Compact Loaders Market Research Report - Global Forecast 2027

Compact Loaders Market Research Report: by Type (wheeled and tracked), Engine capacity (up to 65 HP, 65 - 80 HP and above 80 HP), Application (construction, landscape & maintenance, agriculture & forestry, mining, and others) and Region (North America, Europe, Asia-Pacific, Middle East & Africa and South America) - Forecast till 2027

ID: MRFR/CO/7186-HCR | February 2021 | Region: Global | 110 pages

Compact Loaders Market Overview


It is anticipated that compact loader market growth will reach a CAGR of 3.5% - 5% by 2027.


Compact Loaders are used in several industries that include construction, mining, loading, and moving materials. The size of the compact loaders is smaller with low capacities than construction equipment. 


In the construction industry, it is currently leveraged for loading and unloading bulk items thereby becoming a popular device in midst of skid steer and large wheel loaders.  In the diverse market landscape, it has become a multi-tool carrier. Compact loaders market growth is expected to value at US$15 billion by 2027.


They are also known as Compact Track Loaders which are appropriate vertical lifting machines, mostly popular in the road construction industry.  Compact Loaders are preferred as rental equipment due to their capabilities in heavy lifting, travelling long distances, and other features.  Compact loaders are so efficient that are replacing skid steer loaders.


COVID-19 Analysis


Compact loaders are highly used in construction activities, however, due to the pandemic, many regions have halted cemented structures. Construction companies are facing the high cost of operations with reduced labour capacities and increased raw- materials expenses. Social distancing norms have restricted the capacities of operations. This has severely impacted the revenue of compact loaders market growth.


In the manufacturing sector, production is almost standstill due to mobility restrictions and high gaps in the supply chain. The commercial automobile sectors majorly operate through manufacturing parts at different plants while assembly takes place in one factory. However, this can vary company-wise. Since countries are imposing frequent lockdowns, supply chain inefficiencies have increased. This is resulting in production delays that have imposed additional costs.  Pandemic will leave a long-term negative impact on local compact loaders market growth.


Competitive Landscape


Compact Loaders Industry comprises of many players they are listed below



  • Doosan Corporation (South Korea)

  • Wacker Neuson Group (Germany)

  • Xuzhou Construction Machinery Group (China)

  • CNH Industrial (UK)

  • Hitachi Construction Machinery (Japan)

  • Komatsu Ltd (Japan)

  • Volvo Construction Equipment (Sweden)

  • KUBOTA Corporation (Japan)

  • Sany Heavy Industry (Japan)

  • Takeuchi Mfg Co Ltd (Japan)

  • Yanmar Holding Co Ltd (Japan)

  • Liebherr Group (Switzerland)


Market Dynamics


Drivers- It is estimated that high compact loaders market growth, will be contributed to the upsurge in construction and infrastructure development. Product development will be the major driver as it will be enabled with technology to provide higher efficiency. Besides, developed nations like North America and Europe have been investing in construction projects which will fuel the compact loaders market size.


As the investments in the building, equipment is likely to increase which will thrift expansion of demand and market growth. In South Asian regions, high construction activities in the upcoming years will also boost the demand for compact loaders. In addition to this, advanced technologies like Artificial Intelligence, machine learning, blockchain, IoT, and others are likely to increase the adoption of compact loaders.


Opportunities- The manufacturers of compact loaders market can reap high-value creation opportunities in the European regions. It is expected that the market in Europe alone will reach US$2.5 billion in the upcoming years. In the short- term, manufacturing and construction activities at a halt due to the severe impacts of the pandemic. Also, in regions like Latin America, Oceania, and Southern Asia, high spending on construction and infrastructure projects has increased.


Besides, compact loader manufacturers are developing intelligent assistants and joystick steering which is expected to shape compact loaders' market outlook In countries like China and India, demand for medical facilities has increased, thus economies are reopening construction-related sectors. This will act as an impetus for the growth of the equipment industry in the future.


Restraints- Due to the pandemic, regional and national market of many countries has been severally impacted for a short and medium-term.  The deal value of all construction equipment has dropped significantly. This will hinder ongoing projects while also impacting investments in infrastructure in the global context. Compact loader's market value will be negatively influenced. Besides, the equipment industry like that of compact loaders is highly fragmented which reduces the capabilities of meeting the market demands.


Challenges- Also, the maintenance cost for construction equipment like compact loader are relatively high. Besides, a skilled labour force is required for repairing or supervising the operations. However, countries like India lack investments for supporting the maintenance and training of workforces.


Cumulative growth analysis- In developing regions, infrastructure development is on the rise including construction projects like roads, highways, dams, airports, ports, and others. In these projects, the compact loader is majorly used for loading and unloading bulk materials. This will enhance the compact loaders' market size. In the case of heavy equipment like compact loaders, renting and leasing provide substantial benefits to the construction contracts. As it can be customized as per the preference of the user, requirement, and expectation of the revenues. In addition to this, renting and leasing is highly dependent on the duration of asset use and change in technologies. Due to this, construction companies find it economical for renting rather than purchasing.  This also helps the contractors to access more equipment with relatively lower costs.


