Forestry Equipment Market Size
The Global Forestry Equipment Market reached USD 9.5 billion in 2022 and is expected to reach USD 13.1 billion by 2030, growing with a CAGR of 4.2% during the forecast period 2024-2031. The global demand for timber and wood products, driven by construction, furniture manufacturing and paper industries, is a significant driver of the forestry equipment market.
Growing population, urbanization and economic development in emerging economies have led to increased construction activities, boosting the demand for timber and driving the need for efficient logging and harvesting equipment.
Chinese forestry equipment manufacturers have been establishing collaborations and partnerships with international companies and organizations to expand their global reach. For example, Chinese companies have engaged in joint ventures, technology transfers and strategic alliances with foreign manufacturers to leverage their expertise, access new markets and enhance product offerings. These collaborations help Chinese manufacturers gain a competitive edge and increase their market share in the global forestry equipment market. Therefore, China accounts for nearly half of the regional shares.
Market Summary
| Metrics | Details |
| CAGR | 4.2% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (USD ) |
| Segments Covered | Equipment, Distribution Channel, Automation and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Sustainable Forest Management Practices
Forest certification programs, such as the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC), have gained significant traction globally. These certification standards ensure that forests are managed sustainably, considering environmental, social and economic factors. The adoption of certification standards creates a demand for advanced forestry equipment that enables compliance with sustainable practices, such as selective logging techniques and reduced environmental impact.
Governments and international organizations have implemented stricter environmental regulations and policies to promote sustainable forest management. For instance, the trade of wood that has been illegally harvested is outlawed by the European Union Timber Regulation (EUTR). Compliance with these regulations necessitates the use of modern forestry equipment that enables traceability, legality verification and sustainable practices. Equipment with advanced monitoring and tracking capabilities supports compliance with these regulations and drives the demand for forestry equipment.
Increasing Mechanization in Forestry Operations
Modern forestry equipment is equipped with advanced technologies like GPS, sensors and computerized control systems. These technologies enable precise and accurate operations, such as felling trees with minimal damage to surrounding vegetation or navigating challenging terrains. Precision in forestry operations minimizes wastage, reduces environmental impact and enhances the overall quality of work.
Mechanized forestry equipment, such as harvesters, forwarders and skidders, significantly enhance efficiency and productivity in forest operations. These machines can perform tasks at a much faster rate compared to manual labor, reducing the time required to complete operations. This increased efficiency leads to cost savings for forestry companies and drives the demand for forestry equipment.
In September 2021, the new H157 track harvester was introduced by Weiler. With the H157, a newly designed clamshell design for better service access will be provided. The harvester also has special machine features like a hydraulically reversing fan, a revised harvesting head for cleaner lines down the boom, new two-feed roller and four-feed roller options and more productive operation.
High Initial Investment
The high capital cost associated with purchasing forestry equipment can pose challenges for small and medium-sized forestry companies. These companies may have limited financial resources and may find it difficult to allocate a substantial amount of capital towards acquiring expensive machinery. As a result, they may continue to rely on manual labor or older, less efficient equipment, limiting their ability to adopt modern mechanized solutions.
The high initial investment required for forestry equipment acts as a barrier to market entry for new players in the industry. Start-up companies or entrepreneurs looking to establish themselves in the forestry sector may find it challenging to gather the necessary funds to invest in expensive machinery. This barrier to entry can restrict competition and limit the overall market growth potential.
Market Segmentation Analysis
The global forestry equipment market is segmented based on equipment, distribution channel, automation and region.
Enhancing Efficiency, Ensuring Safety and Enabling Selective Cutting Roles of Felling Equipment in Forestry Operations
Felling equipment, such as chain saws, mechanized harvesters and feller bunchers, significantly enhance efficiency and productivity in tree felling operations. These machines can perform the cutting process at a much faster rate compared to manual labor, reducing the time required to complete felling tasks. Improved efficiency and productivity lead to cost savings for forestry companies, driving the demand for felling equipment.
