LeapZipBlog: Amanpreet's blog: Forestry Machinery Market Showcases Promising Growth during Forecast 2018-2028

Forestry Machinery Market Showcases Promising Growth during Forecast 2018-2028

September 26, 2019 by Amanpreet  

Forestry Machinery Market in Numbers:


        
  • The forestry machinery market registered a CAGR of over 3.5% during the period 2013 to 2017. Sluggish sales of new equipment, and continued use of aging machinery, have tugged on growth of the forestry machinery industry in recent years.

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  • The global forestry machinery market was valued close to US$ 4 Bn in 2018, and is anticipated to grow at a CAGR of 5% through 2028.

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  • Europe is expected to remain the leading as well as high-growth market for forestry machinery. Financial support through the common agricultural policy (CAP) to rural areas, and measures taken by EU countries to fund forestry activities via national development programs continue to underpin sales of forestry machinery in the region.

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  • Integration of GPS machine control systems into the forestry machinery is one of the fast-growing trends, which has led to sustainable operations and real-time tracking & monitoring of the machinery, in turn boosting productivity.



        
  • Forestry Machinery Market: Competitive Assessment

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  • According to Fact.MR study, the forestry machinery landscape continues to witness the consolidation of leading players, who collectively account for nearly 60% market shares. The forestry machinery market remains influenced by region-specific dynamics; for instance, the number of product launches and expansion activities are relatively higher in Europe and North America, owing to the presence of established manufacturers who focus on collaborating with vendors and suppliers in other regional markets, such as East Asia and South Asia, for strengthening their global distribution and footprint.

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  • Sensing the varying demand for forestry machinery by region, stakeholders are taking appropriate measures to tap opportunities existing in respective markets. These players focus on leveraging the growing adoption of on-site processing equipment in Europe, ensued by high mechanization rates, which have driven the demand for skidders, harvesters, and forwarders in the region. On the other hand, adoption of feller bunchers, forwarders, and harvesters in North America is significantly driven by the uptick in roundwood production, rising replacement product sales, and adoption of cut-to-length logging methods.

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  • The study states that success rate for players in the forestry machinery market remains modest in developed markets, wherein ROI is average and competition remains high. On the contrary, developing markets present relatively higher ROI and success rate for players, as adoption of precision forestry and mechanized practices grow, and competition remains comparatively low in these markets.


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Key Growth Determinants of the Forestry Machinery Market

        
  • Growing demand for wood and wood products, abreast the paradigm shift to mechanized processes for felling forest trees, have significantly upheld the demand for forestry machinery. Additionally, policies apropos of afforestation, in lieu of deforestation, have further led the adoption of forestry machinery for ‘thinning’ process that promotes environment sustainability by improving forest health.

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  • Growing food demand worldwide has resulted in aggressive cultivation activities, in turn leading to conversion of forest lands into arable lands. This has further led to adoption of mechanized practices, creating a significant demand for forestry machinery.

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  • Ongoing development plans formulated to boost the forestry industry in key countries, such as China and Indonesia, are further driving demand for relevant solutions, such as forestry machinery, and equipment.

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  • Demand for high productivity in harvesting processes has led to robust adoption of mechanization methods and automation technologies, which in turn has driven sales of forwarders, harvesters and loaders. Forestry machinery manufacturers have developed and introduced machines that are capable of cutting nearly 100 logs per hour.

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  • Growing focus of leading players in the forestry machinery market in new product launches, such as harvester designed for high production applications, demanding operations, and extreme terrain conditions, are expected to augur well for growth of the forestry machinery market in the upcoming years.


Key Challenges in Forestry Machinery Market

        
  • High initial investment continues to remain a key concern among harvesters, which has constrained adoption of new equipment to affluent end-users, while preference remains strong for rental equipment among others.

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  • Forestry machinery are subjected to periodic maintenance for smooth operations, which in turn generates significant overheads and overall rise in the complete project cost. Additionally, the challenges of maintaining international cost competitiveness remains a key concern for forestry machinery vendors.

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  • Compliance to a number of regulatory mandates, which extends the time for approval of product launches in the market, is another key aspect undermining the demand for forestry machinery.



        
  • Forwarders Remain ‘Top-Selling’ Category, Accounting for Over 25% Sales

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  • The study opines that forwarders continue to witness a relatively higher demand compared to other forestry machinery, owing to demand for improved and fast transit of logged woods from forests to stock areas.  Manufacturer efforts to improved worker safety, working efficiency, convenience, and durability of forwarders, are further underpinning their sales. Sales of forwarders currently account for leading shares of the market - upward of 25%, and the status quo is expected to endure in the foreseeable future. . Growing number of contracts between the forestry machinery manufacturers and harvesters, continue to pave opportunities for the market players.


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The forestry machinery market report offers readers with a detailed evaluation of the market with the help of market value and forecasts formulated on the basis of a validated and effective research methodology. The detailed research is based on thoroughly evaluated primary and secondary data by the experienced analysts at Fact.MR, further adding value to the forestry machinery market report. This market study acts as a vital business tool that is an authentic source of information for the businesses looking to expand in the forestry machinery market. The exclusive forestry machinery market insights allow stakeholders to take informed decision and articulate key long-term growth strategies for the growth of their businesses.

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