Towing Equipment Market to Grow by USD 2.08 Billion from 2024-2028, Rising Motorization in Emerging Countries and AI's Impact on Trends - Technavio Report

NEW YORK, Sept. 26, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape- The global towing equipment market  size is estimated to grow by USD 2.08 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 4.36%  during the forecast period.  Increasing motorization in emerging countries is driving market growth, with a trend towards consolidation in the industry and distribution channels. However, volatile steel prices  poses a challenge. Key market players include Andersen Hitches, B and W Trailer Hitches, Bosal Nederland BV, Brinkgroup., Butler Products, CAMCO MANUFACTURING LLC., CURT Manufacturing LLC, Demco Products, Fastway Trailer Products, First Brands Group, Hopkins Manufacturing Corp., John Bean Technologies Corp., Maini Materials Movement Pvt. Ltd., Maxx Group LLC, Mumby Manufacturing Ltd., Pulliam Enterprises Inc., Rigid Hitch Inc., Technosys Equipments Pvt. Ltd., Winston Products LLC, and Youngs Welding Inc..

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Key Market Trends Fueling Growth

In the established markets of Western Europe and the US, there has been a trend towards consolidation in aftermarket distribution networks. Larger distributors and retailers, seeking advanced suppliers, now prefer those with category management, supply chain services, and product expertise, as well as a global manufacturing and services footprint. Smaller vendors are finding it challenging to penetrate these networks, affecting their market presence. Additionally, vehicle OEMs are adopting global vehicle platforms to enhance manufacturing efficiency and reduce costs. Suppliers capable of making and distributing products globally, with the flexibility to adapt to local variations, are favored by OEMs. To expand their global reach and strengthen supply chain relationships, vendors are acquiring smaller brands. These factors are expected to drive the growth of the market in the forecast period. 

The Towing Equipment Market is witnessing significant growth, driven by increasing logistics and transportation needs, as well as rising vehicle ownership rates, particularly in the recreational vehicle sector. Key players like Horizon Global and Weigh Safe dominate the market with their high-quality offerings, including hitchocks, tow ropes, chains, winches, trailer couplings, and specialized towing solutions. Business and consumer segments benefit from this trend, with the aftermarket sub-segment experiencing growth due to the availability of e-commerce platforms and telematics. Product types include tow ropes, chains, winches, and trailer couplings, while applications span roadside assistance and logistics sector. Driving factors include safety regulations and standards, while restraining factors include raw material costs and emission regulations. Market integrity is maintained through business analysis, type segment analysis, and applications segment analysis. Overall, the towing equipment market is poised for continued growth, with innovation in vehicle technology and business models shaping the future landscape. 

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Market Challenges

• The towing equipment market relies heavily on raw materials such as steel, copper, and aluminum for manufacturing. Steel, in particular, is a significant input due to its use in the production of towing hooks, chains, and other essential components. The industry has benefited from low steel prices since 2021, primarily due to Chinese oversupply. Steel is sourced from mills and service centers through contracts lasting three to six months. However, the steel industry's future dynamics may pose a challenge, as changing supply and production patterns could impact the market's profitability. Despite this, the steel industry's anticipated growth from 2022 to 2027, driven by construction and manufacturing sectors, should ensure a steady supply of raw materials. However, the volatility in steel prices may squeeze manufacturers' margins, potentially hindering market expansion.
• The Towing Equipment Market is witnessing significant growth, driven by the increasing demand from roadside assistance services and the logistics sector. The aftermarket sub-segment holds a prominent position due to the high replacement rate of towing equipment. Product type analysis reveals that boom, hook and chain, flat bed, integrated, wheel lift, and specialized solutions are the major types. Application analysis indicates that passenger cars, commercial cars, motorized vehicles, delivery services, and light commercial vehicles are the primary applications. Business analysis shows that key players include Andersen hitches, BOSAL, Brink, Trailer Hitches, Camco Manufacturing, Curt Manufacturing, and Demco. Driving factors include the growing number of vehicles on roads and the need for efficient towing solutions. Restraining factors include raw material costs, emission regulations, and skilled labor shortages. Towing equipment includes gooseneck hitches, crossbars, tow slings, tow dollies, and tow bars.

