ID: MRFR/IA - E/6298-HCR | 100 Pages | Author: Tejas Chaudhary | June 2023
Off-Road Equipment Market Size is expected to cross USD $523 billion by 2028 at a CAGR of 4% during the forecast period 2021-2028
The off-road equipment market size is projected to reach approximately USD significant value by 2030, at a CAGR of 4% from 2022 to 2030. Many off-road vehicles are available to consumers, including large mining trucks, small agricultural machines, and more. Off-road equipment is used on the ground and above. Strict government regulations regarding heavy equipment primarily drive the off-road equipment market expansion. As well as the increasing demand for custom off-road equipment, including off road tires, off road wheels, off road trailer, the continuous rise in urbanization in several countries contributes to market growth. The market growth is also boosted by several other factors: an increase in labor costs and a growth in demand for zero-emission equipment will also drive the market forward.
economic growth has been hit hard by the COVID-19 pandemic lockdowns implemented across the globe have disrupted supply chains and halted production at various facilities. The industry remains challenged by challenging market dynamics, including the ongoing COVID-19 epidemic, disruptions to supply chains, and inflationary pressures. Still, dealers must simultaneously tackle underlying structural changes threatening their business models. In response to the COVID-19 pandemic and the persistent changes that resulted from it, other industries, such as automotive and commercial trucking, have already begun this journey and have accelerated their efforts. As a result of these changes, new disruptors have been able to enter and scale the automotive industry, such as digital marketers and used car disruptors. Off road equipment parts dealers must identify similar opportunities to serve their customers better and differentiate themselves from their competitors.
The market expansion is primarily driven by regulations governing large machinery. Industrialization continues to rise in various regions, demand for goods and services is also growing. Several growth factors, including labor costs and growing demand for zero-emissions equipment, also increase the market share. As a result of the shortcomings of electrically-propelled off-highway vehicles, hybrid off-highway vehicles are currently considered a viable alternative, though high development costs limit the growth of the market for off-road equipment. As a result of concerns about emissions and noise generated by conventional diesel-powered machinery, electric powertrains have been increasingly being used in off-highway vehicles (including construction and mining equipment).
Generally, high-income countries such as Australia, Canada, Germany, and the U.S. will be able to afford advanced off-road equipment at the lowest cost due to high production costs and labor shortages. In lower- and mid-income countries, where labor costs are less important, and emission standards are generally less strict, state-of-the-art technology will be limited. In contrast, many of the world's largest mines - operated by multinationals with the means to invest in advanced, high-tech machinery - are located in countries with low incomes. Thus, driving the growth of the off-road equipment market.
There are differences in policies and regulations regarding manufacturing, importing, and exporting off-road equipment based on country. Countries set import duties to protect local manufacturers from unfair competition. Foreign affairs can be helpful, but they can also increase international competition. Foreign affairs have a greater impact on trade activities. If there are disputes with countries, trade agreements may be suspended, or in extreme cases, restrictions may be imposed that limit trade altogether.
A growing concern among governments of major developed and developing countries is the issue of carbon emissions and climate change. The transportation sector contributes significantly to greenhouse effects, accounting for around 24 percent of CO2 emissions. A vast array of technologies with low or zero carbon emissions is required for the transportation sector to minimize carbon emissions. As a potential innovation to address the issue of zero carbon emission, alternative fuel vehicles (AFVs) offer significant energy-sustainable transportation that is environmentally friendly. Growing demand for hybrid off-highway equipment/machinery has resulted from the introduction of stringent emission regulations by several governments worldwide, prompting manufacturers to launch environmentally friendly products.
Based on product, the off-road equipment market segmentation has been divided into dump trucks, cranes, excavators, crawlers, loaders, and others. The excavators segment held a major share in off-road equipment market growth in 2021. A significant increase in infrastructure development investment by private and government organizations is expected to drive the market in the coming years. There is a growing demand for excavators across industrial, residential, and commercial sectors, creating growth opportunities for the market.
