Compact Wheel Loaders Market By Product (Compact Track Loaders, Skid Steer Loaders, Backhoe Loaders, Wheeled Loaders), Application (Construction, Agriculture & Forestry, Industrial, Utilities) & Region - Forecast 2020 - 2030

COMPACT WHEEL LOADERS MARKET: KEY INSIGHTS

• The global compact wheel loaders market will surpass US$ 5 Bn in 2022.
• Upsurge in construction and infrastructure development projects would be critical in shaping the growth curve of the compact wheel loaders market.
• Compact track loaders maintain their primacy; backhoe loaders to pick pace.
• Manufacturers continue to target the construction industry for meaningful business prospects.
• Europe would remain at the forefront in the global compact wheel loaders market; markets in Latin America and Oceania to grow at rapid CAGRs.

KEY FACTORS SHAPING COMPACT WHEEL LOADERS MARKET

Product Development with Tech-enabled Advancements

Construction equipment manufacturers have introduced intelligent assistant systems in compact wheel loaders that enable operators to steer comfortably with a single hand. Manufacturers are focused on developing new products in order to ensure improved operational output along with optimum efficiency. For instance, in 2018, Liebherr Group introduced new joystick steering and intelligent assistant systems for wheel loaders.

The innovative joystick steering system enables easy operation of wheel loaders. Additionally, manufacturers are developing compact wheel loaders with electrohydraulic controls to improve operator controllability and optimize machine operation. For instance, in 2019, CNH Industrial N.V. developed compact wheel loaders equipped with an electrohydraulic controlling unit, containing over twenty electrohydraulic actuators and sensors in the machine.

Introduction of Stricter Environmental Regulations

In certain regions, the construction equipment industry faces challenges of meeting strict standards. For instance, Europe is undergoing major transition as new regulations come into existence to meet emission standards imposed by government agencies such as EPA (Environmental Protection Agency). These emission standards have been steadily introduced to limit harmful substances in exhaust gas, including hydrocarbons (HC), carbon monoxide (CO), and nitrogen oxides (NOx). These regulations require manufacturers to invest heavily in new technologies, as such, hitting their profit margins.

Establishment of New Manufacturing Facilities to Meet Growing Demand

Manufacturers of compact wheel loaders are focusing on establishing new plants that help companies increase production capacity and get access to new distribution networks, which is expected to expand the customer base. For instance, Doosan Corporation has launched a new unit to manufacture compact construction equipment, so as to increase its price competitiveness. Price competitiveness avoids trial-and-error cost of the price-setting process and helps set the price at the same level as competitors.

Europe to Stay Atop through 20230

In terms of value, the compact wheel loaders market in Europe has a leading revenue share. However, Europe is expected to face a slowdown due to the COVID-19 pandemic, creating a long-term impact on the regional market. The market in South Asia is anticipated to record notable annual growth over the forecast period, owing to growing demand for compact wheel loaders for construction activities in the region. Further, India, China, and Brazil are likely to offer the most lucrative prospects in the compact wheel loaders market.

COMPACT WHEEL LOADERS MARKET: STRUCTURE ANALYSIS

• Caterpillar Inc., Komatsu Ltd., Hitachi Construction Machinery Co. Ltd., Doosan Corporation, and Doosan Corporation are players with leading value shares in the global compact wheel loaders market.
• New product launches with advanced technology along with meeting stringent government regulations is the new strategic move of a majority of market players to gain a competitive advantage.
• The global compact wheel loaders market is consolidated, where tier 1 players hold around 2/5 of the total global market revenue.

• Base Year - 2019
• Historical Period - 2015-2019
• Forecast Period - 2020-2030
• Market Value in 2019 - US$ 4.8 Bn
• Segments Covered - Product, Application, and Region
• Regions Covered - North America, Latin America, Europe, South Asia, East Asia, Oceania, and the Middle East and Africa
• Key Companies - Komatsu Ltd., Caterpillar Inc., Wacker Neuson Group, Deere & Company, KUBOTA Corporation, CNH Industrial N.V., Xuzhou Construction Machinery Group Co. Ltd., Hitachi Construction Machinery Co. Ltd., Volvo Construction Equipment, Yanmar Holding Co. Ltd., Doosan Corporation, Liebherr Group, Takeuchi Mfg. Co. Ltd., Avant Tecno Oy, TOBROCO-GIANT, MECALAC, and Schäffer Maschinenfabrik GmbH.
• Growth Drivers
  • Investment upheaval in construction projects
  • Rising shift towards electric compact wheel loaders
  • Leading players are focusing on developing tech-advanced compact wheel loaders

Compact Track Loaders Continue to Lead the Pack

Compact track loaders offer the benefits of better maneuverability, lifting abilities, and multiple attachments compatibility. As such, manufacturers are profoundly investing in them. Although they are cost-intensive, they are the best bet, especially in regular application in rough conditions. However, they will fade over the decade ahead, as they require continuous maintenance.

Moving on, backhoe loaders are highly versatile, and are considered ideal for projects with stretched worksites. These factors have thus brought them to the attention of market players.

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Europe Maintains its Lucrativeness, Despite COVID-19 Spread

Europe has been the ground zero of value-creation opportunities in the compact wheeler loaders market. By the end of the following decade, the market in Europe will register around US$ 2.5 Bn revenue. However, the absolute numbers of COVID-19 infections in Europe are on the rise, particularly in heavily affected countries - Spain and Italy. As such, a majority of the developed region is undergoing a manufacturing shutdown, thereby straining revenue growth of the compact wheel loaders market in Europe.

This alarming situation is compelling manufacturers to cite potential opportunities in Latin America, Oceania, and South Asia, wherein, governments are increasingly spending on construction and infrastructural development projects.

Developing Products With a Blend of Advanced Technologies

In order to capture value at stake, manufacturers are crafting extensive strategies for equipping compact wheel loaders with advanced technologies to enhance operational output and overall efficacy. For instance, Liebherr Group has developed compact wheel loaders coupled with a joystick steering and intelligent assistant systems that enable easy operation. Going forward, players are manufacturing compact wheel loaders armed with electrohydraulic controls to improve operator controllability and optimize machine operation.

For instance, CNH Industrial N.V. has developed compact wheel loaders driven by an electrohydraulic controlling unit that houses over twenty electrohydraulic actuators and sensors. Players investing in tech-enabled solutions are thus boosting their sales growth and improving their customer base.
 

How Growth will Unfold

Around half of the overall compact wheel loaders market value would be realized by the construction industry. Primarily utilized for loading and unloading bulk materials, compact loaders are a stepping-stone between large wheel and skid steer loaders. On the other hand, market players are also placing their bets on the agriculture & forestry and industrial sectors, where they would glean over US$ 2 Bn in 2020. Further, the deployment of compact wheel loaders in both these industries would ascend at identical CAGRs over the predefined timeframe.

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COMPACT WHEEL LOADERS MARKET TAXONOMY

The global compact wheel loaders market is segmented in detail to cover every aspect of the market and present complete market intelligence to the readers.

Product

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

Application

• Construction
• Agriculture & Forestry
• Industrial
• Utilities

Region

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• MEA