The global earthmoving equipment market was valued at $ 122.6 Billion in 2015 and is forecast to grow at a modest xx % CAGR between 2018 and 2025, culminating in 2025 global sales of $ XX Billion.
We are observing high adoption of multifunctional machinery over last 5 years and provides several advantages over traditional or single function counterparts. These include reducing time and labor, as well as high degree of efficiency and productivity. High capital and operating expenditure may restrain growth.
Unpredictable raw material cost, uncertainty in economic conditions, and the presence of emission control regulations are factors responsible for impacting the global earthmoving equipment market price trend. Construction will remain the leading application of earthmoving equipment over 56% followed by mining. Within mining, underground mining is going lead the application as hydraulic shovels, longwall mining equipment, cable shovels, etc.
“Optimal Price Point (OPP) for Earthmoving Equipment Products”
Estimated Average Earthmoving Equipment product cost – $ xx globally. However, with improving access and availability of options, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
Due to the wide array of products available in the market, pricing, positioning, and sales channel optimization play a vital role in the success of a product. On an average, in the U.S., the earthmoving equipment products are available at USD xxxxx. However, the high-end products are available at much higher prices. The prices in emerging countries and developed countries vary significantly due to the difference in purchasing power and availability of latest products.
We have segmented the market by product categories as Earthmovers, Mixing Equipment’s, Parts & Attachments, Pavers, Graders, Rollers, Trucks & Tractors, Cranes, Excavators, & Loaders. Loaders are fastest moving product categories. Versatile heavy equipment machine used in construction to move aside or load materials.
We are observing demand for Excavators in an upward trend till 2019 and then remaining flat during the forecast period. Loader comprises 31% of the total market in 2015 and will remain the most demand product category during the forecast period.
Construction holds 74% of the demand for earthmoving equipment amounts to USD xxx.11 billion in 2017. Expected to grow at a CAGR of 5.02%. Surface mining contributing USD 8.28 billion and underground mining USD xx.32 billion expected to grow at a healthy rate. This equipment is also used in some other application as in agriculture, clearing river beds and digging ponds. It has various ancillary function in factories and also helps in lifting, moving and shifting goods from one place to other.
Cameras, sensors, and machine-monitoring systems will improve the operator’s ability to do his job, make a safer machine, and improve the total lifecycle costs of the machine for the owner. Noise from the equipment and Co2 emission is the critical element on which all leading players are working. We have observed some exciting activities in Chile in LATAM.
North America accounted for 31% of the market share in earthmoving equipment market followed by Asia (27%) and Middle East (16%). However, during the forecast period, North America market is expected to slow down whereas strong positive growth for Asia market. Large-scale construction work in China and India is going to propel the demand for this equipment. One Belt One Road project initiated by China will propel the usage in this region. Heavy investment in both rural and urban infrastructure and demand for modern offices in Asia Pacific is going to further drive the market. We are observing some strong demand in Brazil and Mexico in last few years.
Merger and Acquisition Insight
Favorable government initiatives, rise in need for reducing cost, increasing operational efficiency, and demand for lean and mean machine is in rise. To bring efficiencies in their operation, companies are investing a lot in advanced research and development. These small specialized equipment firms with unique technology become attractive for acquisition by big player who can give an edge in sales due to their global reach and presence We have identified 4 major deals from 2014 to 2017.
Top Players & Company Share
The earthmoving equipment market is highly competitive and some of the key success factors include technology, pricing, and distribution channel. As of 2017, major players in the market include Caterpillar, Komatsu, Hitachi Construction Machinery, John Deere, Atlas Copco, Bharat Earth Movers Limited, Bobcat Company, CNH Global NV, etc.
Earthmoving Equipment Market by Product Type (Revenue, USD Million, 2014- 2025)
- Mixing Equipment’s
- Parts & Attachments
- Trucks & Tractors
Earthmoving Equipment Market by Application (Revenue, USD Million, 2014 – 2025)
- Underground Mining
- Surface Mining
Earthmoving Equipment Market Regional Outlook (Revenue, USD Million, 2014- 2025)
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
- South Africa
- Saudi Arabia