Growing Demand for Commercial Vehicles Is Expected to Boost the Towing Equipment Market

Posted on: Oct-2017 | Automobile

Towing equipment is widely used in the case of vehicle breakdown, engine failure, accidents, and road mishaps. They play a crucial role in linking the vehicle with the towing vehicle without damaging the parts.

Passenger cars possess a noteworthy distribution of the towing equipment market. Thus, boost in the sale of passenger segment will simultaneously enhance the demand for the towing equipment. Developing nations such as India and China have low access to the motorization when contrasted with established economies such as Europe and the U.S.

Rising urbanization has resulted in the increased consumption in an economy. As per the World Bank, it is projected that 55% of the world population habitats in the urban and semi-urban area utilizes vehicles. A majority of the development in terms of global urbanization takes place within the emerging nations such as China, Brazil, and India. A high number of transportation services are essential to congregate the growing demands of the population in the urban areas.

The rising prevalence of the internet businesses and the expanding volumes of online orders brought a flourishing growth for delivery and logistics services. The rising figures of delivery orders and the succeeding growth of logistics offices have drastically spurred the sales of commercial vehicles that specifically utilized for transporting merchandise; this has forced the fleet owners to purchase towing equipment in terms of emergency, thus, driving the growth of the market.

In the developing countries, road transport is one of the crucial modes of commuting from one place to other. Countries such as China and India have a limited availability of freight rail services owing to which majority of the transport operation is done through roads. In this case, light, medium, and heavy duty vehicles are widely used. This is also one of crucial factor responsible for the growth of towing equipment market.

Rising disposable income is expected to generate more demand in the automotive sector, which is driven by the first-time buyers. The rising middle-class population in the areas such as South Korea, India, China, and Brazil along with increased household earning is anticipated to drive the global towing equipment market in coming period.