COVID-19 Sparks Shortage in Inventory and Hampers Market Growth
A potential pickup truck shortage is an issue that is joining the list of ramifications caused by the COVID-19 (coronavirus) outbreak. As stated by popular news outlets, Charlie Gilchrist, the president of Gilchrist Automotive, reported that his company is experiencing a crunch in demand, since auto manufacturing has come to a standstill amidst the COVID-19 lockdown.
A significant drop in financing deals are also negatively impacting the pickup truck market. Automotive manufacturers in the pickup truck market are also experiencing a shortage in inventory. Thus, high-end and heavier versions of trucks are under scrutiny for reported shortage in inventory. Hence, manufacturers are relying on the hopes that the novel virus subsides soon, which will help to resume manufacturing plants and revive market growth.
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Improvisations in Tailgates of Pickup Trucks Grab Attention of Premium Customers
Automotive giants are making big-budget investments for the marketing of pickup trucks. Likewise, companies are reinventing the tailgate in trucks to suit the convenience of owners. For instance, the General Motors Company— a global leader in development and services of automobile and automotive parts, conducted a marketing campaign called the this-ain’t-your-father’s-tailgate movement with their MultiPro Tailgate, which is an origami wonder that can be deployed in six different ways.
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Companies in the pickup truck market are increasing their research spending to introduce waterproof speakers in trucks that meet requirements of premium customers who own pickups to achieve an important social status among their social circle. Investments in the marketing of pickup trucks is compared to that of the GDP of a small nation. This is evident since the pickup truck market is projected to reach the ~US$ 950 Bn by the end of 2030.
Customer-centric Features Such as Lockable Storage Units Creating Revenue Streams
Companies in the pickup truck market are shifting their focus from meeting the comfort of owners to adopting a more problem-solving approach. Key market players are tapping into opportunities to meet the needs of adventurers. For instance, Ram Trucks— a leading U.S. brand of light- to mid-weight commercial vehicles introduced RamBoxes, a pair of lockable storage units accessible from the curbside and spacious enough to store a rifle or a collapsed fishing pole. Thus, manufacturers in the pickup truck market are keeping a close tab on the types of activities pursued by its target customers to strategically market their pickup offerings.
Towing cameras are another important innovation in pickup trucks. Conventional pickup trucks are devoid of these cameras, thus creating hesitation among owners in cases when their trucks are towed. Thus, trailer-mounted cameras help owners to keep an eye on what is astern of the vehicle.
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FAQs Help Address Ambiguity over Regulations and Boosts Sales
Stringent regulations for recreational and commercial pickup trucks are some of the restraining factors that are slowing the sales of vehicles, thus impacting the expansion of the pickup truck market. This market in North America is expected to generate the highest revenue. However, new rules for personal-use pickup trucks and trailers in Ontario such as prohibition on carrying commercial tools or cargo have led to a resistance in the adoption of pickup trucks. Hence, automobile manufacturers should address frequently asked questions (FAQs) of customers to boost sales of trucks.
Backup assists are being highly preferred by truck owners. Manufacturers are increasing their R&D in programming to assist the driver in challenging situations. For instance, leading U.S. multinational automaker Ford is increasing awareness about its Pro Trailer Backup Assist that uses math to fit a large camper into a tight space.
Pickup Truck Market: Overview
- The global pickup truck market is expected to expand at a CAGR of ~2% between 2020 and 2030
- Decline in demand for vehicles across the globe due to the coronavirus pandemic has led to a decline in the sales of pickup trucks in the 2nd quarter of 2020
- Pickup trucks are highly popular in North America and Europe due to the ability to be utilized for multiple applications such as hauling carriages and transportation of goods
Drivers of Pickup Truck Market
- The popularity of less than load (LTL) systems around a decade ago was majorly due to a surge in interest in large distribution center models, wherein trucks entered from one side and left from the other side. However, the last couple of years witnessed the revival of the less-than-load industry, primarily driven by the boom of the e-Commerce sector and significant penetration of automation in factories across the globe.
- Evolving manufacturing models coupled with high demand from the LTL side is likely to boost the LTL transportation across the globe. Demand for efficient LTL transportation is likely to be driven by a rise in the number of smaller shipments due to expansion of the e-Commerce sector.
- Rising penetration of smartphones and access to speedy Internet services has boosted consumer preference toward online shopping, which requires pickup trucks to deliver products. This, in turn, is anticipated to propel the pickup truck market during the forecast period.
- Increase in middle class population across the globe has resulted in the rise in consumption, which in turn is expected to boost the goods transport volumes. Changes in consumer tastes and preferences where people are inclined toward Western lifestyles have led to a rise in the demand for deliveries that takes lesser time. This, in turn, is projected to drive the last mile delivery, which is likely to propel the pickup truck market during the forecast period.
- Rising urbanization has resulted in an increase in transport volumes. Rapid expansion of the Internet retailing market across the globe is driving the first and last mile delivery market. Rising popularity of online shopping in countries is a key factor to drive the pickup truck market across the globe.
Challenges for Pickup Truck Market
- Pickup trucks are extensively employed for commercial activities and hence, the cost of the full size pickup trucks is significantly high. Additionally, increasingly stringent emission regulations are likely to drive the market for electric pickup trucks, which are even more expensive. Thus, the high cost of the pickup trucks is a major restraint for the market.
Pickup Truck Market: Segmentation
- Based on truck type, the medium segment held a leading share of the market, in terms of volume, in 2019; however, the full size segment accounted for a prominent share in terms of revenue. Medium type trucks are conventional pickup trucks and are highly popular in majority of regions, which is attributed to the high market share held by the segment in the global pickup truck market.
- Small pickup trucks are continuously gaining popularity, which in turn is propelling the market for pickup trucks. Moreover, rising focus toward the development of high economy vehicles for SMEs drives the segment. On the other hand, higher popularity of full size trucks in North America and Europe due to their use in multipurpose application can be attributed to the significant share held by the full size segment of the global market.
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