- The forestry equipment market is anticipated to show promising potential in the coming years due to economic development in several emerging economies which drives the demand for wood in construction and infrastructure activities. Technological advancement in forestry machinery has increased the equipment efficiency over the years. This has increased the productivity and reduced the cost which is an encouraging factor of the forestry equipment market.
- Forestry includes harvesting, cultivation of land, and collecting wood logs. Economic development in several countries fosters the demand for wood and wood products. This encourages growth of the global forestry equipment market. Increasing preference for automation and mechanization of agriculture activities in developing countries is anticipated to surge the demand for these equipment in the coming years.
Key Drivers of the Global Forestry Equipment Market
- Many emerging countries are showing a major shift toward mechanization and automation of most forestry processes to reduce labor cost which is anticipated to boost the demand for forestry equipment in the near future.
- Governments of several countries are encouraging the adoption of forestry machinery and equipment to boost the productivity which also supports the growth of the forestry equipment market. Technological development in forestry machinery improves machine efficiency and operational cost which benefits the consumers. This also drives market growth. Manufacturers are increasing investment in R&D to enhance equipment features and improve efficiency, which is also expected to raise market demand in the coming years.
Forestry Equipment Anticipated to Create Attractive Opportunities in Future
- Major shift in agriculture and forestry operations from manual work to automation and mechanization in several developing countries is encouraging the demand for forestry equipment. Manufacturers of forestry equipment have lucrative opportunities in emerging economies to expand their business. Many favorable government policies are beneficial for forestry equipment manufacturers to help in business expansion.
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Lack of Information and High Capital Investment Anticipated to Hinder the Market
- Many countries are still dependent on manual labor for agriculture and forestry activities due to lack of technological development and information availability. Also, most forestry machinery require high capital investment which is expensive for small and mid-range consumers.
North America and Europe Anticipated to Dominate the Global Forestry Equipment Market
- The market in Asia Pacific and South America are anticipated to show significant growth during the forecast period. Stable economic conditions, rapid urbanization, and industrialization is boosting the manufacturing, construction, and energy sectors which are the encouraging factors for forestry equipment demand. Favorable economic policies attract investment and support industrial growth of countries. Rapid growth in demand for forest products is anticipated to boost the share of Asia Pacific and South America in the coming years.
- North America and Europe dominated the global forestry equipment market. More preference to mechanized practices and automation technologies in agriculture and forestry, and increasing investment in forestry machinery such as harvesters and loaders are the major driving factors of the forestry equipment market in these regions. Growth in construction industry has increased the demand for wooden slabs and pillars which also enhances the demand for forestry equipment.
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- The South America market is also expected to show significant growth in the coming years owing to increasing infrastructure and manufacturing activities across several emerging countries such as Argentina and Brazil.
Key Players Operating in the Global Market
The global forestry equipment market is highly concentrated across major manufacturers who account for around 20%–25% share of the overall forestry equipment market. A few of the key manufacturers operating in the global forestry equipment market are:
- Bamford Excavators Limited
- Barko Hydraulics LLC
- Caterpillar Inc.
- Deere & Company
- Hitachi
- Hyundai Heavy Industries Co.
- Komatsu Ltd.
- Mahindra Group
- Sumitomo Heavy Industries.