While the COVID-19 outbreak has had a major impact on the global economy and manufacturing and industrial production as a whole, once the situation is under control, the earthmoving equipment market is expected to bounce back quickly. According to a recent study from market research firm Global Market Insights, the earthmoving equipment market is set to grow from its current market value of more than $80 billion to over $91 billion by 2026, gaining substantial traction over the 2020 to 2026 period.
The market is anticipated to witness a growth of over 3% during the period. It is expected to see extensive growth due to surging private sector investments in the mining sector, new product launches and technological advancements. Also supporting the industry growth is an increasing number of new construction projects in commercial and residential sectors due to growing urbanization and industrialization.
Technological advancements in the field of remote monitoring, telematics and grade control are some of the key factors driving the earthmoving equipment demand. Market players are integrating their equipment with advanced software solutions to provide robust monitoring and control capabilities to users. Advanced products with innovative features are expected to replace traditional machinery over the coming years.
For the study, the earthmoving equipment market was divided into different segments in terms of product, application and regional landscape. With respect to product, the market is classified into backhoe-loaders, wheel loaders, excavators, compaction equipment and others.
The excavators segment held around 25% market share in 2019, driven by increasing government and private sector investments in the development of commercial infrastructure globally. Construction of well-connected road infrastructure, bridges and dams in several countries worldwide is providing new market opportunities.
The earthmoving equipment market is also witnessing a growing trend toward adoption of multifunctional equipment that can cater to a wide range of applications on construction and mining sites. Equipment such as backhoe-loaders can be deployed in several applications including material handling, excavating and re-filling. In response to escalating demand, manufacturers are introducing new models of earthmoving equipment with multiple functionalities.
The compaction equipment segment is also expected to witness considerable growth over the forecast period. In 2019, the segment held a market share of nearly 7% due to growth in road construction activities.
In terms of application, the overall earthmoving equipment market is separated into surface mining, underground mining and construction. Among these, the surface mining application segment will witness substantial growth over the coming years. Increasing private sector investments in the mining sector will propel the adoption of earthmoving equipment. In addition, complex surface mining machines are needed as support in mineral extraction processes. Dragline excavators are widely used in surface mining, along with mass excavators, loaders, haul trucks and shovels.
From a regional standpoint, the Latin America earthmoving equipment market is likely to witness substantial growth owing to increasing demand for residential buildings. Other regions covered in the study include the U.S., Canada, UK, Germany, France, Italy, Russia, China, India, Japan, South Korea, Brazil, Mexico, Saudi Arabia, UAE and South Africa.
Information provided by Global Market Insights and substantially edited for content and clarity by Becky Schultz.