Volume Insights on the Tow Truck Sector

Volume Insight Strategic Overview

Allied Market Research announces the release of its comprehensive analysis of the global number of tow trucks. Tow trucks are specialized vehicles which is designed to transport disabled, damaged, or illegally parked vehicles from one location to another. Tow trucks are equipped with various towing mechanisms, such as hydraulic lifts, winches, or flatbeds, to safely secure and move vehicles of different sizes. Tow trucks are majorly used by towing companies, auto repair shops, and municipal authorities to clear roadways, assist stranded drivers, and enforce parking regulations.

The report highlights the growing demand for tow trucks. Tow trucks are essential for ensuring road safety, maintaining traffic flow, and providing critical roadside assistance. They help remove disabled, damaged, or illegally parked vehicles, preventing obstructions that can lead to accidents or congestion. In emergency situations, such as breakdowns or collisions, tow trucks provide timely assistance, ensuring that stranded vehicles are safely transported to repair facilities.

The moderate growth in the number of tow trucks is attributed to increase in vehicle traffic and congestion on the road, a rise in roadside assistance services, and growth in car sales. The global volume of tow trucks is expected to grow from 57,400 units in 2023 to 87,150 units by 2033, registering a CAGR of 4.5% during the forecast period. This rapid expansion is supported by the introduction of smart trailers with the integration of IoT and telematics and growth in sales of electric and hybrid vehicles. 

Regional Tow Truck Sector Volume Growth

Asia-Pacific dominated the tow truck sector volume projection with 33.1% share in 2023 with a 5.6% CAGR, while Europe, North America and LAMEA show strong growth at 5.0%, 2.5%, and 4.0% CAGR, respectively from 2024-2033, driven by increase in vehicle traffic and congestion on the road, rise in roadside assistance services.

The regional analysis highlights significant variations in adoption trends and market potential across the globe. Asia-Pacific leads the tow truck sector volume share, contributing over 33.1% of the total volume in 2023 and expected to grow at a CAGR of 5.6%, driven by rapid urbanization and growing car sales which is lead to increased traffic congestion and breakdowns. The growth in Europe is led by countries such as the UK, Germany, France, and Italy and is expected to witness a growth rate of 5.0% CAGR. The growth in the North America region is led by U.S., Canada and Mexico. The sector in North America is expected to grow at a CAGR 2.5%, and the sector volume growth is driven by factors such as strict road safety regulations, which require quick vehicle recovery, and re-driving up the demand for tow trucks in the region. The LAMEA region is expected to grow at a CAGR of  4.0%, The sector growth is driven by an aging vehicle population, extreme weather conditions, and growing automotive sales in the region.

Tow Truck Sector Volume Growth By Region, 2023-2033 (000 Units)

Source: AMR Analysis

Tow Truck Country Sector Sales

China, Japan and India lead the tow truck sector sales, projected to grow at 6.3%, 5.2%, and 7.0%, respectively while U.S. (2.7% CAGR) and UK (6.4% CAGR) emerge as high-growth regions driven by the mandate by automobile manufacturers, insurance companies, and third-party service providers by offering comprehensive roadside assistance programs, and towing services towing services as part of their standard packages while selling vehicles.

The report identifies the China., Japan and India as the largest contributors to the tow truck sector in terms of installations. In China, the country is the world’s largest automobile manufacturer, and the country is witnessing an increasing need for new tow trucks due to its growing vehicle population and rapid urbanization. Japan is anticipated to grow at 5.2% during the forecast period. On the other hand, India remains a key country in the Asia-Pacific region, growing steadily at 7.0% CAGR from 2024-2033.

Emerging regions such as Latin America and Middle East are expected to drive significant growth in coming years due to county such as Brazil, Columbia, Peru, Argentina and other have a large number of older vehicles, with many cars and trucks exceeding lifespan of 10-15 years in age, these vehicle need frequent repair thus driving the tow truck sector volume forecast. In the Middle East, extreme heat and sandstorms cause frequent engine failures, tire blowouts, and overheating issues, The region is projected to grow at 4.1% during the forecast period.   

Tow Truck sector by Country (000 Units)

Source: AMR Analysis

Key Highlights by Stakeholders

Highlighting the significance of this report, Ashwani Ajwani, Vice-President of Allied Market Research, stated, “The increase in vehicle traffic and congestion on the road, rising roadside assistance services, and growing car sales are driving the tow trucks sector demand.” He further added, “In Asia-Pacific, rapid urbanization and growing car sales has lead to increased traffic congestion and breakdowns, which is driving the demand for tow trucks. Moreover, he said that major cities such as Shanghai, Mumbai, and Tokyo are facing severe traffic congestion, requiring quick vehicle clearance as a necessity. Additionally, governments in the region are increasingly investing in the development of road infrastructure and the expansion of its highway networks, which requires extensive use of tow trucks for accident management and emergency roadside assistance.

Tow Truck Sector Volume Trends

In addition, as the number of vehicles on the road increases due to rising disposable incomes and improved financing options for car purchases, more vehicles are being driven, raising the likelihood of breakdowns, flat tires, battery failures, and accidents, leading to a greater reliance on roadside assistance services and towing services.

Furthermore, the study discusses the potential impact of introduction of smart trailers with integration of IoT and telematics. These technologies enhance vehicle tracking, improve roadside assistance efficiency, and optimise fleet management.

Tow truck manufacturers and stakeholders should use the report’s insights to grab new opportunities and plans.

About Allied Market Research

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