Forestry Machinery Market Insights
The forestry machinery market is anticipated to experience moderate growth during the forecast duration of 2020-2030, at a CAGR of around 5%. The forest products industry is highly integrated with housing, consumer goods, and manufacturing industry, among others. Rapid slowdown in the operations of these industries due to the COVID-19 pandemic is causing volatile demand for forestry products.
This, in turn, is witnessing a marginal decline in the sales of machineries, and has had a severe impact on the expansion of the forestry machinery market size. In addition, declining investments in these sectors is foreseen to have a negative impact during the mid-term forecast.
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Forestry Machinery Market Trends
The forestry machinery market is expected to gain momentum owing to increasing awareness of forest preservation and management in several developed and developing countries. Moreover, the transition of forestry operations from manual work to mechanized and automated mode of operations in forests is likely to propel the demand for forestry machinery during the forecast period. Growing demand for wood and wood products, abreast the paradigm shift to mechanized processes for the felling of forest trees, has significantly upheld the demand for forestry machinery.
Furthermore, manufacturers such as Deere & Company and Tigercat International are focusing on increasing efficiency by integrating telematics and GPS systems for the real-time tracking and monitoring of machinery in order to boost productivity. This, in turn, is expected to fuel the growth of forestry machinery market during the forecast period.
Forestry Machinery Market Insights by Machine
Among all the machine types, forwarders are expected to capture more than 1/4 of the market share in 2020. Demand for improved and fast transit of logged woods from forests to stock areas is expected to result in higher demand for forwarders as compared to other forestry machinery. Moreover, manufacturers’ efforts to improve workers’ safety, efficiency, and convenience, and the durability of forwarders, is underpinning their sales.
In addition, forwarders have the ability to accumulate large payloads, which makes the cost of forwarding economical. This is expected to be a significant segment in the forestry machinery market, which will maintain its dominance over the forecast period, as they have higher productivity and efficiency.
Regional Outlook of Forestry Machinery Market
Europe is likely to continue its dominance in terms of value with 38% of the global forestry machinery market share in 2020. It is expected to remain a leading as well as high-growth market for forestry machinery. Several initiatives by governments, such as 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 the sales of forestry machinery in the region.
Moreover, growth in the construction industry in the region has increased the demand for wooden slabs and pillars, which, in turn, is enhancing the demand for forestry equipment. Further, manufacturers are focusing on developing forestry machinery that reduce fuel consumption and lower the impact of machines on the soil. This, in turn, is encouraging the demand for forestry machinery, which is foreseen to bolster market growth.
Forestry Machinery Market: Competition Analysis
The forestry machinery market is consolidated and highly competitive in nature, as leading players in the market account for a major portion of the share. These market players are concentrating on product launches in order to broaden their market footprints and are entering into contracts to deliver customers with high-efficiency level products.
For instance, in 2020, John Deere expanded the L-Series Wheel Loader lineup with four new utility models - 444L, 644L, 644L Hybrid, and 724L. These newly introduced loaders incorporate redesigned Z-Bar loader linkage, an updated, ergonomically designed cab, electrohydraulic (EH) controls, and a more robust heating, ventilation, and air conditioning (HVAC) system.
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COVID-19 Impact on Forestry Machinery Market
The effects of COVID-19 have been profound in recent times, which is thereby having a significant implication on various sectors. In recent years, the forestry sector has been suffering from climate change-induced damaging agents, which has resulted in significant investments in forest management approaches to keep forests functioning and running. Moreover, the COVID-19 crisis has further caused serious repercussions for the forest-based sector as a whole, in turn, affecting the sales of forestry machinery.
The COVID-19 pandemic has resulted in a slowdown of forest management operations, coupled with decline in wood outlets and interrupted supply chains, as most of the forest products are imported and exported in the log form. These challenges will have major ramifications on the global forestry machinery market.
However, governments across the world have relaxed the restrictions of lockdowns on forestry machinery manufacturers, as they are considered as essential service. Moreover, as part of recovery in the forestry sector, governments are taking efforts to halt deforestation and increasing forest area through investments. Such measures, in the long run, are anticipated to supplement the growth of the forestry machinery market.
The Analyst’s Viewpoint
“As the COVID-19 crisis continues, players operating in the forestry machinery market are facing several challenges, such as supply chain disruptions, production stoppages, and workforce dislocation. With no near-term resolution to the COVID-19-related slowdown in sight, demand for forestry machinery will remain stagnant until the end of 2020.”
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Global Forestry Machinery Market: Scope of the Report
The recent global forestry machinery market report by Fact.MR offers a 10-year forecast from 2020 to 2030. The report elaborates on key drivers, restraints, opportunities, and threats to the expansion of the global forestry machinery market. A detailed segmental analysis, based on machines, 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 forestry machinery 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 the strategies for expansion in the forestry machinery market.
Key Segments of Forestry Machinery Market
- Swing Machines
- Other Forestry Machinery
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa (MEA)
Fact.MR’s study on the forestry machinery market offers information divided into key segments - machine and region. This report offers comprehensive data and information about the important market dynamics and growth parameters associated with these categories.
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Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
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