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Segment Overview 

This towing equipment market report extensively covers market segmentation by

1. Application 
• 1.1 Passenger cars
• 1.2 Commercial vehicles
2. Product Type
• 2.1 Boom
• 2.2 Hook and chain
• 2.3 Wheel lift
• 2.4 Integrated
• 2.5 Flat bed
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Passenger cars-  The passenger vehicle market encompasses a significant segment of the automotive industry, including sedans, hatchbacks, SUVs, crossovers, MPVs, and passenger vans. These vehicles cater to diverse user needs for personal or commercial use, such as ridesharing, fleet management, and more. The benefits of passenger vehicles include mobility, safety, convenience, and independence. In 2019, APAC was the largest contributor to the passenger car market, driven by low car penetration per capita and growing preference for car ownership. SUVs experienced the highest growth in sales due to their association with higher social status. China, the largest automotive market in APAC, is expected to see increased SUV production, despite a slowing market. North America's economic recovery, decreasing unemployment, lower interest rates, and fuel price decline have fueled passenger car sales since 2015. SUVs and crossovers' popularity stems from their fuel efficiency and three-row seating comfort. The rising demand for passenger cars will consequently boost the global towing equipment market's growth through the passenger vehicle segment.

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Research Analysis

The Towing Equipment Market is expected to grow significantly due to the increasing demand for towing equipment in various applications such as logistics and transportation. Aftermarket sub-segment is a major revenue contributor to the market, owing to the high replacement demand for towing equipment. Product Type Analysis reveals that gooseneck hitches, tow bars, tow dollies, tow slings, winches, hitchcocks, tow ropes, chains, and trailer couplings are the major product types. Application Analysis shows that motorized vehicles and trailers are the primary applications, with campers and logistics being the secondary ones. Business Analysis indicates that the business segment is the largest consumer of towing equipment due to the need for efficient transportation of goods. Consumer segment is also growing due to the increasing popularity of recreational vehicles and trailers. Driving Factors include the rising demand for towing equipment due to the increasing number of vehicles on the road, growing demand for trailers in logistics and transportation, and advancements in vehicle technology. Restraining Factors include the high cost of towing equipment and the availability of alternative solutions. Type Segment Analysis reveals that winches and tow bars are the most popular product types, while Applications Segment Analysis shows that motorized vehicles and logistics are the largest applications. Business Segment Analysis indicates that the logistics segment is the largest consumer of towing equipment. Towing equipment includes various types of hitches, ropes, chains, winches, and other accessories used for towing vehicles and trailers. Vehicle technology is also playing a significant role in the growth of the market, with the increasing popularity of electric and hybrid vehicles requiring specialized towing equipment. In summary, the Towing Equipment Market is expected to grow significantly due to the increasing demand for towing equipment in various applications, with the aftermarket sub-segment and business segment being the major consumers. Driving factors include the rising number of vehicles on the road, growing demand for trailers in logistics and transportation, and advancements in vehicle technology. Restraining factors include the high cost of towing equipment and the availability of alternative solutions. Product types include gooseneck hitches, tow bars, tow dollies, tow slings, winches, hitchcocks, tow ropes, chains, and trailer couplings. Applications include motorized vehicles, trailers, campers, and logistics. Business segments include logistics and transportation, while consumer segments include individual consumers and recreational vehicle owners. Vehicle technology is also playing a significant role in the growth of the market.

Market Research Overview

The Towing Equipment Market is witnessing significant growth due to the increasing demand for roadside assistance services and the expanding logistics sector. Aftermarket sub-segment is expected to dominate the market, owing to the high replacement demand for towing equipment. Product Type Analysis reveals that boom, hook and chain, flat bed, integrated, wheel lift, and other types are in high demand. Application Analysis shows that passenger cars, commercial cars, motorized vehicles, delivery services, and recreational vehicles are the major application areas. Business Analysis indicates that the consumer segment and logistics sector are the key end-users. Driving Factors include vehicle technology, vehicle ownership rates, and safety regulations. Restraining Factors include raw material costs, emission regulations, and skilled labor shortages. Type Segment Analysis reveals that gooseneck hitches, crossbars, tow slings, tow dollies, tow bars, winches, trailer couplings, and towing ropes and chains are the major product types. Applications Segment Analysis shows that delivery services, light commercial vehicles, and online capabilities are the major applications. Business Segment Analysis indicates that consumer segment and logistics segment are the major business areas. Towing equipment includes tow bars, hitches, winches, and specialized towing solutions. Vehicles, trailers, campers, and motorized vehicles are the major end-users. Roadside assistance, logistics sector, market integrity, safety regulations, safety standards, e-commerce sector, and telematics are the major trends influencing the market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Passenger Cars
• Commercial Vehicles
• Product Type
• Boom
• Hook And Chain
• Wheel Lift
• Integrated
• Flat Bed
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio