Global Backhoe Loaders Market 2019-2023
About this market
Telematics is already being provided for large construction equipment since the early 2000s. However, construction equipment manufacturers have also started offering telematics for compact or small construction equipment such as backhoe loaders. By providing GPS location and equipment run time, telematics in backhoe loaders help fleet owners in scheduling preventive maintenance and better fleet management. The construction industry is growing rapidly in Asia, Africa, and the Middle East. This have led to an increase in fleet size and boosted the demand for onboard telematics in small construction equipment. With the scope of telematics being expanded from basic features, the increasing use of telematics in compact and small construction equipment will drive the growth of backhoe loaders market during the forecast period. Technavio’s analysts have predicted that the backhoe loaders market will register a CAGR of almost 6% by 2023.Market Overview
Growing investment in natural gas pipeline projects
Natural gas production in the US, Iran, Qatar, China, and Australia has increased. This have resulted in a decrease in natural gas cost, which, in turn have led to increased global natural gas consumption. Several countries including the US, and Russia are investing in pipeline projects to transmit and distribute natural gas to other countries. Since backhoe loaders are an essential equipment used for grading, dozing, trenching, and loading activities in natural gas pipeline projects, increasing investments in this sector will lead to market growth.
High concentration of demand
The global backhoe loaders market is concentrated in a few countries with India and the US accounting for approximately 55%-60% of backhoe loaders unit sales worldwide. China and Europe accounts for less than 1% and 3% of the global backhoe loaders unit sales respectively. A slowdown in the construction sector of these countries will pose as a risk to the growth of the backhoe loaders market due to the over reliance of the market on few countries.
For the detailed list of factors that will drive and challenge the growth of the backhoe loaders market during 2019-2023, view our report.
The market appears to be fairly concentrated and with the presence of companies such as Caterpillar, and Deere & Company the competitive environment is intense. Factors such as the increasing demand for natural gas pipeline projects, will provide considerable growth opportunities to backhoe loader manufacturers. Caterpillar, Deere & Company, JC Bamford Excavators, Komatsu, Manitou, and Mecalac are some of the major companies covered in this report.
Technavio Announces the Publication of its Research Report – Global Backhoe Loaders Market 2019-2023
Technavio recognizes the following companies as the key players in the global backhoe loaders market: Caterpillar, Deere & Company, JC Bamford Excavators, Komatsu, Manitou, and Mecalac.
Commenting on the report, an analyst from Technavio’s team said: “The increasing use of telematics in small and compact construction equipment will help in providing better visibility of assets to fleet owners. The use of telematics will help in better fleet management and preventive maintenance, which will help in the growth of the backhoe loaders market.”
According to the report, one of the major drivers for this market is the growing investment in the construction of natural gas pipelines. The increasing demand for natural gas has led to a growth in natural gas pipeline projects. This have boosted the growth of the backhoe loaders market as it is an essential construction equipment in the pipeline projects.
Further, the report states that one of the major factors hindering the growth of this market is the high concentration of the backhoe loaders market with very few countries accounting for the highest unit sales. A high reliance on a few countries will hamper the growth of the market since any slowdown of the construction sector in these countries will affect the revenue generated.
Deere & Company
JC Bamford Excavators
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