For instance, the L-II Series Wheeled Feller Bunchers from John Deere are simple to incorporate to maintain up. It has an operational weight of 13,910 kg (30,704 lb), a gross power of 157 kW (211 hp), a gross torque of 923 Nm (680 ft - lb) and a wheelbase of 3,023 mm (119 in). In order to maximise stability, it combines a long wheelbase with an ideal weight distribution. It is made out of sturdy heavy-duty axles that can withstand the harshest forest conditions and still provide stability and hill-climbing strength. Therefore, the felling equipment holds majority of the global segmental share.
Market Geographical Share
North America's Technological Leadership and Market Dominance in the Global Forestry Equipment Industry
North America is a dominant player in the global forestry equipment market, supported by several factors that contribute to its market dominance. North America is known for its advanced forestry equipment technologies and innovations. Prominent manufacturers in the region, such as Caterpillar Inc., Deere & Company and Komatsu Ltd., have pioneered the development of state-of-the-art forestry equipment. These companies invest heavily in research and development to introduce cutting-edge machinery that enhances productivity, efficiency and safety in forestry operations. The technological leadership of North American companies gives them a competitive edge in the global market.
Resolute Forest Products Inc. decided to spend D 50 million to increase its timber production anticipating a recent housing boom in U.S. By the third quarter of 2022, Resolute Forest's projects are expected to be completed. The company increased its USD 100 million to USD 125 million capital investment estimate for 2021. During the anticipated period, this will aid in the expansion of the North American market for forestry equipment. Therefore, the North America dominates the global forestry equipment market with significant market share.
Market Key Players
The major global players include AB Volvo, Caterpillar Inc., Deere & Company, Doosan Infracore Co. Ltd., Eco Log Sweden AB, Grema, Hitachi Construction Machinery Co., Husqvarna AB, Kesla OYJ and Komatsu Forest.
COVID-19 Impact on Market
COVID Impact
The pandemic led to disruptions in global supply chains, including the forestry equipment sector. Restrictions on international trade, lockdown measures and reduced workforce availability affected the production and distribution of forestry equipment. Factory closures, logistics challenges and delays in the delivery of machinery and spare parts hindered the market's growth during the initial stages of the pandemic.
The pandemic and associated economic slowdown resulted in a decline in forestry activities in many regions. Restrictions on non-essential activities, reduced demand for timber products and financial uncertainties caused forestry companies to postpone or scale back their operations. This decline in forestry activities had a direct impact on the demand for forestry equipment.
Russia- Ukraine War Impact
The conflict leads to trade disruptions, and can affect the supply chains of forestry equipment. Russia is a significant player in the global forestry industry, with a substantial presence in the production and export of forestry equipment. Any disruptions in the supply chains, such as border closures, trade restrictions or transport disruptions, can lead to delays or shortages of forestry equipment in the market.
The Europe forestry equipment market could be directly impacted by the conflict due to the proximity of the region to the conflict zone. Countries in close proximity to Russia and Ukraine may experience disruptions in trade, political tensions and economic uncertainty. These factors can influence the demand for forestry equipment within the region, leading to fluctuations in market dynamics.
Key Developments
- On August 17, 2022, The PONSSE EV1 electric forest machine technology concept was introduced by Ponsse and Epec. Ponsse's futuristic technology concept opens up opportunities for technical advancement and sustainable harvesting techniques.
- On March 30, 2021, due to strong housing and material demand, Japanese equipment manufacturer Komatsu expects forest machinery to produce 140 billion yen (USD 1.27 billion) in revenue after four years, a 40% increase. By providing a more robust portfolio of machinery for the North American market, including feller bunchers and forwarders, Komatsu aims to achieve its goal. In terms of area, the U.S. has the fourth-largest distribution of forests in the entire globe.
- On March 9, 2021, the development of forestry machinery has traditionally concentrated on developing stronger machines. A new tech-driven project from John Deere will combine strength and intelligence. Deere will reorganize its technology portfolio under the Precision Forestry initiative and step up the delivery of solutions aimed at boosting effectiveness and productivity in the forests.
Why Purchase the Report?
- To visualize the global forestry equipment market segmentation based on equipment, distribution channel, automation and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of forestry equipment market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global forestry equipment market report would provide approximately 61 tables, 60 figures and 212 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
