Terminal Tractor

Terminal Tractor

A terminal tractor, also known as a yard tractor, yard dog, or shunt truck, is a specialized vehicle primarily used in logistics and transportation industries for moving semi-trailers and containers within the confines of a terminal or a freight yard. It is designed to efficiently move heavy loads over short distances, often within the same facility or across adjacent yards. Terminal tractors typically have a hydraulic fifth wheel, which allows them to quickly and easily connect and disconnect from trailers, enabling efficient loading and unloading operations. They play a crucial role in facilitating the movement of goods and improving overall logistics operations.

The terminal tractor market is expected to grow at a steady CAGR of around 4.5% during the forecast period owing to the increasing port activities globally. Furthermore, as international trade and global shipping continue to grow, there is a rising need for efficient and reliable cargo handling at ports and terminals. The expansion and modernization of ports worldwide drive the demand for terminal tractors. Moreover, e-commerce and online retail have significantly increased the volume of goods moving through supply chains. Terminal tractors are required to efficiently move and organize cargo within warehouses, distribution centers, and fulfillment centers.

Additionally, increasing automation and efficiency in cargo handling operations with increased production and trade volumes across countries and continents, driven by elevated consumer demand, further pushes the need for terminal tractors. For instance, In 2019, global trade in goods and services stood at about USD 25 trillion. In 2020, the value of international trade in goods and services contracted by about USD 2.5 trillion 2020 (or about 10 percent). In 2021, global trade rebounded and increased by more than USD 6 trillion 2021, reaching a record high of approximately USD 28 trillion.

• Based on propulsion type, the market is segmented into diesel, hybrid, electric, LNG, and hydrogen. The most commonly used type of terminal tractor based on propulsion type is typically diesel-powered. Diesel terminal tractors are widely used due to their high torque, endurance, and ease of refueling. However, it's worth noting that advancements in technology have also introduced electric and hybrid-powered terminal tractors, which are gaining popularity due to their lower emissions and reduced operating costs, and companies have sped up the process of developing and launching products in this space. For instance, on 17 February, Terberg introduced the new generation of fully electric terminal tractors. Terberg introduces a new generation of electric vehicles with new EV technology, including the YT203-EV terminal tractor and the BC202-EV body carrier. The performance of the new electric drive system is comparable with that of diesel engines, and the large battery option offers a significantly greater operating range.
• Based on the drive type, the market is segmented into 4*2, 4*4, and 6*4. The type of terminal tractor used most widely depends on the specific industry, location, and operational requirements. However, the two most commonly used types of terminal tractors based on drive type are 4*2 and 6*4. The 4*2 terminal tractors have two axles and provide power and traction to either two wheels (rear-wheel drive) or all four wheels (all-wheel drive). They are suitable for moderate to heavy-duty applications and are commonly used in ports, warehouses, and distribution centers. About 6x4 Terminal Tractors, these terminal tractors have three axles with power and traction provided to all six wheels (rear-wheel drive). They are more powerful and designed for heavy-duty operations requiring maximum traction and pulling capacity. 6x4 terminal tractors are often used in heavy industrial applications, such as large container terminals or intermodal yards.

The market is segmented based on application: airport, marine port, oil & gas, warehouse and logistics, foods and beverages, and rail logistics. Terminal tractors are most extensively used in the marine port industry for transporting and shipping containers within ports and intermodal terminals. They can efficiently move loaded or empty containers between different areas, from container ships to storage yards, railcars, and trucks. Furthermore, the increasing interconnectedness of economies has led to a surge in international trade. As companies expand their operations and seek to reach global markets, the demand for logistics services is rising, which boosts the need for terminal tractors.

• Moreover, terminal tractors are the key to revolutionizing the logistics industry, where automation, artificial intelligence, robotics, and data analytics have optimized processes, improved supply chain visibility, reduced costs, and enhanced operational efficiency. For instance, on March 2023, the Port of Cork partnered with Innovez One for a new AI-powered port system. According to the company, this latest step in digitalizing port services and operations at Cork will boost efficiency and sustainability.
• Based on purchasing options, the market is segmented into buying, renting, and leasing. While renting may be practical for businesses that only need a terminal tractor for a short period, buying or leasing makes sense and are a more cost-effective option for the industries such as ports and terminals that use terminal tractors throughout the year. Additionally, the advantages of buying range from high return on investments as the equipment will generate revenue and have resale value. Furthermore, Purchasing terminal tractors generally provide a better return on investment than long-term rentals since rental fees are higher than monthly financing costs. Moreover, buying will have tax benefits, can customize the equipment as required, and has no liability. Due to the abovementioned factors, businesses tend to acquire terminal tractors more than rent or lease. For instance, in January 2023, BYD began delivering 304 electric trucks to India's Adani Group, which will be used as terminal tractors at the port. The Adani Group had ordered 400 BYD electric trucks, all scheduled to enter service later this year.

For a better understanding of the market adoption of the Terminal Tractor, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, Rest of Asia-Pacific), Rest of World. The Terminal Tractor market in the Asia Pacific region is anticipated to witness significant growth throughout the forecast period. The primary factor driving the market in the APAC region is, out of the ten most important and busiest ports of the world, almost all are located in the APAC region, where Shanghai port, which is located in China, is the world's biggest port with a whopping 37 million TEUs of cargo volume, with an annual cargo traffic handling of around 43 million TEUs, making it the globes most extensive container facility. The primary reason for this heavy volume in the APAC region is that International transport in the Pacific region relies heavily on maritime shipping (MS). On a tonnage basis, over 80% of all international cargo (both container and non-container) in this region is transported by ship, according to the World Trade Service (WTS) database. For instance, on Nov 2022, as per UNCTAD (United Nations Conference on Trade and Development), Asia remained the world's leading maritime cargo handling center in 2021, responsible for 42% of exports and 64% of imports. In 2021, Asian container exporters were among the top five, accounting for almost half the traffic, and included China, Viet Nam, the Republic of Korea, and Japan.

• Some of the major participants operating in the market include CARGOTEC CORPORATION; Terberg Special Vehicles; CAPACITY TRUCKS; TICO TRACTORS; AUTOCAR; BYD Company Ltd; LONESTAR SPECIALTY VEHICLES; Orange EV; Konecranes; and SANY Group.

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