Global Forestry Equipment
Global demand for forestry equipment is projected to expand 4.0% annually to $10.8 billion in 2027. While demand in real terms has been negatively impacted by elevated machinery prices and the conflict in Ukraine in 2022 and 2023, it (along with market value) is expected to grow through the rest of the forecast period, driven by:
- rising forestry sector mechanization rates in the Asia/Pacific and Africa/Mideast regions, and Latin America, aided by increasing foreign participation
- the significant equipment replacement needs of Europe, the US, Canada, New Zealand, and other mature markets
- an improved market outlook in China following a poor 2022 performance that resulted from the country’s severe pandemic mitigation methods
The US & Canada to Register the Largest Market Gains through 2027
The US and Canada will account for 31% of absolute gains through 2027, the largest share of any region. Forestry operations in the area will boost output in response to improving conditions in the manufacturing and construction sectors and high e-commerce activity. They will also continue to benefit from sanctions imposed on Russia and counter-sanctions imposed by Russia in the near term. Finally, forestry companies in the US and Canada will increase their use of newly developed, state-of-the-art forestry equipment as they confront a variety of workforce issues and cope with increasing competition from abroad and the adoption of new regulations. However, they will have to cope with a variety of challenges, such as infestations, climate change, wildfires, and mill closures.
Eastern Europe Outlook Will Improve Following Near-Term Declines Due to Ukraine Conflict
Market conditions in Eastern Europe deteriorated sharply in 2022 because of the conflict in Ukraine, which led to economic turmoil, a drop in regional forestry activity, deteriorating conditions in key end use markets, rising energy costs, and supply chain disruptions. As many US, Canadian, and West European suppliers pulled out of the Russian and Belarussian markets, equipment availability decreased dramatically and the region experienced delivery delays. However, suppliers in Russia, Belarus, and China began to develop new models to replace equipment from foreign multinationals that withdrew. The conflict continued to restrain forestry equipment sales growth in Eastern Europe in 2023.
Market conditions are expected to improve significantly during the second half of the forecast period as the conflict stabilizes, the regional economy grows, manufacturers gradually return to the Russian and Belarussian markets, and forestry activity in Eastern Europe rises. Foreign investment in the regional forestry sector will rebound, helping to drive technological innovation.Study Description
This Freedonia study analyzes the $9 billion global forestry equipment market. It provides supply and demand figures for 2012, 2017, and 2022, and forecasts for 2027 and 2032, as well as annual data for the 2019-2026 period and historical forestry equipment demand charts for the 2000-2022 period for all countries. Global Forestry Equipment also presents product demand by type for 14 countries: Felling Equipment (Chainsaws, Harvesters, and Feller Bunchers & Other Felling Equipment); Extracting Equipment (Forwarders, Skidders, and Other Extracting Equipment); On-Site Processing Equipment (Chippers & Grinders, Delimbers, Slashers, & Other On-Site Equip); Other Forestry Equipment (Loaders, Mulchers & All Other Forestry Equip); and Separately Sold Parts & Attachments (Saw Chains, Guide Bars, Blades, & Teeth; Harvesting & Other Cutting Heads; and Other Parts & Attachments). Additionally, the study provides a competitive analysis of industry leaders and provides market share.
In addition, this Freedonia study offers a competitive analysis of industry leaders and provides market share for 23 key manufacturers, Caterpillar, CNH Industrial, Deere, Eco Log Sweden, Hitachi Construction Machinery, Kesla, Komatsu, Makita, Minsk Tractor Works, Oregon Tool, Ponsse, Rottne Industri, SENNEBOGEN, STIHL, Sumitomo Heavy Industries, Tigercat Industries, Volvo, Weiler Forestry, Yamabiko