Based on the application, the off-road equipment market segmentation is divided into infrastructure, commercial buildings, residential buildings, industrial buildings, and others. The residential buildings segment had a prominent share in 2021. Due to rapid urbanization in nations like China and India, the demand for off-road construction equipment for residential construction is extraordinary. In addition to residential housing, the development activates other infrastructures such as roads, hospitals, schools, & commercial spaces to manage the demand for these civic infrastructures. The government invests substantially in the construction sector to fulfill this demand. It is estimated that India will spend 1.4 trillion dollars on infrastructure during the forecast period, according to the India Brand Equity Foundation (IBEF). The Indian government, such as metro rail, renewable energy, and highways, would heavily invest in several infrastructure projects.
By region, the off-road equipment market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific accounted for the most extensive market share. North America is projected to exhibit the highest CAGR during the review period.
Asia-Pacific was the most extensive market share in 2021. Increasing manufacturing units and rising labor costs increase machinery demand. In addition to building massive infrastructures, skyscrapers, and commercial buildings, the growing trend of investing in road construction plans is expected to increase the demand for the machinery of this type internationally. The demand for concrete and road construction machinery, such as concrete mixers & pavers, has increased. For instance, governments in India and China have taken on the initiative to expand road infrastructure. The Indian government recently announced it would invest INR 15 trillion in highway improvements over the forecast period.
North America was anticipated to encounter the fastest growth rate in 2021. A significant portion of equipment used in mining in North America is manufactured in the U.S., which is one of the world's largest construction equipment manufacturers. The North America is projected to grow significantly owing to an increase in agricultural equipment production.
The market includes tier-1, tier-2, and local players. A comprehensive analysis of key players in the market size is presented in the report through analytical data on building heights, prices, financial positions, product portfolios, growth strategies, and regional presences within the region. For instance, A line of motorcycle clothing developed by Royal Enfield and Alpinestars in May 2022 offers excellent performance and safety. Through collaboration, Indian riders can access valuable resources to maximize their trips. The new line results from product development and testing in challenging conditions.
Prominent players in the off-road equipment market research include AB Volvo, Caterpillar, AGCO Corporation, Bell Equipment, CLAAS KGaA mbH, CNH Industrial N.V, Deere & Company, Doosan Infracore, Escorts Limited, Hitachi, Ltd, Komatsu America Corp, KUBOTA Corporation, Liebherr Group, Mahindra & Mahindra Ltd, Manitowoc, SAME DEUTZ-FAHR Italia S.p.A., Terex Corporation, and YANMAR CO., LTD, among others.
The objectives of the study are summarized in 5 stages. They are as mentioned below:
To identify and estimate the market size for the off-road equipment market report segmented by product, and application by value (in US dollars). Also, to understand the consumption/ demand created by consumers of off-road equipment market forecast between 2022 and 2030
To identify the off-road equipment market growth and infer the drivers, restraints, opportunities, and challenges.
To find out the factors which are affecting the off-road equipment market size
To identify and understand the various factors involved in the market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
|Market Size||2030: 523 Billion|
|CAGR||4.0% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Machinery Type, and End-Use Industry|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Caterpillar Inc. (US), Kubota Corporation (Japan), CNH Industrial N.V. (US), Hitachi Construction Machinery (Japan), Deere & Company (US), Komatsu Ltd (Japan), Sandvik AB (Sweden), The Liebherr Group (Germany), Blount International, Inc. (US), and Doosan Infracore (South Korea)|
|Key Market Opportunities||New product launches and R&D amongst major key players|
|Key Market Drivers||Fluctuation in demand for the off-road equipment, around the globe|
The off-road equipment market forecast period is 2022 - 2030
The market is expected to register a CAGR of 4% over the next 10 years, according to the off-road equipment market research.
North America is expected to register the highest CAGR during 2022 - 2030
Asia Pacific held the largest share in 2021
The market size is expected to be USD significant value by 2030.
AB Volvo, Caterpillar, AGCO Corporation, Bell Equipment, CLAAS KGaA mbH, CNH Industrial N.V, Deere & Company, Doosan Infracore, Escorts Limited, Hitachi, Ltd, Komatsu America Corp, KUBOTA Corporation, Liebherr Group and Mahindra & Mahindra Ltd, are the major companies operating in the market.
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