Low Bed Trailer Market is Estimated To Witness High Growth Owing To Increasing Infrastructure Development Activities

 

The Low Bed Trailer market is estimated to be valued at US$ 16.94 BN in 2023 and is expected to exhibit a CAGR of 7.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Low bed trailer is a truck trailer used to haul heavy construction equipment, machinery, or other cargo that is too tall to fit beneath a standard trailer's solid frame. It consists of a flat bed mounted over the truck's chassis on beams near the floor level, providing ground clearance for oversized or tall items. The low riding height allows loading and unloading large machinery without ramps. These trailers play a vital role in infrastructure development and heavy construction equipment transportation.

Market key trends:
Growing infrastructure development activities across both developed and developing countries is a major factor augmenting demand for low bed trailers. Massive investments are being made for construction of roads, railways, airports, power projects, commercial buildings, and urban infrastructure development globally. This in turn is fueling demand for earthmoving and heavy construction machinery requiring specialized trailers for transportation. According to global infrastructure outlook report, the global infrastructure investment needs are estimated to be worth USD 94 trillion by 2040. This increased spending on infrastructure projects will continue driving growth of low bed trailer market over the forecast period.

Porter’s Analysis
Threat of new entrants: Low bed trailers require high capital investments for manufacturing facilities and fleet development, acting as a deterrent for new companies.

Bargaining power of buyers: Buyers have moderate to high bargaining power due to the availability of varied product offerings from several vendors in the market.

Bargaining power of suppliers: Suppliers have moderate bargaining power as raw material manufacturers do not have pricing leverage due to the availability of alternative suppliers.

Threat of new substitutes: There exists a low threat of substitution, as low bed trailers offer non-substitutable functional benefits over alternative logistics modes.

Competitive rivalry: Intense due to the presence of diversified regional and international companies offering customized trailer types and features.

SWOT Analysis
Strength: Low bed trailers provide safer and adjustable loading of oversized cargo and have high load capacities compared to standard trailers.
Weakness: Initial investments required for customized manufacturing are capital intensive. Maintenance and repair costs of heavy-duty components are high.
Opportunity: Increasing long-distance cargo transportation and construction activities are fueling the demand. Growth in specialized application areas like mining, wind power projects offer new opportunities.
Threats: Stringent regulations regarding vehicle dimensions and weight limits challenging across regions. Technological innovations in transportation modes pose threats.

Key Takeaways

The global Low Bed Trailer Market is expected to witness high growth, exhibiting CAGR of 7.0% over the forecast period, due to increasing long-distance cargo transportation and construction activities. North America dominated the market in 2023 owing to the high demand from the construction sector in the US and Canada.

Regional analysis: Europe accounts for the second-largest market share and is expected to continue its dominance over the forecast period, driven by wide use in heavy-duty cargo transport. The Asia Pacific region is projected to register the fastest growth due to rapid industrialization and infrastructure development activities in emerging countries such as China and India.

Key players operating in the Low Bed Trailer Market are Kögel Trailer GmbH & Co.KG, Bernard Krone Holding SE & Co. KG, Wabash National Corporation, Böckmann Fahrzeugwerke GmbH, Dennison Trailers ltd, Great Dane Trailers, Humbaur GmbH. These companies are focusing on expanding their production capacities and dealership networks across major markets to strengthen their market positions.