Global Market Study on Forestry Trailers: A Lucrative Business for Auto Giants


Forestry Trailers  Market
  • Report code : PMRREP29647 |
  • Industry : Automotive |
  • Published On : Jul-2019 |
  • Pages : 194 Pages |
  • Format :

Forests are always considered as one of the most important resources for various industries, including timber. Recent findings point to the fact that the production of roundwood has increased significantly in the past few years, and with the increasing growth of the forestry industry as well as the timber industry, the demand for forestry trailers for the efficient transportation of roundwood has reached new heights.

Sensing the enormous sales potential of forestry trailers in the rapidly growing timber industry, a mounting number of global auto giants are entering the forestry trailers landscape. For instance, Mercedes-Benz has entered this landscape with Unimog, its own model of forestry trailer.

As a steadily growing number of automakers are foraying into the forestry trailers market, Persistence Market Research (PMR) finds it imperative to track the recent developments in the market, including new product launches and competitive strategies of leading market players. PMR’s new study offers a 360-degree viewpoint of the growth prospects of the forestry trailers market, along with actionable insights for decision makers to adopt appropriate strategies for the future growth.

forestry trailers landscape strategy

Evolution of the Forestry Trailers Market: Tackling Wildfires and Stringent Forest Conservation Regulations

The forestry trailers market recorded the sales of ~22,300 units by 2018, equivalent to the revenues worth US$ 156 Mn. With increasing demand for timber for a sweeping range of applications, the forestry industry is expected to witness immense growth and the sales of forestry trailers are likely to go up in the coming decade.

However, rising concerns about environment and strict forest conservation policies developed by regulatory bodies have had a paramount impact on how the forestry industry has been operating. This may change the market calculations and influence the imperative business strategies of forestry trailer manufacturers and other stakeholders in the market.

In addition, a significant rise in the number of incidences of wildfires breaking out in forests has had a negative impact on the forestry trailers market. In 2018, more than 58 thousand wildfire incidences were recorded in the U.S. alone, destructing a whopping land mass of almost 2 million acres, within the country. Such rampant incidences create major challenges for stakeholders in the forestry trailers landscape, thereby delaying the developments in the market.

Flatbed Forestry Trailers with High Payload Capacities to Witness Burgeoning Demand

A substantial rise in the growth of the timber market is reflecting in ongoing developments in the timber harvesting sector, and thereby, the demand for forestry trailers compatible with various types of harvesting applications is on the rise. As the combination of flatbed trailers pulled by semi-trucks can be used for hauling versatile stackable products, its popularity is growing in the forestry trailers market.

PMR’s study finds that the 8 in 10 forestry trailers sold in 2018 were flatbed forestry trailers, and this trend will continue to grow stronger in coming years. The study also opines that the sales of forestry trailers with high payload capacities - 8 to 12 tons - will account for half the share of total sales in the foreseeable future. Recent studies estimate that the global timber market will quadruple by 2050, and eventual rise in demand for timber will underpin the gains for stakeholders in the forestry trailers market in the future.

Investments and Facility Expansion in Europe’s Forested Areas to Prove Profitable

Remarkable initiatives to address climate change issues have been controlling the environmental impact of various business activities in European countries. Despite the presence of stringent regulatory frameworks including forests and forest-related policies, the demand and sales of forestry trailers are increasing exponentially in Europe.

Studies have found that approximately 5% of the world’s forested area is in the European Union (EU) alone, and the respective governing bodies are thus focusing on increasing this share in the coming years, with a concrete forest management plan. A mounting number of forestry trailer manufacturers are turning to European countries, especially Czechia, the Netherlands, Luxembourg, Portugal, and Denmark, to capitalize on the high productivity of forestry activities across these countries.

According to PMR’s study, Europe alone accounts for a fourth of the global forestry trailers market. With sustainable forest management policies and forest conservation measures, European countries are making Europe’s forests ideal for creating an environment-friendly or sustainable business environment.

