Excavator Market size is anticipated to witness healthy growth during 2021 to 2027 driven by the increasing demand for transportation and unloading of excavated materials in the construction and manufacturing sectors across the globe. The high usage of excavators in material handling and infrastructure development applications will drive industry demand. The rising excavation of minerals for use in several application industries is creating a demand for excavators.
Commercial and residential infrastructure developments under smart city initiatives will require heavy machines for various applications including the demolition of old buildings, further creating equipment demand. The rising demand for hydraulic & long-reach excavators for low-level and high-level demolition is fueling the industry statistics.
High initial investments and maintenance costs associated with the equipment are hindering the excavator market growth. Excavators are high-maintenance machines, which require timely inspection and maintenance. These machines are prone to untimely system failures, occurring due to improper operations and usage over the specified capacity, resulting in the need for maintenance. To minimize the breakdown of machinery, manufacturers and rental companies provide professional training sessions to workers.
With growing automation and technical advancements, manufacturers are implementing digital assistance tools for efficient control and optimal performance. For instance, in March 2017, Volvo launched Dig Assist technology that offers real-time guidance to enhance operator productivity. The introduction of such solutions will propel the demand for advanced machines, resulting in a rise in the excavator market revenue.
The implementation of cameras, sensors, and machine monitoring systems will aid operators to do their job efficiently. Telematics is a new trend for excavators. It uses a large amount of data for predictive analysis to automate the functioning of excavators. The visual guidance system allows operators to input parameters, such as depth and slope, offering operational efficiency. The excavation procedure is a contaminative process and creates harmful environmental conditions, resulting in the introduction of eco-friendly electric excavators. For instance, in January 2019, Caterpillar launched a new electric excavator with a 26-ton capacity and 300 kWh battery pack.
Mini excavator models are gaining high demand across construction applications owing to the development of urban infrastructure globally. Technical advancements in mini excavators, such as telematics, sensors, etc., enable operators to achieve high productivity further adding up to the product demand.
The excavator market is witnessing growth in agriculture applications globally owing to usage in essential farming and farm maintenance operations. These machines are used for land clearing activities, road construction, water management, and digging & loading tasks. The mini models aid farmers to dig and lay down water & sewage supply lines, providing a better irrigation atmosphere. To reduce effort and maximize productivity, farmers use excavators for digging & loading sand and gravels.
Asian countries including China, India, and South Korea are witnessing a high demand for excavators due to advancements and development of infrastructures under various government initiatives such as smart city development plans. Under the government project - Made in China 2025, the excavator industry will observe high demand due to the rapid expansion of high-tech industries and development of manufacturing hubs.
The North America excavator market is expected to see exponential demand through 2027 on account of the expansion of construction & manufacturing industries in the U.S. and the need for high-capacity load machines. The high consumer spending capability on heavy & costly machines along with a strong presence of major manufacturers supports product demand in the U.S. Companies operating in the U.S. are undergoing collaborations and long-term contracts with government entities & private sector consumers for the provision of specific & customized machines. For instance, in May 2019, JCB extended its excavator contract with the U.S. Army until 2025 for the continued production of High Mobility Engineer Excavators (HMEEs).
Key players in the excavator market include AB Volvo, Hitachi Construction Machinery Europe NV., Hyundai Construction Equipment Co., Ltd., JCB, Kobelco Construction Machinery Co., Ltd., Komatsu America Corp., Sany Group, XCMG Group, and Yanmar Co., Ltd. Industry players have adopted various strategies, such as new product developments or innovations, mergers, collaborations, acquisitions, and partnerships, to sustain the high industry competition.
Industry players are involved in expanding their regional presence by introducing new products, distributors & dealerships in untapped regions. In December 2019, Sany Group launched excavators for Indian consumers. The company launched a range of products to capture the Indian excavator market including SY260 Breaker Excavators and SY285C-9 Long Reach Excavators. The launch will enhance the company’s product portfolio and increase its consumer base in Asia Pacific.
This excavator market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:
Market, By Type
Market, By Application
The above information is provided for the following regions and countries: