Emphasis on Construction, Mining, Agriculture and Utilities
The global excavator market as of 2021 hovered over 46 billion dollars and the estimate is expected to arrive at 70 billion dollar (estimated projection based on industry trends) within the next 5 years or 2027. The expected market growth is currently being seen at 6% CAGR from 2022 all the way to 2027. The rising demand for excavators has been attributed to a few industry segments mainly construction, mining and the utilities sector. The demand from these sectors is heavily tied to the rising investments afforded by the government of developing and as well as developed nations towards infrastructural projects, large-scale agriculture which also involves forest clearing, and mining. The modern excavators that come with a variety of technological features such as telematics, GPS and autonomous functions has resulted in higher productivity and low fuel usage which has further driven demand for these machines that are crucial for most construction projects.
These market developments have been identified as direct contributors to the expected growth of the excavator market between 2022 and 2027. Although standard sized excavators have been the largest excavator category, demand for mini or compact excavators is also experiencing rapid growth with demand for electric powered mini excavators close behind. The demand for compact versions of these machines are attributed to the excavator rental business niche that cater for a high number of domestic or home improvement projects and light applications in urban areas where compact excavators have risen in popularity.
Furthermore, the rise in both commercial and residential developments that fall under intelligent or smart-city initiatives require both standard and heavy machines for a wide variety of applications which includes demolition of older unwanted structures which has triggered the rise in demand for skid steers and compact track loaders which increases demand for such equipment even more. Skid steers and compact track loaders according to industry observers have been also been joining the rental niche fleets rapidly as these machines are also fitted with the latest automation elements, digital assistance tools and hydraulic coupling systems that allow skid steers to substitute the functions of the excavator in most scenarios.
Both the excavator and the skid steer have generally become the cornerstones of construction projects big and small due to the higher efficiency and productivity of these machines that use technologies such as ‘Dig Assist technology’ that offers the operators of these machines real time guidance that increases the operator’s productivity levels significantly. According to industry analyst a large portion of the demand rise could be directly attributed to such solutions which also directly increase excavator and skid steer market revenue. Other features that trigger demand for newer machines constantly include sensors, high resolution cameras and monitoring systems that help even under experienced operators to perform tasks as equally well as seasoned operators. The latest technological inclusions include telematics that consolidate large amounts of data that deliver predictive analysis for project managers or operators to automate the functional aspects of these machines.
Telematics have also been seen by the construction equipment for rental operators as a solution for fleet management as they are able to maintain their machines better. Telematics basically provide rental businesses with accurate data on the usage of these machines which allow them to accord pre-emptive maintenance schedules that potentially extend the duration of the machine’s useful life. Such solutions would naturally cause rental operators to expand their fleets and remain relevant to the construction industries in their region which naturally causes an increase in demand for the latest excavators or skid steers.