Excavator Market Size, Share & Trends Analysis Report By Product (Crawler, Wheeled, Mini/Compact), By Application (Construction), By Region, Competitive Landscape, And Segment Forecasts, 2018 - 2025

Industry Insights

The global excavator market size was valued at USD 37.29 billion in 2016. The industry has witnessed substantial growth owing to rising investments in the construction sector, particularly in emerging countries including India, China, and South Korea. Excavators are hydraulic equipment that consist of a house and undercarriage with a bucket attached to its arm.

Upswing in the number of large-scale projects in the mining, road and port construction, and oil and gas construction sectors have led to a surge in demand for excavators on a global level. Emergence of concept of excavator rentals is another major driving factor as it enables operators and manufacturers to utilize equipment without heavy capital investments and make maximum utilization of the equipment.

Technology-enabled excavators are more efficient than traditional equipment as they save time and provide information to service centers in case of any malfunction or operational drawbacks. Owing to stringent regulations related to emission control, equipment manufacturers are developing environment-friendly equipment.

Some of the key roadblocks in the upward climb of the market are high maintenance cost, continuous technical support, and stringent emission norms. The foremost function of manufacturers is to build efficient and technologically-advanced equipment, which fulfills the norms and caters to needs of end users.

Mini/compact excavators accounted for USD 7.76 billion in 2016. These excavators are expected to lose market share over the coming years. Crawlers and mini/compact excavators are widely popular in the U.S. due to their strong demand in the residential sector. However, heightened demand for excavators by the rental and energy development industries is estimated to lower the demand for new equipment over the forecast period.

EPA emission regulations that came to effect on January 1, 2012 require new machines built to be equipped with Tier 4 interim engines. Wheeled excavators are a niche segment in the American region as wheelers are used for operations on urban environment for excavating, lifting, and renovating buildings and infrastructure, whereas American contractors require equipment to work on rough land.

Product Insights

Demand for wheeled excavators is anticipated to rise at the highest CAGR of 6.5% during the forecast period. Easy mobility of wheeled excavators from one place to another and stability due to weight of their undercarriage helps them to work more efficiently. This factor is, therefore, likely to supplement the growth of the market.

Mini excavators have an operating range of 0.75 ton to 10 ton and are used for light construction work, agriculture, forestry work, and small demolitions. It is useful for many small-to-medium sized operations. Other excavators are used to perform specific functions. Such as long reach is used for dredging, dragline is used for mining and construction work, and bucketwheel is used for surface mining.

Application Insights

On the basis of application, the construction segment is projected to exhibit a CAGR of 8.1% over the forecast period. Road projects and initiatives taken by governments worldwide is poised to stir up the demand of excavators. Increasing urbanization and industrialization is leading to rise in construction activities and subsequently, upsurge in demand for excavators.

Other activities including mining, utility, and agriculture. Investments in the mining sector and various sports and cultural events such as Summer Olympics, Commonwealth Games, and Winter Olympics are expected to contribute to the growth of the excavator market.

Regional Insights

From a geographical front, the report reviews markets in North America, Asia Pacific, Middle East and Africa, Europe, and Latin America. The Asia Pacific market was valued at USD 19.07 billion in 2016. Improving economic conditions and rapid infrastructure development in emerging economies such as China, India, and South Korea are fostering the construction industry.

The market in developed countries is estimated to register relatively sluggish growth over the coming years. There has been a decline in construction activities in North America and Europe in recent times with low investments in infrastructure expansion, which in turn can hamper growth prospects.

Excavator Market Share Insights

The global market is highly competitive in nature. Key industry competitors include Caterpillar, Komatsu, Liebherr, Hitachi, John Deere, and Kobelco. Excavator manufacturers are using strategies such as rentals, partnership with component providers, and investments in research & development to broaden their product portfolio. For instance, in 2016, Caterpillar Inc. launched a strategic alliance with Ritchie Bros for onsite and offsite auction of used Cat equipment.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global excavator market report on the basis of product, application, and region:

• Application Outlook (Revenue, USD Billion, 2014 - 2025)

  • Construction

  • Others

• Product Outlook (Revenue, USD Billion, 2014 - 2025)

  • Crawler

  • Wheeled

  • Mini/Compact

  • Others

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • France

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa