Global Backhoe Loaders Market is poised to grow at a CAGR of 5.9% during 2019-2027 – Coherent Market Insights
SEATTLE--(BUSINESS WIRE)--Dec 26, 2019--
A backhoe loader or also referred to as digger is heavy mechanical equipment that includes a shovel or bucket on the front, a backhoe on the back, and a unit similar to tractor to which backhoe and bucket are fitted. Backhoe Loader is widely used in urban engineering and small construction projects including building house, moving of earth, road construction, etc. It is a versatile construction equipment vehicle that can be used for digging holes, light transportation of materials, excavation, and breaking asphalt. The backhoe of the vehicle can be replaced with other equipment such as a breaker for breaking concrete and rock.
The global backhoe loader market was valued at US$ 2,518.3 Mn in 2018 and is expected to grow at a CAGR of 5.9% during the forecasted period (2019-2027).
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1. Significant emergence of renting and leasing business is expected to offer lucrative growth opportunities
Backhoe loader vehicles are expensive, which is why challenging to buy for small- and mid-sized companies. Thus, these companies prefer leasing or renting the backhoe loader. Growing demand for renting business in the U.S, India, etc. are expected to offer significant market opportunities for manufacturers during the forecast period.
2. Growing consumption natural gas has increased the demand for gas pipeline, which is expected to pose conducive growth opportunities
Natural gas finds applications in various sectors and is used for cooking, heating, and electricity vernation. Moreover, it is used as fuel in vehicles and in manufacturing plants. Therefore, increasing demand for natural gas worldwide is expected to fuel natural gas pipeline construction projects during the forecast period, which offers lucrative growth opportunities for market players.
Significant initial investment required for procurement of backhoe loader is expected to restrain the global backhoe loader market growth over the forecast period
Backhoe loaders are substantially expensive as compared to an ordinary tractor, which makes it procurement challenging for small- and medium-sized businesses. For instance, a backhoe loader costs around US$ 35,000 to US$ 40,000 per unit, which is not affordable for small business owners. This, in turn, is expected to restrain the market growth over the forecast period.
In global backhoe loader market, by model type segment, Sideshift sub-segment dominated the global backhoe loader market in 2018, accounting for 86.4% share in terms of value, followed by center mount sub-segment.
1. Significant growth of rental market is the major trend
Rental and leasing services are cost-efficient, especially for small- and mid-sized businesses. Moreover, development of latest technology and declining utility lifespan of vehicles have supported the rental and leasing business in the market. There are very few organizations in the market with robust fleet of backhoe loaders.
2. China Trends
When compared to international brands, Chinese machinery is not of the same standard. This is due to shortage of skilled workers and increasing prices of raw materials that are impacting productivity. Furthermore, Chinese manufacturers are entering into dealership agreements with reputed dealers in Southeast Asia, in order to enhance its market presence in the region.
Key companies operating in the global backhoe loaders market are Caterpillar, Inc., Deere & Company, Komatsu Ltd., Mahindra Construction Equipment, Volvo Construction Equipment, J C Bamford Excavators Ltd., Terex Corporation, CNH Industrial NV, Manitou Group, Action Construction Equipment Ltd., and Hitachi Construction Machinery Co., Ltd.
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1. By Product Type
2. By End Use
3. By Region
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KEYWORD: WASHINGTON UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: ENGINEERING AUTOMOTIVE MANUFACTURING MANUFACTURING AGRICULTURE NATURAL RESOURCES OTHER MANUFACTURING
SOURCE: Coherent Market Insights
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PUB: 12/26/2019 10:04 AM/DISC: 12/26/2019 10:04 AM