Undercarriage Components Market Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2020 to 2030

Undercarriage Components Market Insights

The undercarriage components market is poised to expand 1.4X in terms of value over the forecast period. However, the COVID-19 outbreak is having a negative impact on the global undercarriage components market due to the closure of manufacturing plants in various countries. Moreover, this has also impacted the demand for construction equipment, significantly, which will result in a drop in demand for undercarriage components in the near-term forecast. However, manufacturers are optimistic that recovery in demand for construction equipment such as crawler excavators, dozers, compact track loaders, and crawler cranes is anticipated to trigger the use of undercarriage components, consequently leading to the expansion of the undercarriage components market size in the years ahead.

Undercarriage Components Market Trends

Commercial infrastructure is expected to witness significant growth on the back of increasing infrastructure activities and urbanization. Rising construction projects such as expansion of airports, construction of commercial buildings, growing highway constructions, road extensions, and residential projects have further pushed the demand for heavy machinery, in turn, reinforcing the demand for undercarriage components during the period of assessment.

Rising demand for undercarriage components in the construction and mining industry has influenced manufacturers to develop advanced products. Technological advances in the manufacturing and design of undercarriage components have enhanced their durability and efficiency. However, this has resulted in an increase in the pricing of undercarriage components, along with high maintenance costs. Against this backdrop, the prevalence of counterfeit undercarriage components has significantly risen, in turn, challenging the growth of the market. Low pricing of counterfeit undercarriage components has resulted in a substantial surge in their sales. However, quality concerns associated with counterfeit undercarriage components remain questionable in terms of future adoption. This factor is likely to confine the sales of original undercarriage components, in turn, posing challenges to OEMs and genuine retailers of in the coming years.

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Undercarriage Components Market Insights by Equipment

Undercarriage components for crawler excavators are foreseen to dominate the equipment segment, and are estimated to account for more than 33% of the total market share in 2020. Rising focus on the development of high value service industries coupled with increasing pace of economic diversification has presented potential growth opportunities for earth moving equipment such as crawler excavators. These are increasingly being used for digging land and clearing rocks and sand on construction sites. Crawler excavators are utilized for attempting highly complex construction operations, owing to which, the utilization of undercarriage component by crawler excavators is foreseen to maintain its dominance over the forecast duration.

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Regional Outlook of Undercarriage Components Market

Collectively, East and South Asia are estimated to dominate the undercarriage components market share, with 46% of the market share, followed by Europe. Furthermore, rising commercial infrastructure activities in Middle Eastern and African countries backed by significant investments in this sector are likely to significantly boost demand for earth moving equipment in the coming years. This factor is expected to bolster the adoption of undercarriage components, given their increasing use in equipment such as crawler excavators and dozers used in commercial infrastructure, in turn, pushing the growth of the undercarriage components market. In addition, considerable demand for construction equipment in North America is likely to bolster the demand for undercarriage components during the forecast period.

Undercarriage Components Market Manufacturer Insights

The undercarriage components market is majorly dominated by Caterpillar Inc., Deere & Company, ThyssenKrupp AG, AB Volvo, Komatsu Ltd., and Hitachi Construction Machinery. However, there is a large number of local and regional players present in the global undercarriage components market. These market players are concentrating on launching new and efficient construction equipment in order to broaden their market footprints in the global construction equipment market, which will improve their market position in the global undercarriage components market. For instance, in 2020, Caterpillar Inc. launched its new D7 Dozer, which offers high drive undercarriage design, increased performance, and broadest choice of easy-to-use technology features. D7 moves up to 8 percent more material per hour than D7E, with around 6 percent more weight and 12 percent more horsepower. In 2020, the company introduced a complete set of undercarriage parts for the 200 ton mining excavator PC2000-8. The set includes front idlers, tracks, and carrier rollers, which feature with high wear resistant Boron steel that enables to optimize cost per hour.

COVID-19 Impact on Undercarriage Components Market

The COVID-19 pandemic has brought about several changes for construction equipment manufacturers, and the industry as a whole. Manufacturers have temporarily shut down their plants, and the demand for undercarriage components is witnessing a downturn. The pandemic has also restricted the movement of goods from one place to another leading to disruptions in the supply chain. Furthermore, the market is continuing to fluctuate as the sales of new equipment have come to a standstill. This is impacting the growth of the market, as undercarriage components sales are contingent to the sales of construction equipment.

Moreover, companies are witnessing a decline in their revenues, which is also affecting production activity due to the high investment nature of the industry. This is likely to negatively impact the sales of new undercarriage components, owing to lower demand for new machines, in turn, limiting the growth of the undercarriage components market. As per the report published by Fact.MR, it is estimated that, the undercarriage components market will start showing positive signs by the second quarter of 2021.

The Analyst’s Viewpoint

“The ongoing COVID-19 pandemic has hit market players adversely on the supply side, causing declining sales of undercarriage components. However, the recovery of the global construction and mining sector, post pandemic, is foreseen to open new growth avenues for the undercarriage components market.”

Global Undercarriage Components Market: Scope of the Report

The recent global undercarriage components market report by Fact.MR offers a 10-year forecast from 2020 to 2030. The report elaborates on the key drivers, restraints, opportunities, and threats to the expansion of the global undercarriage components market. A detailed segmental analysis based on component type, equipment, end use, sales channel, and region has been provided in the report.

Regional analysis in terms of supply chain analysis, business execution, and market value analysis provides an in-depth perspective about the future scope of the global undercarriage components market. In addition, a separate section on the market structure has also been provided. The section provides a detailed analysis of key market players and strategies for expansion in the undercarriage components market space.