Forestry Equipment Market Size, Share & Trends Analysis Report By Product (Extracting, Felling, On-site Processing), By Region (North America, Europe, Asia Pacific, Central & South America, MEA), And Segment Forecasts, 2020 - 2027

Report Overview

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.

Product Insights

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.

Regional Insights

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.

Key Companies & Market Share Insights

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

• Epiroc AB

• Komatsu Ltd.

• Sandvik AB

• LiebherrInternational AG

• Volvo Construction Equipment

Recent Developments

• 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.

Forestry Equipment Market Report Scope

Segments Covered in the Report

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)

  • Felling Equipment

    • Chainsaw

    • Harvester

    • Feller Buncher

  • Extracting Equipment

    • Forwarder

    • Skidder

  • On-Site Processing Equipment

    • Chipper

    • Delimber

  • Other Forestry Equipment

    • Loader

    • Mulcher

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia