"Market Intelligence for High-Geared Performance"
The global garbage truck bodies market size was USD 15.13 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with garbage truck bodies witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of 33.2% in 2020. The market is projected to grow from USD 21.43 billion in 2021 to USD 29.98 billion in 2028 at a Compound Annual Growth Rate (CAGR) of 8.9% during the 2021-2028 period. The swift rise in CAGR is attributable to this market’s growth and demand, returning to pre-pandemic levels once the crisis is over.
Correctly managing solid waste is critical to human and environmental health. As society grows, an underlying problem is the lack of efficient solid waste management. Garbage truck bodies are used to 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 demand for modern waste management methods globally. Hence, conventional solid waste collection methods are being modernized and replaced in several countries. These factors generate high demand for these truck bodies to adhere to the rapidly evolving regulations regarding solid waste management.
Reduced Industrial Waste amid COVID-19 Has Significantly Affected New Garbage Truck Orders
The pandemic severely impacted the front-line workers, including cleaning staff. Therefore, the discussions about improving worker safety were raised by various governments. There is a renewed focus on automated waste collectors to significantly reduce exposure to COVID-19 of the waste management workers. 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 US, 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 started increasing.
The lockdown also 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.
Request a Free sample to learn more about this report.
Growing Emphasis on Alternative Fuel and Vehicle Electrification to Augment Growth
Many waste service providers and sanitation departments either 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. Within the next few years, GreenWaste plans to transition its entire residential garbage fleet to electric vehicles. Hence, the electrification of garbage trucks is a positive trend for market growth.
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.
Hence, a substantial increase in waste generation due to the rise in population growth will drive the growth of the market 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.
Hence, the increasing adoption of connected solutions will drive the growth of the global market.
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.
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 growth of the market.
To know how our report can help streamline your business, Speak to Analyst
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 are equipped with 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.
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.
North America Garbage Truck Bodies Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
North America stood at USD 5.95 billion in 2020 and is expected to hold the 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.
Asia Pacific 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.
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, there is more cohesive action on policy development and implementation in waste and material resources. 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 presence of 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.
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 of the US 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 the production of its industry-leading refuse collection vehicles, the company recently opened a 135,000 square-foot warehouse. Hence, these factors are attributed to the leading position of the company in the market.
An Infographic Representation of Garbage Truck Bodies Market
To get information on various segments, share your queries with us
The global garbage truck bodies market report covers a detailed analysis of the market. 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.
Value (USD Billion) & Volume (Units)
Fortune Business Insights says that the global market size was USD 15.13 billion in 2020 and is projected to reach USD 29.98 billion by 2028.
In 2020, North America stood at USD 5.95 billion.
Registering a CAGR of 8.9%, the market will exhibit good growth during the forecast period (2021-2028).
The rear loader segment held the largest share of the market in 2020.
Significant growth in waste generation due to rapid urbanization and population growth is the key factor driving the growth of the market.
McNeilus Truck and Manufacturing, Fujian Longma Environmental Sanitation Equipment Co., Ltd, and BYD Company Ltd. are the major players in the global market.
North America held the largest share in the market in 2020.
Factors such as the increasing adoption of connected trucks and the availability of alternative fuel-powered refuse equipment are expected to fuel the growth of the market during the forecast period.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry