Forestry Machinery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Forestry Machinery Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global forestry machinery market is projected to grow at a CAGR of 4.2% during the forecast period (2020 - 2025). With the growing awareness of forest preservation and management. coupled with the increasing usage of machinery has led to the increasing demand for forestry equipment. Rapid growth in demand for wood and wood-based products has led to the need for mechanized tree felling, creating opportunities for forestry equipment. The Increased collaboration of the government with the private sector, skill development, training and creating awareness through the transfer of knowledge, would result in increased adoption of mechanization in the agriculture sector.

Over the years, agricultural mechanization has become an integral component of agricultural development globally, resulting in the evolution of agricultural machinery hire services. Studies undertaken by the International Food Policy Research Institute, in 2015, show that the existing private sector tractor-hiring services are less constrained and well established, in most of the developing countries when compared to the underdeveloped countries. Moreover, the development of hiring models, such as individual ownership, group ownership, and state-run model, is strengthening the evolution of hiring services. For instance, around 50 tractor hiring services had evolved in the nation, over a period of 2015-2016. Thus, the pursuit of proper utilization of agricultural machinery for better profitability, coupled with the growing number of machinery hire services, is likely to prospect the sales of agricultural machinery at the farmer entrepreneur level.

Europe is the largest market and is expected to remain the leading as well as the fastest growing market for forestry machinery. Financial support by the common agricultural policy (CAP) to rural areas, and the measures taken by the EU countries in order to encourage the forestry activities with the help of national development programs, continue to maintain the sales of forestry machinery in the region. Growing food demand globally has resulted in aggressive cultivation activities, which in turn has led to the conversion of forest lands into arable lands. This has further resulted in adoption of mechanized practices,which has created a significant demand for forestry machinery globally.

The results of market share analysis indicate a fragmented market, with major companies accounting for only 40% of the market share, in spite of having diverse and increasing product portfolios. In the fast-growing forestry machinery market, companies are not only competing on the basis of product quality or product promotion but are also focused on other strategic moves, in order to acquire larger share and expand their acquired market size.

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