Compact Loaders Market

2020 Analysis and Review: Compact Loaders Market by Product – Compact Track Loaders, Skid Steer Loaders, Wheel Loaders, and Backhoe Loaders for 2020-2030

Compact Loaders Market Research and Key Findings

  • Construction industry to remain key revenue generator in global compact loaders market through 2030
  • Tech-driven compact loaders to lead the way in near future
  • Asia Pacific (APAC) to remain ground zero of growth opportunities, given surging infrastructure and construction projects
  • Market to recover amid and after COVID-19 crisis as construction projects are resuming as lockdowns ease

Compact Loaders Market Analysis – Miniature Muscle in Construction Industry

Prominently leveraged for loading and unloading bulk materials, compact loaders have become stepping stone between skid steer and large wheel loaders. These compact construction equipment support almost every segment, from gardening and landscape to civil engineering road, and agriculture.

The global compact construction equipment market – parent industry – is expected to peg around US$ 15 Bn by 2025, suggest recent studies. Attributed to their versatility, compact loaders have become key multi-tool carriers essential for today’s diverse market landscape.

The compact loaders industry is represented by products that are small-size, efficient, fit into confined settings, fins use in several applications, and are cost-effective – all of which are spurring their adoption as demand for construction and infrastructure grows. Such umpteen advantages of compact loaders are boosting their prevalence across almost every region, especially North America and Europe.

On the flip side, the COVID-19 pandemic has hit the profit margins of compact loader manufacturers as myriads of construction projects have been halted due to nationwide lockdowns. Despite, gradual relaxations, merely 20% of projects on hold are anticipated to resume imminently.  

That said, infrastructure development projects are expected to stretch over coming year, albeit steadily. This follows various governments’ initiatives to speed up projects in a bid to accelerate economic activity, majorly led by the Americas and Asia Pacific (APAC).

Compact Loaders Market Trends – Compact Loaders to Become Smarter

Automation and technology have been rapidly emerging trends for majority of categories in off-road construction machines for quite a while, yet equipment such as compact track loaders and skid steer loaders are seeing impressive progress.

Akin to their larger loader counterparts, compact skid steers and track loaders are making rapid advances on technological front. Moreover, the COVID-19 pandemic is compelling industrials to unleash smarter and safer approaches of manufacturing commercial buildings.

Operator stations are armed with advanced digital control panels that enable additional attachment and equipment automation. Regular operations such as hydraulic flows, boom settings, attachment speeds, and return-to-dig functions can be automated into joysticks and engineered into armrests that can be customized as per customers’ convenience.

Digital interfaces enable operators to personalize and save these machine settings, add security measures, and change languages. Furthermore, installation of telematics systems allow to trace and records machine functions, lead maintenance routines, perform security actions such as geofencing and ultimately aid users operate better.  

Compact Loaders Market Regional Analysis – North America and APAC Continue to Engage Stakeholders

The compact loaders market in APAC is largely propelled by notable rise in construction and infrastructure development projects in countries such as China, India, and Indonesia. With regards to investments in infrastructure, majority of prominent global investors have extended their footprints in Asia over recent past, setting forth new credit funds with norms to invest at least partially in infrastructure.

Studies reveal that global value of infrastructure construction has grown by annual average of 3.2% over past five years. This progress is primarily attributed to Asia, with infrastructure construction in South and South-East Asia flourishing at 6.8%, while 5.4% in North-East Asia.

High costs compared to conventional backhoe loaders is among key factors for limited adoption of skid steer loaders in emerging economies such as India. Furthermore, APAC is home to leading players including, Hyundai Heavy Industries Co. Ltd., Komatsu Ltd., and Kubota Corporation.

The US is seeing urgent need to upgrade existing civil facilities, especially road infrastructure. Recent estimates state that about 11% of US road bridges require urgent repair, one in three major roads exist in inferior condition and about 40% of primary urban highways are congested.

While compact skid loaders are utilized on large scales in popular in construction and mining activities in North America, compact skid steers are still in their nascent phase.

Europe’s compact loaders market is experiencing steady growth as the region has been deeply impacted by the COVID-19 pandemic. The Committee for European Construction Equipment (CECE) reveals that Europe is likely to see decline in sales of construction equipment including, all kinds of compact loaders.

