Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Automated Tow Tractor Market size was valued at USD 3.9 billion in 2024 and is projected to reach USD 8.6 billion by the end of 2037, rising at a CAGR of 7.9% during the forecast period, i.e., 2025-2037. In 2025, the industry size of automated tow tractor is estimated at USD 4.4 billion.
A key factor boosting the sector’s growth is an increase in the adoption of automation technologies in airports and logistics observed in the past decade. The market analysis predicts that the trends are slated to continue throughout the forecast period. For instance, in 2022, the Federal Aviation Administration (FAA) released an Airport Technology Research & Development Plan, which emphasizes the importance of automation in airport operations. Moreover, with the rising privatization of airports in emerging economies, greater opportunities for the adoption of automated towing systems are predicted to arise to mitigate turnaround times, whilst adding to the reduction in labor costs.
The market’s supply chain is associated with a plethora of stages, ranging from procuring raw materials, manufacturing, assembly, and distribution. Vital features of the supply chain are the electric drivetrains, sensors, automation software, chassis, etc., which are sourced from specialized suppliers. Moreover, the value chain is reliant on the smooth flow of global trade, for either finished goods or raw materials. Concurrently, the regional markets that have managed to reduce reliance on imports are predicted to establish themselves as a leading investment destination in the near future.
The table below is a brief analysis of the value chain of the automated tow tractor market.
|
Raw Materials |
Key Sourcing Countries |
Supply Chain Impact |
Trade Dynamics |
|
Lithium |
China, Chile, Australia |
Disruptions in mining or processing can lead to increased production costs and delays |
Crucial for battery production in automated tow tractors |
|
Aluminum |
China, Russia, Canada |
Shortages can delay vehicle manufacturing or raise costs |
Key for structural components of vehicles |
|
Steel |
China, India, Japan |
Impact on production timelines and overall vehicle cost |
Essential for durability and chassis construction |
|
Lithium-Ion Batteries |
China, South Korea, Japan |
Disruptions in supply can delay battery availability, affecting production schedules |
Demand driven by the automation industry growth |
|
Automated Vehicle Assembly |
North America, Europe |
Influence of automation strategies on production facilities and assembly lines |
High-tech assembly with robotic arms and diagnostics systems |
Source: U.S. International Trade Commission (USITC)
Automated tow tractor Sector: Growth Drivers and Challenges
Growth Drivers
-
Technological advancements in automation and electrification: Ongoing trends that have impacted the broader automated vehicles include a surging focus on electric vehicles (EVs) and driving automation. With the consumer acceptance of automated vehicles improving over the past 5 years, manufacturers are incentivized to increase the production of automated tow tractors. Herein, the question arises on quantifying the impact of the rising electrification and automation across the global automotive industry, and the visible outcome has been the heightened efficiency in material handling and logistics operations.
Stakeholders in the market often analyze the success of key companies in the sector. Within the automated tow tractor market, the KION Group and Toyota have established themselves as frontrunners in the successful integration of electric powertrains to tow truck models, leading to heightened fuel efficiency. Moreover, consumer interests indicate a greater interest in fuel economy, and these companies are set to tap into the opportunities by offering electric automated tow tractors. - Regulatory push toward sustainability: The current decade has raised questions about sustainability against the backdrop of lofty net-zero carbon goals by multiple economies. A key facet of the entire discussion revolves around strict environmental regulation, which includes ambitious carbon emission reduction targets. A convergence of these trends has impacted the calls for mobility solutions that are environmentally friendly and energy-efficient. Potential entrants in the market are looking towards the regions of North America, Europe, and APAC, which are leading in sustained regulatory drives. Moreover, the regulatory push for sustainable solutions alone is not lucrative for manufacturers, but they require market indicators of profitability.
- Major Technological Innovations in the Automated Tow Tractor Market
Major advancements include the improvements in electric propulsion systems, a greater adoption of AI-based automation, and connectivity without lags. Additionally, the market’s analysis predicts more than 35% of the automated tow tractors in North America alone will be electric, which is a considerable increase from the meagre 10% in 2020.
The amalgamation of IoT in these tractors has ensured the creation of an efficient connective system with other vehicles. Moreover, an analysis of industry-wide adoption patterns highlights that more than 40% of logistics companies have adopted fleet management based on IoT.
|
Trend |
Sector |
Adoption Rate / Impact (%) |
|
Electric Propulsion |
Logistics, Airports |
40% of all new tractors (2025) |
|
AI for Route Optimization |
Manufacturing |
20% reduction in operational costs |
|
IoT Connectivity |
Logistics, Automotive |
45% of logistics firms adopt IoT solutions |
Impact of AI and ML Integration on the Automated Tow Tractor Market
AI and ML integration are hallmarks of improved product developments in the market. AI and ML’s integration in company practices has improved overall accuracy. The U.S. Department of Energy (DoE) released a study in 2022 that highlighted that AI and ML integration in automation systems can usher in more than a 30% reduction in operational costs, especially by bolstering the predictive capabilities for equipment maintenance. The table below highlights successful use cases of AI & ML in the automated tow tractor market.
