Key Investment for Dump Truck Manufacturers Amid Evolving Emission Standards (2024)

Dump trucks, given their abilities in hauling expansive amounts of cargo around, have positioned themselves as essential tools of the trade across industrial sectors like mining, construction, and waste collection and management. In fact, these trucks have become so synonymous with transporting massive loads in these industries that today they are often used as an informal unit of measurement worldwide.

One of the prominent factors influencing the commercialization landscape of the dump trucks industry is the introduction of new carbon emission standards for heavy-duty automobiles at a time when industries like waste management and recycling and mining are undergoing a major transformation.

A new report claims that the dump trucks market size is slated to cross USD 30 billion by 2030 end.

Impact of transforming emission standards on the dump trucks market

According to the European Commission, heavy duty vehicles, including dump trucks, are responsible for about one-fourth of carbon emissions from road transport in the European Union and nearly about 6% of total EU emissions. These emissions, as per estimates by Eurocities, are anticipated to grow further by 9% over 2010 to 2030 owing to an increase in freight activity in the European continent, hindering the ability of the EU to meet its commitments under the Paris Agreement.

A recent study as published on the International Council of Clean Transportation observed that the European Commission needs to set a few norms in place to meet its climate change goals. These include increasing heavy-duty vehicle standards to a CO2 reduction rate of at least 60% by 2030, introducing a new target of at least 90% for 2035, and rolling out a phase-out date (no later than 2040) for new combustion-powered trucks.

Meanwhile, the EU also unveiled Regulation (EU) 2019/1242 CO2 standards for truck manufacturers to limit their average fleet emissions across the regulated vehicle groups to 15% by 2025 end and about 30% by 2030. Some of the prominent benefits this regulation will offer include a reduction in fuel consumption costs of transport operators and helping to maintain the technological leadership of EU suppliers and manufacturers. In fact, the regulation is speculated to support the reduction of around 54 million tons of carbon dioxide between 2020 to 2030.

The global dump trucks market may experience substantial growth in the face of the aforementioned regulations. A chunk of the projected growth is foreseen to come from exhaust and engine system modifications of current dump trucks to make them capable enough of operating on less polluting and toxic form of fuels while being more effective.

Another factor that would contribute to the expansion of dump trucks market is the development of new dump truck prototypes. Recently, a mining and resources group Anglo America, in May 2022, made it to the headlines for its launch of the world’s largest hydrogen-electric mining vehicle prototype. Labelled nuGen, the dump truck integrates multiple fuel cells with a 1.2 MWh battery pack for an overall output of 2 megawatts and boasting the ability to carry a payload of 290 tons.

The company has collaborated with some of the prominent firms like Ballard, First Mode, Engie, and NPROXX to introduce the new vehicle. The fuel cells alone are anticipated to produce a combined power of 800 kilowatts.

Influence of the expanding waste management and recycling industry on dump trucks market outlook

The world has been focusing more on the impending challenge of waste management. Waste material is choking the waterbodies globally and creating havoc in the biological balance of the planet. While single use plastic has been banned across several regions worldwide, the collection and recycling of garbage is still a struggle that calls for considerable investment and resources to be tackled efficiently.

As per the UNEP statistics, the world currently produces about 400 million tons of plastic waste almost every year. If this continues, the global production of primary plastic may reach 1,100 million tons by 2050 end. It is imperative to mention that of the 400 million tons of generated plastic waste, only about 10% is recycled. This inevitably creates a massive opportunity for the dump trucks industry as governments and enterprises are undertaking efforts to collect plastic waste and establish a circular economy through effective means of recycling.

The onset of the COVID-19 pandemic and the emergence of new variants have substantially increased the amount of medical waste including PPE kits, used masks, and more. This has offered an impetus to the adoption of dump trucks worldwide, generating more opportunities for market players over 2022-2030.

Impact of the thriving mining industry on dump trucks market share

Consider the following figures:

  • Every American, on average, makes use of approximately 3.4 tons of coal and about 40,000 pounds of newly mined materials almost every year.
  • Nearly 50% of all electricity in the U.S. is generated from uranium and coal

With mining emerging as a highly vital industrial sector, the demand for dump trucks is expected to surge appreciably, as these are one of the most commonly used heavy earth moving equipment in mining exploration projects. Government investments in the mining sector are also expected to bolster the dump trucks industry outlook. To illustrate, South Africa in May 2022 announced its plans to attract USD 900 million of yearly investment in the exploration of its mineral wealth by improving resource mapping, removing bottlenecks, and diversifying its focus from precious metals. In addition, the country is moving ahead in its 2025 target of spending 5% of the annual investment on exploration globally to bring the stagnated mining industry on track.

With robust public and private sector investments on the rise, the mining industry is likely to emerge as a key revenue hub for dump truck manufacturers. As per GMI projections, dump trucks market from mining applications is predicted to record a CAGR of 6% through 2030.

Novel advancements in zero emission tipper trucks will open new avenues for dump trucks market in the years ahead. For example, Cummins and Komatsu recently inked a memorandum of understanding to partner on the development of zero-emissions hauling equipment. This partnership will initially emphasize on zero emissions power technologies such as hydrogen fuel cell solutions for large mining haul truck functions.

Introduction to new carbon emission laws for heavy duty vehicles in the European Union is predicted to stimulate the growth prospects for dump trucks through 2030. Notably, Europe accounted for 30% of the dump trucks industry share in 2021 and may remain a vital investment avenue through 2022 and beyond.

Key Investment for Dump Truck Manufacturers Amid Evolving Emission Standards (2024)

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