The global forestry equipment market is expected to grow over the forecast period on account of the increasing focus by the forestry industry on improving the quantity and quality of the yield. In addition, the adoption of silviculture by the forest owners, foresters, and government authorities’ aids in inculcating forest management plans for the long-term environmental, social, and economic needs of the end-users.
Increasing the production of round wood is anticipated to augment the demand for forestry equipment over the forecast period. Furthermore, rapid technological developments in logging methods along with advancements in forest science for improving forest operations such as low-impact harvesting and lowering fire risks are expected to bolster the demand for forestry equipment globally.
Furthermore, rising awareness regarding forest management and preservation is likely to have a positive impact on the demand for forestry equipment market over the forecast period. Similarly, rapid growth in the demand for wood and wood-based products has resulted in the need for mechanized felling of trees, thereby creating opportunities for forestry equipment.
The major factors driving the market growth include technological advancements in the equipment by the manufacturers, the growth it the mechanization rates in the emerging economies of Asia Pacific region, and changing logging methods related to cut-to-length techniques. Furthermore, modernization in the manufacturing and machinery industry is expected to have a positive impact on market growth.
Rising awareness regarding environmental sustainability has resulted in boosting the regulations and policies related to deforestation. This, in turn, is projected to impact the demand for forestry equipment positively, owing to its ability of thinning, which is considered environment-friendly and permitted by law in various countries.
Rapid population explosion in the last few years has resulted in the rising demand for food, leading to the conversion of forest lands into arable lands for cultivation. This, in turn, is anticipated to boost the demand for mechanized techniques of forest cutting, thereby propelling the forestry equipment market growth.
The emergence of online stores providing forestry equipment, increasing government investments in the construction and infrastructure industry, and availability of the forestry machinery on rent are projected to drive the market growth. Furthermore, rising incidences of rehabilitation and upgradation of forests in the Asia Pacific is anticipated to impact the forestry equipment market growth positively.
However, the parameters hindering the market growth include high investment cost, the requirement of periodic maintenance for ensuring smooth operations, and compliance with numerous regulations making the new product development difficult for the market players. Maintenance of international cost competitiveness is anticipated to restrain market growth.
The forestry equipment market can be segmented on the basis of equipment type into felling, extracting, on-site processing, cutting & loading, and other equipment. The felling equipment includes feller bunchers, harvesters, and chainsaws, whereas extraction equipment consists of shovel loggers, farm tractors, cable yarding systems, and skidders.
Rising adoption of on-site processing machinery, including slashers, delimbers, grinders, and chippers in Europe on account of high mechanization rates, is likely to boost the product demand in the region. In addition, rising demand for wood pellets as power plant feedstock in the developed regions of North America and Europe is anticipated to propel the market growth.
The growing lumber-related activities in North America and Europe are likely to have a positive impact on market growth. The rising adoption of automation technologies and mechanization methods is likely to propel the need for loaders, harvesters, and forwarders. The development of machines having a high efficiency of cutting around 100 logs per hour is expected to impact the drive market growth.
The increasing demand for high-quality pine and other types of furniture-specific woods is one of the primary drivers for lumber in the two regions. In addition, the demand for hardwood floors and the use of wooden slabs and pillars in the construction industry is also likely to complement market growth. This, in turn, is expected to have a positive impact on the demand for the forestry equipment market.
Increasing aftermarket sales in North America, coupled with changing cut-to-length logging methods are anticipated to boost the market growth. High success rates and return-on-investment in the developing economies on account of low competition, increase in mechanized practices, and adoption of precision forestry are expected to provide avenues for expansion to the global market players in these regions.
Major market players are investing in research & development activities for developing modern forestry machinery having the ability to boost productivity and efficiency in various forestry operations without obstructing safety and quality. In addition, increasing the focus of the significant players on new product development including designing harvester for boosting production, application in adverse terrain conditions, and boosting efficiency are anticipated to aid the manufacturers in obtaining a significant share in the forestry machinery market.
The companies engaged in manufacturing forestry equipment include Caterpillar Inc., Deere & Company, Claas KGaA, Komatsu Ltd., Barko Hydraulics LLC, AB Volvo, Doosan Infracore Co. Ltd, J.C. Bamford Excavators Limited, CNH Industrial N.V., Hyundai Heavy Industries Co. Ltd, Bell Equipment, Doosan Infracore Co. Ltd, and Sumitomo Heavy Industries.
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The global construction industry once booming due to the residential and commercial construction in China and the U.S., has been affected by the suspension of the construction activities across the impacted economies. The construction industry in the U.S. is expected to take a major hit due to labor shortages and the lockdown imposed by the government during COVID-19, which is expected to be aggravated by the resulting supply chain issues and financing pressures due to the non-adherence to the completion times. The report will account for Covid19 as a key market contributor.