Asia/Pacific Market Trends to Boost Global Off-Road Equipment in 2021
CLEVELAND, May 11, 2021 /PRNewswire/ -- A new Freedonia Group analysis projects a strong post-pandemic rebound for the global market for off-road equipment (i.e., construction, agricultural, mining, and forestry machinery) in 2021, with demand expected to rise 5.4% to $439 billion:
- In 2020, the COVID-19 pandemic precipitated a sharp sales decline as demand for off-road equipment plummeted in key end-use industries – particularly construction and mining.
- As the pandemic recedes and revenues strengthen in these industries, however, all major off-road equipment markets are poised to rebound in 2021.
Healthy Growth Expected in All Regions Post Pandemic
In 2021 and beyond, the Asia/Pacific region will continue to drive global sales growth, supported by rebounding construction and rising investment as the pandemic recedes:
- China, Australia, South Korea, and several other countries saw lesser disruption or earlier recoveries than other parts of the world, which will boost advances in 2021.
- Central and South America will register the fastest advances post pandemic, albeit from a smaller base, spurred by rising mechanization rates as more foreign-run firms enter and invest in key local industries.
While North America and Western Europe will contribute to global expansion through 2025, short term growth in these mature markets will continue to be constrained by weak mining output and a protracted recovery in nonresidential construction.
Innovation Key Driver of Long-Term Growth
The Freedonia Group forecasts global demand for off-road equipment to increase 3.8% annually through 2025. Long-term advances will be boosted by rising investment in state-of-the-art technologies designed to help customers improve efficiency and productivity, particularly:
- autonomous equipment and robotics
- fuel efficient and low- or zero-emission equipment
- advanced ergonomics and improved operator comfort
- predictive maintenance, global positioning, drones, and other solutions made capable by advances in the industrial internet of things (IIoT)
Want to Learn More?
Global Off-Road Equipment 2021 is now available from the Freedonia Group. This study analyzes global demand for off-road equipment.
Demand values are provided for 2019, 2020, 2021, and 2025 at the manufacturers' level in current US dollars (i.e., not adjusted to account for inflation). Demand is segmented by equipment type and world region. Data include the value of replacement parts and attachments sold separately. Values do not take into account retail markups. Also excluded are the values of software and services.
Off-road equipment demand is segmented by the following machinery types:
- construction
- agricultural
- mining
- forestry
The study also provides estimates of demand for smart machinery by equipment type. Smart machinery is defined as equipment that can operate autonomously or semi-autonomously and greatly enhance the abilities of the operator by connecting, sharing, and interacting with other devices to make decisions without human intervention.
While demand for drones is presented in the study, it is not included in the equipment demand totals. Also, drones used by government agencies or environmental groups to monitor forested land are excluded from the study.
About the Freedonia Group - The Freedonia Group, a division of MarketResearch.com, is the premier international industrial research company, providing our clients with product analyses, market forecasts, industry trends, and market share information. From one-person consulting firms to global conglomerates, our analysts provide companies with unbiased, reliable industry market research and analysis to help them make important business decisions. With over 100 studies published annually, we support over 90% of the industrial Fortune 500 companies. Find off-the-shelf studies at https://www.freedoniagroup.com/ or contact us for custom research: +1 440.842.2400.
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SOURCE The Freedonia Group
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