Undercarriage Components Market

Undercarriage Components Market Outlook (2022-2032)

The global undercarriage components market is set to surpass a valuation of US$ 6,829.6 million in 2022 and further expand at a CAGR of 4.1% to reach US$ 10,173.9 million by the end of 2032.

Sales of undercarriage components accounted for less than 32% of the global undercarriage system market at the end of 2021.

Report Attributes	Details
Undercarriage Components Market Size (2021A)	US$ 6,659.4Million
Estimated Market Value (2022E)	US$ 6,829.6 Million
Forecasted Market Value (2032F)	US$ 10,173.9 Million
Global Market Growth Rate (2022-2032)	4.1% CAGR
North America Market Share (2022)	~ 16.5%
North America Market Value (US$ Mn), 2022	US$ 1,127.8 Million
Europe Market Share (%), 2022	~17.8%
Europe Market Value (US$ Mn), 2022	US$ 1,215 Million
China Market Share (%), 2022	~18.3%
China Market Value (US$ Mn)	US$ 1,247.9 Million
Top 3 country Market Share (%)	~34.3%%
Key Companies Profiled	Caterpillar Inc. Continental AG DBA Group (Berco) Deere & Company DIGBITS Ltd Dozco Pvt. Ltd Gemmo Group Srl Titan International, Inc. Hoe Leong Corporation Ltd. Komatsu Limited

Sales Analysis of Undercarriage Components (2017-2021) Vs. Market Forecast Outlook (2022-2032)

Commercial infrastructure is expected to witness significant growth due to increasing infrastructure activities and urbanization. Construction projects such as the expansion of airports, construction of commercial buildings, growing highway constructions, etc are reinforcing the demand for undercarriage components.

The rising demand for this device in the mining and construction industry has led to manufacturers developing new and advanced products in the market. Technological advances have made undercarriage components more durable and efficient.

The prevalence of counterfeit products has also risen in the market. The low pricing of these products has resulted in increased sales. However, the quality of these products remains questionable. This factor is expected to confine the sales of original products in the coming years.

• Short Term (2022 Q2 to 2025): Increasing demand of the construction and mining industry will enhance the demand for undercarriage components.
• Medium Term (2025-2028): Lowering the prices of the products to counter the counterfeit products will increase the sales of the original products.
• Long Term (2028-2032): Adding more innovation to undercarriage components along with increased emphasis on improving the technology and design of the product will improve its long-term growth in the market.

Over the 2017-2021 historical period, the global undercarriage components market registered a CAGR of -2.1%, and according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 4.1% CAGR between 2022 and 2032.

Market share analysis of undercarriage components based on equipment type and region is provided in a nutshell in the above image. Under the equipment type segment, crawler excavator sub-segment will dominate with 33.3% market share in 2022.

What’s Driving Demand for Undercarriage Components?

“Rental Services Provided by Equipment Manufacturers to Drive the Sales”

With the advent of hybrid & electric equipment as well as stricter emission norms for conventional engine equipment, the cost of new equipment has increased. With tighter project timelines, the need for specialized construction machines such as bulldozers, excavators, and crawlers has increased substantially for executing specific tasks with ease at a faster pace. The construction and industrial equipment market is expected to be valued at somewhere around US$ 36 bn in the U.S. in 2022.

Hence, manufacturers are focusing on providing these services which are increasing the demand for such equipment at a quick pace. This, in turn, enables the manufacturers to maintain the machinery regularly, particularly the undercarriage components which play a crucial role in the equipment. Such rental & leasing services by equipment manufacturers are predicted to drive the growth of the undercarriage components market.

“Increased Government Spending in the Construction Industry to Fuel the Sales of Undercarriage Components”

The increase in government investments in developed and developing countries for projects such as infrastructure development and repair is predicted to drive the growth of the undercarriage components market. The construction industry GVA in the U.K. has reached a valuation of more than US$ 138 billion in 2021. An upsurge in the growth of government spending is expected to propel the demand for heavy machinery, in turn, supporting the growth of undercarriage components.

The growing efforts to build dams, highways, railways, and roads as a part of the initiative to develop smart cities in the fields of mobility and energy, With the pouring investments made by the government, the increase in demand for construction equipment is increasing, and this increase is directly contributing significantly to the undercarriage components market.

What Concerns Should Undercarriage Components Manufacturers Avert?

“Uncertainty in the Mining Industry may Negatively Impact the Undercarriage Components Market”

The increased economic uncertainty and practical constraints of site visits and inspections have led the mining companies to adapt and evolve to automation. Such transition is expected to result in a higher cost of technological advancement, thereby prohibiting the growth as a large number of heavy machinery and construction equipment are used for mining purposes.

This, in turn, will restrain the growth of undercarriage components. Mining end use market share in 2022 is expected to be 24.2%., further it is expected to lose a significant market share by the end of the forecast period.

Further, many miners have experienced a downturn in the global supply chain, uncertainty in the geopolitical landscape, and technological disruptions that are resulting in declining investment in mining activities on a global level. Several stringent government norms related to mining equipment are also posing a challenge to the industry, and this is negatively affecting the sales of undercarriage components globally.

