Global Off-highway Equipment Industry Outlook 2024

Global Off-highway Equipment Industry Outlook 2024

Higher Focus on Equipment Services and Maintenance through Digital Solutions Enables Growth Opportunities

In this analysis, Frost & Sullivan covers the off-highway equipment industry, focusing on agriculture, construction, and mining applications. The geographic scope is global, including the United States, Europe (the European Union and the United Kingdom), Asia (China and India), Australia, Latin America, and the Rest of the World. The study period is 2023–2024, with 2023 as the base year and 2024 as the forecast year.

Our analysis shows that the industry faces many challenges this year. Occurring amid a post-pandemic rebound, the ongoing Russo-Ukrainian and Israel-Hamas wars have severely impacted supply chains. After overcoming supply chain issues in major regions such as the United States and Europe, original equipment manufacturers (OEMs) have fulfilled order backlogs. However, the lag in interest rate recovery and inflation is causing uncertainty and hesitance in equipment purchasing for major customer groups.

OEMs, dealerships, maintenance, and service providers are updating strategies to accommodate customers’ short-term mindset. On the supply side, OEMs, dealers, and suppliers are nearshoring manufacturing to stabilize the supply chain. On the demand side, business-to-business and business-to-consumer customer groups are extending equipment life through remanufactured components and updating functions through retrofits. Frost & Sullivan expects this to increase technology focus among stakeholders, targeting equipment gateways to enhance their functions.

Regional challenges in China, Europe, and the Middle East have caused OEMs and suppliers to expand further into the North and Latin American markets. In addition, the increasing demand to digitize operations and solutions has allowed a new wave of start-ups to provide customized offerings. Strategic synergies between OEMs and start-ups will support their expansion into digital technology spaces. Due to minimal barriers and high return on investments, automation will be a focus area in the off-highway equipment industry.

Government incentives and public-private partnerships will allow OEMs to focus on expanding their battery manufacturing footprint. Vertical integration will broaden the product portfolio and enable one-stop solutions for end customers. Frost & Sullivan anticipates strategic partnerships to offer low-cost autonomous solutions and automation to alleviate customer hesitance in this space.

This analysis offers stakeholders insights by detailing relevant industry developments in the last few years; highlighting trends, notable participants, and partnerships; providing unit sales and revenue forecasts by region and application; and discussing opportunities they can explore to generate revenue.