Industry Analysis & Industry Trends
The Semi-Trailer and Truck Rental industry has cruised through a growth period over the past five years with some minor bumps along the road. The industry is expected to grow by 2.3% over the five years through 2013-14, to reach $87.1 million. This growth is understated, as it comes off a high base year in 2008-09. Over 2008-09, the industry benefited from an increase in merchandise imports and exports. The Road Freight industry, a key source of industry demand, declined over the year. Although this is usually bad for revenue, when combined with a simultaneous growth in merchandise trade it was in fact beneficial for the industry... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry has a low market share concentration, with the top four players accounting for less than 40.0% of industry revenue. This is primarily attributed to the saturation of the industry. The majority of the businesses are small, private enterprises serving only a particular geographic region. Economies of scale are difficult for operators to achieve due to the importance of proximity to their target markets. Operators are unable to store a large number of prime movers and trailers in one facility because that could create overcapacity for that particular region.
Market share concentration is unlikely to fall further over the five years through 2018-19. The industry has high barriers to entry, with large initial capital outlay required to establish operations... purchase to read more