Global Forestry Equipment Market Report: Demand in Unit Terms is Forecast to Climb 1.1% Annually to 3.1 Million Units in 2027

DUBLIN, Jan. 9, 2024 /PRNewswire/ -- The "Global Forestry Equipment Market Report" has been added to  ResearchAndMarkets.com's offering.

Global forestry equipment demand is projected to expand 4% annually to $10.8 billion in 2027, an improvement over the 2017-2022 performance. Demand in unit terms (excluding parts and attachments) is expected to climb 1.1% per year to 3.1 million units in 2027. Because the global forestry equipment market experienced significant volatility between 2019 and 2023, most product segments have favorable growth prospects through 2027. A number of trends - such as technological innovation and the growing use of more mechanized logging techniques in developing markets - will fuel growth in multiple segments.

Mechanization affects demand globally and varies from country to country. While mechanization is an ongoing and accelerating process in the developing world, a sizable share of the global logging industry uses manual logging methods. Mechanization is a major opportunity for growth, especially in the developing world where equipment sales rise from a low base. However, lack of financial resources and knowledge about higher value logging will continue to prevent more widespread adoption of higher value machinery to an extent.

Within individual categories, rising demand for newer and increasingly sophisticated models that cost more is consistent among all products. However, some segments will benefit to a somewhat lesser extent, most notably chainsaws, which feature less room for improvement and which tend to be a commodity-like product. Furthermore, demand for all products will be supported by new regulations (e.g., emissions regulations, technical standards) that mandate the purchase of new equipment to meet these requirements. The growing use of most types of forestry equipment will stimulate sales of numerous attachments and parts worldwide.

The US and Canada will account for 31% of absolute gains through 2027, the largest share of any region. Forestry operations in the area will boost output in response to improving conditions in the manufacturing and construction sectors and high e-commerce activity. They will also continue to benefit from sanctions imposed on Russia and counter-sanctions imposed by Russia in the near term. Finally, forestry companies in the US and Canada will increase their use of newly developed, state-of-the-art forestry equipment as they confront a variety of workforce issues and cope with increasing competition from abroad and the adoption of new regulations. However, they will have to cope with a variety of challenges, such as infestations, climate change, wildfires, and mill closures.

This study analyzes the $9 billion global forestry equipment market. It provides supply and demand figures for 2012, 2017, and 2022, and forecasts for 2027 and 2032, as well as annual data for the 2019-2026 period and historical forestry equipment demand charts for the 2000-2022 period for all countries. 

In addition, this study offers a competitive analysis of industry leaders and provides market share for 23 key manufacturers including Caterpillar, CNH Industrial, Deere, Eco Log Sweden, Hitachi Construction Machinery, Kesla, Komatsu, Makita, Minsk Tractor Works, Oregon Tool, Ponsse, Rottne Industri, SENNEBOGEN, STIHL, Sumitomo Heavy Industries, Tigercat Industries, Volvo, Weiler Forestry, and Yamabiko.

Historical Market Trends

Global demand for forestry equipment tends to be quite cyclical because of multiple factors, including:

• The large amount of forestry equipment in use worldwide
• Product demand being heavily concentrated in mature markets, such as Australia, Canada, New Zealand, the US, and Western Europe
• The high forestry sector mechanization rates of Brazil and Russia relative to other developing nations
• The intensive use of forestry equipment (often exacerbated by difficult conditions and/or climates) by logging operations, meaning these machines must be regularly replaced

Myriad factors impact spending on forestry machines, attachments, and parts around the world. Among the most important are changes in the incomes of forestry operations, which directly affects their expenditures. This is particularly important for small and mid-sized operations that are unable to finance major equipment purchases and technology investments. The financial positions of forestry companies are largely determined by levels of output, wood prices, labor and material costs, borrowing costs, and related factors. New government regulations targeting forestry activity can also influence the profitability of logging operations, as can government programs designed to bolster the forestry sector.

At the macro level, forestry activity in a given country is impacted by:

• Macroeconomic factors such as GDP and fixed investment spending
• Availability of large amounts of forested land (that is also concentrated enough to make logging profitable)
• A shift from manual to machinery-intensive logging techniques and degree of forestry sector mechanization
• Fires, weather (including extreme weather events such as drought), flooding and cyclones, and pests targeting trees
• The nation's regulatory framework for the forestry sector and enforcement practices
• Environmental concerns and those involving illegal logging and the destruction of forests (e.g., Brazil) at home and abroad
• Access to capital
• Government support for forestry activities and regulatory changes

Key Topics Covered:

1. Executive Summary

2. Short-Term Analysis

• Economic Forecast
• Short-Term Forestry Industry Outlook
• Short-Term Forestry Equipment Trends

3. Overview

4. Factors Impacting Forestry Equipment Demand

• Global Forested Land
• Global Roundwood Production
• Harvesting Methods in Use
• Wood Prices
• Regulations
• Worker & Product Safety
• Emissions
• Sustainability Initiatives
• Deforestation & Illegal Logging
• Forest Management & Sustainable Harvesting
• Biolubricants
• Wildfires & the Impact of Climate Change
• Technology & Innovation
• Competition from Used, Remanufactured, & Leased Machinery

5. Felling Equipment

• Chainsaws
• Harvesters
• Feller Bunchers & Other Felling Equipment

6. Extracting Equipment

• Forwarders
• Skidders
• Other Extracting Equipment

7. On-Site Processing Equipment

• Chippers & Grinders
• Other On-Site Processing Equipment

8. Other Equipment, Parts, & Attachments

• Loaders
• Mulchers & All Other Forestry Equipment
• Suppliers
• Parts & Attachments
• Saw Chains, Guide Bars, Blades, & Teeth
• Harvesting & Other Cutting Heads
• All Other Parts & Attachments

9. United States & Canada

10. Latin America

11. Western Europe

12. Eastern Europe

13. Asia/Pacific

14. Africa/Mideast

15. Industry Structure

• Key Findings & Industry Composition
• Market Share
• Mergers, Acquisitions, & Divestitures
• List of Industry Participants

Companies Mentioned

• Caterpillar
• CNH Industrial
• Deere
• Eco Log Sweden
• Hitachi Construction Machinery
• Kesla
• Komatsu
• Makita
• Minsk Tractor Works
• Oregon Tool
• Ponsse
• Rottne Industri
• SENNEBOGEN
• STIHL
• Sumitomo Heavy Industries
• Tigercat Industries
• Volvo
• Weiler Forestry
• Yamabiko

For more information about this report visit https://www.researchandmarkets.com/r/kxt06e

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SOURCE Research and Markets