|
Company Name |
Use Case |
Impact |
|
Kalmar |
AI for predictive maintenance in automated tow tractors. |
27% reduction in downtime, 18% cut in maintenance costs. |
|
Tesla |
AI-powered autonomous navigation for route planning. |
22% increase in efficiency, 13% reduction in fuel consumption. |
|
JBT Corporation |
ML for fleet management and energy optimization. |
35% improvement in fleet utilization, 12% reduction in operational costs. |
|
Linde Material Handling |
AI for real-time data analytics and adaptive driving. |
10% increase in fleet performance, 12% reduction in energy consumption. |
Price History and Technological Influence on the Automated Tow Tractor Market (2019–2024)
In a pricing analysis conducted over the period from 2019 to 2024, the pricing trends for automated tow tractors have undergone variations regionally. Key factors influencing the changes are shifts in market demand and advancements in technology.
Price Trends by Region:
|
Region |
2019 |
2020 |
2021 |
2022 |
2023 |
|
North America |
$100 |
$100 |
$98 |
$90 |
$85 |
|
Europe |
€90 |
€90 |
€90 |
€85 |
€83 |
|
Asia |
$85 |
$85 |
$87 |
$90 |
$93 |
Challenges
-
Regulatory Restrictions: Entry into the market is fraught with challenges. The challenges are compounded by strict compliance requirements, which impact manufacturers. Moreover, the regulatory requirements are also tied to the ease of doing business in a region. For instance, if the ease of doing business in a region is low, then that market is likely fraught with bureaucratic bottlenecks impacting market entry. Mapping an incident where a key player suffered challenges due to compliance issues was in 2022, when Kion Group faced delays in adhering to the ISO 3691-4 standards for autonomous vehicles. It is recommended that market players thoroughly refine their GTM strategy for each market to mitigate the impact of regulatory challenges.
-
Market Access Barriers: There are multiple market access barriers, ranging from overt reliance on one supplier, tariffs, to limitations in infrastructure. These barriers hinder a sector’s growth curve. New entrants are particularly vulnerable to these barriers, whilst established players also face challenges in introducing products to a new market. For instance, in 2023, Toyota Industries Corporation had to navigate challenges while seeking to introduce its automated tow tractors. Around 13% tariff was imposed on machinery and components, which in turn impacted Toyota’s pricing, making their products far less competitive in the local market despite having the brand value.
Automated tow tractor Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
7.9% |
|
Base Year Market Size (2024) |
USD 3.9 billion |
|
Forecast Year Market Size (2037) |
USD 8.6 billion |
|
Regional Scope |
|
Automated Tow Tractor Segmentation
Type (Electric, Hybrid, Traditional)
The electric segment of the automated tow tractor market is poised to register a dominating revenue share of 47.5% throughout the forecast period. The segment’s profitability is attributed to a sustained push by governments worldwide for decarbonization to adhere to the ambitious net-zero goals by 2050. Furthermore, EVs have comparatively lower maintenance costs in comparison to traditional models, making them lucrative additions to industries pushing for long-term savings. With several economies investing in improving their charging infrastructure and gradually phasing out ICE vehicles, the opportunities to push electric automated tow tractors are expected to be rife by the end of this decade. Two major initiatives that are set to impact the segment’s growth are briefly analyzed below:
-
Germany’s Power to Road imitative has an ambitious aim to establish more than 330 fast-charging sites. These sites will cover 90% of the highways by the end of 2030. This initiative is expected to facilitate a smooth transition to heavy-duty electric vehicles against the backdrop of the European Union's net-zero emissions target by 2045.
- The U.S. Infrastructure Investment and Jobs Act has been at the forefront of bolstering EV charging infrastructure across the country. Around USD 4 billion was dedicated to improving the infrastructure. JBT Corporation and Tesla are leading the push for favorable regulatory policies to benefit the market's growth.
End user (Logistics, Manufacturing, Airports, Warehousing, Other)
The logistics segment of the automated tow tractor market is estimated to account for a 36.4% revenue share by the end of 2037. Two major factors supporting the segment’s expansion are the quantifiable boom in e-commerce and the surge in automation adoption spanning multiple industries. For instance, in the fourth quarter of 2024, U.S. retail e-commerce sales were estimated at more than USD 300 billion, marking a 20% increase from the third quarter of 2024, highlighting a massive surge in a short period of time. To maintain profitability, automated tow tractors are essential for use in distribution centers.
