Garbage Truck Bodies Market Size, Share & COVID-19 Impact Analysis, By Product (Front Loaders, Rear Loaders, Side Loaders), By Application (Urban Garbage Treatment, Building & Mining Industry, Others), and Regional Forecast, 2022-2029

The global garbage truck bodies market size was valued at USD 4.16 billion in 2021. The market is projected to grow from USD 4.26 billion in 2022 to USD 5.89 billion by 2029, exhibiting a CAGR of 4.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with garbage truck bodies experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market share exhibited a rise of 6.2% in 2020 as compared to 2019.

Correctly managing solid waste is critical to human and environmental well-being. As society grows, an underlying problem is the lack of efficient solid waste management. Garbage truck bodies collect and transport the solid waste to treatment facilities for functions such as recycling and landfilling.

Rapid-paced industrialization, urbanization, and high population growth propel the global demand for modern waste management methods. Hence, conventional solid waste collection methods are being modernized and replaced in several countries. These factors generate high demand for the truck bodies to adhere to the rapidly evolving regulations regarding solid waste management.

COVID-19 IMPACT  

Reduced Industrial Waste amid COVID-19 Has Significantly Affected New Garbage Truck Orders

The pandemic severely affected the front-line workers, including cleaning staff. Therefore, the discussions about improving worker safety were raised by various governments. There is a stronger focus on automated garbage collectors to substantially limit waste management workers' exposure to COVID-19. Therefore, truck body manufacturers invest heavily in improving the truck body design and making it ready for automation.

The sudden drop in industrial waste significantly affected the new garbage truck orders in China, the U.S., and Europe. In addition, the lockdown and economic crisis severely impacted the financials for truck body manufacturers from Q1 to Q3 2020, with demand decreasing by up to 40% in some countries. However, the market rebounded substantially after Q4 as the lockdown induced restrictions were reduced in most countries, and demand for garbage trucks increased.

The lockdown disrupted the supply chain, mainly for raw materials from the Asian region, such as steel rolls, paints, and machinery. This resulted in a substantial delay in fulfilling existing orders. Companies were already facing a huge cash crunch due to no new orders as the pandemic started. Thus, the supply chain crisis further impacted their profit margins.

The importance of automated side loading trucks is growing considering the COVID-19 impact. ASL allows the minimization of drivers' contact with an infected person, thus improving safety. It provides a contactless solution for garbage collection and avoids a companion worker's need to collect the garbage and dump it in the truck. The automated side loaders can increase efficiency by up to 75% than manual handling of waste collection operations. Therefore, these factors will influence the global garbage truck bodies market growth in the forthcoming years.

LATEST TRENDS

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Growing Emphasis on Alternative Fuel and Vehicle Electrification to Augment Growth

Many waste service providers and sanitation departments test electric garbage truck bodies or add them to their fleet to reduce emissions. Electric garbage trucks are quieter, thereby reducing noise pollution as well. For instance, in 2019, GreenWaste, a waste service provider in California, incorporated a BYD manufactured first-generation electric waste truck in their fleet. Using this truck saves around 6,000 gallons of diesel and reduces emissions by 78 metric tons of CO2 equivalent annually. GreenWaste plans to transition its whole residential garbage fleet to an electric vehicle within the next few years. Hence, the electrification of garbage trucks is a positive trend for market growth.

DRIVING FACTORS

Significant Growth in Waste Generation Driven by Urbanization and Population Growth

The world population is projected to grow from 7.7 billion in 2019 to 9.7 billion in 2050. Population growth will be accompanied by urbanization, with the proportion of the global population living in urban areas projected to increase from 55% in 2018 to 68% in 2050. Urbanization and population growth directly contribute to waste generation. Globally, around 0.7-0.8 kilograms of solid waste is generated by a person per day. The amount of municipal solid waste generated annually across the globe is expected to grow to 3.4 billion tons in 2050 from 2 billion tons in 2016. Hence, a substantial increase in waste generation due to the rise in population growth will drive the market's growth for garbage truck bodies.

Growing Demand for Connectivity to Augment Growth

A majority of the waste management companies with a large fleet size are considering upgrading their garbage truck fleet using connectivity for easy remote management and monitoring of their vehicles. In addition, fleet managers increasingly use the data collected from telematics to gauge the performance of their fleet and create action plans to improve overall productivity.

For instance, the Detroit Connect virtual technician is a remote diagnostic application that comes standard with the Detroit DD8 engine fitted in Freightliner EcpnicSD. This remote Diagnostic service monitors vehicle health and performance and continuously shares valuable insights with the fleet managers. Similarly, the Mack GuardDog Connect telematics solution and monitors the truck’s performance and shares useful insights 24/7 with the technical call center, with immediate assistance in emergencies.

Hence, the increasing adoption of connected solutions will drive the growth of the global garbage truck bodies market.

RESTRAINING FACTORS

Low Waste Collection Rates Especially in Lower-Middle and Low-Income Countries to Restrain Growth

The municipal solid waste collection rates vary significantly based on the level of development or income level of the countries. For instance, the municipal solid waste collection rate in high-income countries is almost 100%, whereas it is lower than 50% in low-income countries. The municipal solid waste collection rate in North America and Europe is 100% and 90%, respectively. On the other hand, it is 44% in South Asia and Sub-Saharan Africa.

Furthermore, as per the income level of countries, municipal solid waste collection is estimated to be 96% and 82% in high-income and upper-middle-income countries, respectively. However, the exact figure is only 51% and 39% in lower-middle-income and low-income countries, respectively. Hence, these factors will restrain the market growth.

