Photograph: Markus Spiske / Unsplash
According to a report published by Fact.MR, the forestry machinery market will witness declining sales in the near term amid the COVID-19 outbreak, but the long-term outlook remains positive.
The global forestry machinery market is expected to be valued at over US$4 billion by the end of 2020 and is anticipated to surpass US$6 billion by the end of the forecast period of 2020-2030. However, the COVID-19 pandemic has interrupted the growth of the industrial equipment machinery market due to nationwide lockdowns, leading to a steep fall in the sales of forestry machinery, globally. In addition, high initial investment of forestry machinery adds another layer of complexity, as several users are hesitant to invest in new forestry machinery at this time. This, in turn, is expected to see a decline in the demand for forestry machinery in the near future.
However, ongoing development plans formulated to boost the forestry industry in key countries such as China and Indonesia are expected to drive the demand for relevant solutions, such as forestry machinery and equipment. Moreover, growing focus of manufacturers on designing machinery for high production applications, demanding operations, and extreme terrain conditions, is expected to augur well for the growth of the forestry machinery market during the forecast period of 2020-2030.
Key takeaways from the Global Forestry Machinery Market Study
- The global forestry machinery market is projected to create an absolute dollar opportunity of around US$2 billion, and is anticipated to expand at a value CAGR of 5% during the forecast period.
- By machine, forwarders are set to hold a share-wide market dominance with over 38% of the total market value by the end of the forecast period.
- Skidders are projected to progress at a value CAGR of 5%, and be valued 1.5 times more than bunchers by the end of 2020.
- By region, Europe is expected to emerge as the fastest-growing forestry machinery market and surpass a market valuation of US$2.5 billion by the end of 2030.
“The impact of COVID-19 will have long-term implications on the growth of the forestry machinery market. It is anticipated that, even if the pandemic is brought under control, demand is expected to remain muted till the end of 2020, owing to uncertain economic conditions. However, a positive outlook for forestry machinery in developing countries of Asia Pacific, coupled with a shift towards mechanized mode of operations, is anticipated to foster the demand for forestry machinery over the coming years,” said a report analyst.
Industry players focusing on product launches to stimulate growth
Key players in the forestry machinery market are Komatsu Ltd., Tigercat International Inc., Deere & Co., Barko Hydraulics L.L.C., Caterpillar, Inc. AGCO Corporation, Kubota Corporation, Ponsse Oyj, and Rottne Industri AB, among others. Prominent manufacturers are focusing on introducing new products in order to broaden their customer base and gain a competitive edge over other players. For instance,
- In 2020, Komatsu introduced its new 901XC 8WD Harvester, which is a thinning powerhouse for challenging steep, rough, or soft terrain. Further, the harvester is integrated with a “Double Comfort Bogie” drive system that provides excellent handling and follows the terrain more closely than competitors’ 8WD machines.
- In 2020, Tigercat introduced its H-series Skidders. The new skidder line includes the 620H, 630H, and 632H four-wheel models, as well as the 625H and 635H six-wheel models. These skidders are integrated with a Turnaround system that lets the operator rotate its seat 220°.
- In 2020, John Deere launched its Mechanical Self-Leveling Loader (MSL) option for small tractors. These are designed to keep loads level throughout the lift. The new loaders are compatible with John Deere 1E, 1R, 2R, and 3E compact utility tractors.
These insights are based on a report on Forestry Machinery Market by Fact.MR.