Earthmoving Global Market Report 2021: COVID 19 Impact and Recovery to 2030

Earthmoving Global Market Report 2021: COVID 19 Impact and Recovery to 2030

  • May 2021 •
  • 175 pages •
  • Report ID: 6071818 •
  • Format: PDF
Major players in the earthmoving market are Hyundai Heavy Industries Co. Ltd, J.C. Bamford Excavators Limited, AB Volvo, Doosan Infracore Co. Ltd, SANY America, Liebherr Group, Hitachi Construction Machinery Co. Ltd, Caterpillar Inc, and Komatsu.

The global earthmoving market is expected to grow from $82.75 billion in 2020 to $92.82 billion in 2021 at a compound annual growth rate (CAGR) of 12.2%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $136.07 billion in 2025 at a CAGR of 10%.

The earthmoving market consists of sales of earthmoving machinery by entities (organizations, sole traders, or partnerships) that are engaged in manufacturing earthmoving machinery. Only goods and services traded between entities or sold to end consumers are included.

Major players operating in the market are concentrating on introducing new technological innovations which are gaining popularity over recent years.Companies manufacturing earth moving equipment are focusing on incorporating 5G cellular technology to advance remote operation towards real-time control.

The ultra-low latency of 5G enables systems controlling a vehicle to react sooner, such as during braking or turning, vastly improving safety on the Jobsite.The 5G network also promises to advance artificial intelligence, virtual reality as well as IoT technologies for better remote control and connectivity.

For instance, in 2018, Volvo CE joined Telia’s 5G partner program to test 5G equipped earth moving machines.In 2018, Doosan Infracore, in partnership with LG U+, introduced 5G-based remote control technology called concept- X to boost productivity and economic feasibility.

Moreover, in March 2020, Zoomlion Heavy Industry Science and Technology Co., a Chinese producer of engineering and agricultural equipment launched two G-series hydraulic excavator flagship products the ZE75G and ZE215GLC with 5G technology incorporated.

The earthmoving market covered in this report is segmented by equipment into excavators; loaders; dump trucks; others and by end-user into construction; mining; agriculture & forestry; others.

In March 2020, K-Tec Earthmovers Inc. (K-Tec), a Canadian company that manufactures efficient earthmoving scrapers for construction and mining sites merged with Ashland Industries (Ashland), a manufacturer of earthmoving equipment. The merged company will have manufacturing and service locations in Rosenort, Manitoba, Canada, and Ashland, Wisconsin, United States. The merger allows both companies to offer an extensive product line of earthmoving scrapers in the industry. The combination also expects to provide shorter lead times for customers and accelerated product design and launch. Ashland Industries (Ashland) is a US-based manufacturer of earthmoving equipment for the agricultural, industrial, and construction sectors.

The rising urban population generating higher demand for better infrastructure is expected to propel the earthmoving market over the coming years.The increase in the urban population contributes to the demand for improved and advanced infrastructure.

According to The International Institute for Environment and Development, the world’s urban population has increased from 4.2 billion in 2018 to 4.4 billion in 2020. Furthermore, according to United Nations, Department of Economic and Social Affairs, about 55% of the population lives in urban areas in 2018 and the proportion is expected to reach 68% by the end of 2050. This four-fold growth creates a need for more infrastructure, increased urban developments, and more building activities to accommodate people. Thus, propelling the demand for construction equipment including earthmoving, as these machines are used for land clearing, lifting, and other heavy work.

High capital and maintenance costs associated with earthmoving equipment is expected to hinder the market.Earthmoving equipment is a heavy machine that a company has to invest extensively to purchase it.

For instance, the cost of CAT bulldozers ranges from $250,000 to $2.2 million. The following major expense that the company faces is maintenance, which is the result of the downtime of the equipment on the company. The financial burden increases on the company due to high equipment and maintenance costs. Thus, the high cost of equipment is expected to further limit the growth of the earthmoving market during the forecast period.