The Off-Road Equipment market industry is projected to grow from USD 6,153.90 Billion in 2024 to USD 8,552.48 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.2% during the forecast period (2024 - 2032). Off-Road Equipment Market Size was valued at USD 5,905.86 Billion in 2023. The public-private enterprises that have emerged to carry out infrastructure projects and the general adoption of the leasing business model have both increased demand for off-road equipment, which is the market driver.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for off-road equipment is being driven by increasing demand for off-road equipment due to the emergence of public-private companies to perform infrastructure projects and the widespread acceptance of the leasing business model. The exorbitant cost of the construction equipment prevents every end-user company from affording it. Various building plans call for temporary construction equipment. Due to the incorporation of advanced safety measures, the cost of machinery has increased over the past several years, triggering the end user's desire to lease these types of machinery. Rent providers started to improve their current fleet after realizing the potential for development, which is increasing demand for off-road machinery.
Additionally, contractors, mall builders, and construction businesses rent machinery from rental service providers to save money on the equipment’s cost and the costs associated with its maintenance and repairs. Due to the significant profit margins realized in this industry, numerous companies are investing in the rental of construction equipment. Construction equipment is durable and has a life expectancy of 7 to 10 years. For this reason, businesses prefer to rent out used equipment for profit. A significant factor supporting market expansion is the rising trend in the equipment rental industry.
Off-road equipment increasingly using hybrid engines (diesel-electric propulsion systems). With these hybrid diesel-electric drive systems, a smaller engine can operate at a lower rpm. This results in reduced fewer parts motions, fuel consumption, and increase engine longevity. In addition, environmental friendly, employing a hybrid engine also results in less noise from the car.
For instance, in September 2021, the new WE1850-3-wheel loader from Komatsu, which is a component of their new 3 series hybrid power train technology. The loader also provides a flexible loading tool that can be used for shovel backup and main line production. Increasing use of hybrid engine for voice reduction in vehicles. Thus, driving the Off-Road Equipment market revenue.
The Off-Road Equipment Market segmentation, based on machinery type, includes harvesters & forwarders, farm tractors, excavators & loaders, and others. Excavators & loaders segment accounted for major market share (2.3 billion) during the forecast period, due to It is predicted that the increasing popularity of developing large infrastructure projects, skyscrapers, and commercial buildings would boost demand for these kinds of equipment globally. The need for concrete and road building equipment like concrete mixers and pavers has increased as investment in road construction programmes has grown.
Figure 1: Global Off-Road Equipment Market, by Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Off-Road Equipment Market segmentation, based on end-use industry, includes forestry, construction, agriculture, and mining. Construction segment accounted for major market share during the forecast period, due to demand for off-road construction equipment for residential development is extraordinarily high as a result of the fast urbanization occurring in countries such as China and India. To meet the need for these public infrastructures, the development also makes use of other infrastructures including hospitals, highways, schools, and commercial buildings. To fulfill demand government makes significant investments in the construction industry. For instance, in April 2023, the India Brand Equity Foundation (IBEF) predicts that India would spend 1.4 trillion dollars on infrastructure throughout the projection period. The Indian government would make significant investments in a number of infrastructure projects, including metro rail, renewable energy, and motorways.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Off-Road Equipment market anticipated to dominate the market. The expansion of the housing and building industries are anticipated to drive the market growth in the coming years. The expansion of the off highway equipment lubricants market in the region will also be aided by the emergence of major important players over the course of the projected period. Because of the rise in the use of heavy machinery lubricants, North America anticipates strong growth in the off-highway equipment lubricants market.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: OFF-ROAD EQUIPMENT MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Asia-Pacific Off-Road Equipment market accounts for the second-largest market share due to the government in this region promotes the use of electric vehicles. To phase out diesel fuel, which powers the nation's current generation of tractors and construction machinery, plans have already been developed. By 2040, the nation intends to outlaw all petrol and diesel-powered automobiles. The electrification of agricultural equipment is also gaining momentum. For instance, China created the EPOCH-branded first autonomous electric tractor. The tractor was introduced in Luoyang and was made by Henan Intelligent Agricultural Machinery Innovation Centre. The mining and construction sectors are expanding rapidly in China and India, which appears to have good effects on the market for electric off-highway machinery and equipment.
Further, the Chinese Off-Road Equipment market held the largest market share, and the India Off-Road Equipment market was the fastest growing market in the European region
The Europe Off-Road Equipment Market is expected to grow at the fastest CAGR from 2023 to 2032. Due to increasing research and development by market players as well as technological development in the industry.
Moreover, German Off-Road Equipment market held the largest market share, and the UK Off-Road Equipment market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Off-Road Equipment market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Off-Road Equipment industry must offer cost-effective items.
The government and private businesses are making significant investments in R&D for technological advancements in the global Off-Road Equipment industry to benefit clients and increase the market sector. In recent years, the Off-Road Equipment industry has advantages such as the significant profit margins realised in this industry, numerous companies are investing in the rental of construction equipment. Major players in the Off-Road Equipment market, including Caterpillar Inc., Kubota Corporation, CNH Industrial NV, Hitachi Construction Machinery, Deere & Company, Komatsu Ltd, Sandvik AB, The Liebherr Group, Blount International Inc., Doosan Infracore and others are attempting to increase market demand by investing in research and development operations.
