Tow Truck Global Market Report 2024

The tow truck market size has grown strongly in recent years. It will grow from $1.53 billion in 2023 to $1.62 billion in 2024 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to factors such as increased road traffic accidents, growth in vehicle ownership, urbanization, expanded commercial fleets, and incidents related to adverse weather conditions.

The tow truck market size is expected to see steady growth in the next few years. It will grow to $1.94 billion in 2028 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to the growth of the electric vehicle market, development of autonomous vehicles, the rise of on-demand services, increasing concerns about environmental sustainability and fuel efficiency, and government initiatives focused on road safety. Major trends in the forecast period include the development of electric and hybrid tow trucks, the integration of automation and autonomous towing vehicles, the use of digital dispatch and mobile apps, the implementation of telematics for preventive maintenance, and strategic partnerships with insurance companies.

The anticipated surge in car breakdown incidents is poised to act as a significant driver propelling the expansion of the tow truck market in the future. Car breakdowns encompass situations where a vehicle encounters mechanical or functional failures, rendering it unsafe or unreliable to operate. Tow trucks are essential in such scenarios, employed to lift or relocate broken-down vehicles using winches or cranes. For example, findings from National Highways in August 2022 highlighted a substantial upswing in roadside breakdown incidents primarily attributed to tire-related issues, marking a 15.7% increase from 35,892 cases in 2020 to 41,560 cases in 2021 in the UK. Throughout 2021, an average of 5,000 breakdown incidents occurred weekly in England alone. Consequently, the escalating number of car breakdowns serves as a key driving force behind the growth of the tow truck market.

The upward trend in vehicle ownership is projected to propel the growth of the tow truck market. Vehicle ownership denotes the legal possession and control of motor vehicles, encompassing cars, trucks, motorcycles, or any registered and operable vehicle. With a higher number of vehicles on the roads, accidents and incidents tend to increase. Many accidents result in vehicles being damaged or disabled, necessitating towing to repair facilities or collision centers. As indicated by NimbleFins Limited in December 2022, the UK witnessed a total of 32,889,462 registered automobiles by the end of 2021, with 31,878,624 in Great Britain alone. Further projections estimate that by 2045, the number of automobiles traversing British roadways could potentially reach 45 million, assuming development continues at the current pace. Consequently, the escalating ownership of vehicles serves as a significant driving factor propelling the growth of the tow truck market.

The escalating cost of insurance premiums specifically targeting towing and recovery businesses is anticipated to pose a hindrance to the growth of the tow truck market in the foreseeable future. These increased insurance costs are expected to impact operational expenses for towing and recovery firms, potentially diminishing profitability. This rise in expenses may discourage new entries into the market and could impact the affordability of towing services for consumers. For instance, Fitch Ratings has projected a moderation in revenue growth and profits for commercial insurance in the US in 2023, with an estimated combined ratio of 97% to 98% compared to 96% in 2022. Hence, the escalating insurance premiums for towing and recovery businesses emerge as a significant deterrent to the growth of the tow truck market.

Key players within the tow truck market are strategically emphasizing the development of autonomous tow tractors, exemplified by innovations such as the Palion Series 8, aimed at maximizing market revenues. The Palion Series 8 stands as an autonomous self-driving tow tractor embedded with sensors and software enabling navigation in its environment while evading obstacles to tow trailers or other loads. For example, Seegrid Corporation, a US-based manufacturer specializing in autonomous mobile robots (AMRs), introduced the Palion Series 8 Autonomous Tow Tractor in May 2022. This upgraded vehicle, an enhanced iteration of the previous automated tow tractor, boasts the capability to safely tow loads weighing up to 4,500 kg (10,000 lbs.) in dynamic and high-traffic environments. Equipped with artificial intelligence and sensor fusion technology, this vehicle gains a comprehensive understanding of its surroundings, enabling informed decisions for safe movement. Its advanced features position it as a transformative tool capable of revolutionizing material transportation in industrial settings.

In August 2021, Volvo Trucks, a Swedish truck manufacturing company, completed the acquisition of JMC Heavy Duty Vehicle Co Ltd. for $1.16 billion (SEK 1.1 billion). This strategic acquisition is aimed at enhancing Volvo Trucks' production capabilities in the heavy-duty truck segment and expanding its market presence in China. JMC Heavy Duty Vehicle Co Ltd., based in China, specializes in the manufacturing of light-duty, heavy-duty, tow, and tow wrecker vehicles.

Major companies operating in the tow truck market report are Chevron Commercial Inc., Ford Motor Company, Daimler Truck AG, AB Volvo, Isuzu Motors Ltd., Allianz Partners SAS, Miller Industries Inc., Agero Inc., Tatra Trucks AS, Ledwell & Son Enterprises, B&B Industries Inc., Allstate Insurance Co, Nation Safe Drivers, Jerr-Dan Corporation, HONK Technologies Inc., Coach Net Corporation, Stella's Towing Inc., Boniface Engineering Ltd., NRC Industries Ltd., Detroit Wrecker Sales, AutoVantage, Dual-Tech Inc., Carlinville Truck Equipment Inc., Golden West Towing Equipment, Blackburn Truck Equipment Inc., A & A Truck and Auto Center Inc.

North America was the largest region in the tow truck market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the tow truck market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the tow truck market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The tow truck market consists of sales of flatbed tow trucks, wreckers, integrated tow trucks, and wheel lift tow trucks. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The main types of tow trucks include light-duty tow trucks, medium-duty tow trucks, and heavy-duty tow trucks. Light-duty tow trucks are specifically designed to transport smaller and lighter vehicles, such as passenger cars, vans, and small trucks. These trucks find applications in various industries, including personal use, commercial use, and government agencies, and are distributed through both direct channels and distribution channels. They are utilized in sectors such as the machine building industry, metallurgical industry, furniture industry, appliance industry, and others.

The tow truck market research report is one of a series of new reports that provides tow truck market statistics, including tow truck industry global market size, regional shares, competitors with a tow truck market share, detailed tow truck market segments, market trends and opportunities, and any further data you may need to thrive in the tow truck industry. This tow truck market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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