SEGMENTATION

By Product Analysis

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Rear Loaders Segment Dominated the Market Owing to Large Storage Capacity

By product, the market is segmented into front loaders, rear loaders, and side loaders.

The rear loaders segment held the largest share of the market in 2020. They compact the load more evenly throughout the entire truck body. Moreover, the latest rear loaders are fuel-efficient and have a large storage capacity. These factors are attributed to the dominance of this segment.

The side loaders segment is also expected to show good growth in the market owing to the increasing adoption of automated side loaders (ASL). ASLs are highly maneuverable, well suited for residential areas, and have the lowest total cost of collection (based on measuring cost, efficiency, and productivity) of all garbage trucks. These factors will fuel the growth of this segment.

By Application Analysis

Urban Garbage Treatment to Hold Largest Market Share Owing to Increasing Focus on Solid Waste Management

Based on application, the market is segmented into urban garbage treatment, building and mining industry, and others.

The urban garbage treatment segment dominated the market in 2020. Increased allocation of financial resources and proper planning for the collection, transportation, and treatment or disposal of solid waste in developing countries is propelling the growth of this segment.

The building and mining industry segment is anticipated to exhibit a higher CAGR during the forecast period. Factors such as increasing environmental concerns regarding mining waste management and increasing automation of critical activities to safeguard the workers drive the growth of this segment.

REGIONAL INSIGHTS

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Asia Pacific stood at USD 1.34 billion in 2021 is anticipated to exhibit a higher CAGR during the forecast period. There is an increasing consumer awareness regarding the negative environmental and health implications of open dumping. In addition, the exponential increase in municipal solid waste generation in countries such as China and India has also compelled them to promote education campaigns, implement incentive programs, establish regulatory frameworks and improve waste management strategies. These factors will drive the demand for garbage truck bodies in this region and hold the largest global market share.

North America is expected to hold the second-largest global garbage truck bodies market share. This is due to the increasing emission regulations, along with the fleet owners focusing on adopting electric refuse trucks in their waste management fleets. For instance, the sanitation department of Los Angeles has decided that they would transition their fleet of 1,100 garbage trucks to battery-electric by 2035. Similarly, the New York City Department of Sanitation, which has a fleet of around 2,100 garbage collection trucks, aims to have an all-electric fleet by 2040

Europe is expected to show steady growth in the market attributed to the declining waste generation rate in the European Economic Area (EEA) countries. According to the European Environment Agency, total municipal waste generation declined by 3%, and average generation per person fell by 7% in EEA countries from 2004 to 2014. Furthermore, more cohesive action on policy development and implementation in waste and material resources is witnessed. These factors will influence the demand for garbage trucks in this region.

Rest of the world contributes far less compared to the other regions. This is due to the fewer automotive OEMs & truck bodies suppliers. Moreover, the Middle East countries are expected to have moderate growth owing to the in-lined waste management project, active governments, and technological developments in recent years.

KEY INDUSTRY PLAYERS

McNeilus Truck and Manufacturing Dominates Owing to Industry-Leading Production Facilities

Key players in the market include BYD Company Ltd., McNeilus Truck and Manufacturing, Fujian Longma Environmental Sanitation Equipment Co., Ltd., and McNeilus Truck and Manufacturing. McNeilus Truck and Manufacturing is a leading player in North America and is a subsidiary of the Oshkosh Corporation. Higher revenue than other key players due to domination in the U.S. market has enabled the company to invest heavily in expanding production facilities and annual output with dedicated plants for refuse vehicles and equipment.

For instance, in August 2020, McNeilus Truck and Manufacturing, Inc. announced that it is offering its Dodge Center to refuse collection vehicle manufacturing and technology development. Additionally, to streamline the supply chain for parts critical to producing its industry leading refuse collection vehicles, the company recently opened a 135,000 square-foot warehouse. Hence, these factors contribute to the company's leading position in the market.

LIST OF KEY COMPANIES PROFILED:

• Fujian Longma Environmental Sanitation Equipment Co., Ltd (Longyan, China)


• McNeilus Truck and Manufacturing (Minnesota, U.S.)


• Haul-All Equipment Ltd. (Alberta, Canada)


• New Way (Iowa, U.S.)


• Heil (Tennessee, U.S.)


• Labrie Enviroquip Group (Quebec, Canada)


• DENNIS EAGLE LTD (Warwick, U.K.)


• BYD Company Ltd. (Shenzhen, China)


• Curbtender Sweepers, LLC (Iowa, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2021- New Way Trucks announced its expansion of its manufacturing capacity in Booneville. The initiative is a USD 4 million business investment that will result in the creation of at least 120 employment.


• June 2021- McNeilus Truck and Manufacturing Inc. unveiled three new models at WasteExpo, which took place in Las Vegas from June 28 to 30. The new Zero Radius Automated Side Loader, CartSeeker Curbside Automation, and Metro Pak Plus Rear Loader will be on display.


• January 2021- Fulongma has newly developed the two-sided guardrail cleaning truck, which can realize the two-way cleaning function and provide customers with more choices.


• This model is widely used for cleaning the guardrail barriers in the middle of urban roads or on both sides of non-motorized vehicle lanes.

REPORT COVERAGE

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The global garbage truck bodies market research report covers a detailed market analysis. It focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors contributing to its growth over recent years.

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