Kubota has changed in a distinctive way since 1890. The company use power as a manufacturer and a solution provider to help and address issues in food, water, and the environment. Kubota offers solutions in the vitally important fields of food, water, and the environment using a wide range of goods and technologies. Kubota's solutions sustain human lives, from a grain of rice or a drop of water to the cornerstones of society and business. The result of long-standing partnership with farmers is a wide range of products and services for agriculture. In February 2023, Kubota invests in Chouette, a startup offering the viticulture industry a precision vineyard management solution. Chouette is a French-based AgTech company.
Meitaro Takeuchi established Komatsu Iron Works to supply mining machinery for the Yusenji Copper Mine. In 1921, Takeuchi, a businessman who believed in doing good, founded Komatsu. Our core values still include the original principle of using technology to advance society. Tokyo, Japan is home to the company's headquarters. The Komatsu group specialises in the production and marketing of machinery for the forestry, mining, utility, and construction industries. Hiroyuki Ogawa serves as the business's president and CEO. In May 2023, Komatsu Ltd. and Toyota Motor Corporation announced the launch of a joint project to develop an Autonomous Light Vehicle (hereafter “ALV”) that run on Komatsu’s Autonomous Haulage System (hereafter “AHS”).
September 2021: The new WE1850-3-wheel loader from Komatsu, which is a component of their new 3 series hybrid power train technology. The loader also provides a flexible loading tool that can be used for shovel backup and main line production.
October 2022: Kubota Corporation has developed and started operations at a new production plant for compact track loaders in Salina, Kansas in the United States. The company's head office is in Naniwa-ku, Osaka, Japan; the president and representative director is Yuichi Kitao. The goal of creating a framework that can react quickly to strong demand is to promote wider business expansion for compact machinery. On the property of its local subsidiary that produces implements for compact construction machinery, Kubota constructed this new production plant.November 2023: Goodyear Tire and Rubber said on November 17th that as a fraction of a deliberate overhaul to enhance profitability, the firm will sell its off-the-road equipment tire business, in addition to its chemical business and its Dunlop brand. The CEO and President Richard J. Kramer, Goodyear Chairman, said that the company's revolution plan shows a crystal-clear path to generate a more profitable and centered Goodyear. For off-the-road applications, Goodyear handles expert tires in the mining and construction industries for a range of equipment types, from articulated dump trucks to underground mining equipment. The Goodyear Tire and Rubber Company chief financial officer, Christina Zamarro, said that the company lacks the scale of their largest competitors, which are four to five times larger, adding the financial financing required for Goodyear to catch up in this segment was cost prohibitive. Goodyear's chemical business builds and sells synthetic rubber compounds for industrial applications, involving pliogum, a Halal and Kosher food-grade polymer utilized as food can sealant and in chewing gum. Goodyear's Dunlop brand mainly sells high-performance passenger vehicle tires, with certain strength in Europe, and is in a gathered parent-company product range that involves the Kelly Springfield Tire Company and many other brands. As of 2021, the product is stable and incorporates the Cooper Tire and Rubber Company, which is growing as Goodyear's mid-tier priority. Sumitomo Rubber Industries in 2015 obtained the Dunlop Motorcycle tire brand in North America from Goodyear after the termination of a 16-year global joint venture.
April 2024: RB Global could be called a "giant" of the global auction industry. It is an omnichannel market whose brands involve such household names as an important auctioneering firm, Ritchie Bros.; end-to-end asset management provider Rouse Services; global digital marketplace IAA; technology platform SmartEquip; and others. With its auction sites in 13 nations and digital platform, RB Global caters to customers in more than 170 nations across a diversity of asset classes, including commercial transportation, government surplus, energy, automotive, construction, lifting and material handling, mining, and agriculture.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 5,905.86 Billion |
| Market Size 2024 | USD 6,153.90 Billion |
| Market Size 2032 | USD 8,552.48 Billion |
| Compound Annual Growth Rate (CAGR) | 4.2% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Machinery Type, End-Use Industry, and Region. |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Caterpillar Inc., Kubota Corporation, CNH Industrial NV, Hitachi Construction Machinery, Deere & Company, Komatsu Ltd, Sandvik AB, The Liebherr Group, Blount International Inc., Doosan Infracore |
| Key Market Opportunities | A rise in the number of public-private companies implementing infrastructure projects |
| Key Market Dynamics | The widespread acceptance of the leasing business model |
Frequently Asked Questions (FAQ) :
The off-road equipment market forecast period is 2024 - 2032.
The market is expected to register a CAGR of 4.2% over the next 10 years, according to the off-road equipment market research.
North America is expected to register the highest CAGR during 2023- 2032.
Asia Pacific held the largest share in 2023.
The market size is expected to be USD 8,552.48 Billion value by 2032.
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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Research Analyst Level II I have a degree in engineering (civil), with masters in business administration (marketing). with more than 4 years of experience in market research and consulting, i am involved in end-to-end process of market research, proposals, project kickoffs and delivery. i have research knowledge and expertise in consumer goods/packaging domain. also i have worked for various other domains like construction & equipment. effectively managed and delivered more than 60 report studies for regional as well as global clientele.
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