US:
UK:
JAPAN:
- Report code : CMI-3149
- Industry : Automotive and Transportation
- Published On : Dec 2019
- Pages : 120 Pages
- Format :
Press Release: Backhoe Loader Market Is Expected to Witness CAGR of 5.9% by 2027
Press Release: Backhoe Loader Market Is Expected to Witness CAGR of 5.9% by 2027
Market Insight- Global Backhoe Loaders Market
Market Overview
A backhoe loader also referred to as digger is a heavy digging equipment vehicle that is comprised of shovel/bucket on the front and a backhoe on the back. The backhoe loader is relatively small in size and is extensively used in urban engineering or small construction projects. The core structure of backhoe loader is the tractor where it is designed to move effortlessly on all kinds of terrains. It is equipped with powerful, turbocharged engine, rugged tires, and a basic cabin for controlling its functions. The backhoe is mainly used for digging up to hard compact material, usually earth or to lift heavy loads. The arrangement of a backhoe is similar to the human arm including the boom, bucket, and stick.
The global backhoe loader market was valued at US$ 2,518.3 Mn in 2018 and is expected to grow at a CAGR of 5.9% during the forecasted period (2019-2027)
Market Dynamics- Drivers
Growing urbanization has increased the demand for construction commercial and residential infrastructure. Moreover, the global construction industry has witnessed significant demand in the recent past, owing to increasing population. For instance, according to Coherent Market Insights’ analysis, around US$ 750 billion to US$ 850 billion of investment is made in infrastructure every year with over 70% of the investment going into emerging economies. Furthermore, according to the American Society of Civil Engineers projected that around US$ 3.6 trillion would be needed for the U.S. infrastructure investment by 2020. Thus, growing investment in infrastructure projects is expected to drive the global backhoe loaders market growth over the forecast period.
Various emerging economies are focused on public-private partnership for the development of infrastructure projects in the country. For instance, in India, the Niti Aayog aims to achieve 47% of total infrastructure development through private funding. India is a lucrative country for key manufacturers with over 750 public-private partnership projects at work. Moreover, governments of various developed countries are endorsing public-private partnership models, in order to achieve certain investment targets.
Asia Pacific excluding Japan (APEJ) region dominated the global backhoe loader market in 2018, accounting for 40.8% share in terms of value, followed by North America and Latin America, respectively
Source: Coherent Market Insights
Market Restraints
There is significantly low adoption of backhoe loaders in China and Japan due to domestic manufacturers preferring hydraulic excavators or mini-excavator over backhoe loaders. This, in turn, is expected to hinder the demand for backhoe loaders and thereby restrain the market growth in the near future.
Average price of a backhoe loader is similar to that of a high capacity mini excavator or a high powered (220 horsepower) wheeled loader. Moreover, high sales of these competitive products have hampered the demand for backhoe loaders in the recent past. Mini excavators or compact wheel loaders perform many jobs that a backhoe loader does. Thus, availability of such competitive products is expected to hinder the market growth.
Market Opportunities
Backhoe loaders, although they are in demand, are extremely expensive to purchase. Thus, small- and mid-sized companies preferring renting or leasing the backhoe loader. The backhoe loader renting and leasing business is expanding significantly, owing to high demand for backhoe loaders from the U.S., India, etc. Moreover, high rate of urbanization in APEJ region is expected to offer excellent opportunities for market players in the near future.
The average revenue of aftersales services is around 5-10% of the total global revenue. This revenue share is relatively low in emerging economies such as India. Moreover, dealers are providing lucrative offers with improved maintenance contracts and better execution. Although after-sales revenue is low, it is recurring and can increase sales of spare parts.
Source: Coherent Market Insights
Segment Information
In global backhoe loader market, by model type segment, Sideshift sub-segment dominated the global backhoe loader market in 2018, accounting for 86.4% share in terms of value, followed by center mount sub-segment.
Source: Coherent Market Insights
Market Trends
Rental and leasing services are one of the most valuable forms of revenue generation. This is partly due to the development of advanced technology and dwindling utility lifespan of machines. Small- and mid-sized companies seldom purchase new machinery and often prefer renting or leasing it. There is a limited number of organizations with a full fleet of construction equipment vehicles. Moreover, these players face rigid pricing competition from unorganized sector.
Various financing institutions offer lucrative loans for construction companies. Moreover, loans are offered for equipment on a lease basis. This trend is expected to continue during the forecast period.
Competitive Section
Key companies operating in the global backhoe loaders market are Caterpillar, Inc., Deere & Company, Komatsu Ltd., Mahindra Construction Equipment, Volvo Construction Equipment, J C Bamford Excavators Ltd., Terex Corporation, CNH Industrial NV, Manitou Group, Action Construction Equipment Ltd., and Hitachi Construction Machinery Co., Ltd.
Key Developments
Backhoe loaders are heavy equipment that comprises a tractor-resembling unit equipped with loader-like bucket/shovel on the front, and a small backhoe on the back. It is also known as a “loader backhoe”, “digger” in layman's terms, or just “backhoe”. Backhoe loaders are commonly used in urban engineering and small construction projects, such as building a small house, fixing urban roads etc., owing to their relatively small size and versatility properties. These types of machines are similar to Tractor-Loader-Backhoe (TLB), which is an agricultural tractor that is fitted with a front loader and rear backhoe attachment. Backhoe loaders can be used for a wide variety of tasks such as digging holes/excavation, breaking asphalt, construction, landscaping, small demolitions, light transportation of building materials, powering building equipment and paving the road.
Market Dynamics
The increasing use of telematics in compact and small construction equipment and significant growth in the construction industry may act as a major driver of the global backhoe loader market. Other factors such as versatility of backhoe loaders, increasing road construction activities, rapid population expansion and rise in gross household disposable incomes and growing number of power projects in developing countries such as China, India etc. are the major factors which are expected to further augment the growth of global backhoe loader market during forecast period. For instance, according to Coherent Market Insight’s analysis, as of November 2019, China's population stands at 1.435 billion, the largest of any country in the world.
Owing to the increasing focus on enhancing the productivity of infrastructure and construction activities, there has been an increase in the adoption of bucket loaders and excavators in the construction industry. In addition to this, trenching, grading, dozing and loading are some of the activities performed during natural gas pipeline construction activity with the help of backhoe loaders, which makes it the perfect construction equipment for natural gas pipeline projects. Furthermore, an increasing demand for solar power and wind power installations, as well as the growing demand for gas-run or conventional steel power plants are the other major driving factors for the global backhoe loader market over the forecast period. However, high prices of backhoe loaders may hinder the growth of the global backhoe loader market over the forecast period.
Market Taxonomy
This report segments the global backhoe loaders market on the basis of model type, end use, and region. On the basis of model type, the global backhoe loaders market is segmented into center mount and sideshift. On the basis of end use, the market is segmented into construction and mining, utility, agriculture and forestry and others and on the basis of region, the global backhoe loaders market is segmented into North America, Latin America, Europe, Asia Pacific and Middle East & Africa.
Key features of the study:
Detailed Segmentation:
*Browse all the market data tables and figures on “Global Backhoe Loaders Market - Forecast to 2027”
Table of Contents
*Browse 60 market data tables and 40 figures on “Global Backhoe Loader Market -forecast to 2027”.
Asia Pacific Intelligence Center (India): 