According to a recent study from market research firm Global Market Insights, the earthmoving equipment market is set to grow from its current market value of more than $80 billion to over $91 billion by 2026, gaining remarkable traction over the 2020-2026 period.
The earthmoving equipment market is anticipated to foresee immense growth owing to surging private sector investments in the mining industry, new product launches, and technological advancements. Heavy equipment is usually considered important for construction jobs of nearly any size, from large-scale commercial and civil projects to home buildings. Earthmoving equipment refers to heavy-duty vehicles which are specifically designed for construction operations involving earthworks.
The emergence of advanced products with innovative features are expected to replace traditional machinery over the coming years. For instance, the Japanese multinational company Hitachi announced in September 2020 its next-gen Zaxis-7 large excavators. The ZX890LCH-7, ZX690LCH-7, ZX530LCH-7, and ZX490LCH-7 models have an industry-leading cab with top-class safety and comfort features. Their productivity, reliability, and efficiency further provide users with opportunities to decrease costs and improve profits.
In addition, the use of new technology is anticipated to propel the demand for earthmoving equipment. John Deere, in September 2020, revealed that the 210L and 210L EP tractor loaders are now available with new grade technology options.
With respect to product, the earthmoving equipment market is classified into compaction equipment, backhoe, loaders, excavators, and others. Among these, the compaction equipment segment will witness considerable growth over the coming years. In 2019, the segment held a market share of nearly 7% owing to growth in road construction activities.
In terms of application, the overall earthmoving equipment market is bifurcated into surface mining, underground mining, and construction. Among these, surface mining application segment will witness substantial growth over the coming years. Increasing private sector investments in mining sector will proliferate the adoption of earthmoving equipment.
Additionally, in the mining sector, complex surface mining machines are needed as support in mineral extraction processes. Equipment such as dragline excavators are widely used in surface mining. Other machines used in surface mining include mass excavators, loaders, haul trucks, and shovels.
From a regional frame of reference, the Latin America earthmoving equipment market is likely to witness substantial growth owing to increasing demand for residential construction buildings.
Meanwhile, the COVID-19 outbreak has had a major impact on the global economy and the manufacturing and industrial production as a whole. Governments across the globe had imposed nationwide lockdowns and stringent social distancing measures, making it difficult for the workforce to make their presence felt. However, once the situation is under control, the earthmoving equipment market is likely to bounce back.