Global Off-Highway Equipment Market Size Likely to Grow at a CAGR of 5.2% By 2033

The off-Highway Equipment Market contains varieties of equipment ranging from large trucks for mining purposes to small agricultural machines and various other machineries.   The most used agriculture machineries include tractor, sprayer, field cultivator, shredders, cutters, harvesters, seeders, and planters.

The earth moving equipment are heavy equipment and contain heavy duty vehicles which are especially designed for earthwork constructions and operations purposes. The material handling equipment are used for the movement, storage, control and protection of materials while the mining equipment are used for mining activities.

Off highway equipment like cranes, exacavators, excavators, loaders, tipper trucks are required for the execution of any construction project.  Several trends in the coming years have far reaching impacts on market prospects.  The emergence of digital platforms and service aimed at improving for data improvement. It is more inclined towards providing digital solutions like farm management platforms and smart construction and mining tools being integrated with telematics and onboard devices.

Regional Snapshot

Asia Pacific held dominant position and predicted to be in the dominating during forecast period in Off-Highway Equipment Market.  Among Asia-Pacific, China account for major growth with revenue of  USD 44.0 billion in year 2020 and USD 59.2 billion in the 2021 having Year on year growth of 34.4%.

As the hybridization and electrification have expanded to have underground mining, road and infrastructure applications and is targeting mature market in USA and Europe. The emerging markets in in South East Asia, Commonwealth of Independent States, India and Australia are having huge demand of used equipment and can be a hub for remanufacturing center.

Market Dynamics

Drivers

The infrastructure development is registered as key economic driver which is experiencing intense government involvement with extra focus which has accelerated the demand for construction off-highway equipment. Over the years the market is predicted to experience a surge due to high need of modernization of power, roads and urban infrastructure segments.

As countries are spending trillion dollars budgets for modernization of their creaking infrastructure the demand of construction and earthmoving equipment have been boosted up. Off-highway equipment are the basic requirement of all the projects related various verticals.

Demand across various verticals: The era of modernization of old infrastructure have reported the projection of demand of various equipment market and research also suggest the expected continued buoyancy in the market. The Earth moving equipment is the largest segment of the construction equipment sector.

Push towards mechanization:  The   mining sector is presently making a great push towards mechanization   which in turn churning up robust demand for mining excavators with higher capacities. The next five years will observe a robust growth due to upcoming EPC projects, mining, and real estate. Demand for equipment like  excavator will be on line.

Sustainable demand in developing countries:  Most category of Off-Highway Equipment , some of the equipment are having sustainable demand in developing countries like India, Albania, Cambodia, Bhutan etc due to the process of modernization. Equipment like wheeled loaders  are  mostly demanded in infra verticals but  backhoe loaders  dominates the off-highway segment.

 Modernization of  infrastructure: The renewed vigor in the industrial construction and economic activity had supported the growth in demand for all minerals like ore , coal , iron bauxite which have increased the demand of mining equipment along with construction equipment.

Demand of Electric Off-Highway Equipment : The rising consumer awareness  regarding the air pollution and high demand for low noise equipment have driven the demand for electric off-highway equipment.  Most of the key players are using the latest technology for making the equipment environment friendly and also to have sustainability in the market in response to the need of lowered carbon emission.

Strategic partnership between OEMs (Original equipment manufacturers) and the service provider: The partnership between OEMs, suppliers and service provider have been a recurring theme after COVID-19 breakdown. The year 2021 has bought lots of partnership announcement made by Off – highway OEMS.  Most of these collaboration are motivated by equipment electrification, digitization and automation.

Restraints:

The COVID-19 outbreaks has initiated the supply chain disruption across the whole World resulting in shortage of, many things like semiconductors which serves as  raw material for Off-Highway Equipment. There are lots of order delay and backlogs which have resulted in slower revenue growth.

New off-highway equipment design:  The steps towards more autonomous operations and the allied push for machine optimization and efficiency are leading to changes in off highway equipment designs.  The innovation in off highway equipment are not well understood and carried by the people associated with it. There is lack of understanding of handling of new technologies and trained professionals.

Off-Highway equipment Electrification: The new challenge emerging for the manufacturers are the reduction of dependency on diesel fuel and moving to lower emission technologies while continuing to supply the performance of the equipment according to customer expectation.

Opportunities:

The opportunity for the off-highway market lies in the requirements of developing countries who are on the way of development. The era of digitization and modernization have generated a huge demand in developing countries foe off-highway equipment as they are seeking updates and developments.

Challenges:

Off-Highway equipment Electrification: The new challenge emerging for the manufacturers are the reduction of dependency on diesel fuel and moving to lower emission technologies while continuing to supply the performance of the equipment according to customer expectation.

Report Scope

Report highlights.

On the basin of off-highway equipment type,  the internal combustion engine equipment hold the dominant position, although  under  emission regulation ,  the clean and energy technologies are limited in numbers despite the considerable evolution.

The clean energy solution which are available for off highway applications may it be  natural gas , battery –electric, or hydrogen fueled cell system foe selected machines like forklifts or backhoe loaders are considered as interim option  by the end users , until a much potent and re4liable technology emerges for large scale commercial use.

On the basis of region, the most dominating region in the off-highway equipment market is China and after that Europe, USA and India are in the que. USA having Year on year growth of 32.3% , Europe  having Year on year growth of 30.6% , China  having year on year growth of 34.4%  and India having year on year growth of 29.7% .

Recent developments:

The increased government initiatives for emission reduction the electric off-highway equipment are privileged . The off-highway equipment are experiencing the infusion of smart technologies. The L & T  Technology services have combined rich domain of expertise and decades of experience working with the leading brands in the Trucks and off-highway segment to address customer requirement.

Key Market players in the Off Highway Equipment market:

• AB Volvo
• AGCO Corporation
• Caterpillar Inc.
• CLASS KGaA mbH
• CNH Industrial N.V
• Deere and Company
• Doosan Corporation
• Hitachi Ltd
• KOBELCO Construction Machinery Co. Ltd
• Komatsu Ltd
• Mahindra and Mahindra Limited Sany Heavy Industry Co. Ltd
• Xuzhou Construction Machinery Group Co. Ltd
• Zoomlion Heavy Industry Science and Technology Co. Ltd
• Joseph Cyril Bamford Excavators Ltd.
• Others

Segment Covered in the report

By Product Type

• Excavators
• Loaders
• Tippers
• Electric Off-Highway Equipment

By Powertrain

• ICE
• Electric
• Hybrid

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• France
• The UK
• Spain
• Germany
• Italy
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America