“Presence of Large Number of Counterfeit Products in the Market”

The rising demand for undercarriage components in the construction and mining sector has influenced manufacturers to develop advanced products that satisfy the customer's demands. Due to this, there has been an increase in the price of undercarriage components. In addition to this, there are also the high-maintenance costs.

Due to the high price of genuine products, the market is flooded with counterfeit undercarriage components which are low in quality but also low in price. Due to this, several small-time construction and manufacturing companies prefer these counterfeit products.

Due to a lack of efficient marketing practices, consumers find it difficult to distinguish genuine products from counterfeit products. This factor is likely to confine the sales of original undercarriage components, in turn posing challenges to OEMs and genuine aftermarket players of undercarriage components in the coming years.

Country-wise Insights

How are the Construction Projects in Singapore Influencing Sales of Undercarriage Components?

The Southeast Asia construction equipment market is expected to reach a revenue of US$ 10.7 billion by 2028. Expansion projects such as that of Resorts World Sentosa which is expected to be valued at US$ 3,319 Mn, Jurong Region MRT Line: Package-J113 project is predicted to be valued at US$ 200 Mn.

With such projects in hand, the construction industry is set to see a huge boom in the future and hence the construction equipment will also witness exponential growth since undercarriage components play a major role in the efficient functioning of construction equipment.

How U.S. Undercarriage Components Market Will Perform?

The active mines in the U.S. are valued at about US$ 57 billion in 2020. The mining industry contributed to 3% of the GDP in 2020. The mining industry in the US mines metals like copper, steel, etc, essential metals like gold and silver, and also radioactive ores like uranium.

This industry is one of leading contributor in the US and it plays a significant role in maintaining the country's economy. In North America, the mining sub-segment is expected to have the market share of 21.4% in 2022. Owing to high maturity of the U.S. market, it is expected to continue its dominance over the forecast period.

Category-wise Insights

How is the Increasing Crawler Excavators Sales Positively Impacting the Undercarriage Market?

Excavators are the most widely used instrument type in the construction and mining industry. The machineries are capable of doing all the heavy lifting as well as digging. In 2020, 327,600 excavators were sold worldwide, of this, crawler excavators was one of the leading type of excavator.

In 2022, in the equipment type segment, the crawler excavators sub segment is expected to have a market value of US$ 2,274.5 Mn. These devices are different from the usual excavators and have tracks instead of wheels which enables them to operate efficiently even on uneven surfaces.

The tracks in this make use of undercarriage components and hence with the rising demand of the construction industry worldwide, the need for crawler excavators is expected to increase. Owing to which the volume of crawler excavators manufactured would increase and hence the undercarriage components industry will also witness significant rise.

How is the Aftermarket Services Complementing the Growth of Market?

With the post-pandemic construction industry and mining industry are witnessing V-shape recovery, while the aftermarket sales industry has also witnessed growth. This growth is mainly to keep up with the demands of the customers, since there is the demand-supply gap wherein dynamic demand is posing as potential opportunity for sales in aftermarket. The market value of aftermarket sales channel is predicted to be US$ 3,736.4 Mn in 2022.

Aftermarket in the undercarriage components market is predicted to have a market share of 54.7% in 2022. With regular maintenance and servicing required for the smooth function of these equipment, the aftermarket services need to be dynamic to cater the increasing demand.

Competitive Landscape

Prominent manufacturers of the undercarriage components industry worldwide such as Caterpillar Inc., Continental AG, DBA Group (Berco), Deere & Company, DIGBITS Ltd, Dozco Pvt. Ltd, Gemmo Group Srl, Hitachi Construction Machinery Co., Ltd., Hoe Leong Corporation Ltd., Komatsu Limited, MST, Renomag, ThyssenKrupp AG, Titan International, Inc., Topy Industries Ltd., TRIDENT INTERNATIONAL P LTD., TVH Parts Holding NV, USCO SpA, Verhoeven Group etc are putting emphasis on launching products that are technologically advanced to gain competitive advantage over others. Companies are follow growth strategies such as acquisitions and collaborations with other market players to help improve production capacities, improve market penetration and capture larger market share.

Dorman Products, Inc. acquired Dayton Parts which is a heavy-duty undercarriage aftermarket component supplier in 2021 for the US $338 million. This acquisition will complement the heavy-duty growth strategy of Dorman by helping it add several new undercarriage components products to the market.

On September 15, 2022, National Equipment Dealers LLC (NED) acquired L & N Supply Company, which is a heavy equipment distributor located in Dallas. This will now become the company's 15 location and as a result, will help the company improve its market presence

Fact.MR has provided detailed information about the price points of key manufacturers of undercarriage components positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Undercarriage Components Industry Research

• By Component Type:

  • Track and Carrier Rollers
  • Track Chains
  • Idlers & Sprocket
  • Equalizer Bars
  • Track Shoe/Rubber Tracks
  • Track Adjuster & Recoil
  • Link Assemblies
  • Other Components (Bogies, Track guide, pins & busing, etc)

• By Equipment Type:

  • Excavator
  • Track Loader
  • Dozers
  • Multi Terrain Loaders
  • Crawler Cranes
  • Asphalt Pavers
  • Others

• By End Use:

  • Construction
  • Mining
  • Agriculture & Forestry
  • Landscape & Maintenance
  • Other

• By Sales Channel:

  • OEM
  • Aftermarket

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA