Forestry Equipment Market size worth over $13 Bn by 2027
Published Date: June 21, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Forestry Equipment Market size is set to surpass USD 13 billion by 2027, according to a new research report by Global Market Insights, Inc.
Increasing demand for household heating products is augmenting the requirement for wood pellets, driving the industry statistics. A large section of the population in North America and Europe uses wood pellets for heating residential areas. According to the market data published by the U.S. EIA, in March 2021, the country produced approximately 9.274 metric tons of pellets.
Autonomous forestry equipment segment is witnessing an upward trend owing to several advantages such as increased efficiency, productivity, and reliability. Market players are introducing new technologies in autonomous machines to cater to the rising demand for advanced forestry equipment. For instance, in January 2020, Softree Technical Systems Inc. launched the RoadEng Version 9. The updated software offers new features that assist in cable harvesting.
High purchase & maintenance costs are limiting the forestry equipment market growth. Technical advancements, higher fuel prices, and advanced systems have elevated machine costs. The retail price of Komatsu’s line of forwarders ranges from USD 400,000 and above, depending on product features. To increase forestry equipment sales, companies are providing lucrative financing options.
Analyst view: “Integration of advanced technologies, such as IoT and telematics, in forestry machinery will support the market size over the coming years. The introduction of autonomous felling and extraction equipment will boost the industry size.”
The forestry equipment market witnessed a severe impact due to the COVID-19 pandemic. Economic uncertainties and restrictions on movement have caused a decline in market demand for forestry products such as paper, pulp & wood pellets. Halt in major construction projects across the globe impacting the industry statistics. Forestry equipment is increasingly used in clearing patches of land for the development of public infrastructures such as roads and dams. The industry is forecast to witness steady growth over the next three years.
Browse key industry insights spread across 360 pages with 521 market data tables & 38 figures & charts from the report, “Forestry Equipment Market Size By Type (Felling Equipment [Chainsaw, Harvester, Feller Buncher], Extracting Equipment [Forwarder, Skidder], On-site Processing Equipment [Chipper, Delimber]), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2027” in detail along with the table of contents:
Increasing demand for forwarders to fuel the extracting equipment share
The extracting equipment market is anticipated to grow at 4.5% CAGR through 2027. In 2020, over 10,000 units of new extracting equipment were sold globally. The segment includes market revenue generated from forestry equipment including forwarders and skidders.
The growing importance of extraction equipment in forestry applications will provide an impetus to the market revenue. Skidders play an important role in logging operations as they pull out felled trees from forest areas. This forestry machine is equipped with hydraulic grapple buckets or winches that enhance its operating efficiency. Forwarders with log forwarding capacity are also gaining high popularity in the market.
Innovations in unmanned forwarders is poised to create a positive outlook for the forestry equipment market. The remotely controlled forwarder uses self-assisted technology to load logs directly onto the trailer. The operation of autonomous forwarders is based on predictive analysis & algorithms for efficient and productive working. Technological advancements and the introduction of autonomous equipment are forecast to propel the market size through 2027.
Government investments in infrastructure development to propel the European forestry machines market
The Europe forestry equipment market revenue held more than 30% share in 2020 and will experience significant growth through 2027. Increasing investments in telecommunication and smart grid projects coupled with the development of manufacturing plants are providing robust market opportunities. Rising government investments in infrastructure development are driving the market growth. For instance, in July 2020, the Swedish government released a fund worth USD 72 million for the development of transportation networks with other European countries, propelling the regional market statistics.
The growing inclination toward the utilization of green & renewable energy in the UK and Germany is providing a positive forestry equipment market outlook for the biomass industry. According to a report by the Renewable Energy Association in 2019, biomass accounts for 11% of the total energy supply in the UK. Wood and forest residues from forestry activities are widely used as primary components in biomass-based energy. The additional facilities provided by forestry equipment, such as the separation of wood residues for reuse in biomass energy generation, are adding to their growth in Europe.
Key strategies adopted by forestry equipment manufacturers include the expansion of their geographic presence and distribution channels. For instance, in March 2021, Deere & Company appointed AFGRI Equipment as its sole distributor of forestry machines in South Africa (AFGRI operation area), Zimbabwe, Zambia, and Botswana.
Market leaders in the forestry equipment market include Eco Log Sweden AB, Komatsu Forest, Husqvarna AB, Ponsse PLC, Deere & Company, Doosan Group, Caterpillar, Inc., Tigercat International, STIHL, Kesla Oyj, and Hitachi Construction Machinery.