Global Off-Road Equipment Market to Grow 4.2% Annually Through 2024

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Mar 09, 2020, 09:47 ET

CLEVELAND, March 9, 2020 /PRNewswire/ -- A new Freedonia Group analysis projects global demand for off-road equipment to hit $486 billion by the end of 2020, and increase 4.2% per year through 2024:

Gains will be boosted by technological advances that improve off-road equipment efficiency and productivity driving new and replacement sales in large, high-income markets, such as the US, Germany, and Canada.
However, growth will be fastest in developing world markets such as Brazil, China, and India, where increasing populations, construction activity, and mechanization rates are driving sales.

OEM investment in automatous and robotic technologies to increase

Off-road equipment OEMs are increasingly focused on equipping machinery with autonomous capabilities, such as obstacle detection, self-navigation, and Industrial Internet of Things (IIoT) interoperability:

In particular, demand for tractors, excavators, haulers, harvesters, and other equipment will benefit from their wide use in mining and agricultural applications, where autonomous capability can have a major impact on operational efficiencies.
The use of autonomous equipment will particularly benefit customers in countries such as the US and Japan, where labor shortages and high wages make high-performance equipment a valuable investment.

Addressing environmental concerns, user comfort remain key areas of focus of R&D

Amid mounting concerns about climate change, off-road equipment is subject to increasingly stringent diesel emission requirements, driving many end users to adopt all-electric machinery that helps to both reduce operating costs and adhere to regulations. While all electric equipment is still in the early stages of development and commercialization, these powertrains are poised to cause significant market disruption.

In addition, labor shortages in key markets – such as mining and forestry, where dangerous conditions make employee recruitment a challenge – are driving interest in machinery with improved ergonomics and ease-of-use that can both help to retain workers and increase productivity per machine.

Want to learn more?

Global Off-Road Equipment Technology 2020 is now available from The Freedonia Group. The study analyzes the global market for off-road equipment by equipment by type and region, providing historical demand for 2019 and projections for 2020 and 2024, as well as a comprehensive technological overview (including demand for smart machinery) and both national and manufacturer spotlights highlighting key trends impacting the global market.

About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, and market share information. Studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.

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SOURCE The Freedonia Group