The global excavators market size is anticipated to register considerable growth, exhibiting a CAGR of 5.2% from 2023 to 2033. According to the research report published by FMI, the market is likely to hit a valuation of USD 74.27 billion in 2023 and USD 123.30 billion by 2033. The globally rising construction activities across developing and developed nations are anticipated to be a key growth-driving factor.
Furthermore, the launch of electric excavators and mini excavators with cutting-edge technologies is predicted to create investment opportunities in the market.
Excavators are usually deployed in small-scale construction activities, agriculture, forestry, and others. They are also used in mining and sewage disposal applications. Excavators can be used in the excavation of various soil. There is an array of extensive activities that can be performed by excavators in these applications.
The underdeveloped and developing nations are witnessing a growth in smart infrastructure projects. The rising income levels and increasing real estate investments are likely to boost demand for hydraulic excavators for construction activities. The globally increasing numbers of mining, port, roads, oil and gas projects, and others are expected to boost product demand.
Excavator machines are experiencing technological evolution and electrification. Technology-equipped excavators are effective and efficient when compared to conventional excavators. Thus, the modernization of excavators is likely to flourish in growth prospects for manufacturers. The development of excavators that comply with emission norms and eco-friendly machinery is anticipated to bode well for excavator manufacturers.
Product innovations and technological advancements are rising. The adoption of automated excavators is likely to augment in the coming years. Automated excavators comprise robotic components that can be easily installed on any excavator. This process converts its controls from manual to robotic, thereby optimizing the overall process. Though self-driving excavators require human supervision, their automation saves significant labor costs in large construction projects.
Attributes | Details |
---|---|
Excavators Market Share (2022) | USD 70.6 billion |
Excavators Market Share (2023) | USD 74.27 billion |
Excavators Market Share (2033) | USD 123.30 |
Excavators Market Share (2023 to 2033) | 5.2% |
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Sales are increasing substantially every year. In 2018, the global market size stood at nearly USD 57.64 billion. In the following years, from 2018 to 2022, the market registered considerable growth, accounting for a worth of USD 70.6 billion.
The global population is rapidly expanding. The growing urbanization in developing and developed nations is fueling construction activities. As a result, the demand for heavy-duty equipment in the construction industry is rising. The heavy construction equipment market is expanding, creating lucrative growth opportunities for excavator manufacturers.
The increasing government initiatives and budget allocations toward the construction of smart cities are anticipated to foster market development. The implementation of stringent emission regulations and encouraging the use of eco-friendly machinery are likely to establish profitable growth possibilities.
The increasing industrialization and urbanization are resulting in increasing construction activities, spurring the demand for excavators. During the forecast period, the infrastructure and residential construction activities are predicted to surge, thereby fueling excavators’ demand. Furthermore, the extensive product usage in the restoration, upkeep, and construction of the gas pipeline and electric transmission networks is slated to escalate market expansion.
According to segmentation based on type, the wheeled excavator segment is anticipated to acquire swift growth during the forecast period. This segment accounted for a revenue of nearly 72.6% in 2022. Wheeled excavators can move large quantities of debris faster and safer. The easy movement attribute of wheeled excavators is expected to propel their demand. The rising demand from end-use industries is projected to uptick product demand. Additionally, the increasing investments in housing projects and infrastructure are expected to uptick the demand for excavators.
Throughout the forecast period, the demand for crawler excavators is expected to grow at a CAGR of 5.7%. Because of their lightweight undercarriage and ease of movement between locations, crawler excavators have more stability and can complete tasks more quickly. The market for crawler excavators is also anticipated to grow as a result of technological advancements such as more powerful air-to-water intercooler engines.
The excavators weighing above 46 metric tons are large and powerful excavators. They are deployed in excavating large quantities of earth. Large excavators find applications in digging foundations for residential buildings, malls, and civil engineering projects. They are a long-term investment that can handle substantial excavation activities with ease. The excavators weighing 46 > metric tons captured a massive 35% market share in 2022.
The excavators weighing < 10 metric tons are expected to witness a demand surge in coming years. The segment expansion is propelling due to the rising use of mini excavators. Mini excavators have almost zero tail-swing, enabling operations in closed or tight locations. They are easy to carry and transport. Mini excavators find application across several activities, including laying gas pipelines, plumbing, digging trenches, and others.
