by Trailer terminal tractors, also known as yard trucks, are commercial vehicles used to haul containers around terminals, ports, distribution centers and shipping yards. These specialized trucks connect to and detach cargo trailers, intermodal containers, or semi-trailers and transport them within cargo terminal or logistics yard. Terminal tractors are durable, maneuverable, have high traction and lifting capacities to carry heavy loads over short distances within intermodal container yards efficiently. The demand for these trucks has risen tremendously due to increasing freight transportation via sea, air and land routes globally.
The Global Trailer Terminal Tractor Market is estimated to be valued at US$ 11.31 Bn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2031
Growing trade volumes and the need for timely delivery of shipments have boosted investments to expand container terminal capacities at ports. This has driven demand for trailer terminal tractors to haul containers and trailers within these facilities. However, increasing concerns about environmental pollution and carbon emissions from diesel-powered terminal trucks are prompting manufacturers and fleet owners to shift to electric terminals tractors.
Key Takeaways
Key players operating in the Trailer Terminal Tractor market are Kalmar (Cargotec Corporation), Terberg Special Vehicles, MAFI Transport-Systeme GmbH, Mol CY NV (Mol), TICO Tractors, Capacity Trucks, AUTOCAR, LLC, Sinotruk (China National Heavy Duty Truck Group Co., Ltd.), Dongfeng Trucks, Saic Hongyan Commercial Vehicle, C&C Trucks Co , Ltd, Orange EV, BYD Motors Inc., Baumann Manufacturing, Toyota Kirloskar Motor, Taylor-Dunn ( WAEV INC. ), XCMG Group, Guangxi Liugong Machinery Co., Ltd., Zoomlion Heavy Industry Science&Technology Co., Ltd., and Volkswagen.
The growing intermodal freight transportation across the world has significantly increased container traffic at ports and intermodal Trailer Terminal Tractor Market Demand. This has augmented the demand for efficient handling equipment like trailer terminal tractors within these facilities. According to industry experts, container volumes handled at ports are expected to grow over 5% annually until 2030.
Many global logistics giants and terminal operating companies are investing heavily in electrification of equipment used in distribution centers and cargo terminals. This is driven by the need to reduce emissions and noise pollution from diesel-powered yard tractors and achieve sustainability targets. Several terminal tractor manufacturers have launched electric models in the last few years and are collaborating with fleet operators for transition to clean energy. This growing adoption of electric terminal tractors is a key trend in the market.
Market key trends
One of the major trends gaining momentum in the trailer terminal tractor market is the increasing demand for zero-emission electric terminal tractors. Several ports and intermodal facilities across major economies have already begun replacing conventional diesel-powered yard tractors with electric models. This is mainly driven by the need to lower operating costs over the long-run through reduced fuel and maintenance expenses of electric trucks compared to diesel. Additionally, electric terminal tractors help logistics companies lower their carbon footprint and comply with stringent emission norms for commercial vehicles. Major terminal tractor manufacturers have significantly ramped up production of electric trucks in recent times to capitalize on this growing trend.
Porter’s Analysis
Threat of new entrants: New companies find it difficult to enter this market due to the need for large investments in facilities and equipment. It also requires extensive R&D to develop new technologies.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of many established players offering similar products. However, differentiated products and services increase customer loyalty.
Bargaining power of suppliers: A few big suppliers exist for components like engines and electronics resulting in some pricing power. However, the threat of forward integration pressures suppliers to keep prices competitive.
Threat of new substitutes: There are no close substitutes for trailer terminal tractors. While other vehicles can carry cargo, none provide the specialized functions of these tractors.
Competitive rivalry: The market is dominated by a few big global players. Competition is intense based on product quality, technology, pricing and customer service.
Geographical Regions
North America accounts for the largest share of the global trailer terminal tractor market both in terms of value and volume. This is attributed to the large and developed transportation industry in the US and Canada. There is high demand from industries like automotive, FMCG, retail and manufacturing sectors.
Asia Pacific is expected to register the highest CAGR during the forecast period. This is due to rising industrial and agricultural activities along with growing international trade in countries such as China, India and South Korea. Government initiatives to develop transportation infrastructure will further aid the market expansion
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
