Global Forestry Excavator Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Forestry Excavator Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Excavators are heavy construction and forestry equipment consisting of a rotating platform, a large shovel, and a robotic arm. It usually travels on tracks or wheels. Forestry excavators are specially designed for felling, collecting, and transporting wood in harsh working conditions such as forests and wetlands.

Market Overview:

The latest research study on the global Forestry Excavator market finds that the global Forestry Excavator market reached a value of USD 5122.0 million in 2022. It’s expected that the market will achieve USD 7786.17 million by 2028, exhibiting a CAGR of 7.23% during the forecast period.

Impact of Russia and Ukraine War

The Russo-Ukrainian war has disrupted global agricultural and energy supply chains, with major repercussions for the global economy. The war led to sharp rises in food, fertilizer, and energy prices, exacerbated inflationary pressures, widened the gap between rich and poor, and triggered a food crisis. The Ukrainian region also absorbs international humanitarian aid and development funding that would otherwise be used to resolve conflicts and crises in other parts of the world. The turmoil in the political environment exacerbates the instability in the economic environment. According to McKinsey's September 2022 Global Economic Conditions Survey, European respondents mainly cited rising energy and material costs due to poor operating performance. Rising wages are the biggest concern in India and North America. The war has exacerbated global economic turmoil and rising interest rates, the business environment in Russia has been challenging, with sanctions restricting payment options and rising inflation further compressing consumers' disposable income. But as Russia threatens European security, the West has strengthened its cohesion by jointly imposing sweeping economic sanctions on Russia.
For the forestry excavator industry, the Russo-Ukrainian war brought some opportunities, while increasing production costs. Before the war, the market faced supply shortages due to a sharp increase in the price of wood and wood pellets due to factors such as bad weather, shortage of containers, and rising transportation costs. Market volatility has led businesses to pass some costs on to customers. The UK market is not self-sufficient in wood pellet supply and has been somewhat dependent on imports for many years. UK government subsidies are an important factor in the development of the UK wood pellet industry. War increases inflation and economic instability, which can lead to reduced government subsidies and consumer demand. Log supplies are becoming tighter in many parts of Europe as Russia and Ukraine are important timber producers and exporters. The trade disruption has had a major impact on global markets. On a positive note, the Russo-Ukrainian war is pushing the US to fill the void in waste lumber exports. The war has also prompted European countries to accelerate the transition to renewable energy, which is beneficial to the development of the wood pellet industry. Overall, the Russo-Ukraine war has disrupted supply chains and realigned global trade arrangements. Forestry excavator companies need to establish good relationships with suppliers and partners to ensure supply chain security and cost control.

Increased demand for wood and its products

Forestry and logging include organizations involved in growing, felling, and transporting timber, managing forest land, planting trees for reforestation, and collecting forest products such as gum, bark, and fiber. Agriculture and forestry are one of the oldest industries of human beings, and modern society is increasingly dependent on agricultural products and forestry. Factors such as population growth, rising new residential construction, high availability of forest reserves, increasing round log production, and replacement of older and less productive forestry machinery by logging companies are driving the growth of the forestry and logging industry. Wood is widely used in the residential and commercial sectors for furniture manufacturing, heating, and paper production, the demand for wood furniture in offices has surged, and consumers' propensity for home repairs and remodeling has risen. The expansion of the construction industry will increase the demand for planks and posts. Forest products such as sawn timber, veneer logs, sawn timber, pulpwood, and other industrial logs are increasingly used in infrastructure construction. At the same time, governments are promoting afforestation to maintain vegetation and forest cover. Forestry machinery sales are expected to grow due to the importance of forestry in countries across the world. Forestry excavators aid in logging processes such as clearing forests to replant trees, transporting heavy logs and trees, removing unwanted vegetation to preserve ecosystems, and more. Advanced logging equipment can process entire trees to log length in one go, increasing safety, saving time, and reducing environmental impact. Therefore, to meet the growing demand for wood and its products, the transformation of forestry operations from manual operations to forest automation will drive the demand for forestry equipment including forestry excavators.

