Utility Trucks Market Size, Industry Analysis Report, Regional Outlook, Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI4931
Utility Trucks Market size is expected to grow rapidly during 2021 to 2027 due to the positive outlook of the construction and mining industry globally. Rising expenditure on road projects, port development, irrigation work, railways, and energy projects is likely to create high demand for utility trucks. In response to the growing market demand, manufacturers are focusing on providing electric or ICE utility trucks as per customer requirements. For instance, in August 2020, OJSC Belarusian Autoworks (Belaz) partnered with Coal India Ltd. to provide 96 dump trucks for various mining and construction applications.
Growing development of smart cities in several economies is likely to create new opportunities for the utility trucks market. For instance, in February 2019, the Government of India launched the Pune Smart City Development project in Maharashtra, India. Smart cities leverage advanced technologies, such as Artificial Intelligence (AI), Internet of Things (IoT), and GPS, to enhance the living conditions for citizens. Smart cities will make robust demand for technologically advanced utility trucks for waste management and urban infrastructure development, positively impacting the market growth.
High initial and maintenance cost of utility vehicles, such as fire trucks and dump trucks, is poised hinder the utility trucks market growth during the forecast timeline. Firefighters need high-tech fire trucks that transport them to the desired location quickly and carry all the necessity equipment. These trucks are made up of high-end all-weather coated materials, which add to the cost.
Similarly, dump trucks require several critical components, such as complex electric circuits, for loading and offloading operations and advanced suspension. Utility trucks also require special government-issued certificates and clearances that make them safe for operation in challenging environments. High cost of fuel and maintenance of utility trucks further add to the increasing cost of operation for users.
The rising adoption of self-driving (automated) utility trucks and development of hybrid and electric trucks is expected to spur the market demand. In May 2019, Highway England Company Limited, a government-owned road development and maintenance company in the UK, enhanced its utility trucks fleet with self-driving dump trucks. The company intends to deploy these trucks for road construction. These trucks are integrated with various advanced sensors that allow quick detection of obstacles in their way. Immediate response to these obstacles facilitates fully autonomous driving.
The distribution network of a large number of companies in the utility trucks market is disrupted owing to the spread of the pandemic. Companies with a global presence are experiencing challenges in distribution of their products impelled by government restrictions on public movement to contain the COVID-19 health crisis. The decline in demand and government-enforced restrictions caused utility truck manufacturers to temporarily shut down their distribution outlets during the first two quarters of 2020. However, companies are leveraging online platforms to reach out to their customers during the pandemic.
The dump truck market share is predicted to experience high demand from 2021 to 2027. Dump trucks are being increasingly deployed for transporting large volumes of loose materials such as dirt, sand, and demolition waste across mining and construction areas. Utility truck OEMs are focusing on strategic collaborations and partnerships to develop new dump trucks with alternate fuel technologies. For instance, in May 2018, BYD signed an agreement with two companies in Shenzhen for providing 500 electric dump trucks. These trucks consist of maximum gradeability of 50%, capacity of 10.6 cubic meters, and a range of up to 280-plus km with full load.
The ICE segment is estimated to hold a large utility trucks market share through 2027. Moreover, electric utility vehicles are anticipated to grow at high pace driven by increasing government regulations on gasoline and diesel trucks. Electric utility trucks offer less power and torque compared to ICE trucks, which may hamper the wide scale adoption of these trucks in the global market. The market is supported by the introduction of new models of electric utility trucks. In September 2018, BEML Ltd. launched 205T electric drive rear dump truck under “Make in India” initiative. This electric dump truck is integrated with 2,300 HP, BH205E electric engine and specifically used for mining applications.
Asia Pacific is set to dominate the utility trucks market share through 2027 propelled by increasing construction and mining activities and smart city initiatives. In September 2020, China approved the construction of two nuclear power projects with investments up to USD 10.24 billion. Large, government-supported construction projects will create a positive impact on the growth of the market in Asia Pacific. Factors, such as increase in population and escalating urbanization in China and India, are also contributing to the market demand.
The utility trucks market is fragmented with various regional & international players operating in this market. Some of the key players include AB Volvo, BYD Motors Inc., Daimler AG, Rosenbauer International AG, Oshkosh Corporation, and Komatsu Ltd. Companies are heavily investing in innovation & research to develop electric and hybrid utility trucks. For instance, in October 2020, Volvo Trucks and Rosenbauer Group introduced their first model of fully electric fire truck.
The companies invested in R&D and innovation to develop the electric fire truck based on Volvo’s FL Electric utility truck chassis. The FL Electric trucks are used for several utility applications such as waste collection and road maintenance. Shifting preferences of government authorities toward adoption of new energy utility trucks to minimize the environmental impact will support the market share.
The utility trucks market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:
Market, By Type
- Sweeper Truck
- Dump Truck
- Fire Truck
- Garbage Truck
Market, By Engine
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Saudi Arabia
- South Africa
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