Significant number of construction equipment production units has been closed down in Europe. In addition, the developed region is confronting customer-related issues such as cancellation of infrastructure projects and suspension of construction sites. Such trends are expected to slump the sales of construction equipment by 10-30%.

Compact Loaders Market Players – Tech-forward Advances to Become Focus Area

In an effort to grab value at stake, market players are devising comprehensive strategies for arming compact loaders with advanced technologies to improve operational output and overall efficiency. Case in point,

  • Liebherr Group has manufactured compact wheel loaders equipped with advanced assistant systems and joystick steering that allow straightforward operation.
  • CNH Industrial N.V. has built compact wheeled loaders propelled by electrohydraulic controlling unit that incorporates over 20 electrohydraulic sensors and actuators for optimizing machine operation and improving operator controllability.
  • Bobcat has launched novel skid steer loader - S100E – that is in compliance with stage-V emission standard. The equipment houses auto ride control, rear camera, LED sidelights, cushioned cylinders, heated cloth air seat, and auto-reversing fan.
  • Hitachi is developing GPS-enabled intelligent machine control compact loaders that offer umpteen accuracy at job locations.

Such tech-driven developments are likely to augur well for global compact loaders market growth over following decade. Manufacturers investing in product upgradation are thus improving their revenue growth and expanding their user base.

Compact Loaders Market Future Outlook – Electrification Trend Reaches Manufacturing Units

Recent estimates suggest that construction sector is likely to contribute 35-45% of CO2 released into atmosphere, making it leading factor responsible for global warming. In view of global commitments to curb greenhouse gas (GHG) emissions and tackle climate change, the compact loaders industry are required to proactively embrace more sustainable techniques.

Several industries are striving to bring down their carbon footprint and as regulations are becoming stricter, customers are increasingly shifting towards electric compact loaders to fulfil these requirements. Electric compact wheel loaders reduce carbon emissions by about 30% compared to traditional construction equipment.

Compact construction equipment are primarily manufactured for inner city applications. Further electrification of these machines will help end users perform on-site operations with reduced noise and vibrations, and zero exhaust fumes.

Electric compact loaders are bringing to the fore new segments for businesses, with traditional customers showing greater interest to the new technology. While utility works and landscaping are conventional application areas for compact excavators, they are now witnessing demand for other job sites such as tunneling maintenance or indoor demolition.

Furthermore, the trend towards electrification of compact loaders is poised to persist as technology matures and becomes more consolidated for off-road use cases.

  • Base year considered - 2019
  • Historical Period- 2015 - 2019
  • Forecast period - 2020 - 2030
  • Market Value in 2019 -
  • Segments covered -Product type, application and region
  • Regions Covered -North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Middle East & Africa (MEA), and Japan
  • Key Companies-Caterpillar Inc., Komatsu Ltd., Hitachi Construction Machinery Co. Ltd., Yanmar Holding Co. Ltd., Volvo Construction Equipment, Liebherr Group, Deere & Company, Xuzhou Construction Machinery Group Co. Ltd., Sany Heavy Industry Co. Ltd., Doosan Corporation, KUBOTA Corporation, CNH Industrial N.V., and Takeuchi Mfg. Co. Ltd.

Key Questions Answered in the Report:

  1. Which product type will hold major share of compact loaders market globally and why?
  2. What are the factors driving the global compact loaders market?
  3. What will be the revenue size of compact loaders market by 2030?
  4. Who are the leading manufacturers in the compact loaders market?
  5. Which trends and innovations are expected to transform the global compact loaders market in coming years?

General FAQs:

  1. Can I receive market report created as per particular region (s)?

Although the market report is created as per global trends and industry dynamics, our analysts can also offer reports for specific regions or countries according to your needs.

  1. Does the market report offer detailed background of mentioned players?

Apart from the market players covered in the report, we provide insights about other players that are associated with the global compact loaders market.

  1. Can we get market size and growth rate of any year?

Yes, we provide market size and growth rate (both in terms of value and volume) of any year within the specified historic and projection timeframe.

Market Taxonomy

Application

  • Construction
  • Agriculture and Forestry
  • Industrial
  • Utilities

Product Type

  • Compact Track Loaders
  • Skid Steer Loaders
  • Backhoe Loaders
  • Wheeled Loaders

Region

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • Asia Pacific excluding Japan
  • Middle East and Africa
  • Japan

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