The “Global Backhoe Loader Market, by Model Type (Center Mount, Sideshift), by End-use (Construction and Mining, Utility, Agriculture and Forestry, and Others), and by Geography (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 4,249.01 million by 2027, witnessing a CAGR of 5.9% during the forecast period (2019-2027), as highlighted in a report published by . Market Definition A backhoe loader is an engineering and excavation vehicle that is a tractor with front shovel and bucket and a small backhoe in the rear end. A backhoe loader is compact and thus offers versatility for excavation and other types of construction projects. It has a controlling cabin that can swivel to the rear face to control backhoe. Its tires are rugged and therefore it can be driven on rough terrain. It is mainly used for digging holes, powering building equipment, light transportation of materials, construction, breaking asphalt, and excavation. The backhoe of the vehicle can be replaced with other tools such as breaker for smashing concrete and rock. 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 Driver Growing construction of paved roads worldwide is expected to drive growth of the global backhoe loaders market during the forecast period Building new and lasting roads is vital for sustainable development and to boost the economic growth of the country. According to the India Brand Equity Foundation (IBEF), in 2019, total amount of investment in road construction in India is expected to reach US$ 2.25 billion. Moreover, increasing number of highway projects coupled with increasing public infrastructure projects are expected to boost the demand for backhoe loaders in the near future. Since backhoe loaders can work in any terrain and weather conditions, the global backhoe loaders market is expected to witness significant growth during the forecast period. Market Opportunity Increasing demand for natural gas pipeline projects is expected to offer lucrative growth opportunities for market players Natural gas is extensively used as a source of energy for cooking, heating, and electricity generation. It is also used for fuel for vehicles and chemical feedstock in the manufacturing of plastics. Increasing demand for natural gas from around the world is expected to accelerate its pipeline construction projects in the near future. Therefore, growing demand for natural gas pipeline projects is expected to pose excellent growth opportunities during the forecast period. Market Restraint High initial investment required for the purchase of backhoe loader is expected to restrain growth of the global backhoe loaders market during the forecast period. Initial investment required for a backhoe loader is significantly high, around US$ 35,000 to US$ 40,000 per unit, which is not affordable for small- and mid-sized companies. Thus, such companies leasing or renting the backhoe loaders, which in turn, is expected to restrain growth of the global backhoe loaders market over the forecast period. Market Trends
Declining manufacturing quality is the major concern in manufacturers in China. Although manufacturers are optimizing their plants by restructuring their operation capacity, lack of skilled workers and rising price of raw materials is major factor restraining the productivity. Moreover, Chinese machinery is not of the same standard when compared to international products. However, Chinese manufacturers are signing dealership agreements with reputed dealers in Southeast Asia, which is expected to enhance their presence in the global market.
Rental equipment providers are dominating the market by providing backhoe loader equipment to small- and medium-sized companies. Since initial investment for this equipment is significantly high, small companies prefer renting the equipment, which is more profitable. Moreover, key players in the market are offering lucrative loans to SMEs by entering partnerships or strategic alliances, in order to increase the demand for their product. 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
Segmentation Market Taxonomy: