The Global Earth Moving Equipment Market, By Product Type (Crawler/Wheeled Excavators, Mini Excavators, Backhoe Loaders, Crawler/Wheeled/Compact Loaders, Skid Steer Loaders, Bull Dozers/Crawler Tractors , Wheeled Tractors and Motor Graders)and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 238164.0 Million by 2027, exhibiting a CAGR of 7.1% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Earthmoving equipment refers to heavy machinery, typically heavy-duty vehicles that are designed for construction operations including earthworks. These types of machinery are used to move large amounts of earth, to dig foundations for landscaping and other activities. Different vehicles are included under this, namely excavators, loaders, construction tractors, loaders, material handlers, etc. These excavators are smaller than other types therefore, used for small to medium-sized projects. Backhoe loaders or mechanical excavator whose bucket is attached by a hinge to a two-part arm and is drawn back to the machine when in operation.
The global Earth Moving Equipment Market was accounted for US$ 137444.1 Mn in terms of value and 970,199 Units in terms of volume in 2019 and is expected to grow at CAGR of 7.1% for the period 2020-2027.
Increasing technological advancements is expected to accelerate growth of the global earth moving equipment market during the forecast period
Major manufacturers in the market are focused on earth moving equipment, in order to expand product portfolio and gain a competitive edge in the market. These companies are incorporating novel technologies such as GPS, cloud computing, and IoT that can enhance the capabilities of the machinery and improve the overall performance. For instance, in September 2016, Hitachi Construction Machinery Co. Ltd introduced a technology for dump trucks, which helps them to detect obstacles when the operator is driving, starting, or stopping during mining. Furthermore, in September 2016, Volvo launched its new double drum asphalt compactors, designed with 20 percent improved fuel efficiency. Thus, these factors are expected to drive growth of the global earth moving equipment market in the near future.
Joint ventures, mergers, and acquisitions, among major companies, can present lucrative growth opportunities
Key companies in the market are focused on joint ventures, mergers, and acquisitions, in order to gain a competitive edge in the market. For instance, in March 2017, Caterpillar Inc. entered into a strategic alliance with FIT AG to design and print additive manufacturing of aluminum and titanium parts. In September 2016, Hitachi acquired the stocks of KCM Corporation to make them their subsidiary. Major companies can capitalize on these opportunities and enhance the market presence.
High initial cost equipment is expected to hamper the global earth moving equipment market growth over the forecast period
Earth moving equipment or heavy-duty machinery is extremely expensive and is not affordable for construction firms. Besides, these types of machinery require regular repair and maintenance operations, which incurs an additional cost. Such expensive investment is not affordable for small and medium-sized enterprises. Thus, these factors are expected to hinder the global earth moving equipment market growth over the forecast period.
Key players in the market are focused on research and development activities, in order to innovate novel products and enhance the market presence. For instance, in February 2017, John Deere introduced a new series of 540R loaders equipped with a new latch, slide slung self-leveling inks that provide an integrated loader experience for the 5R Tractor operator. In March 2017, Sany introduced their four new compact excavators at ConExpo-Con/AGG 2017. The company offers seven excavators, which are 10 USt or smaller. Moreover, in July 2016, Liebherr launched the new T 284 mini tractors for the mining industry at MINExpo show.
Construction industry has witnessed significant growth in the recent past. Projects such as ‘Smart City’ offer multiple opportunities for market players to build sophisticated and high-functioning infrastructures such as smart highways, bridges, and metro connections.
Key players operating in the global earth moving equipment market are Caterpillar Inc., Komatsu Ltd., Hitachi Construction Machinery Co. Ltd., Terex Corporation, Volvo Construction Equipment, Liebherr Group, Deere & Company Xuzhou Construction Machinery Group Co. Ltd., Larsen & Toubro, Sany Heavy Industry Co Ltd., and Doosan Corporation.