Light Car Trailer Market Size, Share, Trends, Growth 2032

Light Car Trailer Industry Prospective:

The global light car trailer market size was worth around USD 1,723.65 million in 2023 and is predicted to grow to around USD 2,124.42 million by 2032 with a compound annual growth rate (CAGR) of roughly 2.35% between 2024 and 2032.

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Light Car Trailer Market: Overview

A light car trailer has a maximum mass of 720 kg. These trailers are used for the transportation of smaller vehicles such as motorcycles and cars over a distance. Light car trailers are lighter in weight as compared to other trailers. Hence, the primary materials used for the production of light car vehicles are either aluminum or steel. Additionally, light car trailers can be attached to other common vehicles for towing a car or a motorcycle. These trailers do not have to be pulled using heavy vehicles. The demand for light car trailers is growing globally propelled by several reasons. The addition of new trailers with improved features and lighter weight is promoting the consumption of light car trailers.

However, the industry faces challenges due to the disruptions in the supply chain of basic raw materials required for production. Additionally, the growing impact of excessive steel and aluminum on the environment is causing further disruptions. During the forecast period, the light car trailer industry is likely to grow at a steady pace.

Key Insights:

• As per the analysis shared by our research analyst, the global light car trailer market is estimated to grow annually at a CAGR of around 2.35% over the forecast period (2024-2032)
• In terms of revenue, the global light car trailer market size was valued at around USD 1,723.65 million in 2023 and is projected to reach USD 2,124.42 million, by 2032.
• The market is projected to grow at a significant rate due to the rising investments in motorsport
• Based on product segmentation, motorcycle light car trailer was predicted to show maximum market share in the year 2023
• Based on type segmentation, utility light car trailer was the leading segment in 2023
• On the basis of region, North America was the leading revenue generator in 2023

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Light Car Trailer Market: Growth Drivers

Rising investments in motorsport will drive market demand

The global light car trailer market is projected to grow due to the rising investments in motorsport across the globe. Light car trailers are used for transporting motorsport vehicles such as cars and motorcycles from one point to another. Furthermore, they are also used for moving parts and equipment regularly used in the motorsport industry which includes setting up pit areas. Motorsports are steadily registering investments across the globe. Earlier the industry witnessed higher interest in specific parts of the world. However, the globalization of the sports industry in general has benefitted the motorsport segment as well. A growing number of countries are developing infrastructure that supports the establishment and smooth functioning of motorsports.

In March 2023, Racing Promotions Private Limited (RPPL) announced that the company is investing heavily in developing a supporting ecosystem from the grassroots level for the development and further expansion of the Indian Racing League. The company aims to make the sport more accessible in the country. RRPL has a Capex investment of INR 200 crore to be used for street circuit infrastructure and safety equipment. In March 2024, Kenya announced the launch of a new motorsport academy whose main task is to identify upcoming talent in the country at the earliest. Such measures and initiatives to promote motorsport along with giving agencies and players the right amenities and opportunities to participate in the game are expected to help drive the demand for light car trailers.

Growing cases of road accidents globally will fuel market demand

Light car trailers are often used during the event of a road accident. These vehicles are used for transporting vehicles that have been damaged in some form that restricts their overall movement. The growing number of automobiles on the road increases the probability of accidents, especially in densely populated regions with poor implementation of road safety protocols.

For instance, as per Transports Canada, the country recorded 1768 motor vehicle fatalities. As more cases of accidents get registered, the global light car trailer market will encounter higher growth.

Light Car Trailer Market: Restraints

Rising prices of raw materials and supply chain disruptions will impact market demand

The global industry for light car trailers will be restricted due to the rising prices of raw materials required during manufacturing. Since the pandemic, steel prices have grown steadily over the years. In a recent move, China increased the steel export tariff which in turn led to an increase in steel prices in India, the second-largest steel exporter in the world.

Additionally, the social-political turmoil in certain parts of the world such as Russia and Ukraine have led to serious disruptions in the supply chain further impacting easy access to essential raw materials.

Light Car Trailer Market: Opportunities

Rising launch of new and improved light car trailers will generate high-growth opportunities

The global light car trailer market is expected to generate high growth opportunities due to the launch of new and superior-performance light car trailers. In July 2023, Hendrickson, a global producer of commercial vehicle components, launched a new range of mechanical and air suspensions along with trailer axles in the Indian market. The company also announced the successful acquisition of Liteflex Composite Spring. The latter produces advanced composite suspension springs. In addition to this, the growing conversations and efforts toward the electrification of trailers hold high-growth avenues.