Our in-depth analysis of the global market includes the following segments:
|
Type |
|
|
End user |
|
Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Automated Tow Tractor Access Industry - Regional Synopsis
North America Market Forecast
The North America automated tow tractor market is predicted to dominate with a 43.2% revenue share throughout the estimated forecast period. A major factor in the regional market’s dominance is a well-established manufacturing ecosystem driving demand. The market is also impacted by rapid technological advancements in the region, from IoT to the integration of AI. The U.S. and Canada remain major regional markets in North America, although the recent geopolitical tensions related to tariffs threaten to impact the supply chain.
The U.S. government incentives are pushing for the phasing out of ICE vehicles and embracing the complete electrification of vehicles. The trends create opportunities for the proliferation of automated tow tractors. Moreover, consumer preferences in the U.S. market indicate a rising demand for EV solutions. Below is a brief analysis of supportive regulatory policies in the U.S. that can positively impact the growth curve of the market:
- Federal Tax Credits: The U.S. government has been proactive in offering federal tax credits of over USD 7000 for new plug-in EVs, and more than USD 35000 for used EVs under the aegis of the Inflation Reduction Act.
- Point-of-Sale Rebates: Since January 2024, more than USD 2 billion have been issued in tax rebates for EVs. The rebates cover over 300,000 vehicles, and the credits are applied directly at the point of sale.
The Canada market is projected to expand rapidly during the forecast timeline. The companies operating in the market are experiencing a heightened increase in the adoption of automated tow tractors in multiple applications, ranging from airports to warehouses. The supply chain of the automated tow tractor industry in the country has faced a few challenges related to the acquisition of goods or services in the first quarter of 2023. To negate that, Transport Canada established the National Supply Chain Office in December 2023 to ensure there are no bottlenecks in logistics efficiency, facilitating the entry of new players in the market.
APAC Market Forecast
The Asia Pacific automated tow tractor market is estimated to account for the second-largest revenue share by the end of 2037, with a projected revenue share of 32.8%. A key facet of this is the expansion of industrialization initiatives across the region. Additionally, mandates to phase out ICE vehicles create lucrative opportunities for greater adoption of electric automated tow tractors in the region. Two emerging factors contributing to growth are the rapid surge in the e-commerce industry and an increase in demand from the manufacturing sector.
The China market is poised to hold the largest revenue share in APAC. A key facet of the regional market is China’s position as a global leader in EV adoption, which translates to opportunities in the electric automated tow tractors. For instance, in 2024 alone, the country accounted for 50% market penetration in EV cars, whilst the sale of zero-emission tractors exceeded 200,000 units. The market forecasts indicate a continuity in opportunities in the market by the end of 2037 that manufacturers can leverage.
The India market is positioned to exhibit sustained growth during the anticipated timeline. The market is impacted by a two-pronged approach, such as the rising demand from the aerospace and manufacturing sectors for towing tractors. The demand is supported by a broader trend in mechanization. The other factor includes supportive government programs such as the National Logistics Policy and the Gati Shakti Master Plan.
Companies Dominating the Automated Tow Tractor Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The automated tow truck market is poised to exhibit rapid growth during the forecast timeline. Key players in the market are actively integrating long-term policies and initiatives to maintain a competitive advantage in the market. A notable strategic move was made by Tesla in 2023 through the expansion of its automated vehicle fleet, which included a focus on electric tow tractors for logistics centers. Here is a list of key players operating in the automated tow tractor market.
|
Company Name |
Headquarters |
Estimated Revenue Share by 2037 (%) |
|
Tesla, Inc. |
USA |
22% |
|
Hyster-Yale Materials Handling |
USA |
13% |
|
JBT Corporation |
USA |
12% |
|
Kion Group AG |
Germany |
9% |
|
Linde Material Handling |
Germany |
9% |
|
Raymond Corporation |
USA |
XX |
|
CVS Ferrari |
Italy |
XX |
|
Baoli Forklifts |
China |
XX |
|
Hangcha Group |
China |
XX |
|
Daimler AG |
Germany |
XX |
|
XPO Logistics |
USA |
XX |
|
Hyundai Heavy Industries |
South Korea |
XX |
|
Doosan Industrial Vehicle |
South Korea |
XX |
|
HANGCHA |
China |
XX |
Below are the areas covered for each company that is a key player in the automated tow tractor market:
Recent Developments
- In 2024, Tesla introduced an advanced line of automated tow tractors fueled by electric powertrains. The tow tractors were specifically designed for use in airports and logistics. The move ensured that Tesla’s position as a major player in the market was solidified.
- In 2023, Kion Group announced the launch of a new automated tow tractor that is integrated with AI. The new tractor is expected to bolster industrial applications. The success of Kion Group’s solutions is projected to influence the global market.
- Report ID: 3063
- Published Date: May 09, 2025
- Report Format: PDF, PPT
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