EU’s forest action plan, other forestry-related initiatives, and environmental functions in the region have attracted increasing attention from the industrial ecosystem, and this will continue to support the growth of the forestry trailers landscape in Europe, in the upcoming years.

Though Europe is expected to remain the most lucrative regional market for forestry trailers, the Americas are emerging as the next most profitable market with low-hanging opportunities for stakeholders. The abundant forest resources in Latin America, especially in the Amazonian sub-region, are expected to attract investors and stakeholders, as the forestry trailers landscape is expected to flourish in the region in the foreseeable future.

forestry trailers market europe

Analysis on Competitive Landscape: Forestry Trailers Market to Remain Highly Fragmented

With the recent ecological and socio-economic developments bolstering the growth of the timber industry, a mounting number of small and medium-sized businesses are entering the forestry trailers market. Regional players and new businesses, including B.W.S. Manufacturing Ltd., HT Enerco Oy, Predator Trailers, and Woody Equipment, Inc., account for three-fourth revenue share of the market.

Small businesses and local companies are growing through collaborations with other small players in the forestry trailers market, with primary focus on launching new forestry trailers at competitive prices. Introducing new features of forestry trailers is becoming a winning strategy for local players and new entrants in this landscape. For instance, in March 2018, B.W.S. Manufacturing Ltd. announced that it has launched its new ‘BWS Live Bottom Trailer’ with new features such as a modular vapor proof Grote ultra-blue electrical system and standard front mounts for an optional tarp.

Top players in the forestry trailers landscape mainly have a strong foothold in European countries, and also are active in the Americas, accounting for ~25% revenue share of the market. Leading forestry trailer manufacturers, such as Palmse Mehaanikakoda Ou, Kesla Oyj, Dennison Trailers Ltd, and Jyki Oy, are growing in the market by adopting strategies to ensure the availability of new and innovative trailers and semi-trailers.

Market leaders are also focusing on introducing a wide range of forestry trailers to meet the specific requirements of a variety of end users. However, the high cost of forestry trailers launched by leading companies is one of the primary factors which are restricting these companies from expanding their customer base in the market.

Analyst’s Viewpoint

Authors of this study on forestry trailers market are of the opinion that the forestry trailers landscape is highly impacted by the volatility of the forestry industry, as most of the dynamics of the former are influenced by developments in the latter. Manufacturers of forestry trailers will have to focus on offering after-sales services, including maintenance and repair, to stay ahead of the competition in the landscape.

In addition, with global automakers making a foray into the market, stakeholders will have to introduce new forestry trailer models with innovative features, to meet specific end-user requirements, and maintain their competitive edge in the market. Catering to the specific needs of premium end users such as paper & pulp, construction, and energy industries, can prove to be a winning strategy for companies in the forestry trailers market.

Read More

The report covers a complete study of forestry trailers market with an analysis of types of forestry trailers and also summarizes about the parent market for forestry trailers and also the markets which are going to impact the growth of forestry trailers. Also the report gives brief description about hoe the forestry trailer market is going to perform in various regions around the globe according to previous performance and future potential in respective regions.

The global forestry trailers market is expected to reach over US$ 232.1 Mn by the end of the forecast period, registering a CAGR of 3.7%. According to the analysis, the demand for forestry trailers is anticipated to increase with a promising scenario due to the continuous rise in demand for timber and roundwood by several industries in the global market. To sustain the environmental balance, market players in the global energy production market are keen towards implementing the use of wood pallets for the energy production, which is likely to boost the forestry trailers market growth in the upcoming years.

