Global Forestry Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Forestry Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Forestry Equipment Market is expected to register a CAGR of 4.75% during the forecast period 2022 to 2027. Forestry operation has undergone a massive transformation in the past few decades due to the ever-growing demand for timber-related products and the lack of a workforce to meet the demand. The forestry operation is becoming more mechanized with automation machines and equipment, such as forwarders and loggers, which increase the task's productivity and efficiency.

Key Highlights

• The construction business in Canada is driven by the demand for more sustainable building materials and technologies and more complex design and manufacturing systems. The future of low-carbon construction and the bio-economy will be shaped by mass wood. As a result, the forest industry in Canada is reacting to this potential with new products and ideas. According to Statistic Canada, the forestry and logging sector's GDP was estimated to reach CAD 3.87 billion in July 2021.
• With such importance of forestry among the nations across the world, forestry machines sales are expected to grow, which is majorly driven by a recovery in global wood prices, rising Roundwood production, the replacement of older and less productive forestry machinery by logging firms, and the growing focus on forest preservation and management.
• Factors such as rising mechanization rates in the logging sectors of developing nations and the increasing use of cut-to-length logging techniques, which are more machine intensive, in industrialized countries are also contributing to the growth of the market studied.
• To improve productivity, dependence on mechanized methods for forest harvesting increased steadily over the years. High-performance equipment, such as harvesters, can cut a tree from the base, debark it, and cut it into required lengths within a minute.
• Moreover, many companies consider autonomous vehicles for the forestry sector as they provide benefits, such as increased productivity, elimination of the machine operator bottleneck, reduced cost significantly, and support for environmental aspects.
• Automation is expected to aid new dimensions during the forecast period in the forest industry by making the task easy, productive, efficient, and achieving the desired result quickly.
• With the increasing demand for forestry equipment machinery, many vendors are launching new forestry equipment in the market. For instance, in January 2021, the CS-4910, a lightweight 50-cc chainsaw, the CS-7310P, a strong chainsaw alternative, and the CS-2511P, a lightweight chainsaw, have all been introduced to Echo's roster. The company's new saws have more power and professional features than prior versions and are lighter in weight. This enables arborists and landscapers, for example, to complete their tasks more quickly and efficiently.
• Similarly, in May 2021, Doosan Infracore North America LLC introduced two new road builders to its forestry product line: the DX380LL-5 and DX300LL-5. The new models are modified versions of the company's DX380LL-5 and DX300LL-5 log loaders with a road-building kit. They combine the mainframe of a log loader with the boom and arm structure of an excavator.
• In July 2021, AGCO Corporation, a global leader in the design, manufacture, and distribution of agricultural machinery and precision agriculture technology, announced the launch of the Precision Ag Line (PAL) program, a tool designed to streamline support services for farming customers with mixed-fleet operations who use AGCO solutions.
• The COVID-19 pandemic had a significant impact on the forestry industry. The lockdown during the first half of 2020 forced some downstream wood processors to close temporarily. Many forestry equipment vendors faced supply chain disruption due to the lockdown and restricted movements of goods and people during the initial phase of COVID-19, which resulted in the shutdown of the respective sites.

Key Market TrendsIncreasing Automation Will Boost Demand for Forestry Equipment

• To improve productivity, dependance on mechanized methods for forest harvesting has increased steadily over the years. High-performance equipment such as harvesters can cut a tree from the base, debark it and cut into required lengths within a minute span.
• Increasing demand for wood and wood products, abreast of the paradigm shift to mechanized processes for felling forest trees, have significantly upheld the demand for forestry machinery. This, in return, pushes for more automation.
• Moreover, Labor remains the largest overhead in the forest industry at least one-third or more of the total cost in logging operations and a reduced interest in the forest field, the move towards automation is more than fruitful.
• Automation has eased the need for harder-to-fill jobs while lowering operation costs by reducing labor overhead. India's moderately dense forest cover area was over 307 thousand square kilometers in 2021. According to the MoECC (Ministry of Environment, Forest and Climate Change) assessment in 2021, the total forest cover in India was 21.7 percent. The classification of forest cover was based on tree canopy density.
• According to the Forest Survey of India in 2021, In India, the maximum increase in forest cover was witnessed in Andhra Pradesh (647 sq km), followed by Telangana (632 sq km) and Odisha (537 sq km). The government's focus is not to conserve forests quantitatively but to enrich them qualitatively.
• Furthermore, automation will aid new dimensions in the coming years in the forest industry by making the task easy, productive, efficient, and achieving the desired result quickly.

Asia Pacific to be the Fastest Growing Market

• The Asia Pacific will remain the largest region and fastest-growing region during the forecasted period. Moreover, the area is expected to have high demand volumes due to growth in building and construction activities and increasing demand for wood in home furnishing applications.
• Furthermore, the Asia-Pacific has become a significant producer, consumer, and exporter of wood products. Industrial Roundwood production has grown, but demand is rising faster, increasing dependence on imports.
• According to the India State of Forest Report (ISFR 2021), the biennial national forest cover claims a marginal increase of 2,261 square kilometers in the country's total forest and tree cover, unlike in previous years.
• Prepared by the Forest Survey of India (FSI), the ISFR 2021, which was released by the Indian government's Ministry of Environment, Forest and Climate Change (MoEFCC) on January 2022, notes that areas with tree patches, including plantations on the private and community lands, road, rail and canal side plantations, rubber, tea and coffee plantations, etc. are included in the assessment of forest cover.
• According to the Forest Survey of India, in 2021, the total forest and tree cover in India was 80.9 million hectares, which is 24.62% of the country's geographical area; encouraging to note that 17 states/UTs have above 33% of the geographical location under forest cover. Thus the demand for forestry equipment in this region is expected to be higher in the coming years.

Competitive Landscape

The Global Forestry Equipment Market is very competitive in nature. The market is highly concentrated due to the presence of various small and large players. All the major players account for a large share of the market and are focusing on expanding their consumer base across the world. Some of the significant players in the market are John Deere, Komatsu Ltd., Volvo CE, Hitachi Construction Machinery Co. Ltd., Barko Hydraulics LLC., Doosan Infracore, North America LLC., Kesla Oyj, Ponsse Oyj, Rottne Industri AB., and many more. The companies are increasing the market share by forming multiple partnerships, investing in introducing new products, in earning a competitive edge during the forecast period.

• June 2022 - Komatsu acquired Bracke Forest AB, a Swedish manufacturer of attachments for silviculture, to expand the sustainable forestry business and make carbon-neutral contributions. Komatsu concerts efforts in the forestry business as it upholds sustainable forestry, which not only engages in harvesting and forwarding but also includes silviculture and forest management. Komatsu also works to mechanize dangerous work, facilitate broad use of forest machines that contribute to safety, and promote smart forestry that analyzes drone and satellite-based data for managing forests, including the number and height of trees.
• February 2022 - John Deere has acquired full ownership of three Deere-Hitachi joint venture factories and has begun new license and supply agreements with Hitachi Construction Machinery. The former joint venture factories will continue manufacturing Deere-branded construction excavators and forestry equipment.

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