Terminal Tractor Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Terminal Tractor Market Trends & Drivers

Rising Demand for Efficient Cargo Handling

The handling of cargo has now been integrated into the transportation system. The fundamental purpose of all transportation modes is to carry goods between the terminals where they are being prepared for delivery, as well as for movement. Because it serves as the point of goods distribution, packaging, and sorting for their eventual transfer to the final destination via the transportation system, the cargo handling process is crucial in the transportation and logistics chain.

Thus, the growing need for efficient cargo handling operations at ports, terminals, and logistics facilities is driving the market. Ports, which are critical to trade and economic vitality, depend on a wide range of vehicles and machinery to move goods. Due to the increasing volume of cargo being transported around the globe, these tractors play a vital role in streamlining operations, reducing turnaround times, and maximizing the movement of products.

Terminal Tractor Market Analysis

Growing Adoption of Electric Terminal Tractors

Based on propulsion, electric tractors will hold the largest share in the coming years, mainly due to the rise in environmental concerns and increase in the price of fuels. The transportation sector is a significant contributor to the worldwide greenhouse gas emissions. According to the United States Environmental Protection Agency, the transportation sector holds the largest share of greenhouse gas emissions in the country. The primary source of transportation-related greenhouse gas emissions is the combustion of fossil fuels in cars, trucks, ships, trains, and airplanes.

As the global efforts to combat climate change intensify, industries are seeking ways to reduce their carbon footprint; hence, these alternatives hold a high demand growth potential. Electric tractors offer a cleaner alternative to traditional diesel-powered variants, as the former produce zero tailpipe emissions.

Furthermore, EVs typically have lower operating costs compared to their diesel counterparts. Electric tractors have fewer moving parts, require less maintenance, and benefit from the lower electricity costs compared to those of diesel fuel. Over their lifespan, these cost savings can be significant. Therefore, they are being actively used by a number of businesses, such as ports, freight transporters, and supermarkets, to support their specific use cases and cut carbon emissions. For instance, in April 2023, Autocar LLC, which is a manufacturer of severe-duty vocational trucks, announced that it has begun supplying Walmart with a fleet of battery-electric terminal tractors.

Manual Category Dominates Market

Based on type, the manual category dominates the market, and it is expected to register 5.6% CAGR in the coming years. Manually driven terminal tractors are widely used in all major ports worldwide. In addition, they are the conventional kind and have been in use for a long time. As human operators can work around each piece of equipment's flaws or deal with exceptions in operational procedures, manual terminal tractors can function even when their machines are not in perfect working order. Moreover, because of their industrial use, they must undergo routine maintenance to guarantee proper condition.

The automated bifurcation is expected to witness the faster growth over this decade. An autonomous tractor is a specialized vehicle that is used to transport containers within a terminal. It uses a variety of software and sensors to navigate its environment and avoid obstacles. Moreover, they can be operated 24x7, without any break, which helps improve the efficiency of terminal operations. Further, because they do not require a human operate, he risk of injuries is lower with them.

4X2 Category To Witness Rapid Growth in Future

The 4X2 axle category holds the largest share, of 50%, in the market in 2023. This is mainly due to the rising demand for two-wheel-drive vehicles at ports and terminals as they are more fuel-efficient than 4X4 variants. In addition to this, they are easier to use and require less maintenance than others. Therefore, their usage is rapidly increasing in developing countries, such as Brazil, India, and China.

Moreover, mega and jumbo trailers can only be handled by 4x4 tractors as they have an all-wheel-drive propulsion system, which can support a heavy load. However, due to their expensive nature and frequent requirement for maintenance, they do not have a substantial market in the Asian region. However, in wealthy nations, such as Germany, France, the U.K., and the U.S., the demand for them is increasing due to the need for heavy-load-carrying vehicles.

Geographical Analysis

Geographically, Europe will witness the fastest growth over the forecast years, with a CAGR of 6.0%. The market in the continent is mainly driven by the presence of numerous players who operate through expansive dealer and distribution networks, including Konecranes, MAFI Transport-Systems GmbH, and MOL CY.

Moreover, with the rise in the adoption of technologies such as automation and the expansion of automated terminals across Europe, productivity will increase. For instance, the Netherlands' ECT Delta, which has been in use since the early 1990s, was the first automated terminal in the world. The HHLA CTA Terminal in Hamburg, Germany, is another such facility in this region.

With the rising rate of urbanization, cities are seeing increasing congestion and limited space for maneuvering large vehicles. These freight carriers are well-suited for these environments due to their compact size and easy maneuvering. According to an article, 85% of the people in Europe live in urban areas. In addition to this, since they offer access to trade and transportation, natural resources, and recreational activities, coastal areas have long been major contributors to economic prosperity. Therefore, the maritime industry continues to be crucial to the economy and society at large, with high hopes for future expansion.

Furthermore, due to these tractors' usefulness in logistics and distribution handling, OEMs have a tremendous opportunity, as the growth of the e-commerce sector has increased the demand for warehouses and distribution centers.

North America held the largest market share over the historical period due to the presence of large industries on the continent. According to the National Institute of Standards and Technology, in 2021, manufacturing contributed USD 2.3 trillion to the U.S. GDP, amounting to 12.0% of the total. Industrial manufacturing is directly dependent on these automobiles. According to the North American Council for Freight Efficiency’s report, approximately 25,242 terminal tractors are operational in the U.S. and Canada. Additionally, if all the terminal tractors in the U.S. and Canada were electrified, emissions would reduce by 929,687 metric tons of CO2 each year.

Moreover, a rising number of manufacturers in the U.S. are actively investing in new equipment, as many countries are facing labor shortages in the logistics and transportation industry. These automobiles help address this issue by reducing the need for human laborers for moving and positioning trailers and containers. For instance, Orange EV is expanding into the Canadian market, driven by the claimed strong financial and operational benefits of its electric yard truck fleets.

Market Breakdown

This fully customizable report gives a detailed analysis of the terminal tractor market from 2019 to 2030, based on all the relevant segments and geographies.

Based on Propulsion

• Diesel
• CNG
• Hybrid
• Electric

Based on Type

• Manual
• Automated

Based on Tonnage

• Less than 50 Tons
• 50–100 Tons
• More than 100 Tons

Based on Axle

• 4x2 
• 4x4
• 6x4

Based on Model

• On-Road
• Off-Road

Based on Application

• Airport  
• Marine
• Oil & Gas
• Warehouse & Logistics
• Food & Beverages
• Rail Logistics

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Terminal Tractor Companies

Global Terminal Tractor Companies News

The key market players are launching new models and engaging in an increasing number of collaborations with others.

For instance, in June 2023, Kramer Group, Terberg, and StreetDrone jointly deployed autonomous yard trucks across multiple locations at the Port of Rotterdam.

In March 2021, TICO entered into partnerships with Cummins and Volvo Penta to launch its electric terminal tractor in North America.

In May 2021, Autocar LLC launched an emissions-free, all-electric model of its Autocar ACTT terminal tractor, the E-ACTT. It meets the regulatory mandates implemented on the vocational truck industry to reduce fuel consumption by 24% by model year 2027 and, in California, to transition from diesel trucking fleets to zero-emission ones.