The global forestry equipment market size was valued at USD 9.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2020 to 2027. The increasing focus on forest management activities coupled with the growing investments across the forestry sector is anticipated to augment the product demand over the forecast period. Various government policies concerning afforestation are resulting in the product adoption for the thinning method that improves forest health by promoting environmental sustainability. Increasing awareness regarding forest preservation and management is thereby anticipated to propel the demand for various forestry equipment, such as forwarders, harvesters, and loaders. Surging Roundwood production across various economies, including the U.S., Canada, China, and Brazil is projected to drive the product demand in the future. Furthermore, robust technological advancements in the logging method along with developments in forest science to improve forest operations that include lowering fire risks and low-impact harvesting are likely to drive the market.
Europe accounted for a significant global revenue share in 2019 and is anticipated to witness moderate growth over the forecast period. Economic support offered by the Common Agricultural Policy (CAP) to the rural region, along with the measures taken by the EU economies to subsidize forestry activities through national development programs, is anticipated to bolster the market growth.
High investment costs, compliance with various regulations while developing new products, and regular maintenance requirements to ensure smooth operations are some of the product limitations. Furthermore, maintaining cost competitiveness in the international market is one of the major restraints to market growth.
Key market players are engaged in developing advanced equipment that offers superior productivity and efficiency in various operations without compromising on quality and safety. The rising focus of the major product manufacturers on new product launches, such as the development of harvesters with superior production applications, extreme terrain conditions, and demanding operators, is likely to drive the market growth.
Felling equipment led the market and accounted for over 36% of the global revenue in 2019. The segment consists of equipment, such as a chainsaw, feller buncher, and harvester. Feller buncher is estimated to be the fastest-growing sub-segment from 2020 to 2027 owing to improved safety and higher production offered as compared to a chainsaw.
Based on product type, the market is majorly categorized as felling, extracting, on-site, and other equipment. The increasing number of contracts between the product manufacturers and the end-users is projected to generate opportunities for the market players, thereby driving the global market.
Extracting equipment include skidder and forwarder. The product segment is anticipated to witness the fastest growth owing to the increasing adoption of equipment that caters to automated technologies as well as highly mechanized methods. Forwarders dominated the global extracting equipment segment due to the rising demand for fast and improved transit of logged woods from forests to supply areas. Other forestry equipment segment includes mulcher and loader.
North America dominated the market and accounted for over 37% of the global revenue in 2019. The region is expected to witness moderate growth over the forecast period owing to the increasing aftermarket sales coupled with changing cut-to-length logging methods in the region.
The rising demand for the forestry equipment in Europe is attributed to the high return-on-investment and success rates in the economies including Germany, the U.K., and France owing to the rise in mechanized practices, low competition, and adoption of precision forestry.
Asia Pacific is anticipated to register the highest CAGR of 4.4% from 2020 to 2027. This growth is attributed to the continuing development plans formulated for boosting the forestry industries in economies including China, India, and Indonesia.
Integration of the GPS control system within the forestry equipment is one of the primary factors boosting productivity by offering real-time tracking and sustainable operations, thereby majorly increasing its demand in North America and Europe. Furthermore, rising demand for wood pellets as feedstock for power plants in developed economies of Europe and North America is anticipated to bolster the market growth.
The market has been witnessing an increasing trend of organic and inorganic growth through expansion and mergers & acquisitions. The companies are trying to increase their sales through acquisition, investment, and innovation. The companies are expanding their capacities to facilitate the respective markets.
The key players adopt various strategies, such as novel product launch, product development, and capacity utilization, to maintain a competitive edge in the international market. Furthermore, the companies are engaged in acquisitions, mergers, collaborations, market expansion, and product diversification strategies to ensure market dominance. Some of the prominent players in the forestry equipment market include:
Hitachi Construction Machinery Co. Ltd.
Deere Construction & Forestry
Volvo Construction Equipment
In June 2023, Volvo CE announced the launch of a new Compact Business Unit in order to maximize the opportunities in the growing compact equipment segment. The new Compact Business Unit will initially be in charge of compact wheel loaders up to the L50 model and compact excavators up to 9 tons.
In June 2022, Komatsu Ltd. signed an agreement to acquire Bracke Forest AB, headquartered in Bräcke, Sweden, through a wholly-owned subsidiary, Komatsu Forest AB. Bracke Forest AB deals in developing, manufacturing, and selling application-specific attachments for silviculture.
Market size value in 2020
USD 9.5 billion
Revenue forecast in 2027
USD 13.0 billion
CAGR of 4.0% from 2020 to 2027
Base year for estimation
2016 - 2018
2020 - 2027
Revenue in USD million and CAGR from 2020 to 2027
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
The U.S.; Canada; Mexico; Germany; The U.K.; France; Italy; China; India; Japan; Australia; Brazil; Argentina; South Africa; Saudi Arabia
Key companies profiled
Hitachi Construction Machinery Co., Ltd.; Deere Construction & Forestry; Epiroc AB; Komatsu Ltd.; Sandvik AB; LiebherrInternational AG; Volvo Construction Equipment
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options
Avail customized purchase options to meet your exact research needs. Explore purchase options
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global forestry equipment market report on the basis of product and region:
Product Outlook (Revenue, USD Million, 2016 - 2027)
On-Site Processing Equipment
Other Forestry Equipment
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Central & South America
Middle East & Africa
b. The global forestry equipment market size was estimated at USD 9.27 billion in 2019 and is expected to reach USD 9.54 billion in 2020.
b. The forestry equipment market is expected to grow at a compound annual growth rate of 4.0% from 2020 to 2027 to reach USD 13.10 billion by 2027.
b. North America dominated the forestry equipment market with a share of 37.1% in 2019, owing to increasing aftermarket sales coupled with changing cut-to-length logging methods in the region.
b. Some of the key players operating in the forestry equipment market include Hitachi Construction Machinery Co., Ltd., Deere Construction & Forestry, Epiroc AB, Komatsu Ltd., Sandvik AB, LiebherrInternational AG, and Volvo Construction Equipment.
b. The key factors that are driving the forestry equipment market include a rising focus on forest management activities, growing investments across the forestry sector, increasing demand for wood & wood products, and alteration to mechanized processes for felling trees.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now
"The quality of research they have done for us has been excellent."