10 to 12 Ton and 12 to 15 Ton payload Capacity to Emerge as Preferred End User Choices

Based on the type of payload capacity, the market is categorized into six different segments such as 1 to 5 Ton, 5 to 8 Ton, 8 to 10 Ton, 10 to 12 Ton, 12 to 15 Ton, and more than 15 Ton. 10 to 12 Ton and 12 to 15 Ton segments are expected to be prominent segments in the market due to its extensive use. The market is also categorized by the type of trailer bed, trailers with completely flatbed are considered under the flatbed category whereas trailers with one or two steps on their bottom bed are considered under the stepdeck category. In terms of both value and volume, the flatbed segment is likely to retain its share in the global market and grow with a promising CAGR of ~4% during the forecast period. In the terms of the payload capacity, 10 to 12 Ton and 12 to 15 Ton segments are anticipated to retain a share of nearly 40% in the global market whereas the more than 15 Ton segment is expected to hold minimal share in the market due to the expensive price and limited manufacturers in the global market. However, 1 to 10 Ton and 10 to 12 Ton segments are also projected to hold decent share in the overall market and the 1 to 5 Ton segment is expected to account for a moderate share among all segments in the forestry trailers market.

Increasing Development in the Forestry Equipment Market

According to the report of the FAO, the production of roundwood has increased and reached to the mark of 1.9 billion metric m^3. This improvement in the forestry trailers market is anticipated to support the growth of forestry trailers on a global platform. The forestry equipment market has strengthened and accounted for around ~9.3 billion US$ in the fiscal year of 2019.  Due to the development of the forestry equipment market, the forestry trailers market is expected to develop in the upcoming years.

Preference of End Users towards Wooden Furniture Expected to Boost the Market Growth

The considerable sales of furniture in the global market over the years are the prime cause for the increasing demand for wood in the forestry trailers market. This intense manufacturing of furniture supports the development of the forestry resources harvesting and thereby improving the sales of forestry trailers.

The potential market with the abundance of forestry resources is expected to be the key markets for forestry trailer manufacturers in small countries such as Estonia, where nearly half of the country’s total land accounts for the forest, which is likely to play a pivotal role in the market. Countries such as Russia, Brazil, and Canada, as well as ASEAN countries, are the key markets in the forestry trailers market.

Russia is anticipated to drive the Global Forestry Trailers Market in the Near Future

Russia is anticipated to remain at the forefront in the market of forestry trailers. The number of manufactures are establishing themselves as prominent players in the Russia market and strengthening their sales channel and trying to aim the potential customer base in the regional market. The obvious potential and subsequent opportunities projects Russia as a massive market and development potential country over the forecast period. Russia is anticipated to capture prominent share of the market and is expected to create its position as the most influential country in the overall forestry trailers market.

Forestry Trailers Market – Competitive Landscape

The global forestry trailers market is an extremely fragmented market with tier-1 and tier - 2 players holding a small share in the global market. Moreover, small scale manufacturers and regional players also play a crucial role and hold a dominant share in the global forestry trailer market. The intense manufacturing of midrange payload capacity forestry trailers and the demand for these trailers are the points, which are supporting the high traction towards 10 to 12 Ton and 12 to 15 Ton segments. In Europe and North and Latin America, global market players hold a reasonable share in the market, whereas, in the Asia Pacific region, local players are trying to establish themselves in the market.

In the recent past, the forestry trailers market has witnessed significant developments from a competitive perspective. Geographic expansions, collaborations, and expansion of product portfolio are some of the preferred strategies opted by key players to sustain and establish themselves as influential players in the global forestry trailers market. Major companies are focusing on strengthening their sales channel and exploring new opportunities in the global market.

Prominent players covered in the forestry trailers market report includes JPM Trailers, Chieftain Trailers Ltd, Palmse Mehaanikakoda Ou, STEPA Farmkran GmbH, Scandicon OÜ, Kesla Oyj, Industrias Guerra, S.A., Kellfri, Jas P Wilson, Jyki Oy, Oniar, and Dennison Trailers Ltd, among others.

Key Questions Answered in the Forestry Trailers Market Report

  • How has the forestry trailers market evolved over the past five years?
  • How is the forestry trailers market expected to take shape in terms of volume and value during the study period?
  • What are the prevailing market dynamics in the forestry trailers market?
  • What are the competition developments and trends in the forestry trailers market?
  • What are the underlying macro-economic and industry factors impacting the growth of the forestry trailers market?
  • Which are the key challenges, opportunities, and improvement factors for forestry trailers market players?
  • What are the market positioning and key strategies of key manufacturers as per the forestry trailers market taxonomy?
  • How is the competition structured in the forestry trailers market and how has it evolved over the past few years?