Value Chain Analysis


Environmental agencies are creating regulations for determining or controlling carbon emissions, particulate matters, CO2, fuel consumption, and others. The authorities in countries like Europe, Japan are under immense pressure to harmonize emission standards. Stricter regulations are being imposed for engine development and emission. Thus, many manufacturers might face challenges of meeting regulations in contexts of engine technology, design, and other related costs. Due to this, the compact loaders industry will be highly impacted.


Segment Overview


Compact loader's market share can be segmented intofive categories including type, engine capacities, and application.



  • By type- It includes two types of compact loaders that are wheeled and tracked. However, the latter highest market sharesglobally.

  • By engine capacities- This includes majorly three types of engine capacities that are 65 HP, 65- 80 HP, and 80 HP above. The engine capacities ranging from 65-80 HP is the lightweight equipment majorly used in landscaping activities. The market demand for medium-engine capacity has been increasing over the last few years.

  • By Application- The market is segmented into construction, landscape, mining, agriculture, forestry, and others. The construction sector is rising which has increased the demand for compact loaders.


Regional Analysis


Asia- Pacific is the highest growth market with increasing construction projects. Government initiatives in infrastructure development have increased which is expected the compact loaders market growth in the upcoming years. It is estimated that compact loaders will be in high demand in specific Asia-Pacific regions like China, India, Indonesia, and others due to rapid urbanization.


In addition to this, Europe is also paving the growth path for the manufacturers due to high construction and repairing from the past years. North America is also expected to contribute a high in the market share due to an increase in mining, agriculture, and regional constructions. Also, the bridges and majority of roads in the US require maintenance which improves compact loaders market growth.


Recent Development


In the year 2018, Liebherr Group has launched the joystick steering and intelligent assistants compact wheel loader segment. CNH Industrial has been focusing on the development of compact wheel loaders that are equipped with electrohydraulic controls. This will enhance operator control while also heighten machine operations. Many companies are investing in technological solutions to enhance efficiency in handling heavy equipment like compact loaders.


Report Overview


The report has analysed various components of Compact loaders market growth including various heads like overview, the impact of a pandemic, market dynamics (including drivers, opportunities, challenges, restraints, cumulative growth analysis), value chain analysis, segment overview, analysis based on regions, competitive landscape and recent developments within the industry.



Report Scope:
Report Attribute/Metric Details
  Market Size   2018: UDS 3.8 Billion
  CAGR   3.5% CAGR (2020-2027)
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   by Technology, by Application, by Material
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Doosan Corporation (South Korea),  Komatsu Ltd. (Japan), Deere & Company (US), Caterpillar Inc.(US), Wacker Neuson Group (Germany),  Volvo Construction Equipment (Sweden), Xuzhou Construction Machinery Group Co. Ltd. (China), KUBOTA Corporation (Japan), CNH Industrial N.V.(UK), Hitachi Construction Machinery Co. Ltd. (Japan), Sany Heavy Industry Co., Ltd. (China), Yanmar Holding Co. Ltd. (Japan), Liebherr Group (Switzerland), Takeuchi Mfg. Co, Ltd., (JAPAN)
  Key Market Opportunities

  • Rapid urbanization
  • Unprecedented growth in the construction sector
  • Increase in focus on innovation in green construction materials
  •   Key Market Drivers

  • Demand for vertical lift compact loaders
  • Rising demand for road planner surfaces.


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    Frequently Asked Questions (FAQ) :


    Global compact loaders market is projected to grow at approximately 3.5 % CAGR during the assessment period (2021-2027).

    Global compact loaders market had created a valuation of around USD 3.8 BN in 2021.

    Based on type, the track loaders segment, based on engine capacity, the 65–80 HP compact loaders, and based on application, the road construction sector holds the majority of market share in the global compact loaders market.

    Asia Pacific holds the largest share in the global compact loaders market, followed by Europe and North America, respectively.

    Komatsu Ltd. (Japan), Volvo Construction Equipment (Sweden), Caterpillar Inc.(US), KUBOTA Corporation (Japan), Wacker Neuson Group (Germany), Deere & Company (US), Hitachi Construction Machinery Co. Ltd. (Japan), CNH Industrial N.V.(UK), Doosan Corporation (South Korea), Xuzhou Construction Machinery Group Co. Ltd. (China), Liebherr Group (Switzerland), Sany Heavy Industry Co., Ltd. (China), Takeuchi Mfg. Co, Ltd., (Japan), and Yanmar Holding Co. Ltd. (Japan), are some of the top players operating in the global compact loaders market.