Earthmoving equipment market forecast to reach $91 billion by 2026
According to a recent study from market research firm Global Market Insights, the earthmoving equipment market is set to grow from its current market value of more than $80 billion to over $91 billion by 2026, gaining remarkable traction over the 2020 to 2026 period.
The earthmoving equipment market is anticipated to foresee immense growth owing to the surging private sector investments in mining sector, new product launches, and technological advancements. Heavy equipment is usually considered important for construction jobs of nearly any size, from large-scale commercial and civil projects to home buildings. Earthmoving equipment refers to heavy-duty vehicles which are specifically designed for construction operations involving earthworks.
Various kinds of earthmoving equipment have multiple functions and are utilized mostly for agriculture, constructing, demolition, and repairing. Earthmoving equipment are also termed as heavy machines, heavy hydraulics, heavy trucks, engineering equipment, and construction equipment. Most of the earthmoving equipment utilize hydraulic drives as their main source of motion.
The emergence of advanced products with innovative features are expected to replace traditional machinery over the coming years. Citing an instance, in September 2020, Hitachi, Japanese multinational company, has reportedly announced its next-gen of Zaxis-7 large excavators. The novel models ZX890LCH-7, ZX690LCH-7, ZX530LCH-7, and ZX490LCH-7 have an industry-leading cab with top-class safety and comfort features. In fact, their excellent productivity, reliability, and efficiency further provides users with opportunities to decrease costs and improve profits.
In addition, the use of new technology is anticipated to propel the demand for earthmoving equipment. Citing an instance, John Deere, a renowned manufacturing company, in September 2020, reportedly revealed that the 210L and 210L EP tractor loaders are now available with new grade technology options.
Earthmoving equipment market is divided into different segments in terms of product, application, and regional landscape.
With respect to product, the earthmoving equipment market is classified into compaction equipment, backhoe, loaders, excavators, and others. Among these, compaction equipment segment will witness considerable growth over the coming years. In 2019, the segment held a market share of nearly 7% owing to growth in road construction activities.
In terms of application, the overall earthmoving equipment market is bifurcated into surface mining, underground mining, and construction. Among these, surface mining application segment will witness substantial growth over the coming years. Increasing private sector investments in mining sector will proliferate the adoption of earthmoving equipment.
Additionally, in the mining sector, complex surface mining machines are needed as support in mineral extraction processes. Equipment such as dragline excavators are widely used in surface mining. Other machines used in surface mining include mass excavators, loaders, haul trucks, and shovels.
From a regional frame of reference, Latin America earthmoving equipment market is likely to witness substantial growth owing to increasing demand for residential construction buildings.
Meanwhile, the COVID-19 outbreak has had a major impact on the global economy and the manufacturing and industrial production as a whole. Governments across the globe had imposed nationwide lockdowns and stringent social distancing measures, making it difficult for the workforce to make their presence felt. However, once the situation is under control, the earthmoving equipment market is likely to bounce back.