The crawler/wheeled/compact loaders segment is estimated to account for nearly one-third of the overall earth moving equipment market share during the forecast period
Among product types, the crawler/wheeled/compact loaders segment is estimated to account for a major share and dominate the earth moving equipment market over the projected period. The segment is estimated to gain 90 basis points between 2017 and 2025, owing to China remaining the biggest market for wheeled loaders as the country accounts for the largest share of the earth moving equipment market. The segment is estimated to create 2x incremental opportunity than that of the mini excavators segment between 2017 and 2025. The crawler/wheeled/compact loaders segment is expected to create a total incremental opportunity close to US$ 15 Bn between 2017 and 2025. The segment is projected to reach a market value of more than US$ 65 Bn by 2025 end, expanding at a CAGR of 7.2%. The crawler/wheeled/compact loaders segment is estimated to be an attractive segment in terms of market share owing to the increasing demand from the construction industry in Asia Pacific.
Ongoing infrastructure projects and rise in urbanization to create positive impact on crawler/wheeled/compact loaders segment
Ongoing infrastructure projects such as railways, roads, dams and highways fuel the demand in the crawler/wheeled/compact loaders segment. There are some ongoing projects such as Panama Canal expansion, Gujarat International Finance Tech City in India, Riyadh Metro in Saudi Arabia, South to North Water Transfer Project in China and London Crossrail Project in the UK. These projects are boosting the usage and development in the crawler/wheeled/compact loaders segment.
Rise in urbanization is another reason for fuelling the growth of the crawler/wheeled/compact loaders segment. Urbanization is taking place at a faster pace and will contribute to the growth of the construction industry in developing countries such as China, India, Argentina and Brazil, which is expected to increase the demand for earth moving equipment. Rising population accompanied by growth in demand for residential areas is also likely to support the demand for earth moving equipment such as crawler/wheeled/compact loaders.
Stringent emission norms and concerns on safety and security to hamper the growth of the crawler/wheeled/compact loaders segment
Crawler/wheeled/compact loaders are mostly used in mining, construction, farming, forestry and other industries. However, as this equipment is big and bulky, it is unable to be handled properly, leading to injury or sometimes even death. These factors are hampering the growth of the crawler/wheeled/compact loaders segment during the projected period. According to the International Labor Organization, approximately 2.3 million people die every year due to accidents at workstations and other occupational ailments. While, in economic terms, four percent of GDP is lost owing to occupational diseases and accidents. Stringent emission norms related to construction and mining equipment are restraining the demand for earth moving equipment. However, these norms vary from region to region and territory to territory. For instance, a new machinery in North America and Europe has to comply with even more stringent emission regulations as compared to other parts of the world.
The crawler/wheeled/compact loaders segment is expected to witness significant demand from the earth moving equipment market in MEA due to its multi functionality
The crawler/wheeled/compact loaders and backhoe loaders segments together are estimated to dominate the APAC earth moving equipment market and are expected to collectively hold a high share of more than 60% by the end of 2025 in the APAC region. The crawler/wheeled/compact loaders segment is estimated to account for a major market share by 2017 end in Latin America and is expected to exhibit its dominance by the end of 2025. In terms of volume, the crawler/wheeled/compact loaders segment is expected to account for a high market share in the MEA earth moving equipment market owing to technological advancements in the region.
Persistence Market Research presents an analysis of the global earth moving equipment market for the forecast period 2017 to 2025 in a new publication titled “Earth Moving Equipment Market: Global Industry Analysis and Forecast, 2017-2025.” The analysts have observed that market players are adopting a solution oriented approach and are emphasizing on strengthening partnerships with sales and distribution partners for better output. Major players in the market are focused on shifting their production bases to Asia Pacific owing to increasing construction activities in the region. While considering the various segments covered in this report, the expert team of analysts have observed that the crawler/wheeled/compact loaders segment by product type is likely to dominate the market over the assessment period. However, the backhoe loaders segment is expected to grow at an attractive CAGR over the forecast period. While examining the global earth moving equipment market, the analysts have noticed that APAC and North America are expected to hold a relatively high volume and value share respectively. Among all regions APAC is anticipated to witness a relatively high volume CAGR during the period 2017 to 2025, followed by North America and Latin America.
Manufacturers in this market are entering into long-term strategic partnerships with component suppliers and this may provide growth opportunities for the earth moving equipment manufacturers. Studying market trends and consumer demand patterns to continuously evolve in product offerings and ensure uninterrupted revenue generation is the primary approach taken by manufacturers in the global earth moving equipment market.
Extensive primary research is the main focus of this report
The Product Manager of an earth moving equipment manufacturing company based in Europe explained in an exclusive interview with Persistence Market Research that the earth moving equipment industry in UK and Germany is a strong performer whereas Southern Europe will remain a bit weak. However, owing to the Brexit impact, there will be fluctuating demand for earth moving equipment in the UK. The Sales Director of an APAC based earth moving equipment manufacturing company said that China and India are the major shareholders in the Asia Pacific earth moving equipment market owing to increasing construction activities coupled with huge government investment in new transport infrastructure. The Technical Representative of another APAC earth moving equipment manufacturing company said that with growing urbanization, smart earth moving equipment will be required in future for faster and efficient work.
Yearly change in inflation rate has not been considered while forecasting the market numbers. Average Selling Price (ASP) has been considered to determine market values. Macroeconomic indicators such as GDP and end-use application industries’ growth have been considered. Top-down approach has been used to obtain market numbers and bottom-up approach has been used to counter-validate the market estimations. The report provides detailed information about the pricing analysis, the global earth moving equipment market value chain and a comprehensive market forecast. The global earth moving equipment market supply chain analysis is another important aspect covered in this report.
The average price of each earth moving equipment is inferred across all the five assessed regions. Market volume is inferred through in-depth secondary research and validated from industry experts through primary interviews. Each interview is thoroughly analyzed and average market volume is deduced and reconfirmed prior to incorporating in the report. The market value of the global earth moving equipment market is thus calculated from the data deduced from the average selling price and market volume. For the 8-year forecast of the global earth moving equipment market, various macroeconomic factors and changing trends have been observed, giving an idea about the future of the market. Other important factors considered to arrive at market forecast are the size of the current market, inputs from the supply side and demand side and other dynamics shaping the scenario of the market. In the compilation of the report, the forecasts are conducted in terms of CAGR, while other important criteria such as year-on-year growth and absolute dollar opportunity have also been incorporated presenting the reader with crystal clear insights and future opportunities likely to emerge in the global earth moving equipment market.
By Product Type