Tow Tractors Market Size, Share, Opportunities, And Trends By Power Source (Electric, Internal Combustion Engine), By Capacity (Up To 1000Kg, 1000Kg – 5000Kg, Above 5000Kg), By Application (Warehouses, Manufacturing Units, Airports, Others), And By Geography - Forecasts From 2024 To 2029

The tow tractors market is expected to hold a significant market share during the forecast period.

Tractors are high-powered, low-speed traction vehicles that are similar to automobiles or trucks but aren’t designed for use on the road. Tractors have a wide range of applications. They are used for agriculture, road building, construction, and many others, and come in the forms of bulldozers, diggers, and scrapers. The Tractors are commonly used for agriculture since they provide efficiency and effectiveness in sowing and maintaining the cultivation compared to manual cultivation. It provides several features that help in boosting the agriculture process, which include pulling, moving, hauling, ploughing, and tilling the soil or land. Tractors can also be equipped with a tiller, rotary cutter, cultivators, pallet forms, disc harrows, aerators, and many other kinds of attachments for increasing the efficiency of agriculture. The tractor consists of a powerful motor and is designed with larger wheels in the back compared to the front. This design provides maximum efficiency in the usage of power, which helps the equipment achieve maximum torque at slow speeds. Other than agriculture, tractors can be used for snow removal as well.

Introduction:

Tow tractors are machines that are used for warehousing and material handling. Tow tractors can tow a lot of trailers at the same time, creating a form of mini-train. They are commonly used by warehouses and airports for handling large amounts of materials, goods, and baggage/cargo. Tow tractors and forklifts have similar functions, the only difference being that tow tractors do not consist of forks mounted in the front of the vehicles. In the tow tractor market, there are two different types, which include an electric tow tractor and an internal combustion tow tractor. An electric tow tractor is powered by a Direct Current (DC) traction motor that uses electricity acquired from batteries that can be rechargeable. Electric tow tractors are considered lightweight and can carry material at faster speeds compared to internal combustion tow tractors. Whereas an internal combustion tow tractor consists of engines that can be powered by diesel, LPG, or gasoline. Internal combustion tow tractors are considered heavy duty, with a larger body frame and weight supports that reach up to 5 tons.

Market Drivers:

• Increasing growth in the logistics and warehousing industry: Tow tractors are commonly used for the transportation of materials which includes goods and products from the truck to the warehouse and vice versa. As per the India Brand Equity Foundation, the logistics sector in India is expected to reach a market value of US$380 billion by 2025 from US$250 billion in 2021, which is a 10%-12% year-on-year increase. Whereas, the warehousing industry in India is also witnessing significant growth with an expectation of reaching US$34.99 billion by 2027, with a CAGR of 15.64% from 2022. As the logistics and warehousing industry is predicted to increase, it will provide the necessary boost for the tow tractors market growth during the forecasted period. Other factors that can fuel the growth of the market include the benefits that tow tractors provide to the logistics and warehousing industry, which include:
• Effective and smooth movement of goods: Tow tractors are able to move materials in the form of a rail system, by attaching multiple carriers that can carry multiple loads at the same time. This can increase the efficiency of the transportation from warehouse to vehicle.
• Increased flexibility: Tow tractors are known to be able to move palletized and non-palletized goods. This provides increased efficiency and reduction in time taken for order picking and item handling.
• Increased safety of transportation: Since the tow tractors pull the materials and goods, the risk of balance and weight is reduced when compared to that of forklifts.
• Less movement, reduced cost: Due to tow tractors being able to carry multiple loads at a single time, the amount of movement back and forth is significantly reduced. This reduces the cost of operations significantly.

Key Players:

• Toyota Material Handling International: A multinational organization that provides a full range of solutions which include forklift trucks, warehouse equipment, and logistics solutions. They have global reach into multiple markets, which include America, Asia, Oceania, the Middle East, and Africa.
• Hangcha Group: A global leader in the production of material handling equipment, spare parts, and technical and marketing support to their wide range of international dealer networks that reach all kinds of customers in the market.
• Mitsubishi Logisnext Co. Ltd.: A well-known multinational company that is known for its development, manufacture, design, and sale of engine-powered and electric transportation robots, automated warehouses, LAN, and other logistics equipment and systems, forklifts, electric vehicles like the two tractors, and monorails.

Regional Analysis:

The Asia Pacific Region is expected to witness significant growth in the tow tractors market during the forecasted period of 2024-2029. The main factors that propel the growth of the tow tractor market are the increasing growth of the logistics and warehousing industry and the adoption of automation. India and China are the top countries that lead in the logistics and warehousing industries, due to government initiatives like Atmanirbhar Bharat in India. This initiative provides support in Infrastructure through standardization of warehouse procedures and practices, rating of warehouses, enabling on-demand warehousing, geotagging technologies for warehouses and the modernization/ automation of warehouses all over India. It is also expected to witness growth, with a predicted reach of US$34.99 billion by 2027 in the Indian Warehousing sector. As the warehousing and logistics sectors flourish, the tow tractors market is also expected to be fuelled for growth during the forecasted period.

Market Developments:

• May 2023: Toyota Material Handling International announced the release of three electric models, which included a Side-entry End Rider, Center Rider Stacker, and Industrial Tow Tractor. The industrial tow tractor consists of a standard electric power steering that provides operators with improved ergonomics, control, and effortless steering capabilities. It is capable of carrying an impressive capacity of 15,000 pounds on flat surfaces and is designed to satisfy the needs of customers who are looking for effective and efficient tow tractors.

Segmentation:

• By Power Source:
  • Electric
  • Internal Combustion Engine
• By Capacity:
  • Up to 1000Kg
  • 1000Kg – 5000Kg
  • Above 5000Kg
• By Application:
  • Warehouses
  • Manufacturing Units
  • Airports
  • Others
• By Geography:
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    •  Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Indonesia
    • Others