Timber trailers, unlike other trailers, are used to transport log of woods from one place to another that can be from a forest to a wood processing industry. These trailers can be used for wide applications either for transporting the freshly cut wood from forests to the industries or for carrying processed wood products for construction purposes.
Global Timber Trailer Market, Forecasts From 2019-2025, in US$ Billion
Source: Knowledge Sourcing Intelligence Estimates
The figure above represents the size of the global timber trailer market,which is evaluated at US$1.107 billion for the year 2019 and is estimated to reach US$1.212 billion by the year 2025. The market is poised to show a nominal throughout the course of the next five years. The major factors supplementing the market growth include the growing demand for wood products such as furniture, materials for construction. Additionally, the growing demand from the energy sector has also led to an upsurge in woodcutting activities, which is also further providing an impetus for the market to grow in the forecast period. The constant participation by the market players in the development and launch of new trailers with advanced technologies with an aim to expand their market share and gain a competitive edge over other players further shows the potential for the market to grow in the next five years. Furthermore, the several government initiatives aimed towards the promotion of the legal trade of timber also widen up the opportunities for the key market players over the next five years. Also, several government initiatives aimed to increase the hauling distance and coverage of timber primarily to save the forests is also a major factor bolstering the demand for timber trailers in the coming years. However, the market is expected to be restrained by the fact that the average lifespan of these trailers is considerably high as these are designed and manufactured to work in utmost harsh environments, thus leading to less frequent replacements by the fleet owners. This, in turn, is expected to inhibit the global timber trailer market growth moderately in the next five years.
Growing Demand for Wood Products
The demand for wood products has been increasing at a significant pace throughout the globe. The demand for numerous products such as furniture and various other wood products for construction purposes has increased on account of the growing construction activities in both developed and developing economies of the globe. Rapid urbanization and industrialization are the major factors that are supplementing the demand for wood in many countries. This, in turn, has led to an upsurge in the cutting of trees for meeting the growing requirements, thus, all these factors play a significant role in shaping up the demand for timber trailers in the next five years. There has been a significant increase in the consumption and production of sawn wood in the past years. This can be backed up by the fact that the production of sawn wood is projected to reach 603 million meter cube by the year 2030 from 417 million meter cube in 2005. Similarly, the consumption of sawn wood is anticipated to reach 594 million meter cube by 2030 from 421 million meter cube in the year 2005 at the global level (Source: FAO).
Sawn Wood Consumption and Production, World Total, 2005 to 2030, in Million Meter Cube
Furthermore, the global population is also increasing at a significant rate which is also a major factor augmenting the activities in the construction sector. Booming infrastructural developments in major developing economies due to impressive economic growth is also expected to augment the demand for wood products in the coming years. Several initiatives by the governments of various countries around the globe aimed towards the development of commercial infrastructure is further expected to drive the demand for wood and wood products in the next five years, therefore expected to positively impact the demand for timber trailers.
The market for timber trailers is also poised to witness a growth on account of several government initiatives that are expected to boost the production of timber. For example, there are several regulations and policies framed by forest associations of various countries such as the Philippines and Indonesia among others that are primarily aimed towards the promotion of legal trade of timber across many countries. This, in turn, is anticipated to propel the flow of timber trade, which is thereby expected to drive the demand for trailers in the long run. Similarly, there were some improvements made in the Healthy Forest Initiative during the month of May in 2019, these changes were made to expand the haulage capacities of trucks with six axles which were primarily aimed to ensure that the haulage capacity and delivery should improve together. As per the change, earlier only 80,000 pounds of timber was allowed, and later on it was increased to 90,000.
The global timber trailer market has been segmented on the basis of application and geography. By application, the market has been classified into construction and commercial. Geographically, the market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Apac to Witness Healthy Growth
Geographically, the Asia Pacific region is anticipated to witness a considerable growth in the market throughout the course of the next five years. The presence of highly populated countries like India and China coupled with the availability of vast forestry and agriculture sector are some of the major factors bolstering the market growth in the APAC region during the next five years. Furthermore, the growth in the number of construction projected in the major developing economies has further led to an upsurge in the demand for wood, which, in turn, is anticipated to positively impact the market growth during the next five years. Also, the presence of well-established forests in countries like Australia, Indonesia, and the Philippines coupled with the movement towards sustainable forestry are also some of the factors augmenting the market growth in the Asia Pacific region during the next five years.