A new market study on forestry trailers market was recently published by Persistence Market Research (PMR), which provides a complete analysis on how the market will grow between 2019 and 2029. The study covers all the growth indicators as well as growth prospects of the forestry trailers market in terms of value (US$ million).

Information featured in the study unveils important statistics and data about the demand for forestry trailers solutions as well as the penetration of these services in various regions around the world. This has helped the authors of this study to reach the precise estimates on the valuation of the forestry trailers market.

PMR’s study on forestry trailers market helps readers to understand business strategies that proved profitable for leading stakeholders in the market. It also focuses on various regulations that stakeholders must keep in mind for succeeding in the forestry trailers market. In this study, readers can also find unique as well as accurate information on the market dynamics of the forestry trailers landscape to help companies in adopting appropriate business strategies in the coming future.

PMR’s study includes recent developments that are setting the degree of competition in the forestry trailers market, along with accurate and complete information about leading players in the market. Leading forestry trailers firms and companies, and new businesses in the forestry trailers market are profiled in the study. The information featured in the study to help readers to understand the growth prospects of the forestry trailers market for the assessment period.

Key Segments of the Forestry Trailers Market

PMR’s study on forestry trailers market divides information into three important segments—trailer bed, payload capacity, and region. The study can help readers to understand how growth of the forestry trailers market is influenced by the market dynamics including emerging trends based on these segments.

Trailer Bed

Payload Capacity

Region

Flatbed Trailers

1 to 5 Tons

North America

Stepdeck Trailers

5 to 8 Tons

Latin America

 

8 to 10 Tons

Europe

 

10 to 12 Tons

South Asia

 

12 to 15 Tons

East Asia

 

More than 15 Tons

Oceania

 

 

Middle East & Africa

What are the Key Questions Answered in PMR’s Forestry Trailers Market Report?

  • What is the impact of global wood production and tree cover on the growth of the forestry trailers market?
  • How will ongoing forest conversation initiatives influence growth prospects of the forestry trailers market?
  • Why is the forestry trailers market growing at a rapid pace in the European Union and the Americas, and not in Asia Pacific?
  • What are the major barriers to growth for new entrants in the forestry trailers market?
  • Why is the demand for forestry trailers with heavy payload capacities relatively higher than the ones with lower payload capacities?

Research Methodology

The research methodology followed by analysts for the production of PMR’s report on forestry trailers market includes two main stages – primary research and secondary research.

For conducting secondary research, analysts were given access to various important, external proprietary databases and a large internal repository, which could help analysts to ensure validity and reliability of the data and statistics acquired through secondary research on the forestry trailers market. Analysts have come to conclusions on how the forestry trailers market will grow, after deriving exclusive and accurate insights from both primary and secondary resources.

Primary resources that have contributed to the production of this study include discussion with key opinion leaders, enterprise size expert inputs, response analysis, and data triangulation. Interviews were conducted by analysts with brand managers of the market players in the supply chain of the forestry trailers market, and their respective c-level executives. Industry experts and investors were also approached to collect industry-validated information about the forestry trailers market. The primary resources as well as secondary resources provide exclusive information about the market which acts as a mark of reliability and validation from forestry trailers market players, and makes PMR’s estimates on future prospects of the forestry trailers market more reliable and accurate.

Company Profile

  • JPM Trailers 
  • Chieftain Trailers
  • B.W.S. Manufacturing Ltd
  • Palmse Mehaanikakoda Ou
  • Stepa Farmkran Gesellschaft M.B.H.
  • Scandicon OÜ
  • Kesla Oyj
  • Pitts Trailers
  • Kranman AB
  • BELL Equipment
  • Industrias Guerra, S.A.
  • Kellfri

 

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