Trailer manufacturers are increasing their production capacities or establishing new plants to capitalize on the growing demand for trailers, and gain benefits from lower capital requirements and labor costs in selected regions. The market for trailer parts and components, such as composite-based parts, in countries such as China, Brazil, and Mexico, is projected to benefit significantly from increased demand for aftermarket and OEM products, thereby expanding the trailer suspension system market size.
Trailer Suspension System Market Trends
Increasing Demand for Heavy-duty Trailers: In the on-road transportation sector, a major contributor to freight transport is heavy-duty trailers. Latin America, followed by Russia and China, are expected to register significant growth, and hence, are anticipated to be the most attractive regions during the forecast period. Global trailer production is expected to register a CAGR of 3% to 4% (2020–2030), owing to steps taken by governments such as promotions and policies of fuel-saving technologies to reduce fuel-consumption and GHG emissions within their heavy-duty vehicle fleets.
Semitrailers account for over 90% of total trailer production across the globe. However, drawbar trailers are estimated to witness substantial demand over the next decade.
Simple & Attractive Equipment Financing Options to Boost Market Growth: Construction, manufacturing, and industrial companies focusing on goods transportation prefer their own equipment as compared to renting equipment from rental companies. This is due to the easy availability of financing options that gives consumers the required purchasing power with flexible payment terms. Furthermore, financing can provide immediate access to the required trailers with a much lower-up front cost with competitive interest rates and low payments.
Suspension systems cost around US$ 400 - 1,100, depending upon the suspension type, and can account for nearly 7-12% of the total trailer cost. Attractive financing options for trailer are expected to increase the interest of customers to buy their own trailer rather than renting one out. This is expected to drive the growth of the trailer suspension system market to some extent.
Trailer Suspension System Market Restraints
Reduced Replacement Rate of Trailer Suspension Systems: The replacement rate of trailers and related components such as suspension systems, hydraulic cylinders, and others is declining. Total operational life of trailers and related components is estimated to be 8 - 18 years, which is a positive indicator for end users and customers. However, considering market prospects, suspension system manufacturers and suppliers are highly dependent on volume sales to increase their profitability. Thus, this reduced replacement rate may somewhat hamper the growth of the global trailer suspension system market during the forecast period.
Trailer Suspension System Market: Structure Analysis
With evolving customer expectations, shift in competitive power, and acceleration in technological innovation, manufacturers have been improving their aftersales service offerings to customers, and investing extensively in R&D to develop better quality products and technologically-advanced trailer suspension systems. They are also focusing on acquisitions and joint ventures to increase their trailer suspension system market share. For instance, in 2018, SAF-HOLLAND S.A. completed the acquisition of York Group - one of the prominent suppliers of trailer axles and suspension systems in the APAC/China region. In January 2015, JOST Werke AG acquired Mercedes-Benz Trailer Axle Systems.
Several prominent suppliers are involved in the global trailer suspension system market, such as Meritor Inc., Hendrickson USA, L.L.C., BPW Group, SAF-HOLLAND S. A., JOST Werke AG, and others.
COVID-19 Pandemic Impact on Trailer Suspension System Market
The COVID-19 outbreak has affected nearly all sectors across the world, and is also hindering the production of trailers, worldwide. Countries such as the U.S, China and Germany, among others, have high production of trailers, and a decline of trailer suspension system sales by US$ 120 Mn in 2020 is expected. The COVID-19 pandemic is expected to significantly impact trailer demand in the short-term, with trailer sales in Germany already registering a 20% drop in first quarter of 2020 itself.
Research into trailer suspension systems has intensified over the past several years. Several manufacturers across the globe are emphasizing on technological developments of trailer suspensions, such as zero-maintenance damping (ZMD) ride suspension technology, which offers better comfort drive and improves overall product durability. The trailer suspension system market hasn’t matured completely, and is expected to hold high potential in the future.
Trailer Suspension System Market – Report Scope
Persistence Market Research (PMR) recently published a study report on the global trailer suspension system market. The report provides detailed valuation on key market dynamics, such as the drivers, trends, opportunities, and restraints, along with detailed information about the trailer suspension system market structure. This market research report presents exclusive facts and figures about how the trailer suspension system market will grow over the forecast period.
Key indicators of market growth, such as value chain analysis, compounded annual growth rate (CAGR), and year-on-year (Y-o-Y) growth of the market are explained in PMR’s study in a comprehensive manner. This information can help readers understand the quantitative development projections of the trailer suspension system market over the forecast period.
The study is relevant for stakeholders in the trailer suspension system market, as well as manufacturers, distributors, suppliers, and investors, as it can help them understand applicable strategies to grow in the market. Stakeholders, investors, industry experts, researchers, and journalists, as well as business researchers in the trailer suspension system market can leverage the information and statistics presented in PMR’s research report.
The report includes facts & figures related to the macro- as well as micro-economic factors that are impacting the growth of the trailer suspension system market. The study also offers actionable insights based on the future trends in the trailer suspension system market. Furthermore, regional players and new entrants in the trailer suspension system market can also use the information presented in this report to make business decisions and gain momentum in the market.
Key Segments of Trailer Suspension System Market
PMR’s study on the trailer suspension system market is divided into five significant segments - product, capacity, sales channel, trailer, and region. This report offers comprehensive data and information about the important market dynamics and growth parameters related to these categories.
Key Questions Answered in PMR’s Trailer Suspension System Market Report
Trailer Suspension System Market: Research Methodology
In PMR’s research report, exclusive research methodology is utilized to conduct comprehensive research on the development of the trailer suspension system market, and reach conclusions on the future growth factors of the market. In this research methodology, secondary and primary research is utilized by analysts to ensure precision and reliability of the conclusions in the trailer suspension system market report.
Secondary resources are referred to by analysts during the evaluation of the trailer suspension system market study, which comprises facts and figures from OEM websites, government websites, white papers, trade journals, and external and internal databases. Analysts have thoroughly interviewed several industry experts, such as sales supervisors, sales operation managers, product portfolio managers, senior managers, market intelligence managers, marketing/product managers, and production managers to provide insightful information.
Comprehensive information acquired from primary and secondary resources is validated from companies operating in the market, to make PMR’s projections on the growth prospects of the trailer suspension system market more accurate and reliable.