies and minimal delivery intervals. E-commerce companies are known to enter partnerships with or acquire parcel delivery companies to minimize delivery intervals in increased competitiveness.
Top vendors:
- BOSAL
- Brink Group
- CURT Manufacturing
- Demco
- Horizon Global
Browse Related Reports:
- Global Energy Efficient Windows Market 2017-2021
- Global Bathroom Taps Market 2017-2021
- Global Construction Glass Market 2017-2021
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 10,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
If you are interested in more information, please contact our media team at media@technavio.com.
