Global Tow Tractor Market - 2022-2029

Global Tow Tractor Market - 2022-2029

Market Overview

Tow tractors can pull load carriers to provide the ideal horizontal transportation solution for delivering materials, such as pallets or items, throughout a facility. Tow tractors are suitable for indoor and outdoor logistic use. They are designed to push or pull non-powered trucks, trailers, or other mobile loads on roadways or improved surfaces. In logistics, tow tractors are the type of ground conveyor. They can be hitched to one or more trailers to undertake transport tasks over long routes. Depending on its load and where it is to be used, a tow tractor can be powered by an internal combustion engine or electric motor. Tow tractors can toe a lot of trailers at the same time, making them able to form a train. They have applications in manufacturing processes and horizontal transport over distances. They also offer safety and high efficiency for picking for transportation operations of various types of goods, such as stacked and unstacked and roller-caged goods. The growing logistics and transportation industry drives the market growth.

The global tow tractor markets were valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 5.63% during the forecast period (2022-2029).

Market Dynamics: Technological advancement of the tow tractor drives the market growth

Major key players are focusing on manufacturing fully automated, unmanned tow tractors. New artificial intelligence system uses a range of sensors, including Lidar, cameras and ultrasonic, to build up a picture of the environment around the tug and then plot the most efficient, safe route. This technic allows them to operate safely inside facilities with no GPS signal and without requiring extensive infrastructure. For instance, in November 2022, Fusion Processing and Bradshaw Electric Vehicles announced a partnership to develop fully autonomous tow tractors. They are used extensively in factory, warehouse and airport logistics to haul baggage trailers and goods trailers. Automation of commercial electric vehicles such as tow tractors improves safety. It drives huge operational efficiencies in the logistics of complex places where the timely delivery of goods is key to larger sectors, such as flight schedules where efficiency savings are counted in seconds. Fusion Processing's CAVstar control and sensing system will make Bradshaw's third-generation T700 and T800 Tow Tractors fully autonomous.

Some factors like the increasing automation of storage facilities and warehouses in developing countries, increasing labor costs, saving transportation time, and increasing productivity and quality drive the growth of tow tractors in the forecast period.

Market Segmentation: Airports segment accounted for the highest share in global tow tractor market

Airports have many applications for tow tractors for carrying loads and traveler’s luggage. Toe tractors are used for both short and long-distance luggage transport. Aircraft tow tractors are a crucial part of the airport ground support equipment. It is majorly used for pushing back an aircraft from its gate, towing the aircraft between the gate and hangar, and towing for maintenance purposes. The passenger tow tractor market is growing rapidly with the increase in air travelers. To reduce operational and labor costs, tow tractor has a wide range of scope in the market. Moreover, an increase in government investments in an increasing number of airports in emerging economies is considered the major factor that accelerates the growth of the tow tractor market. Expansion of the aviation industry worldwide drives the market growth of tow tractors.

Geographical Penetration: North America is the dominating region during the forecast period

North America held the largest market share due to the increase in awareness of the efficient and accurate working of the tow tractor and the increase in the industrial area operations in the region. The high labor cost is another factor responsible for the region's increased demand for tow tractors. Factors like the expansion of the railway sector increase in air traffic and expansion of the supermarkets in developed countries like the United States and Canada drive tow tractor growth in the region. The availability of driverless towing tractors the in the region drives the market growth.

Europe occupied a significant market share after North America. Countries like Germany, France, and Italy has high demand for tow tractor due to the companies in the country now automation and accurate load-handling instruments such as tow tractors. Increasing the demand for tow tractors in the aircraft industry helps to grow market share. In January 2021, an All-electric aircraft tow tractor was introduced at Munich Airport. The use of the tow tractor supports Munich Airport's climate protection vision, including being completely carbon-neutral by 2030. On the apron of Munich, Airport aircraft are now being moved completely electrically using resource-saving handling equipment.

Competitive Landscape:

There are only several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Jungheinrich AG, Toyota Material Handling, Bradshaw Electric Vehicles, Polaris Industries, Inc., Hyster-Yale Group, Inc., Linde Material Handling, Motrec International Inc., The Raymond Corporation, JBT and Godrej Material Handling, among others. Some major key players launched new products to increase their annual sales. For instance, Jungheinrich launched a new toe tractor in the market for tight spaces. The EZS 130 has been designed to transport small parts, perfectly suited for transporting luggage trolleys at airports. The machine tow tractor can pull various types of trailers with a total weight of upto 3,000kg and guarantees a higher efficiency level with excellent energy balance. The truck is available with proven lead-acid batteries and cutting-edge lithium-ion technology. This new toe tractor is suitable for transporting luggage and trollies at the airport. The improved drive technology of the EZS 130 guarantees a higher efficiency level with excellent energy balance. In November 2020, Toyota material handling added a new Center-Controlled Rider Automated Forklift (left) and Core Tow Tractor Automated Forklift (right) to the company’s industry-leading lineup of optimization services products. These two automated guided vehicles add the latest in proven automation technology to existing trusted company products. These towing tractors are rider automated, having capacities of lifting 10,000 pounds for the Core Tow Tractor Automated Forklift and lifting capacities up to 7,000 pounds for the Center-Controlled Rider Automated Forklift.

COVID-19 Impact: Negative impact on the global tow tractor market

The outbreak of COVID-19 hit the global tow tractors market, and many manufacturers have stopped manufacturing, disrupting the supply chain. The shutdown of the factory and increased travel restrictions, trade bans and nationwide lockdowns to stop the outbreak of the contagious virus have impacted the manufacturing, supply and sales of various automobile types. Strict government regulations hamper market growth. Import and export of vehicles are completely closed due to the government's strict regulations that reduce the sales of tow tractors. The major demand for the tow tractor is from countries like the United States, China, Germany, and the U.K. are negatively affected by the spread of coronavirus, declining the demand for towing tractors.

The global tow tractor market report would provide an access to approximately 69 market data tables, 64 figures and 170 pages