Increased demand for renewable energy

In recent years, the number of countries around the world that have accepted the Paris Agreement on Climate Change has continued to increase. The agreement forces countries to reduce their carbon footprint and greenhouse gas emissions by reducing their dependence on fossil fuels. Wood pellets offer environmental benefits compared to fossil fuels such as natural gas and heating oil. Wood pellets are solid biomass fuels made primarily from agricultural by-products such as wood chips and straw. Specific advantages of wood pellets include standardized properties, high energy content, and high density compared to unprocessed biomass. Since wood pellets have long been cheaper than other fuels and are a renewable energy source, a global accounting policy that treats wood pellets as zero-carbon would allow the industry to receive substantial state subsidies and tax credits. In recent years, many countries have updated their policies and programs related to wood pellets. For example, Canada announced a phase-out of coal and natural gas power generation by 2030 to reduce greenhouse gas emissions to combat climate change and meet its commitments to the Paris Agreement. The Canadian government's decision is expected to boost investment in the wood pellet industry, as wood pellets are considered an effective alternative needed for green power generation. The conversion of coal-fired power plants to pellet power generation is driving the wood pellet industry in many countries. Therefore, as a renewable energy source, the demand for wood pellets in modern society is increasing, which is conducive to the expansion of the forestry excavator market.

Increased awareness and policies to protect forests

The forestry excavator industry is expected to witness considerable growth owing to rising awareness about forest conservation and related practices in both developed and developing countries. Forests provide people with a range of resources, including fresh air, clean water, wild foods, and medicines. Many people also associate them with physical recreation and good mental health. Forests support more than 86 million green jobs and the livelihoods of millions of people. More than 90 percent of the extremely poor depend on forests for their livelihoods. Various policies about afforestation leading to rising awareness regarding forest conservation and management are expected to drive demand for various forestry equipment. Europe holds a significant share of the forestry excavator market. About 12% of Europe's forests are protected. Of these, 85 percent were designated to protect forest biodiversity, while 15 percent were designated to protect landscapes. The total area of protected forests in Europe is about 127 million hectares. The European Union took a big step forward in protecting forests around the world when it passed a new law on deforestation-free products in 2022. The regulation requires companies to provide the exact geographic origin of goods to ensure forest-risk goods are sold in the EU No deforestation can be verified. Using a variety of techniques, including satellite data, the company will be able to ensure that the region is free of deforestation after December 2020. Once the regulation is fully in force, European consumers can be sure that the products they use are not contributing to deforestation. The European region provides financial subsidies for precision forestry and mechanized farming policies, enabling organizations in rural areas of Europe to take advantage of high-end equipment for farming and forestry. Moreover, demand for timber, herbs, and other specially grown forest products has been increasing in recent years owing to heightened health awareness. Foresters and forest owners are focusing on enhanced silviculture, which allows them to instill forest management plans for the long-term economic, social, and environmental needs of end consumers. The global forestry excavator market is expected to grow at a considerable rate benefiting from the rising awareness of people to protect forests and the policies of various governments.

Region Overview:

In 2022, the share of the Forestry Excavator market in United States stood at 27.42%.

Company Overview:

Key players in the forestry excavator market include Caterpillar, Sany, Hitachi, John Deere, Komatsu, and others. Among them, Caterpillar will rank first in sales and revenue in 2023.

Caterpillar

Caterpillar Corporation is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

Sany Heavy Industry

Sany focuses on the equipment manufacturing industry, and its leading products include concrete machinery, excavation machinery, hoisting machinery, road construction machinery, piling machinery, wind power equipment, port machinery, petroleum equipment, coal equipment, prefabricated construction PC machinery and other products. .

Segmentation Overview:

By type, Track Forestry Excavator segment accounted for the largest share of market in 2022.

Application Overview:

By application, the Below 70000 lb segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Forestry Excavator market covered in Chapter 3:

Liugong Group
Hitachi
Liebherr
SANY
John Deere
Komatsu
Kobelco
Volvo
Jinggong
XCMG
Caterpillar
Doosan
CASE

In Chapter 4 and Chapter 14.2, on the basis of types, the Forestry Excavator market from 2018 to 2029 is primarily split into:

Track Forestry Excavator
Wheel Forestry Excavator

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Forestry Excavator market from 2018 to 2029 covers:

Below 70000 lb
70001-100000 lb
Above 100000 lb

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)