Global engineering firm, ZF Friedrichshafen announced that it will showcase its new vision in the form of an electrified trailer solution at the NUFAM fair. The new trailer is announced to save up to 16% of carbon dioxide and fuel. Certain development areas that are gaining wide attention are improved braking systems, the installation of global positioning software for better tracking, and the use of composite material as a substitute for steel or aluminum. Such advancements are expected to help the industry players generate more revenue in the coming years.

Growing interest in recreational activities among general buyers will push the growth horizons

Light car trailers have extensive applications in recreational activities such as camping or traveling to other destinations using recreational vehicles. The growing rate of domestic and international tourism has driven the number of people interested in exploring new forms of recreational activities. Light car trailers are often used for moving equipment used in recreational events to the destination thus resulting in higher revenue in the global light car trailer market. In 2022, the global outdoor recreation industry was valued at over USD 1 trillion as per market reports.

Light Car Trailer Market: Challenges

Strict regulations governing the industry will challenge the market growth rate

The global light car trailer industry is expected to be challenged by the existence of strict regulations that govern the industry. For instance, a semitrailer and truck combination in the US cannot exceed 65 feet in overall length. In Europe, the maximum permissible limit for cars and trailers together is 18 meters. These regulations change from one region to another and market players must ensure compliance to avoid penalties. Moreover, the competition faced by the industry due to the existence of alternatives to light car trailers further impacts the market growth rate.

Light Car Trailer Market: Segmentation

The global light car trailer market is segmented based on product, axle, type, design, and region.

Based on the product, the global market segments are watercraft light car trailers, snowmobile light car trailers, motorcycle light car trailers, passenger light car trailers, and others. In 2023, the highest growth was witnessed in the motorcycle light car trailer segment. It held control over 20.01% of the total market share. The rising sale of motorcycles among bike enthusiasts and the growing use of two-wheel vehicles for transportation in several parts of the world were the leading reasons for higher segmental growth.

Based on the axle, the global market divisions are single-axle light car trailers and double-axle light car trailers.

Based on type, the global light car trailer industry is divided into recreational light car trailers and utility light car trailers. In 2023, the latter accounted for over 60.05% of the total market share. Utility car trailers are available in several sizes and are ideal for transporting vehicles in case of rough road terrain.

During the forecast period, the recreational light car segment is expected to grow at a CAGR of around 5%. These trailers are typically larger and offer improved aesthetically pleasing features.

Based on the design, the global market segments are open trailers and enclosed trailers.

Light Car Trailer Market: Report Scope

Light Car Trailer Market: Regional Analysis

North America to continue dominating the market growth rate during the projection period

The global light car trailer market will be dominated by North America during the forecast period. The region generated over 36% of the total revenue in 2023. Countries such as the US and Canada are highly popular for the respective domestic recreation industry. The regional population spends sufficient time and money on recreational events such as kayaking, boating, or camping. The presence of vast natural space and commercial national parks with dedicated units for recreational activities further encourages more people to opt for outdoor activities. Light car trailers become essential when transporting the equipment used for outdoor events.

Additionally, consumer awareness about the existence and use of light car trailers is higher. The existence of an ecosystem allowing easy access to light car trailers either from rental centers or from e-commerce websites also works in favor of the regional market growth rate. Asia-Pacific is registering high demand for light car trailers. China, Japan, Singapore, India, and other Asian countries are registering a change in consumer lifestyle along with a rise in disposable income. The growing demand for passenger vehicles including motorcycles is expected to drive the regional market growth rate.

Light Car Trailer Market: Competitive Analysis

The global light car trailer market is led by players like:

• Featherlite Trailers
• Aluma Trailers
• Interstate Trailers
• Triton Trailers
• Sundowner Trailers
• Haulmark Industries
• Look Trailers
• ATC Trailers (Aluminum Trailer Company)
• Pace American
• Big Tex Trailers
• PJ Trailers
• Carry-On Trailer
• Sure-Trac
• Load Trail
• Forest River Inc.

The global light car trailer market is segmented as follows:

By Product

• Watercraft Light Car Trailer,
• Snowmobile Light Car Trailer,
• Motorcycle Light Car Trailer,
• Passenger Light Car Trailer

By Axle

• Single Axle Light Car Trailer
• Double Axle Light Car Trailer

By Type

• Recreational Light Car Trailer
• Utility Light Car Trailer

By Design

• Open Trailer
• Enclosed Trailer

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa