Earthmoving equipment, such as mining excavators, construction excavators and dozers, are heavy equipment that serve the primary as well as secondary sectors of an economy. One of the vital parts of an earthmoving equipment is undercarriage.
Undercarriages consist of several components, including track shoes, final drive units, track rollers and other auxiliary components, to support the movement of earthmovers. Since the cost of new construction equipment is much higher than the cost of replacing existing components, operators tend to supplant earthmoving equipment undercarriage, bolstering the aftermarket trading of undercarriages.
Furthermore, an earthmoving equipment undercarriage represents a significant proportion of the equipment’s purchase price and upkeep and maintenance of undercarriages is not a short-term activity. Moreover, nearly half the overall maintenance cost of an equipment can be attributed in its undercarriage. During operations, undercarriages experience wear due to rough terrains.
For the proper operation of an equipment, maintenance plays a vital role, which subsequently creates an opportunity for aftermarket maintenance and repair activities. The demand for earthmoving equipment carriages can be correlated with the growth of end-use industries, such as construction, agriculture, and mining. Therefore, significant investment, government initiatives, and subsidies elevate the sales of earthmoving equipment undercarriages.
Globally, the mining machinery and equipment market is being propelled by the prospect of an increase in the extraction activities for metals, such as copper and iron ore, and this market growth is primarily being impelled by new production expansions and projects across the globe. Demand for metal mining equipment is foreseen to grow owing to gains in the sales of coal mining machinery, such as excavators, coupled with ongoing efforts to mechanize coal mining operations in some regions.
Federal governments across developing countries have enhanced investments in the field of infrastructure development such as roadways railways and other public developments. Rapid economic growth against the backdrop of large infrastructure gap has proliferated healthy prospects for the construction industry. Consequently, growth in the utilization of construction equipment will likely underpin the demand for replacement of earthmoving equipment undercarriages.
The presence of a large number of OEMs has led to significant growth in North America with the U.S. at the forefront of the market. Substantial manufacturing infrastructure powered by strong anticipated demand from other regions, such as ASEAN, Latin America and the Middle East & Africa, strengthen the U.S. earthmoving equipment undercarriage market.
The Middle East & Africa earthmoving equipment undercarriage market is dominated by South Africa and Egypt. In the past three years, overall regional growth was flat; however, recent mining infrastructure plans in the region are expected to augment the demand for the aftermarket as well as OEMs.
Proposed iron ore extraction projects in Brazil and Russia are also expected to increase the need for replacement of earthmoving equipment carriages, further bolstering the market for mining equipment in these countries.
The Chinese market is foreseen to have a positive outlook, which can be attributed to the voracious demand for minerals in the country. In line with this, hefty growth is expected in the sales of earthmoving equipment carriages in the upcoming years. In Latin America, most of the countries are endowed with a wide range of minerals and to boost productivity, mining companies import construction equipment from North America and Europe.
Various macroeconomic factors fortify the demand for earthmoving equipment undercarriages. Some of the main challenges faced by mining industries across nations include environmental, health and safety regulations, high initial cost, and fluctuating currency rates, aggravated by lower commodity prices.
Some of the key players identified across the value chain of the global earthmoving equipment undercarriage market include:
Shift of demand to developing markets and increasing prominence of aftermarket products are considered as key trends by OEMs. Growth opportunities are also likely to stem from the increasing demand for bulldozers, wheel loaders, and excavators in the market, which can be further attributed to the Belt and Road Initiative by the Chinese government. Amid improving global economic implications, many operators across the world prefer purchasing new equipment. This, in turn, will affect the growth of the aftermath sales of earthmoving equipment carriage components. Nonetheless, the growing versatility of heavy equipment is anticipated to countervail the demand for attachments.
FMI will follow a modeling-based approach and triangulation methodology to estimate data covered in this report. A detailed market understanding and assessment of the nature, product type and end uses of the product segments covered in the study are followed by a demand-side analysis to estimate the sales of target product segments, which is then cross-referenced with a supply-side assessment of value generated over a pre-defined period.
Besides this, the study will identify an installed base of earthmoving equipment undercarriages as of the base year and road construction projects being carried out at a country/region level to trace the trajectory of the demand for earthmoving equipment undercarriage in the coming years.
Manufacturing growth rate, coupled with the replacement rate of earthmoving equipment undercarriages in the market across the globe, will also be assessed in the report. The statistics and data will be collected at the regional level and synthesized at the global level to estimate the overall market size.
Some of the key data points covered in our report include:
The research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data. It also contains projections using a suitable set of assumptions and methodologies. The research report provides analysis and information according to market segments such as geographies, application, and industry.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.
The global earthmoving equipment undercarriage market can be segmented on the basis of equipment type, sales channel, application, and regions.
On the basis of equipment type, the global earthmoving equipment undercarriage market can be segmented as:
On the basis of sales channel, the global earthmoving equipment undercarriage market can be segmented as:
On the basis of application, the global earthmoving equipment undercarriage market can be segmented as:
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