According to the engine capacity segmentation, excavators with up to 250 HP registered a huge market share of nearly 70% in 2022. This segment is predicted to exhibit a CAGR of approximately 5.8% from 2023 to 2033. The rising product application in residential and commercial construction activities is a significant factor driving market growth. The growing construction activities of highways, ports, and others are likely to aid market expansion. Furthermore, the growing adoption of automated excavators to reduce labor costs and track remote operations is anticipated to foster segment expansion.
The electric drive type segment is poised to expand, exhibiting a CAGR of 14.5% during the forecast period. The growth can be attributed to the surging demand for compact excavators. Nations such as China, India, and others are implementing stringent measures to achieve net-zero emissions. Such initiatives are expected to fuel the demand for electric excavators. Furthermore, the electrification of drivetrains to reduce carbon emissions is likely to contribute to product sales.
Asia Pacific held the lion’s share, with a revenue of more than 41% in 2022. The region is likely to register a CAGR of 5.8% from 2023 to 2033. The improving income levels and urbanization are boosting the region’s construction activities. The rising infrastructure development and construction of smart cities in nations such as South Korea, India, Japan, and China are expected to escalate excavators’ demand. Furthermore, the increasing mining activities in Vietnam, Thailand, and China are predicted to boost product sales.
The presence of key market players and their growth strategies to expand their business are anticipated to foster the market growth in Asia Pacific. The rising investments in megaprojects across developing nations are anticipated to bolster market development. Recently, the arch of the world’s tallest rail bridge was completed. The Chenab Bridge in India is a railway project that is expected to cost nearly USD 62 million.
Construction activities in developed countries are gradually declining. The increased competition and high construction rates are the primary reasons for this sluggish growth. The construction industry is heavily reliant on the supply of aluminum, copper, steel, and others. The rising prices of construction materials and interest rate hikes are likely to result in diminishing market growth. Nonetheless, the increasing investments in construction technology are likely to create growth avenues for manufacturers in the coming years. Furthermore, the rising demand for new housing units is anticipated to unravel new growth opportunities for the market.
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The key players operating in the market are emphasizing the development of advanced products. They are incorporating cutting-edge technologies such as the Internet of Things, Machine Learning, and automation technologies to launch avant-garde product offerings. Besides this, the market players are engaging in expansion, mergers, acquisitions, and other strategies to maximize their revenues. They are adopting ingenious strategies to reduce their carbon footprint and adhere to emission norms.
Excavator manufacturers are increasing their product lines through strategies like rentals, partnerships with component suppliers, and research and development expenditures.
Startups are entering the market with advanced products, which are likely to flourish in market growth. For instance, Built Robotics is a budding startup that creates fully autonomous construction vehicles using Artificial Intelligence. The company’s Artificial Intelligence-based Guidance Systems turn conventional construction equipment, such as excavators and dozers, into autonomous robots. The vehicle is equipped with a geo-fence and sensors that protect the vehicle and people from harm.
The electric drive segment contributes a share of 70% of total production.
The wheeled segment holds a CAGR of 5.7% in the global excavators market.
The global excavators market secured a valuation of USD 57.64 billion in 2018.
Rising construction activities are the key trends in the global excavators market.
Growing innovations and huge investments in China have increased the demand.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Weight 5.1. <10 5.2. 11 to 45 5.3. 46> 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Engine Capacity 6.1. Up to 250 HP 6.2. 250-500 HP 6.3. More than 500 HP 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type 7.1. Wheel 7.2. Crawler 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Drive Type 8.1. Electric 8.2. ICE 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Atlas Copco 17.2. Caterpillar Inc. 17.3. CNH Global NV 17.4. Terex Corporation 17.5. Volvo Construction Equipment AB 17.6. Hitachi Construction Machinery 17.7. Hyundai Heavy Industries Ltd 17.8. JC Bamford Ltd. 17.9. Sany Heavy Industries Co Ltd. 17.10. Sumitomo Heavy Industries Ltd 17.11. Komatsu Ltd. 17.12. Liebherr-International AG 18. Assumptions & Acronyms Used 19. Research Methodology
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