LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global mini excavators market to grow at a CAGR of almost 4% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global mini excavators market for 2017-2021. The market is segmented based on end-user (constructions, utilities, and agriculture and forestry), and geography (EMEA, APAC, and the Americas).
The global mini excavators market is expected to grow to USD 8.43 billion by 2021. Large-scale investments in infrastructure development projects, such as new airports, manufacturing, and power plants are predicted to increase by 27.24% in 2020. The agriculture and construction markets are the major end-users for excavators. The sharp decline in investments in the real estate sector in the largest construction market, China, made a direct impact on the mini excavator industry. However, the industry is likely to recover around 2018, due to a sudden re-acceleration in the Chinese economy. The demand for mini excavators will increase post 2018.
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Technavio heavy industries research analysts highlight the following three factors that are contributing to the growth of the global mini excavators market:
- Unprecedented demand for energy expanding utilities sector
- Demand from rental market
- Increasing adoption of mini excavators in other applications
Unprecedented demand for energy expanding utilities sector
Power and energy related projects continue to rapidly develop worldwide. The work of mini excavators on these sites varies from laying cables to carrying out maintenance activities. Mini excavators are extensively used in the installation, maintenance, and repairing of electric transmission networks and gas pipelines. Hence, growth in the utility segment will contribute to the increase in the volumes of mini excavators.
Gaurav Mohindu, a lead construction research analyst at Technavio, says, “The utility segment is experiencing extreme transformation due to various factors like climate change and resource scarcity, technological inventions, rapid urbanization, and a shift in global economic power. The converging effects of these technological advances like the growth of distributed generation and policy measures have resulted in new forms of competition and changes in customer behavior, which are transforming the power industry.”
Demand from rental market
Renting equipment has been a large-scale business in the UK, the US, and some European nations for a long time. In the UK, rental organizations use approximately 80% of all apparatus sold. Rental has proven to be a vital division for some excavator manufacturers as an important client source as well as a working division. Emerging economies in Brazil, Russia, India, China, and South Africa (BRICS) have a potential rental market as construction activities, and industrial development continues to grow in these countries.
“Financial constraints, stringent regulations, and growing expenses of proprietorship make rental an appealing option for many contractors and other users. The capacity of rental organizations to tailor both the equipment and financial-related bundles to address the specific issues of individual clients will drive the market growth in the coming years,” says Gaurav.
Increasing adoption of mini excavators in other applications
Mini excavators are increasingly adopted in other applications such as material handling and railway maintenance as they are compact and versatile with a range of attachments. Railways worldwide are adopting excavators for several rail maintenance activities, as they are adaptable and can move on and off the rail tracks. Various attachment options like undercutter bars, hydraulic brush cutters, tie inserters, and tie tampers are available, which can be outfitted with a single machine.
Another end-user that is rapidly adopting excavators is the agriculture industry. Mini excavators are gaining popularity in emerging markets due to the cost advantage they provide over conventional backhoe loaders. Mini excavators are gaining traction in the irrigation sector also, primarily due to versatile applications like trenching, laying pipes, and backfilling.
Top vendors:
- Bobcat Company
- Caterpillar
- J C Bamford Excavators
- Takeuchi Global
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